Danfoss builds what heats and cools us. A leading industrial company in Denmark, the global firm produces mechanical and electronic components for equipment in a variety of sectors. The company's main climate and energy unit, which includes refrigeration and air conditioning equipment, accounts for more than half of Danfoss' revenues. Its other divisions include heating equipment, commercial compressors, and power electronics. Its majority-owned Sauer-Danfoss unit makes mobile hydraulics and electrical and mechanical systems. Danfoss also manufacturers solar power equipment. Danfoss operates about 80 factories in more than 20 countries. It has 110 sales companies around the world.
Danfoss was severely impacted by the economic recession as consumer confidence declined and demand for some of its products fell. The company suffered a large financial loss in 2009 and was forced to cut costs by reducing its workforce by nearly 20% and closing several factories.
Danfoss launched a new strategy to focus on its core climate and energy activities in 2010 and the company has been selling non-core units. In 2010 it sold Danfoss Household Compressors to German company AURELIUS. Danfoss also sold its Danfoss Geared Motors and Danfoss Water Controls units in 2011. The following year Danfoss sold its Danfoss Solutions consulting unit to energy service company Scanenergi.
The company also is devoted to developing new products and services that are eco-friendly. Danfoss has not made cuts to product innovation and creation, which is needed for long-term growth. The company actually increased investments into the creation of new energy-efficient products. The new strategy, coupled with improving economic conditions, helped improve the company's results. In 2011 sales were up by about 8%
Much of that growth is due to sales outside of the US and Europe, which has been plagued by continued financial unrest and uncertain market conditions. Danfoss expects increased sales to be driven by growth in emerging markets. It is focused on increasing its presence in growing markets such as Brazil, Russia, India and China (BRIC). The BRIC countries represent more than 20% of Danfoss' total net sales.
The company has been making some acquisitions and expanding organically in the BRIC countries. Danfoss plans to strengthen its presence in India by investing in development and production facilities there. The company also plans to invest further in China through growth in Sauer-Danfoss.
In 2011 Danfoss pleaded guilty to and was fined for price fixing in the US and Europe. In Europe Danfoss was slapped with a $114 million fine after the European Commission alleged that a German subsidiary of Danfoss exchanged information with competitors in an effort to coordinate prices on household and light commercial compressors. In a similar settlement, Danfoss pleaded guilty and paid a $3 million penalty in the US.
Mads Clausen established the company in 1933. The Bitten and Mads Clausen Foundation, along with the Clausen family, controls the company. – less