Press Release

Exhibit 99.1

Sun Hydraulics 2012 Sales Reach a New High

SARASOTA, FLA, March 4, 2013 – Sun Hydraulics Corporation (NASDAQ: SNHY) today reported financial results for the fourth quarter and year-end 2012 and the Board of Directors announced a $6.0 million shared distribution and $0.09 per share quarterly dividend.


(Dollars in millions except net income per share)
	December 29,		December 31,
	2012		2011		Increase/Decrease

Twelve Months Ended
Net Sales	$	204.4	$	204.2		0	%
Net Income	$	37.4	$	37.7		–1	%
Net Income per share:
Basic	$	1.44	$	1.47		–2	%
Diluted	$	1.44	$	1.47		–2	%

Three Months Ended
Net Sales	$	43.2	$	45.7		–5	%
Net Income	$	6.7	$	6.1		10	%
Net Income per share:
Basic	$	0.26	$	0.24		8	%
Diluted	$	0.26	$	0.24		8	%

“A stronger than expected fourth quarter allowed us to achieve our highest top line year ever,” said Allen Carlson, Sun Hydraulics’ president and CEO. “Despite deteriorating business conditions in all markets in the second half, we were able to maintain margin performance and add new customers in what was a difficult and uncertain year. On the heels of the $1.00 per share special dividend in December, Sun’s Board has declared another shared distribution totaling approximately $6.0 million, to be paid in March, reflecting the strong performance last year.”

“There is still a lot of uncertainty in the macro economy, but things seem to be settling down a bit,” Carlson continued. “Our first quarter forecast indicates a sequential rebound in demand led by Asia and Europe. As our existing customers’ business rebounds in China and Europe, with the new customers we have added, we expect to see the top line continue to grow. U.S. PMI numbers have been positive for three months now, which is a good sign for the 2013 capital goods environment.”

The 2012 shared distribution consists of a contribution to employees equal to 10.5% of wages, most of which will be paid into retirement plans in the form of Sun Hydraulics stock, and $0.09 per share cash dividend to be paid to all shareholders. The shared distribution dividend is payable on March 31, 2013, to shareholders of record as of March 15, 2013.

First Quarter Dividend

Sun’s Board also announced a $0.09 per share quarterly cash dividend on its common stock. The dividend is payable on April 15, 2013, to shareholders of record as of March 31, 2013.

Outlook

First quarter 2013 revenues are expected to be approximately $51 million, down approximately 8% from the first quarter of 2012. Earnings per share are estimated to be $0.34 to $0.36 compared to $0.41 in the same period a year ago.

Webcast

Sun Hydraulics Corporation will broadcast its 2012 financial results conference call live over the Internet at 9:00 A.M. E.T. tomorrow, March 5, 2013. To listen to the webcast, go to the Investor Relations section of www.sunhydraulics.com.

Webcast Q&A

If an individual wishes to ask questions directly during the webcast, the conference call may be accessed by dialing 1-888-466-4462 and using 3684906 as the access code. Questions also may be submitted to the Company via email by going to the Sun Hydraulics website, www.sunhydraulics.com, and clicking on Investor Relations on the top menu. Scroll down to the bottom of the page and click on contact email: investor@sunhydraulics.com, which will open an email window to type in your message. Sun management will then answer these and other questions during the Company’s webcast. A copy of this earnings release is posted on the Investor Relations page of our website under “Press Releases.”

Sun Hydraulics advises all shareholders to familiarize themselves with rules regarding dividends, payment dates and ex-dividend dates. See the following website for more information http://www.sec.gov/answers/dividen.htm.

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 September 29, 2012, 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 31, 2011. 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 -

SUN HYDRAULICS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands except per share data)


	Three Months Ended
	December 29,			December 31,
	2012			2011

Net sales	$	43,237		$	45,657

Cost of sales		27,249			28,809


Gross profit		15,988			16,848

Selling, engineering and administrative expenses		6,502			6,376


Operating income		9,486			10,472

Interest income, net		(328	)		(186	)
Foreign currency transaction (gain) loss, net		(41	)		(124	)
Miscellaneous expense, net		199			168


Income before income taxes		9,656			10,614

Income tax provision		2,963			4,540


Net income	$	6,693		$	6,074


Basic net income per common share	$	0.26		$	0.24

Weighted average basic shares outstanding		26,068			25,729

Diluted net income per common share	$	0.26		$	0.24

Weighted average diluted shares outstanding		26,078			25,778

Dividends declared per share	$	1.090		$	0.090

- 3 -

SUN HYDRAULICS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands except per share data)


	Twelve Months Ended
	December 29,			December 31,
	2012			2011

Net sales	$	204,367		$	204,171

Cost of sales		123,795			124,956


Gross profit		80,572			79,215

Selling, engineering and administrative expenses		26,163			23,946


Operating income		54,409			55,269

Interest income, net		(1,368	)		(775	)
Foreign currency transaction (gain) loss, net		(116	)		(161	)
Miscellaneous (income) expense, net		40			(1,381	)


Income before income taxes		55,853			57,586

Income tax provision		18,455			19,909


Net income	$	37,398		$	37,677


Basic net income per common share	$	1.44		$	1.47

Weighted average basic shares outstanding		25,944			25,642

Diluted net income per common share	$	1.44		$	1.47

Weighted average diluted shares outstanding		25,971			25,684

Dividends declared per share	$	1.480		$	0.403

- 4 -

SUN HYDRAULICS CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands)


	December 29,		December 31,
	2012		2011

Assets
Current assets:
Cash and cash equivalents	$	34,478	$	42,834
Restricted cash		329		46
Accounts receivable, net of allowance for doubtful accounts of $124 and $83		14,394		16,227
Inventories		12,559		12,829
Income taxes receivable		728		120
Deferred income taxes		248		260
Marketable securities		37,700		30,260
Other current assets		2,009		1,354

Total current assets		102,445		103,930

Property, plant and equipment, net		64,672		56,959
Other assets		8,004		6,639


Total assets	$	175,121	$	167,528


Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	4,606	$	4,402
Accrued expenses and other liabilities		7,641		7,466
Dividends payable		—		2,318

Total current liabilities		12,247		14,186

Deferred income taxes		7,230		6,917
Other liabilities		371		1,149


Total liabilities		19,848		22,252

Shareholders’ equity:
Common stock		26		26
Capital in excess of par value		57,402		48,944
Retained earnings		97,242		98,426
Accumulated other comprehensive income (loss)		603		(2,120	)

Total shareholders’ equity		155,273		145,276


Total liabilities and shareholders’ equity	$	175,121	$	167,528

- 5 -

SUN HYDRAULICS CORPORATION

CONSOLIDATED STATEMENT OF CASH FLOWS

(in thousands)


	Twelve Months Ended
	December 29,			December 31,
	2012			2011
Cash flows from operating activities:
Net income	$	37,398		$	37,677
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		7,186			6,721
(Gain) loss on disposal of assets		193			(32	)
Gain on Investment in HCT		—			(1,244	)
Stock-based compensation expense		2,333			1,752
Deferred director and phantom stock unit expense (income)		20			(22	)
Stock compensation income tax benefit		(88	)		(144	)
Allowance for doubtful accounts		26			1
Provision for slow moving inventory		(298	)		(19	)
Provision for deferred income taxes		325			1,419
(Increase) decrease in, net of acquisition:
Accounts receivable		1,903			741
Inventories		678			(1,593	)
Income taxes receivable		(520	)		1,178
Other current assets		(650	)		(662	)
Other assets, net		240			(1,081	)
Increase (decrease) in, net of acquisition:
Accounts payable		(742	)		499
Accrued expenses and other liabilities		4,547			4,390
Other noncurrent liabilities		(353	)		(37	)

Net cash from operating activities		52,198			49,544

Cash flows used in investing activities:
Proceeds from sale of joint venture		—			1,451
Acquisition of business, net of cash acquired		(1,140	)		(1,776	)
Capital expenditures		(13,359	)		(10,143	)
Proceeds from dispositions of equipment		56			35
Purchases of marketable securities		(40,495	)		(26,833	)
Proceeds from sale of marketable securities		32,912			7,517

Net cash used in investing activities		(22,026	)		(29,749	)

Cash flows used in financing activities:
Repayment of debt		(169	)		(100	)
Proceeds from exercise of stock options		—			61
Stock compensation income tax benefit		88			144
Proceeds from stock issued		700			574
Dividends to shareholders		(40,900	)		(9,596	)
Change in restricted cash		(272	)		84

Net cash used in financing activities		(40,553	)		(8,833	)

Effect of exchange rate changes on cash and cash equivalents		2,025			(1,334	)


Net increase (decrease) in cash and cash equivalents		(8,356	)		9,628


Cash and cash equivalents, beginning of period		42,834			33,206


Cash and cash equivalents, end of period	$	34,478		$	42,834


Supplemental disclosure of cash flow information:
Cash paid:
Income taxes	$	18,739		$	17,456
Supplemental disclosure of noncash transactions:
Common stock issued for shared distribution through accrued expenses and other liabilities	$	4,407		$	2,412
Common stock issued for deferred director’s compensation through other noncurrent liabilities	$	930		$	—
Unrealized gain (loss) on available for sale securities	$	326		$	(549	)

- 6 -