Sun Hydraulics announces 50 per cent stock dividend

Sun Hydraulics, the maker of hydraulic cartridge valves and manifolds, recently announced that it will pay its investors one additional share through the dividend, for every two shares of Sun's stock that an investor holds. The dividend will increase the total number of shares from about 7.3 million to 11 million. The company's board of directors also approved a cash dividend of five cents per share on the total shares after the stock dividend. The company announced the stock and cash dividends after the close of the markets. The company's share price has boomed in the last several months. The 52-week price range has been US$10.75 to US$39.46. "The board of directors believes the stock dividend will help improve shareholder value by increasing the marketability and liquidity of Sun's stock," Sun Chairman Clyde Nixon said. Sun reported profits of US$3.5 million for the quarter compared with $1.4 million, or 20 cents per share, during the same 2004 period. Sales rose nearly 36 per cent from US$21.4 million during the 2004 quarter to US$29.1 million during the most recent period. The company is predicting per-share, second-quarter profits of 45 cents to 48 cents. Sun managers expect sales to be $30 million, which would be a 13 per cent increase when compared with the second quarter of 2004. Sun, with 535 employees at plants in Sarasota and Manatee counties, sells its products for use in construction, agricultural and utility equipment, machine tools and material handling equipment. It has operations in England, Germany and Korea, as well as a joint venture company in China.