- AC Motor Business to be Sold to Schabmuller GmbH
- Earnings also Impacted by Further Deterioration of Markets
CHICAGO, Dec. 12 /PRNewswire-FirstCall/ -- Sauer-Danfoss Inc. (NYSE: SHS)
today announced that it has entered into an agreement to sell its AC motor
business, primarily operating out of Odense, Denmark, to Schabmuller GmbH in
Berching, Germany. The Company is also reducing its earnings guidance for full
year 2008 to $0.75 to $0.85 per share from its previous earnings guidance of
$1.15 to $1.25 per share to reflect the impact from the sale and further
deteriorating conditions in its end markets.
'Our lowered expectations are primarily driven by two factors,' explained
David J. Anderson, Sauer-Danfoss' President and Chief Executive Officer. 'Our
markets in the Americas, Europe, and Asia-Pacific continue to deteriorate at a
rapid pace as a result of the global credit crisis and general economic
conditions, with customers pushing out orders on very short notice. In
addition, our fourth quarter results will be impacted by a loss on the sale of
our AC motor business related to the Material Handling market with a pre-tax
charge of approximately $10.0 million, or $0.17 per share.'
Anderson continued, 'The sale of the AC motor business is the result of
our decision to address this commodity business which continues to operate
below our earnings expectations. We are retaining the technology as well as
the engineering and production capabilities which will allow us to work on
electrification solutions for off-road vehicle applications.'
The sale of the AC motor business, with 2008 sales of approximately $35
million, is expected to close in the next 30 days contingent on receipt of
German anti-trust clearance.
About Sauer-Danfoss
Sauer-Danfoss Inc. is a worldwide leader in the design, manufacture, and
sale of engineered hydraulic, electric and electronic systems and components,
for use primarily in applications of mobile equipment. Sauer-Danfoss, with
9,800 employees worldwide and revenue of approximately $2.0 billion, has
sales, manufacturing, and engineering capabilities in Europe, the Americas,
and the Asia-Pacific region. The Company's executive offices are located near
Chicago in Lincolnshire, Illinois. More details online at
www.sauer-danfoss.com.
SOURCE Sauer-Danfoss Inc.
