Contact Information: Contact: Richard K. Arter Investor Relations 941-362-1200 Tricia L. Fulton Chief Financial Officer 941-362-1200
Sun Hydraulics' Board of Directors Announces Second Quarter Stock Dividend and Increases Cash Dividend, Appoints Ferdinand E. Megerlin Chairman
| Source: Sun Hydraulics Corporation
SARASOTA, FL--(Marketwire - June 19, 2007) - The Sun Hydraulics Corporation (NASDAQ : SNHY )
Board of Directors, at its meeting on June 18, 2007, appointed a new
Chairman, announced a 50% stock dividend and increased the Company's cash
dividend.
Ferdinand E. Megerlin was appointed Chairman of the Board. Dr. Megerlin
succeeds Clyde G. Nixon, who had served as Chairman from 2000 until his
passing earlier this year. Dr. Megerlin has served on the Board of the
Company since 1998, most recently holding the position of Vice Chairman.
Dr. Megerlin has over 35 years of experience in the fluid power industry.
The 50% stock dividend results in shareholders receiving an additional
share for every two shares of SNHY stock owned on June 30, 2007. The stock
dividend will increase the total shares outstanding to approximately 16.5
million shares from 11.0 million.
Dr. Megerlin said, "The Board of Directors believes the stock dividend will
help improve shareholder value by increasing the marketability and
liquidity of Sun's stock."
Sun's Board of Directors also approved a cash dividend of $0.09 per share
on the new total shares outstanding after the stock dividend. Continuing,
Megerlin said, "Sun Hydraulics has paid a dividend every quarter since
going public in 1997. The new cash dividend of $0.09 per share, coupled
with the stock dividend, effectively increases the dividend by 35%."
The stock and cash dividends are payable on July 15, 2007, to shareholders
of record as of June 30, 2007.
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.
FORWARD-LOOKING INFORMATION
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 Management's 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 Company's strategies regarding growth, including its
intention to develop new products; (ii) the Company's financing plans;
(iii) trends affecting the Company's financial condition or results of
operations; (iv) the Company's 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 Company's 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 Company's 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
Company's 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 Company's
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 headings Item 1.
"Business," Item 1A. "Risk Factors" and Item 7. "Management's Discussion
and Analysis of Financial Conditions and Results of Operations" in the
Company's Form 10-K for the year ended December 30, 2006 and "Management's
Discussion and Analysis of Financial Conditions and Results of Operations"
in the Company's Form 10-Q for the quarter ended March 31, 2007. 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.