Mar. 18--By Tribune staff

Sauer-Danfoss Inc. stock lost more than a third of its value Tuesday as investors reacted to the Lincolnshire-based manufacturing company's disclosure that it is eliminating its quarterly dividend and expects 2009 earnings to fall short of analysts' expectations. Sauer-Danfoss shares tumbled $1.61, or 34.3 percent, to $3.09 -- down more than 90 percent from their $32.55 trading level in early September.

Late Monday, Sauer-Danfoss reported a net loss of $100.6 million, or $2.09 a diluted share, compared with net income in the year-ago quarter of $8.7 million, or 18 cents a share. The latest quarter's results were hurt by several one-time items.

Sales, pinched in part by unfavorable foreign-currency translation rates, fell 25 percent, to $371.4 million. The company said directors had voted to suspend its 18-cent quarterly common dividend until further notice. Sauer-Danfoss also offered a downbeat earnings forecast for 2009, saying "we do not expect an upturn in our markets" during the year.

-----

To see more of the Chicago Tribune, or to subscribe to the newspaper, go to http://www.chicagotribune.com.

Copyright (c) 2009, Chicago Tribune

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

NYSE:SHS,

A service of YellowBrix, Inc.