Sauer-Danfoss Inc.
Sauer-Danfoss Inc. triples net income for 2004
Corporate-news announcement sent by DGAP.
The sender is solely responsible for the contents of this announcement.
——————————————————————————
Sauer-Danfoss triples net income for 2004 / Increased quarterly dividend
– Record Sales and Cash Flow
– Full Year Earnings Tripled Over 2003 Despite Restructuring and Other Costs
– Board Declares Quarterly Cash Dividend of $0.12 per share, a 20% Increase
Chicago/Neumünster, February 24, 2005 – In the fiscal year 2004 Sauer-Danfoss
Inc. generated net sales of $1.4 billion, an increase of 24 percent over sales
of $1.13 billion for 2003. On a comparable basis, excluding the impact of
currency fluctuations, net sales rose 17 percent over last year. Net income
for full year 2004 was $33.2 million, or $0.70 per share, which comes close to
tripling last year’s net income of $11.2 million, or $0.24 per share
Full year 2004 cash flow from operations was a record $124.8 million, an
increase of 32 percent compared to $95.6 million generated in the same period
last year. The Company’s debt to total capital ratio, or leverage ratio, was
42 percent at the end of the year, a further improvement from 45 percent at
the end of 2003.
Fourth quarter review
Net sales for the fourth quarter increased 29 percent to $339.3 million,
compared to sales for the fourth quarter 2003 of $262.5 million. Excluding the
impact of currency translation rate changes sales increased 23 percent over
the prior year period. Sales advanced 38 percent in the Americas and,
excluding the impact of currency fluctuations, were up 15 percent in Europe,
while level in Asia-Pacific. All operating segments contributed to the sales
increase year over year. Excluding the impact of currency, Propel sales rose
34 percent, followed by Controls sales, which increased 18 percent, and sales
of Work Function products, which were 12 percent higher than in the same
quarter in 2003.
The Company reported a net loss for the fourth quarter of $7.2 million, or
$0.15 per share, compared to a net loss for the fourth quarter 2003 of $8.0
million, or $0.17 per share. In the fourth quarter 2004 the Company absorbed
pre-tax charges of $11.8 million, or $0.16 per share after tax, related to
becoming Sarbanes-Oxley compliant, the long-term incentive plan, restructuring
costs and costs associated with the implementation of a new common business
system platform. “Our fourth quarter earnings were affected by higher costs
not pertaining to normal operations,” said David Anderson, President and Chief
Executive Officer. “Excluding these costs, our results for the fourth quarter
were at break-even. Our strong results for the year caused us to accrue
higher expenses related to the long-term incentive plan. In addition, since
this is a stock plan, the significant appreciation of our stock during the
fourth quarter caused us to report higher expense for the incentive plan.”
Orders received for the fourth quarter 2004 were $415.8 million, up 36 percent
from the same period last year, and up 30 percent excluding the impact of
currency exchange rate fluctuations. Total backlog at the end of the year 2004
was $508.3 million, up 24 percent from the end of 2003. Excluding currency
impact, backlog rose 20 percent over last year.
The performance improvement has caused Sauer-Danfoss to further increase the
Company’s quarterly cash dividend to $0.12 per share, an increase of 20
percent over the Company’s last dividend of $0.10 per share. The dividend, for
the quarter ended March 31, 2005, is payable on April 15, 2005, to
stockholders of record as of April 1, 2005.
Outlook
Sauer-Danfoss expects the markets to grow by 4 to 5 percent in 2005. The
Company sees itself in a very good position to double that number in its
overall sales growth through new business and product applications.
2005 Expectations for the Full Year are:
– Sales up 8 to 10 per cent
– Earnings per share of $1.10 to $1.25
– Capital expenditures less than 6 percent of sales, in the range of our
depreciation expense
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.
A conference call on the results 2004 will be held in English on February 25,
2005 at 4:00 PM Frankfurt time. Please find further information on the
quarterly results at http://www.sauer-danfoss-ir.com .
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
Christof Kaplanek, Public Relations, HOSCHKE & CONSORTEN,
Tel.: +49 40-369050-38, Fax: +49 40-369050-10, Deichstr. 29, D-20459 Hamburg,
c.kaplanek@hoschke.de
end of message, (c)DGAP 25.02.2005
——————————————————————————
WKN: 880208; ISIN: US8041371076; Index:
Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-
Bremen, München und Stuttgart
250730 Feb 05
Latest News
Latest Reports
No Reports found
Upcoming Events
No Events found
Webcasts
No Webcasts found