CHICAGO, March 24 /PRNewswire-FirstCall/ -- Sauer-Danfoss Inc. today announced its final results for the fourth quarter and full year ended December 31, 2008, and the filing of its Annual Report on Form 10-K. These final results update and supersede the Company's preliminary results released on March 16, 2009.
Fourth Quarter and Full Year Earnings
The Company reported a net loss of $90.6 million, or $1.88 per share, for the fourth quarter 2008, compared to net income of $8.7 million, or $0.18 per share, for the fourth quarter of 2007. The Company's net loss for full year 2008 totaled $29.1 million, or $0.60 per share, compared to net income of $47.2 million, or $0.98 per share, for the same period last year.
Long-Lived Asset and Goodwill Impairment Charges
When the Company issued its preliminary financial results on March 16, 2009, it reported that it had not yet completed its required long-lived asset impairment analysis and preliminary results included an estimated impairment charge. The Company has now finished that analysis and has recorded an actual impairment charge of $35.3 million, or $0.53 per share, impacting the Work Function segment. In addition, the Company had previously reported goodwill impairment charges of $22.9 million, or $0.44 per share, impacting the Work Function and Controls segments.
Company Files its Annual Report on Form 10-K
Please refer to the Company's Form 10-K for a complete discussion of the fourth quarter and full year financial results. An electronic copy of the 10-K is available through the Investor Relations page of the Company's website at http://ir.sauer-danfoss.com/. In addition, shareholders can receive a printed copy of the Form 10-K, containing the Company's complete audited financial statements, free of charge by sending a written request to Sauer-Danfoss Inc., Attn: Investor Relations, 2800 E. 13th Street, Ames, IA 50010.
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 had revenues of $2.1 billion in 2008 and 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 http://www.sauer-danfoss.com/. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended Year Ended (Dollars in thousands December December December December except per share data) 31, 31, 31, 31, 2008 2007 2008 2007 Net sales 371,388 494,173 2,090,513 1,972,548 Cost of sales 333,375 397,572 1,654,903 1,544,846 Gross profit 38,013 96,601 435,610 427,702 Research and development 20,732 20,014 82,915 70,552 Selling, general and Administrative 55,664 57,218 258,491 233,809 Loss on sale of businesses and asset disposals 10,289 177 9,604 9,412 Impairment charges 58,208 -- 58,208 -- Total operating expenses 144,893 77,409 409,218 313,773 Income (loss) from Operations (106,880) 19,192 26,392 113,929 Nonoperating income (expenses): Interest expense, net (5,318) (6,022) (24,628) (22,741) Minority interest in income of consolidated companies (1,901) (6,051) (17,811) (21,562) Other, net 4,692 (140) 966 (3,589) Income (loss) before income taxes (109,407) 6,979 (15,081) 66,037 Income taxes 18,796 1,718 (14,060) (18,839) Net income (loss) (90,611) 8,697 (29,141) 47,198 Net income (loss) per share: Basic net income (loss) per common share (1.88) 0.18 (0.60) 0.98 Diluted net income (loss) per common share (1.88) 0.18 (0.60) 0.98 Weighted average shares outstanding Basic 48,237 48,099 48,226 48,094 Diluted 48,237 48,493 48,226 48,327 Cash dividends declared per common share 0.18 0.18 0.72 0.72 BUSINESS SEGMENT INFORMATION Three Months Ended Year Ended December December December December (Dollars in thousands) 31, 31, 31, 31, 2008 2007 2008 2007 Net sales Propel 184,225 233,327 1,016,609 940,692 Work Function 99,748 134,697 561,416 534,040 Controls 87,415 126,149 512,488 497,816 Total 371,388 494,173 2,090,513 1,972,548 Segment Income (Loss) Propel 9,501 35,371 156,805 146,617 Work Function (73,208) (5,164) (65,699) (2,886) Controls (37,182) 985 (21,386) 17,740 Global Services and Other Expenses, net (1,296) (12,140) (42,362) (51,131) Total (102,185) 19,052 27,358 110,340 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31, December 31, (Dollars in thousands) 2008 2007 Cash flows from operating activities: Net income (loss) (29,141) 47,198 Depreciation and amortization 112,962 102,303 Impairment Charges 58,208 -- Minority interest in income of consolidated companies 17,811 21,562 Net change in receivables, inventories, and payables 40,385 (64,033) Other, net (16,707) (8,890) Net cash provided by operating activities 183,518 98,140 Cash flows from investing activities: Purchases of property, plant and equipment (198,634) (135,633) Proceeds from sale of property, plant and equipment 11,141 6,496 Proceeds from sale of businesses -- 6,932 Net cash used in investing activities (187,493) (122,205) Cash flows from financing activities: Net borrowings on notes payable and debt instruments 51,799 71,436 Performance unit compensation excess tax deduction 1,534 145 Cash dividends (34,728) (33,636) Distribution to minority interest partners (13,881) (15,889) Net cash provided by financing activities 4,724 22,056 Effect of exchange rate changes (4,393) (314) Net decrease in cash and cash equivalents (3,644) (2,323) Cash and cash equivalents at beginning of year 26,789 29,112 Cash and cash equivalents at end of year 23,145 26,789 CONDENSED CONSOLIDATED BALANCE SHEETS December 31, December 31, (Dollars in thousands) 2008 2007 ASSETS Current assets: Cash and cash equivalents 23,145 26,789 Accounts receivable, net 239,881 318,152 Inventories 326,688 318,836 Other current assets 50,754 56,365 Total current assets 640,468 720,142 Property, plant and equipment, net 598,435 562,818 Other assets 228,773 217,462 Total assets 1,467,676 1,500,422 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Notes payable and bank overdrafts 65,512 59,415 Long-term debt due within one year 58,005 208,819 Accounts payable 149,512 168,015 Other accrued liabilities 146,888 128,358 Total current liabilities 419,917 564,607 Long-term debt 367,922 175,811 Long-term pension liability 90,966 70,777 Deferred income taxes 44,243 40,930 Other liabilities 66,727 62,253 Minority interest in net assets of consolidated companies 67,655 60,544 Stockholders' equity 410,246 525,500 Total liabilities and stockholders' equity 1,467,676 1,500,422 Debt to total capital ratio (1) 51% 43% (1) The debt to total capital ratio is calculated by dividing total interest bearing debt by total capital. Total interest bearing debt is the sum of notes payable and bank overdrafts, long-term debt due within one year, and long-term debt. Total capital is the sum of total interest bearing debt, minority interest in net assets of consolidated companies, and stockholders' equity.
