FOR RELEASE: Immediately
|Richard K. Arter
Richard J. Dobbyn
Chief Financial Officer
Sun Hydraulics Corporation to Exceed Forecast for the Second Quarter
SARASOTA, FLA, July 19, 2002 Sun Hydraulics Corporation (NASDAQ: SNHY) announced today that net income per share for the second quarter will be approximately $0.10 to $0.12 compared to a forecast of $0.07. The Company cited productivity increases in the United States operations and foreign exchange rate gains as the major reasons for the higher than expected net income.
Sun Hydraulics Corporation will report financial results for the second quarter on August 7, 2002. The Companys second quarter conference call with analysts will be broadcast live over the Internet the same day at 2:30 P.M. E.T. To listen, go to http://investor.sunhydraulics.com/medialist.cfm.
Sun Hydraulics Corporation is a leading designer and manufacturer of high performance screw-in hydraulic cartridge valves and manifolds for worldwide industrial and mobile markets. For more information about Sun, please visit our website at www.sunhydraulics.com.
Certain oral statements made by management from time to time and certain statements contained herein that are not historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and, because such statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements, including those in Managements Discussion and Analysis of Financial Condition and Results of Operations are statements regarding the intent, belief or current expectations, estimates or projections of the Company, its Directors or its Officers about the Company and the industry in which it operates, and assumptions made by management, and include among other items, (i) the Companys strategies regarding growth, including its intention to develop new products; (ii) the Companys financing plans; (iii) trends affecting the Companys financial condition or results of operations; (iv) the Companys ability to continue to control costs and to meet its liquidity and other financing needs; (v) the declaration and payment of dividends; and (vi) the Companys ability to respond to changes in customer demand domestically and internationally, including as a result of standardization. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that the anticipated results will occur.
Important factors that could cause the actual results to differ materially from those in the forward-looking statements include, among other items, (i) the economic cyclicality of the capital goods industry in general and the hydraulic valve and manifold industry in particular, which directly affect customer orders, lead times and sales volume; (ii) conditions in the capital markets, including the interest rate environment and the availability of capital; (iii) changes in the competitive marketplace that could affect the Companys revenue and/or cost bases, such as increased competition, lack of qualified engineering, marketing, management or other personnel, and increased labor and raw materials costs; (iv) changes in technology or customer requirements, such as standardization of the cavity into which screw-in cartridge valves must fit, which could render the Companys products or technologies noncompetitive or obsolete; (v) new product introductions, product sales mix and the geographic mix of sales nationally and internationally; and (vi) changes relating to the Companys international sales, including changes in regulatory requirements or tariffs, trade or currency restrictions, fluctuations in exchange rates, and tax and collection issues. Further information relating to factors that could cause actual results to differ from those anticipated is included but not limited to information under the heading Managements Discussion and Analysis of Financial Condition and Results of Operations in the Companys Form 10-Q for the quarter ended March 30, 2002, and under the heading Business and particularly under the subheading, Business Risk Factors in the Companys Form 10-K for the year ended December 29, 2001. The Company disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.