Sun Hydraulics Corporation has reported financial results for the first quarter of 2012.
"First quarter sales and earnings rebounded nicely after a soft fourth quarter," says Allen Carlson, Sun's CEO and president. "Results were driven by strong North American demand, which was responsible for most of the year-over-year first quarter increase in both sales and earnings. Asian and European sales, which decreased in the second half of 2011, rebounded to first quarter 2011 levels. European sales were consistent with last year despite non-recurring sales of about $1.8 million relating to a onetime project in the prior year."
"As we announced in January, we have begun site work for a third factory in Sarasota," Carlson continued. "Total spending for site work and the building in 2012 will be approximately $6 million. The new capacity is expected to be completed in the first half of 2013, with a total expenditure of $16 million. This expansion will provide the infrastructure necessary for Sun's future growth."
"North American demand continues to drive our second quarter forecast," Carlson concludes. "European and Asian demand is expected to be stable in the second quarter. The first half of 2012 will be strong. The 54.8 PMI number announced last week indicates the U.S. manufacturing sector's expansion, in place now for 33 months, is continuing. This signals a good environment for accelerated growth in the second half of 2012."
Second quarter 2012 revenues are expected to be approximately $56 million, up approximately 2% from the second quarter of 2011. Earnings per share are estimated to be $0.41 to $0.43, compared to $0.41 in the same period a year ago.