In probably its final quarter as an independent, publicly traded company, The Oilgear Co. today reported third-quarter net earnings of $859,000, or 42 cents per share, up from $470,000, or 23 cents per share in the same period a year ago.
The Milwaukee-based company's quarterly sales increased 11.5 percent to $28.4 million from $25.5 million a year earlier.
"Conditions in our industry remain strong, with double-digit growth in both orders and shipments of hydraulic equipment, however the consensus forecast is for slower growth in 2007. We are experiencing strong demand for engineered systems, components and after-market products. All of our plants are operating at full capacity," said David Zuege, president and chief executive officer.
"We remain very enthused about our acquisition by Lincoln Acquisition Corp., which is majority-owned by Mason Wells Buyout Fund II. Through this merger, we will shed the burdens of being a small public company and will have access to the resources we need to capitalize on the opportunities in our industry. On Nov. 6, we mailed to shareholders a notice of special meeting and proxy to approve this merger. The board of directors strongly urges all shareholders to vote in favor of the merger. Every vote is important. Not voting has the same effect as voting no," Zuege said.
A special meeting of Oilgear shareholders to vote on the proposed merger will be held on Thursday, Dec. 14.
Under the terms of the merger agreement, each outstanding share of Oilgear's common stock will be converted into the right to receive $15.25 in cash.
A leader in the fluid power industry, Oilgear provides advanced technology in the design and production of unique fluid power components and electronic controls. The company serves customers in the primary metals, machine tool, automobile, petroleum, construction equipment, chemical, plastic, glass, lumber, rubber and food industries.
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