Danfoss delivered strong financial results for 2019 with sales increasing three per cent.
Releasing the 2019 annual report this week, Danfoss President and CEO, Kim Fausing, said the company increased earnings despite difficult market conditions.
In 2019, Danfoss sales reached EUR 6.3 billion ($A10.73 billion) with strong operating profits (EBITA), which grew 6% to EUR 771 million ($A1.31 billion) with an EBITA margin of 12.3%.
Historically, it was a record high operating profit. Danfoss said cash flow from operating activities increased 17% to a very strong EUR 789 million ($A1.34 billion).
”The global mega-trends continue to transform the world, creating new opportunities for Danfoss,” Fausing said.
“For example, the high global focus on solving climate change is creating increasing demand for technologies and solutions within energy efficiency, sector coupling, and electrification and green energy. In this context, Danfoss’ solutions are more relevant than ever before.
“The centre of our strategy is long-term value creation. The best way to generate value is to ensure that our core businesses maintain their leading positions globally and that we stay at the technology forefront.”
Fausing said the strategy includes a high level of investment in innovative solutions.
This was reflected in the 7% increase in R&D to EUR 272 million ($A463.5 million), equal to 4.3% of sales. To further strengthen the business segments, Danfoss acquired four companies in 2019.
“These targeted-acquisitions have added new technologies to the portfolio; for example, to electrify buses, trucks, off-highway vehicles and marine vessels, and smart solutions based on artificial intelligence to optimize heating systems in buildings and district energy networks,” Fausing said.
“Most recently, Danfoss entered into an agreement to acquire Eaton’s hydraulics business to become a global leader within mobile and industrial hydraulics, which is one of Danfoss’ core businesses.”
Danfoss also aims to reach a new ambitious target to become CO2 neutral by 2030 at the latest. The company has also set ambitious targets to reach 25% of female leaders by 2022 and 30% by 2025.