Nov. 9 Earnings: SNHY, QLTY

Sun Hydraulics Corp.
After essentially breaking even through the first nine months of 2009, with $600,000 in profits earned on $70.1 million in business, Sarasota's Sun Hydraulics is back to full speed in 2010.

The company earned $15.1 million in profits in the year's first nine months, a 2,417% gain over the same time last year. Net sales rose 55% to $108.9 million.

CEO Allen Carlson says the company's resurgence is “the result of actions taken in late 2008 and throughout 2009 to retain and educate our workforce and invest in capabilities.”

“Our core business drivers are unchanged,” Carlson added.

The company expects to finish the year with $147 million in sales, a 51% improvement over total performance in 2009. Sun also expects to post between $1.23 and $1.25 in earnings per share, a gain of more than 1,100% over 2009.

Sun Hydraulics Corp. designs and manufactures screw-in hydraulic cartridge valves and manifolds.

Quality Distribtion Inc.
Despite an 11.8% increase in quarterly revenue, the Tampa-based trucking firm earned just $400,000 in net income, down from $1.4 million a year ago.

The main culprit for the slowdown in profitability was a charge of roughly $2.0 million paid by Quality in order to withdraw from three multi-employer pension plans. Aside from that charge, the company reported an adjusted net income of $2.2 million.

Quality's most recent performance represents a small part of what has amounted to a massive turnaround over the first nine months of 2010. The company has earned $3.3 million in positive net income so far this year, compared to the $185.4 million it lost a year ago. For comparison, Quality earned $181.9 million in total revenue in the recently concluded quarter.

Quality CEO Gary Enzor says a new approach to business has made all the difference.

"Our solid performance this quarter and for the first nine months of 2010 reflects the continued strength of our asset-light business model,” Enzor said in a release. “Our entire organization is committed to this asset-light business model, with a primary focus on generating improvements in earnings, cash flow and asset utilization.”

Quality Distribution Inc. operates the largest chemical bulk tank truck network in North America.