AMES, Iowa, March 20, 2012 /PRNewswire/ -- Sauer-Danfoss Inc. (NYSE: SHS) today announced that its board of directors has approved a cash dividend of $0.35 per share. The dividend, for the quarter ended March 31, 2012, is payable on April 16, 2012, to stockholders of record as of March 30, 2012.
"I am pleased to be able to announce the reinstatement of quarterly cash dividends. Over the past two years we have generated $530 million of free cash flow(1) and therefore have been able to reduce our debt, net of cash, from a peak of $492 million to a net cash position of $51 million at the end of 2011. In addition, as we look forward we anticipate we will continue to generate significant levels of free cash flow. This gives us the confidence to reinstate the payment of dividends," said Sven Ruder, President and Chief Executive Officer. "Our plan is to pay this level of dividend on a quarterly basis."
This is the first quarterly dividend paid by the Company since it suspended the payment of dividends on March 13, 2009, in response to the recession.
Sauer-Danfoss Inc. is a worldwide leader in the design, manufacture, and sale of engineered hydraulic and electronic systems and components for use primarily in applications of mobile equipment. Sauer-Danfoss, with 2011 revenues of approximately $2.1 billion, has sales, manufacturing, and engineering capabilities in Europe, the Americas, and the Asia-Pacific region.(1) Free cash flow is calculated by summing net cash provided by operating activities, net cash used in investing activities, excluding advances to related persons, and net cash used in financing activities, excluding net repayments on notes payable and debt facilities.