8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of Earliest
Event Reported): October 17, 2002

SUN HYDRAULICS CORPORATION

(Exact name of registrant as specified in its charter)

Florida	0-21835	59-2754337
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1500 West University Parkway Sarasota, Florida	34243
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: 941-362-1200

TABLE OF CONTENTS

Press Release

Item 5. Other Events.

     On October 17, 2002, the Registrant issued the press release attached hereto as Exhibit 99.1 announcing the preliminary results for the third quarter ended September 28, 2002, and a revised forecast for the year.

Item 7. Financial Statements and Exhibits.

     (a)  Financial Statements of Businesses Acquired.

     None.

     (b)  Pro Forma Financial Information.

     None.

     (c)  Exhibits.

Exhibit
Number	Exhibit Description
99.1	Press Release of the Registrant dated October 17, 2002.

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SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

SUN HYDRAULICS CORPORATION
By:	/s/ Richard J. Dobbyn Richard J. Dobbyn Chief Financial Officer (Principal Financial and Accounting Officer)

Dated: October 18, 2002

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EXHIBIT INDEX

Exhibit
Number	Exhibit Description
99.1	Press Release of the Registrant dated October 17, 2002.

4 EX-99.1 3 g78772exv99w1.txt PRESS RELEASE Exhibit 99.1 FOR RELEASE: Immediately Contact: Richard K. Arter Investor Relations 941-362-1200 Richard J. Dobbyn Chief Financial Officer 941-362-1200 SUN HYDRAULICS CORPORATION THIRD QUARTER NET INCOME ON TARGET; NET INCOME FORECAST REDUCED FOR THE FOURTH QUARTER SARASOTA, FLA, October 17, 2002 - Sun Hydraulics Corporation (NASDAQ: SNHY) today announced that net income per share for the third quarter ended September 28, 2002, is expected to be in line with Company and analysts' estimates of $0.06 to $0.08. Full financial details will be available with the Company's earnings release on Wednesday, November 6, 2002, at approximately 11:00 a.m. E.T. The Company has reduced its forecast for the year and expects the fourth quarter results to be similar to those in the third quarter. "Our original estimate of fourth quarter earnings was based on the assumption that the U.S. manufacturing sector and Sun's order rate would improve in the early fall. However, our order rate has been static since July," said Allen Carlson, Sun's president. "Accordingly, net income for the year would be in the range of $0.26 - $0.29." Sun Hydraulics Corporation will broadcast its third quarter conference call with analysts live over the Internet at 2:30 p.m. E.T. on Wednesday, November 6, 2002. 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. 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 heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Form 10-Q for the quarter ended June 29, 2002, and under the heading "Business" and particularly under the subheading, "Business Risk Factors" in the Company's 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. 2 -----END PRIVACY-ENHANCED MESSAGE-----

EX-99.1

                                                                    Exhibit 99.1


FOR RELEASE: Immediately


Contact:
Richard K. Arter                 Investor Relations       941-362-1200
Richard J. Dobbyn                Chief Financial Officer  941-362-1200


         SUN HYDRAULICS CORPORATION THIRD QUARTER NET INCOME ON TARGET;
               NET INCOME FORECAST REDUCED FOR THE FOURTH QUARTER

SARASOTA, FLA, October 17, 2002 - Sun Hydraulics Corporation (NASDAQ: SNHY)
today announced that net income per share for the third quarter ended September
28, 2002, is expected to be in line with Company and analysts' estimates of
$0.06 to $0.08. Full financial details will be available with the Company's
earnings release on Wednesday, November 6, 2002, at approximately 11:00 a.m.
E.T.

The Company has reduced its forecast for the year and expects the fourth quarter
results to be similar to those in the third quarter. "Our original estimate of
fourth quarter earnings was based on the assumption that the U.S. manufacturing
sector and Sun's order rate would improve in the early fall. However, our order
rate has been static since July," said Allen Carlson, Sun's president.
"Accordingly, net income for the year would be in the range of $0.26 - $0.29."

Sun Hydraulics Corporation will broadcast its third quarter conference call with
analysts live over the Internet at 2:30 p.m. E.T. on Wednesday, November 6,
2002.

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.

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 heading "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in the Company's Form 10-Q for the quarter
ended June 29, 2002, and under the heading "Business" and particularly under the
subheading, "Business Risk Factors" in the Company's 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.






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