Sauer-Danfoss Inc.
Sauer-Danfoss Inc. english
Sauer-Danfoss Inc. reports third quarter results:
Corporate-news announcement sent by DGAP.
The sender is solely responsible for the contents of this announcement.
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Sauer-Danfoss Inc. reports third quarter results:
Debt reduction with strong cash flow
Chicago/Neumünster, October 31, 2002.
Third quarter results improved over prior year:
In the third quarter 2002 Sauer-Danfoss Inc. generated net sales of $224
million, an increase of 22 percent compared with sales for the third quarter
2001 of $184 million. All operating segments contributed to the sales increase
year over year. Controls sales showed the biggest increase of 30 percent,
followed by Work Function with 25 percent, and Propel with 16 percent over the
same quarter in 2001. The net result was also significantly improved: The net
loss was $0.5 million ($0.01 per share) compared with a net loss for the third
quarter 2001 of $7.7 million ($0.16 per share). Third quarter 2001 results were
impacted by one-time expense of $0.10 per share. Orders received (up 33 percent)
and backlog status (up 23 percent) also developed well compared with the third
quarter of 2001.
Debt reduction with strong cash flow:
The company’s cash flow continues to be excellent. David Anderson, President and
Chief Executive Officer of Sauer-Danfoss: “In the third quarter we generated
$37 million of cash from operations compared with $17 million last year. This
strong cash flow, combined with better utilization of our cash balances, allowed
us to reduce debt during the third quarter by $44 million.”
Significant year-to-date sales and earnings strengthening:
Net sales for the first nine months were $731 million, an increase of 10 percent
over sales of $666 million for the same period of 2001. Net income for the
first three quarters of 2002 was $15.6 million, or $0.33 per share, an increase
of 77 percent compared with net income for the same period last year ($8.8
million, or $0.19 per share).
Successful fixed cost production program in an economical weaker market
environment:
The ongoing cost reduction program has also been very successful: For the first
nine months of 2002 Sauer-Danfoss’ fixed costs are down $11 million or 5 percent
compared to last year. Anderson: “We remain focused on reducing fixed costs.”
Nevertheless Anderson remains conservative: “Important key figures such as the
recent order receipts and backlog status are very encouraging, but the served
markets have not yet established a solid foundation for continued growth.”
Therefore on October 14, 2002 Sauer-Danfoss lowered its earnings estimate for
the full year to $0.30 to $0.40 per share. Anderson: “With this step we adapted
our ambitious targets to the economic situation but we are confident that we can
continue to show sales and earnings improvement over the prior year for the
balance of 2002.”
Sauer-Danfoss Inc. is a worldwide leader in the design, manufacture, and sale of
engineered hydraulic and electronic systems and components, for use primarily
in applications of mobile equipment. Sauer-Danfoss, with more than 7,000
employees worldwide and revenue of approximately $950 million, has sales,
manufacturing, and engineering capabilities in Europe, the Americas, and the
Asia-Pacific region. More details online at www.sauer-danfoss.com.
Sauer-Danfoss Inc. is listed at at the stock exchange in Frankfurt (SAR) and New
York (SHS).
A conference call on the third quarter 2002 results will be held on October 31,
2002, at 4:00 PM Frankfurt time. Please find further information on the third
quarter results under http://www.sauer-danfoss-ir.com
All statements regarding future performance, growth, sales and earnings
projections, conditions or developments are forward-looking statements. These
statements are based on current financial and economic conditions and rely
heavily on the Company’s interpretations of what it considers key economic
assumptions.
Further Information: Sauer-Danfoss Inc. Investor Relations
John N. Langrick, Director of Finance Europe, Sauer-Danfoss Inc., Phone: +49
4321-871-190, Fax: +49 4321-871-121, Krokamp 35, D-24539 Neumünster,
jlangrick@sauer-danfoss.com
Andrea Wittmann, Manager Communications, Sauer-Danfoss Inc., Phone: +49 4321-
871-212, Fax: +49 4321-990-316, Krokamp 35, D-24539 Neumünster, awittmann@sauer-
danfoss.com
Grit Muschelknautz, Public Relations, Hoschke & Consorten, Phone: +49 40-369050-
41, Fax: +49 40-369050-10, Deichstr. 29, D-20459 Hamburg,
g.muschelknautz@hoschke.de
end of message, (c)DGAP 31.10.2002
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WKN: 880208; ISIN: US8041371076; Index:
Listed: Amtlicher Markt in Frankfurt (SMAX); Freiverkehr in Berlin, München und
Stuttgart
310730 Okt 02
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