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EXHIBIT 99.2
FOR RELEASE: Immediately
Contact:
Richard K. Arter Investor Relations 941-362-1200
Richard J. Dobbyn Chief Financial Officer 941-362-1200
SUN HYDRAULICS CORPORATION ANNOUNCES APPLICATION FOR JOINT VENTURE IN CHINA
SARASOTA, FLA, November 10, 1998 - Sun Hydraulics Corporation (NASDAQ: SNHY)
today announced that it has applied to form a joint-venture company in China.
The proposed company, Sun Hydraulics Systems (Shanghai) Ltd., will be located
in Songjiang, a suburb of Shanghai, and will be a joint-venture partnership
between Sun Hydraulics Corporation, and Links Lin, the owner of Sun Hydraulics
Corporation's Taiwanese distributor, Taiphil Pioneer. Upon approval of the
joint venture by the Chinese government, Mr. Lin will set up residence in
Shanghai to act as general manager of the new company.
"Our relationship with Links Lin goes back more than 12 years," said Sun
Hydraulics President Clyde Nixon. "During that time, Mr. Lin has specialized in
designing and manufacturing steel and ductile iron manifolds that incorporate
our screw-in cartridge valves, primarily for use in industrial markets.
Together with our recent acquisition of Korea Fluid Power, these two companies
provide an experienced Asian base for the design and manufacture of both
aluminum and ductile iron manifolds."
Barring unforeseen delays, it is expected that Sun Hydraulics Systems
(Shanghai) Ltd. will be formed before the end of 1998. In addition to designing
and manufacturing ductile iron manifolds, the new joint-venture company will
serve as a source of technical support for the application and sale of Sun
products in Hong Kong and mainland China.
Sun Hydraulics is a leading designer and manufacturer of high performance
screw-in hydraulic cartridge valves and manifolds for global industrial and
mobile markets.
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; (vi) the Company's Year 2000 readiness
plans and costs; and (vii) 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.
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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; (vi)
the Company's ability timely to become Year 2000 ready, including the Company's
ability to identify all critical systems that will be impacted by the Year
2000, the Company's ability, in a cost-efficient manner, to correct, upgrade or
replace such systems, and the Year 2000 readiness of third parties with which
the Company has material relationships; and (vii) 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 "Risk Factors" in the Form S-1
Registration Statement and Prospectus for the Company's initial public
offering, and "Business" in the Company's Form 10-K for the year ended December
31, 1997, and "Management's Discussion and Analysis" in the Company's Form 10-Q
for the quarter ended June 30, 1998. 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.
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