Sarasota, Fla.—Sun Hydraulics Corp. (NASDAQ: SNHY) today reported financial results for the third quarter of 2011 as follows:
“Third quarter sales increased in all major geographic regions, with our North American business leading the way,” said Allen Carlson, Sun’s CEO and President. “2011 will be another great year, evidenced by our forecast of breaking the $200 million revenue level. We continue to grow our revenues and gain market share while reporting exceptionally strong operating performance.”
“Third quarter earnings were augmented by the acquisition of High Country Tek, Inc. (HCT) which added three cents per share to earnings related to a gain on our original investment,” Carlson said. “HCT designs and produces ruggedized electronic control products that are important elements in hydraulic systems. HCT’s product line and capabilities complement Sun’s products and will enable us to offer more complete solutions for our customers, providing additional future growth opportunities for Sun and HCT.”
“Our fourth quarter forecast reflects softening in orders compared to earlier this year, but we expect fourth quarter 2011 to be stronger than fourth quarter 2010. The decline in orders compared with earlier in the year was predicted by the PMI (which peaked in February). We are encouraged that the U.S. PMI continues to operate in positive territory. Sun is well positioned to continue to grow and gain market share over the long term while achieving exceptional operating results.”
Outlook
Fourth quarter 2011 revenues are expected to be approximately $44 million, up approximately 5% from the fourth quarter of 2010. Earnings per share are estimated to be $0.26 to $0.28 compared to $0.25 in the same period a year ago.
Management estimates year-end 2011 sales to be approximately $202 million, an increase of approximately 34% over 2010 sales. Earnings per share for 2011 are estimated to be $1.49 to $1.51, compared to $0.84 in 2010.
Fourth quarter and year-end estimates include approximately $1.3 million in revenue from HCT’s operations, with minimal impact on earnings.
