Hot Growth Special Report 2006 >



Sun Hydraulics (SNHY)

What's a screw-in hydraulic cartridge valve? For Sun Hydraulics, it's a hot growth business. The Sarasota (Fla.) company, whose high-tech valves and manifolds help control the fluid power systems in industrial machinery, serves customers around the world from production facilities in the U.S., Europe, and Asia. Sales rose 24% in 2005, hitting $116.8 million. And profits at the 36-year-old company have jumped an average of 106% over the past three years, to $12.8 million last year. The Nasdaq-traded company has been profitable every year since 1972, even during a sharp industry downturn in the early 2000s, and has paid a dividend every year since going public in 1997. Sun Hydraulics also says it's gaining market share in the $800 million screw-in hydraulic valve and manifold business. Half its business is now outside the U.S. Even though its share price, just above $20 in May, is far from its $32 peak last year, it has quadrupled in the last three years.

Company Info

2005 Rank


Market Value*
($ Millions)


($ Millions)


Sales Growth
(3-yr. avg. annual)

23.0 %

($ Millions)


Profit Growth
(3-yr. avg. annual)

105.5 %

Return on Inv. Capital (3-yr.)

12.3 %

Share Price
12-Mo. Hi/Lo


Share Price
As of 4/28/06


Return on Equity

22.1 %

P/E Ratio


No. of Employees


Industry Industrial Machinery


Location Sarasota, Fla.
Phone 941 362-1200
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

Sun Hydraulics engages in the design and manufacture of screw-in hydraulic cartridge valves and manifolds worldwide. It offers screw-in hydraulic cartridge valves for flows from 1 to 400 gallons per minute and continuous operating pressures up to 5,000 pounds per square inch. The company also provides standard and catalogued manifolds that allow customers to integrate the company's screw-in cartridge valves into their systems in different ways; custom manifolds for a customer-specific application and combine different screw-in cartridge valves in a single package or multiple packages. Its products are used in a range of mobile applications, such as construction, agricultural, and utility equipment; and an array of industrial applications, including machine tools and material handling equipment. The company sells its products primarily through network of independent fluid power distributors in the United States, England, Germany, France, Korea, and China. Sun Hydraulics was founded by Robert E. Koski in 1970. The company is headquartered in Sarasota, Fla.

Data provided by Capital IQ
Allen J. Carlson

Allen J. Carlson, 55

Chief Executive Officer, President and Director

Total Compensation*

$ 380,915

Total Options Value*

$ 698,010

* Fiscal Year 2005

Milwaukee School Of Engineering Inc - Other Education Harvard Business School - Advanced Management Program, Milwaukee School Of Engineering Inc - Graduate

Executive Bio

Allen Carlson joined Sun Hydraulics in March, 1996, and served as vice-president from January, 2000, until May, 2000, when he was named president and CEO. From October, 1977, to March, 1996, Carlson held various engineering, marketing, and management positions for Vickers, a wholly owned subsidiary of Trinova. He is a graduate of the Milwaukee School of Engineering and the Advanced Management Program at the Harvard Business School. Carlson has over 31 years of experience in the fluid power industry.

Management Team

Key Executives

Allen J. Carlson; Gregory C. Yadley; Jeffrey Cooper; Peter G. Robson; Robert E. Koski; Tricia L. Fulton; Clyde G. Nixon

Board Directors

David N. Wormley; Ferdinand E. Megerlin; John S. Kahler; Christine L. Koski; Robert E. Koski; Marc Bertoneche; Hirokatsu Sakamoto; Clyde G. Nixon; Allen J. Carlson; P Robson

Executive Data provided by Capital IQ