Danfoss has been hit by lower demand in core markets in the first half of 2024. This has had consequences for both revenue and profit, which have decreased compared to the same period the previous year. This is shown by Danfoss' accounts for the first half of 2024, which were published on Wednesday.
This shows that the company has earned 291 million euros during the first six months of the year. This corresponds to almost 2.2 billion. DKK and is a decrease of 28 percent compared to the first half of 2023. Revenue is just over five billion euros, corresponding to a little more than 37 billion. DKK. This is a decrease of nine percent.
The lower demand is seen, among other things, in end markets for agricultural machinery and within the construction sector and road construction, Danfoss writes in a press release in connection with the accounts.
Danfoss points out in the press release that the level of activity in both Europe and China remains weak, which is expected to continue for the rest of the year. There are also signs of a slowdown in the USA, it says.
- We have successfully navigated various economic cycles in the past, and we are doing so again now. Even though the current situation is challenging, it is important to emphasize that we are maintaining our long-term growth strategy, says Kim Fausing, CEO of Danfoss, in the press release.
Layoffs on the way
Danfoss develops and produces mechanical and electronic components within, among other things, the energy sector. Danfoss also states that the company has initiated an "update" of the way the business is run.
As a consequence of this, employees will be laid off, it says. It is not clear how many layoffs will be involved. According to Kim Fausing, this will lead to further decentralization so that decisions are made closer to the customer.
- By eliminating duplication and overlapping responsibilities, we simplify the organization to ensure greater agility and faster decisions, says Kim Fausing in the announcement.
To Børsen, Kim Fausing refuses to elaborate on how many employees will be laid off, as well as to what extent the group's headquarters in Nordborg will be affected.
- Of course we have an idea of which functions will be affected, but it would be frivolous to put a figure on how many colleagues will be affected right now, he tells the newspaper.
/ritzau/
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