Danfoss expects improvement in sales after World Cup

After a growth of 30% in Brazil in 2013, the Danish company Danfoss had a slow start to the year and expects an improvement of the market after the World Cup event and elections. The Danfoss sells refrigeration systems, air conditioning compressors and power controls and in the expectation of Júlio Molinari, President of company for Latin America, is expected to raise its sales by 10 percent in the country this year.
"Normally, it is customary to see an increase in business on the eve of the World Cup, and a slowing then. Here there was no such increase prior, so we expect that growth come in 2015, "said Molinari. According to the Executive, the first quarter was "a bit weak" for the company, which usually have a stronger sales season at the end of the year.
Among the main customers of the manufacturer in the segment are cooling industries and commercial establishments and food companies from various fields. Examples include the refrigerated Chambers for the construction of the Belo Monte hydroelectric power plant, in Pará, which store up to two months of food stocks for 11 thousand employees.
In the segment of air conditioning and energy spending controls, the company serves industry, trade and corporate units. "With the most expensive energy, many companies start to see advantages in investing in the systems of efficiency", says Júlio Molinari.
The Danfoss began selling its products in Brazil in 1968 and currently the country is currently responsible for 42% of the company's revenues in Latin America. The company does not disclose its figures by region, but reports that grossed 33.628 billion Danish kroner (about US $ 13.8 billion) worldwide last year.
Currently, the company owns two local factories, one in Osasco (SP)-São Paulo metropolitan region, where manufactures condensing units used in commercial and industrial refrigeration, and another in Caxias do Sul (RS), where he produced hydraulic valves, applied in tractors and combines.
Despite not planning new factories in Brazil, Molinari says see the Brazil country as a market of great potential for long-term growth and that "I would like very much" to acquire companies that perform exactly the same niches of Danfoss.
"Our idea is to buy what's in the DNA of the company. In recent years, the company began to devote himself more to the two main areas [cooling and energy] and sold businesses that were not major, "he says. According to him, today the Group has a stronger position than five years ago, which allows thinking about acquisitions to conquer markets in Brazil.