Sauer-Danfoss' headquarters in Neumünster, Germany
Manufacturer of hydraulic systems for mobile machinery, Sauer-Danfoss, has announced it will sell its AC motor business to Schabmuller because of disappointing sales figures.
The sale of the Danish-based business should be finalised in January 2009 after clearance from the German antitrust authority. The sale will result in a one-time charge of USD10 million or 17 cents per share. Sauer-Danfoss did not reveal how much Schabmuller is paying for the business.
David J. Anderson, president and CEO of Sauer-Danfoss, says the business did not meet earnings expectations. "The AC motor business had sales of about USD35 million for 2008," he says. "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."
Electric motor manufacturer Schabmuller was taken over by Sauer-Danfoss in 2002 and was released out of the group in 2007.
Sauer-Danfoss also announced it had reduced its earnings guidance for 2008 to between 75 and 85 cents per share from its previous earnings guidance of USD1.15 to USD1.25 per share, to reflect the impact from the sale and further deteriorating conditions in its end markets.
"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," says Anderson.