Danfoss had ‘transformational year’ in 2021
By Mike Brezonick03 March 2022
Danfoss announced that 2021 sales increased 29% to €7.5 billion, a record for the Nordberg, Denmark-headquartered manufacturer of drive, hydraulic control and climate systems technology. The company reported that organic growth reached 18% year-over-year, while its five-month ownership of Eaton’s hydraulics business added €786 million to the topline.
Danfoss said it delivered extensive growth in all regions and operating profits reached the highest level ever with net profit of €631 million, up 45%.
“We have never seen better opportunities for Danfoss,” said Kim Fausing, Danfoss president & CEO.
“It is our ambition to be the leading technology partner for our customers in the green transition – decarbonizing through energy efficiency, low emissions, and electrification. After all, the greenest energy is the energy that we don’t use. Our momentum is clearly reflected in our 2021 annual results. Danfoss has delivered the best results in our history, and we are in a strong financial position.
“What makes me most proud is how our teams continue to deal with the pandemic and the significant challenges with the supply chain while delivering a transformational, record year.”
Danfoss said that In 2021, the company reached its 2030 targets of doubling its energy productivity compared to the 2007 base-year in global operations. The company said that in 2022, its 250,000 m2 production and office space in Nordborg, Denmark, will become CO2 neutral.
Going forward, Danfoss said it has a positive outlook in the market with a continued ambition to expand or maintain market share. The outlook includes a full year ownership of Eaton’s hydraulics business. Sales are expected to be in the range of €8.8 to €9.8 billion for the full year.
The expected growth and profitability performance is dependent on the development of the pandemic, the global supply chain disruptions as well as the continuation of the current strong growth rates in the world economy.