Sauer-Danfoss Inc.
Sauer-Danfoss Inc. english
Sauer-Danfoss achieves double digit improvement for sales and earnings
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Sauer-Danfoss achieves double digit improvement for nine month sales and
earnings
Chicago/Neumünster, October 30, 2003 – In the third quarter 2003 Sauer-Danfoss
Inc., listed on the SDAX and NYSE, generated net sales of $255.4 million. This
represents an increase of 14 percent compared to the same period last year
($223.9 million). Excluding sales from acquisitions completed in 2003 and the
impact of currency translation rate changes, sales increased by 5 percent over
the prior year period. Net Income of the specialist for mobile hydraulic and
electronic systems and components was minus $2.2 million, or minus $0.05 per
share for the third quarter 2003 (same period last year: minus $0.5 million, or
minus $0.01 per share). Third quarter 2003 results were impacted by pre-tax
charges of $2.5 million, or $0.03 per share, related to restructuring costs.
Third quarter results were mixed. “We are particularly pleased with the 5
percent increase in relative sales compared to our markets, which we believe
were down by up to 2 percent”, David Anderson, President and Chief Executive
Officer Sauer-Danfoss stated. “We have consistently demonstrated our ability to
build market share.” By segment, Propel and Work Function sales increased 12
percent and 2 percent, respectively, for the quarter compared to the prior year.
The Controls segment experienced a sales decline of 2 percent from the same
quarter in 2002. All indications of segments are excluding the impact of
acquisitions completed in 2003 and currency translation rate changes.
Orders received for the third quarter 2003 were $246.2 million, up 7 percent
from the same period last year. Excluding acquisitions and currency translation
rate changes, orders were level with last year. Total backlog at the end of the
third quarter 2003 was $352.7 million, up 3 percent from the third quarter of
2002. Excluding acquisitions and currency impact, backlog was down 4 percent
compared to the third quarter 2002.
Nine months review:
Net sales for the first nine months, were $864.3 million, an increase of 18
percent over sales of $731.1 million for the first nine months of 2002. On a
comparable basis, excluding companies acquired in 2003 and the impact of
currency fluctuations, net sales were up 6 percent over last year. Net income
for the first nine months of 2003 was $19.2 million, or $0.40 per share,
compared to net income for the same period last year of $15.6 million, or $0.33
per share. Earnings year-to-date for 2003 were impacted by pre-tax charges
related to restructuring costs of $3.3 million, or $0.04 per share.
Cash flow from operations for the first nine months of 2003 was $82.0 million,
compared with $89.7 million generated in the same period last year. Sauer-
Danfoss invested $36.0 million for the nine-months period (comparable period
2002: $23.0 million). The Company’s debt to total capital ratio, or leverage
ratio, was 44 percent at the end of the third quarter 2003 compared to 42
percent at the end of the second quarter 2003. The Company completed its $250
million multi-currency revolving facility in September, refinancing certain
existing indebtedness. Thereby decreasing borrowing costs and increasing
flexibility will be funding Sauer-Danfoss’ global operations.
There is increasing optimism with respect to the overall economy and the markets
Sauer-Danfoss serves, even though there is not clear evidence of this in the
orders and backlog data. However, Sauer-Danfoss remains confident in continuing
to report increased sales and earnings. Anderson: “At the beginning of the year
we stated our expected earnings per share of $0.40 to $0.50 for 2003. Excluding
restructuring costs, we anticipate meeting this expectation.”
A conference call on the third quarter 2003 results will be held in English on
October 30, 2003 at 4:00 PM Frankfurt time. Please find further information on
the quarter results at 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.,
Tel.: +49 4321-871-190, Fax: +49 4321-871-121, Krokamp 35, D-24539 Neumünster,
jlangrick@sauer-danfoss.com
Linda Völpel, Investor Relations Specialist, Sauer-Danfoss Inc.,
Tel.: +49 4321-871-560, Fax: +49 4321-990-581, Krokamp 35, D-24539 Neumünster,
lvoelpel@sauer-danfoss.com
Grit Muschelknautz, Public Relations, HOSCHKE & CONSORTEN,
Tel.: +49 40-369050-41, Fax: +49 40-369050-10, Deichstr. 29, D-20459 Hamburg,
g.muschelknautz@hoschke.de
end of message, (c)DGAP 30.10.2003
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WKN: 880208; ISIN: US8041371076; Index: SDAX
Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-
Bremen, München und Stuttgart
300820 Okt 03
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