| IPO Company Profile |
| Current Quote | News | SEC Filings | Peer IPO Companies |
| Sauer Inc. |
| 2800 East 13th Street, Ames, IA 50010 * (515) 239-6364 |
| The company is a worldwide leader in the design, manufacture and sale of highly engineered hydraulic systems and components for use primarily in demanding applications of off-highway mobile equipment. |
| Manager | Tier | Phone |
| CS First Boston | Lead Manager | (212) 325-2000 |
| Deutsche Morgan Grenfell | Co-manager | (212) 469-5600 |
| Salomon Smith Barney | Co-manager | (212) 723-7300 |
| NYSE: | SHS | Manufacturing: | SIC 3594 | |
| Type of Shares: | Common Shares | Filing Date: | 3/19/98 | |
| U.S. Shares: | 9,000,000 | Offer Date: | 5/11/98 | |
| Non-U.S. Shares: | 0 | Filing Range: | $15.00 - $18.00 | |
| Primary Shares: | 3,000,000 | Offer Price: | $18.00 | |
| Secondary Shares: | 6,000,000 | Gross Spread: | $0.90 | |
| Offering Amount: | $148,500,000 | Selling: | $0.54 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Post-IPO Shares: | 27,200,000 | |||
| Employees: | 3750 |
| Issuer's Law Firm: | Shearman & Sterling |
| Bank's Law Firm: | Sullivan & Cromwell |
| Registrar/Transfer Agent: | First Chicago Trust Company of NY |
| Auditor: | Arthur Andersen |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/97 | 12/31/97 | ||||
| Revenue: | $535.17 | Assets: | $409.37 | ||
| Net Income: | $27.87 | Curr Assets: | $183.12 | ||
| EPS: | Liabilities: | $330.63 | |||
| Prior EPS: | Curr Liab: | $158.06 | |||
| Cash Flow/Oper: | $44.05 | Equity: | $78.75 | ||
| Cash Flow/Fin: | $22.05 | Cash: | $7.36 | ||
| Cash Flow/Inv: | -$70.31 | Working Cap: | $25.06 | ||
| Competition |
| The mobile hydraulics industry is intensely competitive, with competition principally based on breadth of product offerings, systems capability, product performance, quality, price, durability and availability of skilled aftermarket support. There are a relatively small number of competitors, usually divisions of large companies such as Mannesmann (Rexroth division), Eaton, Aeroquip-Vickers, Linde AG and Parker Hannifin, that offer broad product ranges across international markets. In addition, the Company competes with a large number of smaller companies that typically offer a single, specialized product on a more limited geographic basis. Certain of the Company's competitors have greater financial and other resources and may have lower cost structures than the Company and can thus better withstand adverse economic or market conditions. Companies not currently in direct competition with the Company may introduce competing products in the future. For example, the Company may face competition from current and prospective OEM customers, who evaluate the Company's products against the merits of manufacturing components internally. To remain competitive, the Company must continue to make capital and operational expenditures, invest in research and development, maintain and enhance quality levels, deliver finished products on a reliable basis and compete favorably on the basis of price. Failure of the Company to continue to compete effectively could have a material adverse effect on the Company's business, financial condition and results of operations. |
| Business Plan |
| A key element of the Company's growth strategy is its continued success in developing new, enhanced hydraulic systems and components for its existing markets and new applications of its technology to new market segments. The Company may not be successful in developing these new products, or such products may not compete successfully in the market. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for general corporate purposes including the recent acquisition of the real estate and building for the Company's main facility in Germany formerly owned by the Murmann family and funding of a portion of the company's capital expenditure program. |