CLEVELAND, Feb. 25, 2020 /PRNewswire/ --
Quarter Highlights:
- Consolidated revenues decreased modestly from Q4 2018 due to
lower shipments caused by a moderating EMEA market, structural
changes at the JAPIC operations and supplier issues
- Consolidated gross profit increased 15.8% over Q4 2018,
driven by a 19.6% increase in Lift Truck gross profit
- Lift Truck gross profit margin increased to 16.3% from 13.7%
in Q4 2018, with increases in all geographic segments due to cost
recovery and pricing actions
- Consolidated operating profit increased to $8.1 million from a loss of $3.4 million in Q4 2018, but was reduced by an
increase in product liability expense and investments to support
strategic growth initiatives
- Q4 2019 consolidated net income increased to $3.4 million from a net loss of $1.2 million in Q4 2018
Hyster-Yale Materials Handling, Inc. (NYSE: HY) today announced
consolidated revenues of $834.8
million and consolidated net income of $3.4 million, or $0.20 per diluted share, for the fourth quarter
of 2019 compared with $840.8 million
and a consolidated net loss of $1.2
million, or $0.07 loss per
share, for the fourth quarter of 2018.
Full-year 2019 lift truck shipments decreased to approximately
100,300 units from approximately 101,900 units in 2018, and
consolidated revenues increased to $3.3
billion compared with $3.2
billion in 2018. Consolidated operating profit
increased to $53.9 million in 2019
from $38.8 million in 2018.
Consolidated net income was $35.8
million, or $2.14 per diluted
share, for the year ended December 31,
2019 compared with consolidated net income of $34.7 million, or $2.09 per diluted share, for the year ended
December 31, 2018. The
Company's reported tax rate was 23.6% for the year ended
December 31, 2019, compared with 6.3% for the year ended
December 31, 2018. The 2018 net income and
reported tax rate included tax benefits of $4.4 million related to U.S. tax reform
adjustments, whereas the 2019 net income and reported tax rate
included incremental tax expense of $3.0
million for certain U.S. tax reform act provisions.
At December 31, 2019, the
Company's cash position was $64.6
million and debt was $287.0
million compared with cash on hand of $62.8 million and debt of $351.1 million at September 30, 2019 and cash of $83.7 million and debt of $301.5 million as of December 31, 2018.
For the 2019 full year, the Company's consolidated cash flow
before financing activities was $34.7
million, which was comprised of net cash provided by
operating activities of $76.7 million
less net cash used for investing activities of $42.0 million. For the 2018 full year, the
Company's consolidated cash flow before financing activities was a
negative $43.3 million, which was
comprised of net cash provided by operating activities of
$67.6 million less net cash used for
investing activities of $110.9
million, including $77.9
million for the acquisition of Maximal, net of cash
acquired.
Segment Financial Results
Summary segment results for the Company's three business
segments were as follows for the fourth quarter of 2019 and
2018:
(in
millions)
|
*Hyster-Yale
Group
|
|
Bolzoni
|
|
Nuvera
|
|
Q4
2019
|
Q4
2018
|
|
Q4
2019
|
Q4
2018
|
|
Q4
2019
|
Q4
2018
|
Revenues
|
$
|
798.2
|
|
$
|
794.2
|
|
|
$
|
87.0
|
|
$
|
87.1
|
|
|
$
|
1.0
|
|
$
|
13.7
|
|
Operating Profit
(Loss)
|
$
|
17.7
|
|
$
|
4.2
|
|
|
$
|
0.5
|
|
$
|
1.9
|
|
|
$
|
(10.4)
|
|
$
|
(9.8)
|
|
Net Income
(Loss)
|
$
|
8.9
|
|
$
|
6.3
|
|
|
$
|
0.2
|
|
$
|
0.4
|
|
|
$
|
(7.3)
|
|
$
|
(7.3)
|
|
*For purposes of this
release, Hyster-Yale Group refers to the Company's Lift Truck
business, Bolzoni is the Attachment business and Nuvera is the Fuel
Cell business.
|
In late 2018, the Company announced that Bolzoni's North America attachment manufacturing would
be moved into Hyster-Yale Group's Sulligent, Alabama manufacturing facility as
part of a plan to expand Bolzoni's capabilities in the United
States. Effective January 1,
2019, the Sulligent
facility became a Bolzoni facility. As a result of this
reorganization, the 2019 and comparative 2018 financial information
in this news release has been reclassified to reflect the
Sulligent facility financial
results within the Bolzoni segment.
Hyster-Yale Group Results
The following is a summary of Hyster-Yale Group unit shipments,
bookings and backlog for the 2019 and 2018 fourth quarters and the
2019 third quarter.
($ in
millions)
|
Quarter Ended
December 31, 2019
|
|
Quarter Ended
September 30, 2019
|
|
Quarter Ended
December 31, 2018
|
Unit
Shipments
|
24,800
|
|
23,500
|
|
27,700
|
Unit
Bookings
|
22,600
|
|
22,800
|
|
29,200
|
Unit Bookings $
value
|
$550
|
|
$540
|
|
$690
|
Unit
Backlog
|
41,200
|
|
43,400
|
|
43,900
|
Unit Backlog $
value
|
$1,070
|
|
$1,130
|
|
$1,190
|
Unit shipments improved over the 2019 third quarter, but
decreased compared with the 2018 fourth quarter as shipments in the
2019 fourth quarter continued to be impacted, but to a lesser
extent than in previous quarters, by a shortage of key components
on certain heart-of-the-line products from key suppliers.
While these supplier issues were generally resolved by the end of
the fourth quarter, there will be some lingering effects in the
first quarter of 2020. Lower bookings in the 2019 fourth
quarter compared with the prior periods shown were partly a result
of extended lead times on certain product ranges caused by the same
supplier issues, as well as lower, but still robust, market levels.
Backlog and the average sales price per unit in backlog decreased
from the prior year and more modestly from the 2019 third quarter
as a result of an increase in shipments of higher-priced units
during the current quarter.
Americas Results
Revenues in the Americas segment, which includes the
North America, Latin America and Brazil markets, increased 5.7% to $545.3 million in the fourth quarter of 2019 from
$516.1 million in the fourth quarter
of 2018, despite a 500-unit decrease in shipments. This
improvement was primarily the result of price increases implemented
to offset material cost inflation and tariffs, as well as higher
revenues from an increase in shipments of higher-priced Class 2
electric warehouse trucks and Class 5 Big Trucks in the
North America market, which more
than offset the revenue decrease from substantially fewer shipments
of lower-capacity, lower-priced Class 1 and Class 5 trucks.
In the fourth quarter of 2019, operating profit in the Americas
improved to $17.8 million from
$4.0 million in the fourth quarter of
2018. Operating profit increased primarily as a result of
improved gross profit partly offset by higher operating
expenses. The increase in gross profit was mainly due to
price increases to recover 2018 and 2019 material cost inflation,
including continuing tariffs, as well as pricing actions applied
throughout 2019, which matured during the fourth quarter of
2019. The improvement in gross profit from these benefits was
partially offset by a shift in mix to lower-margin products and
unfavorable currency movements.
Operating expenses increased primarily as a result of increased
product liability expense, product development costs to support a
planned major upgrade of several of the Company's core product
platforms and additional investments in the expansion of
Hyster-Yale Group's industry-focused sales and marketing teams.
EMEA Results
Revenues for the EMEA segment, which includes operations in the
Europe, Middle East and Africa markets, decreased to $197.3 million in the fourth quarter of 2019 from
$207.7 million in the fourth quarter
of 2018. Revenues declined primarily due to a decrease in
unit and parts revenues and unfavorable currency movements of
$6.8 million from the translation of
sales into U.S. dollars. Unit shipments decreased across all
EMEA regions by approximately 1,700 units, driven by all classes of
lift trucks, with the exception of Class 5 Big Trucks. The
decline in lower-capacity Class 5 lift truck shipments was the
result of the same component shortages experienced in the
Americas. Price increases implemented to offset higher
material costs partly offset the revenue decrease.
Despite lower revenues, EMEA operating profit increased to
$5.0 million in the fourth quarter of
2019 from $4.2 million in the fourth
quarter of 2018 primarily as a result of improved gross profit,
partly offset by higher operating expenses. The improvement
in gross profit was mainly due to pricing actions on lift truck
sales and a favorable shift in mix to higher-margin products,
partially offset by unfavorable currency movements, higher material
and freight costs and increased warranty expense, as well as lower
unit and parts volumes. The increase in operating expenses
was driven by higher costs to support the Company's strategic
growth initiatives
JAPIC Results
Revenues in the JAPIC segment, which includes operations in the
Asia and Pacific markets,
including China, as well as
results from Hyster-Yale Maximal, decreased to $55.6 million in the fourth quarter of 2019 from
$70.4 million in the fourth quarter
of 2018. The lower revenues were primarily driven by a
decrease in shipments of approximately 600 units. During the
2019 fourth quarter, the Company implemented new ERP systems in
JAPIC and launched new forklift truck models, as well as moved the
JAPIC headquarters to a more centralized location in the region,
all of which led to reduced productivity and, ultimately, the lower
unit shipment levels during the quarter.
JAPIC generated an operating loss of $5.1
million in the fourth quarter of 2019 compared with an
operating loss of $4.0 million in the
fourth quarter of 2018. JAPIC's operating results declined
primarily as a result of lower parts margins and a shift in mix to
lower-margin products.
Bolzoni Results
While Bolzoni's 2019 fourth quarter revenues of $87.0 million were comparable to the 2018 fourth
quarter revenues of $87.1 million,
operating profit decreased to $0.5
million in the fourth quarter of 2019 from $1.9 million in the 2018 fourth quarter.
The decrease in operating profit was primarily due to unfavorable
currency movements.
Nuvera Results
Nuvera revenues decreased to $1.0
million in the fourth quarter of 2019 from $2.4 million in the third quarter of 2019 and
from $13.7 million in the fourth
quarter of 2018. During the fourth quarter of 2018, Nuvera
recognized revenues that had previously been deferred on fuel cell
battery box replacements ("BBRs") sold. The decrease in
revenues compared with the third quarter of 2019 was primarily the
result of lower development funding associated with Nuvera's
third-party development agreements.
Nuvera's 2019 fourth quarter operating loss increased compared
with the prior year quarter mainly as a result of lower product
development funding received from third parties. Despite an
increase in the operating loss, Nuvera's net loss was comparable to
the prior year quarter as a result of an accrued dividend from one
of Nuvera's investments.
Investor Perspective
Hyster-Yale is currently undertaking the largest set of programs
in its history. These programs are expected to have a
transformational impact on the Company's competitiveness, market
position and economic performance over the next three to four
years.
For some time, the Company has been focused on six core
strategies:
- Provide the lowest cost of ownership while enhancing
productivity for customers.
- Be the leader in the delivery of industry- and customer-focused
solutions.
- Be the leader in independent distribution.
- Grow in emerging markets.
- Be the leader in the attachments business.
- Be a leader in fuel cells and their applications.
The projects required to execute fully on these strategies have
been, in general, initiated over the last several years and many
are now moving toward completion. Further, many of the
projects supporting these strategies are inter-related and
succeeding in one will foster success in others. In total,
these projects have required, and continue to require, significant
up-front expense and capital expenditure investment. The
various projects cover a broad range of Hyster-Yale activities,
including product development, supply chain, IT, manufacturing,
sales and marketing for each of the Company's three major
businesses: Hyster-Yale Group, Bolzoni and Nuvera.
Since 2017, these investments, both expense and capital, have
increased significantly. Further increased investments are
expected to continue to be made, with capital expenditures expected
to be substantially higher in 2020 than in 2019. The return
from these investments is expected to increase over the next three
to four years. In this context, Hyster-Yale Group's operating
profit is expected to improve significantly in 2020 over
2019. Results in the first half of the year are expected to
be higher than the first half of 2019, with further, substantial
improvement expected in the second half of the year compared with
both the second half of 2019 and the first half of 2020.
Further improved results are expected with significant increases
through 2023. Hyster-Yale Group's objective is to achieve its
target of 7% operating profit margin in this period assuming
reasonable market conditions continue. Likewise, Bolzoni's
operating profit is expected to increase in 2020, primarily as a
result of the absence of $2.5 million
of restructuring charges for its Americas operations, with further
improvements in the following years, leading to achievement of a 7%
operating profit margin target. Nuvera's results are expected
to improve in 2020 over 2019, with shipments expected to ramp up
throughout the second half of 2020. Results are expected to
improve significantly at Nuvera over the 2021 to 2023 time
period. At each of these three businesses, the investments
being undertaken are expected to lead to increased operating profit
through higher volumes, decreased product costs and improved
pricing, partially offset by a higher level of operating expense in
future years. Overall, consolidated operating profit and net
income in 2020 are expected to increase substantially over
2019.
At Hyster-Yale Group, product programs are expected to lay the
groundwork for enhanced market position by providing lower cost of
ownership and enhanced productivity for the Company's
customers. At the core of these programs is a new set of
modular and scalable product families covering both internal
combustion engine and electric trucks, which will provide customers
with enhanced flexibility for meeting their application needs
combined with the benefit of lowest total cost of ownership.
The introduction of the first of these products is expected in the
second half of 2020 with the launch of a new range of
counterbalanced trucks. This range will be expanded
comprehensively to include larger counterbalanced capacities, Big
Trucks and warehouse trucks. A further major initiative in
product offerings will come from the introduction of trucks
manufactured by Hyster-Yale Maximal in China. A line of
trucks from Hyster-Yale Maximal has been designed to provide high
quality and reliable, lower-intensity trucks for global markets and
standard trucks for the Chinese market. These trucks are
being progressively launched globally under the Hyster®
UT and Yale® UX brands
to serve lower-intensity customer applications. The launch
began in the JAPIC, Brazil and
Latin America markets during the
2019 fourth quarter and is expected to expand over the course of
2020 to all countries. In addition, Hyster-Yale Group's
partner in India is expected to
increase local production of larger trucks. In 2019, a new end
rider and a new automated Reach Truck were launched in the
North America market, and a range
of new lower-cost Class 3 lift trucks, including walkie and stacker
global products, were launched in certain markets. All of
these new products are expected to have a significant impact on
results in 2020. In early 2020, Hyster-Yale launched a new 3-
to 5- ton integrated lithium-ion engine lift truck with numerous
ergonomic benefits for the Americas and EMEA markets, and it
expects to launch a 7- to 9- ton version later in the year.
In addition, the Company expects to launch a newer-model Reach
Truck for the Americas market late in the first quarter of 2020.
To further enhance productivity for customers,
Hyster-Yale Group is continuing to develop automation solutions for
warehouse trucks, initially in combination with industry
partners. Some of these products are already in the market
today, but new solutions and customers are expected to be developed
progressively over the next several years. Hyster-Yale Group
continues to expand sales of telemetry products, and new
generations of lift trucks will offer a fully integrated telematics
solution. Finally, Hyster-Yale Group anticipates introducing
new fuel cell BBRs for Class 1, 2 and 3 forklift trucks over the
next few years, beginning with the first model in the second
quarter of 2020, that are expected over time to move the fuel cell
BBR business to break-even.
The introduction of these new products will lead to significant
changes in supply chain sourcing and in the Company's various
manufacturing facilities around the world. Consolidated
component volume sourced globally from reliable partners is
expected to reduce costs and improve quality as these new products
are brought to market over the next few years. Hyster-Yale
Group's largest manufacturing facilities in Berea, Craigavon and Greenville are undergoing significant changes
and are expected to have reduced costs and improved productivity
while most other plants will see more modest changes. China
production activities are expected to be consolidated at the
Hyster-Yale Maximal facility. The first phase of this
transition occurred during the 2019 fourth quarter, and the second
phase is expected to be completed by the end of 2020.
Hyster-Yale Group currently has over 400 different forklift
models in its range, including Hyster-Yale Maximal models, which
are reinforced by its capability to customize these trucks to meet
specific customer needs. The modular nature of the new
products being introduced will enhance Hyster-Yale's ability to
meet customer needs at lowest cost and in more detail, both at the
industry level and at the individual customer level. To
achieve the full expected benefit from these programs, Hyster-Yale
continues to make substantial expense investments in its sales and
marketing organizations to realign teams around industry groupings,
with spending on this program almost at mature levels. Within
marketing, industry-focused resources have been added to develop
industry strategies. The higher-priority industry strategies have
been completed for North America
and Europe. Most of the strategies were completed for all
countries, or groups of countries, during 2019 but will mature and
be enhanced over future years. To support execution of these
industry strategies, Hyster-Yale Group has invested in additional
industry-focused sales capabilities to support its dealers.
This industry-focused structure has been highly successful in its
National Account direct sales program and is now being deployed
with the new dealer support teams. These investments are
largely in place in North America,
and to a lesser degree in EMEA. Additional sales capabilities
are expected to be added in other areas around the world over the
next year, while the Company will look to reduce costs in other
areas to contain spending. In total, the Company believes
that these projects will put it in a position to be a leader in the
delivery of industry- and customer-focused solutions worldwide.
While the new sales teams will support dealers' sales efforts,
the Company also intends to continue to upgrade its global dealer
capabilities. A core objective is to have dealers that are
fully capable of maximizing the potential of the Hyster®
and Yale® brands in
their territories. These dealers will be supported by
Hyster-Yale Group's commitment to helping dealers strengthen the
excellence of their activities in all areas of their business,
including leadership, sales, parts, service, rental, leasing and
remarketing. To help these programs have maximum impact, the
Company intends to invest over the next few years in enhanced
digital customer experience systems. Taken together, these
initiatives amount to a new, uniquely competitive way of serving
the markets around the world.
Bolzoni is also pursuing very aggressive projects to expand its
global market position. These projects include strengthening
Bolzoni's ability to serve the North
America market by having responsibility for the former
Hyster-Yale Group Sulligent plant, where it is now manufacturing
attachments and continuing the plant's support of Hyster-Yale Group
through the supply of cylinders and various other components.
In 2019, Bolzoni phased out production at its Homewood, Illinois facility and completed the
shift of manufacturing to Sulligent. Bolzoni is still
maintaining a distribution center and certain other operations in
Homewood. This restructuring was completed in 2019, and
Bolzoni does not anticipate any further restructuring-related costs
in 2020.
There is a large opportunity for market share growth in the
Americas market for attachments. To help capture this,
Bolzoni plans to introduce a broader range of locally produced
attachments with shorter lead times to serve its customer
base. Bolzoni also is in the process of increasing its sales,
marketing and product support capabilities in North America, and is establishing a small
assembly function in Brazil to
serve the Latin America
market. In addition, it has developed a standard product line
sourced from one of its factories in China to supplement its premium line.
Further, Bolzoni has plans to continue to expand this standard
product line. Bolzoni's current outstanding premium line of
products coupled with these standard products and an
industry-focused strategy are expected to give Bolzoni the ability
to increase its sales significantly in the Americas, JAPIC and EMEA
regions. These new programs are expected to increase Bolzoni's
market position and profitability, especially over the next two to
three years.
Nuvera is approaching the point where it will move from being a
venture business focused on commercializing leading technology to a
product-based company serving not only the forklift truck market,
but also heavy-duty applications, such as buses and trucks and
applications in the automotive sector, with an expanding line of
developed products. Nuvera expects its core technology to
move to a new generation of fuel cell stack design over the next
year with broad application in each of these markets. It
successfully certified its first 45kW engine for China in 2019 and the vehicle certification is
in process. Nuvera is focused on continuously improving the
quality and cost of its fuel cell engines. These performance
and cost factors are expected to reach target objectives over the
next two years. With the transfer of the responsibility for
development of non-fuel-cell engine components and the overall
assembly of Class 1 and Class 2 BBRs to Hyster-Yale Group during
2019, Nuvera is now focused entirely on fuel cell stacks and
engines. To improve its cost base, Nuvera continues to work
on standardizing its products, developing low-cost suppliers and
automating various elements of stack production. Robotic
stack assembly lines have been in development for some time, and
Nuvera brought the first online during the fourth quarter of
2019. In overview, Nuvera's objective is to reduce its loss
in 2020 and to achieve break-even in the near to medium term.
In the long term, Nuvera is expected to contribute substantially to
the Company's overall earnings.
In summary, Hyster-Yale believes it is at an inflection point in
its business. Results in 2019 reflected continued investment
in the Company's strategic programs and progress on their
implementation. In 2020, the Company expects the maturation
of these investments to begin, and as a result, 2020 operating
profit and net income are expected to increase significantly over
2019. Efforts to abate the most severe shortages from key
suppliers in the United States
have now been successful, and the supplier shortages that occurred
during 2019 were generally resolved by the end of the year, with
some modest lingering effects in the first quarter of 2020.
The status of tariffs has been changing continuously and, although
the Company is still experiencing significant additional costs from
both the Section 232 and Section 301 tariffs, the Section 301
tariffs have been abated somewhat by government-granted exclusions
and partly offset by the Company's supply chain group securing
alternative non-Chinese suppliers and negotiating price
reductions.
For the 2020 full year, consolidated cash flow before financing
activities is expected to increase significantly over 2019.
In 2020 and 2021, a considerable portion of the new projects
outlined above are expected to have reached completion for all
three companies and the Company believes the full impact of these
programs can lead to profitability improvements for a number of
years to come. The remainder of the programs are expected to reach
maturity mainly in 2022 and 2023, although a few, particularly
those involving dealer structure and excellence, are more in the
nature of continuous improvement projects rather than projects
which reach maturity at a given time. Of course, the absolute
level of profitability will reflect actual market demand levels,
which showed some softening in 2019, particularly in
EMEA. While markets are still at robust levels, the market
appears to be in a downturn, which is currently projected to be
moderate and of limited duration. As a result, in 2020, the
Company is currently forecasting strong but lower forklift market
levels in all geographic segments. The Company continues to
forecast a resolution to the Brexit transition in a way that does
not significantly harm Hyster-Yale's business prospects.
The effects of the Coronavirus epidemic continue to evolve
daily, and there is much uncertainty with regard to the
ramifications of this situation. Currently, as a result of
the extended Chinese New Year and government mandates associated
with containing the Coronavirus epidemic in China, the startup of production at the
Company's Chinese facilities has been delayed, but is expected to
ramp up over the next few weeks. However, this timing is
contingent on the appropriate utilities, transportation and other
support services being in place, as well as the availability of
components from suppliers. Further, the impact and the spread
of the virus, which is not predictable at this time, may affect the
Company's operations in other areas of the world, including
Italy. Hyster-Yale will continue to monitor the global
Coronavirus situation, and its effect on the Company's businesses,
and it will take further action as necessary to maintain the health
and safety of its global employees and partners, and to address any
production and supply chain issues which may emerge.
The Company believes that investors who are focused on mid-term
business improvement in market position and profitability will find
that Hyster-Yale's focus is consistent with those investment
objectives.
*****
Conference Call
In conjunction with this news release, the management of
Hyster-Yale Materials Handling, Inc. will host a conference call on
Wednesday, February 26, 2020 at
11:00 a.m. eastern time. The
call may be accessed by dialing (833) 241-7250 (Toll Free) or (647) 689-4214 (International),
Conference ID: 4885655, or over the Internet through Hyster-Yale's
website at www.hyster-yale.com. Please allow 15 minutes to
register, download and install any necessary audio software
required to listen to the broadcast. A replay of the call
will be available shortly after the end of the conference call
through March 3, 2020. The
online archive of the broadcast will be available on the
Hyster-Yale website.
Annual Report on Form 10-K
Hyster-Yale Materials Handling. Inc.'s Annual Report on Form
10-K has been filed with the Securities and Exchange
Commission. This document may be obtained free of charge by
directing such requests to Hyster-Yale Materials Handling, Inc.,
5875 Landerbrook Drive, Cleveland,
Ohio 44124, Attention: Investor Relations, by calling (440)
229-5168, or from Hyster-Yale Materials Handling's website at
www.hyster-yale.com.
Non-GAAP and Other Measures
This release contains non-GAAP financial measures.
Included in this release are reconciliations of these non-GAAP
financial measures to the most directly comparable financial
measures calculated in accordance with U.S. generally accepted
accounting principles ("GAAP"). EBITDA in this press release
is provided solely as a supplemental non-GAAP disclosure of
operating results. Management believes that EBITDA assists
investors in understanding the results of operations of the
Company. In addition, management evaluates results using
EBITDA.
For purposes of this news release, discussions about net income
(loss) refer to net income (loss) attributable to stockholders.
Forward-looking Statements Disclaimer
The statements contained in this news release that are not
historical facts are "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. These
forward-looking statements are made subject to certain risks and
uncertainties, which could cause actual results to differ
materially from those presented. Readers are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date hereof. The Company undertakes no
obligation to publicly revise these forward-looking statements to
reflect events or circumstances that arise after the date
hereof. Among the factors that could cause plans, actions and
results to differ materially from current expectations are, without
limitation: (1) reduction in demand for lift trucks, attachments
and related aftermarket parts and service on a global basis, (2)
delays in delivery or increases in costs, including transportation
costs, the imposition of tariffs, or the renewal of tariff
exclusions, of raw materials or sourced products and labor or
changes in or unavailability of quality suppliers, (3) delays in
manufacturing and delivery schedules, (4) the successful
commercialization of Nuvera's technology, (5) customer
acceptance of pricing, (6) the political and economic uncertainties
in the countries where the Company does business, (7) the ability
of dealers, suppliers and end-users to obtain financing at
reasonable rates, or at all, as a result of current economic and
market conditions, (8) exchange rate fluctuations and monetary
policies and other changes in the regulatory climate in the
countries in which the Company operates and/or sells products, (9)
bankruptcy of or loss of major dealers, retail customers or
suppliers, (10) customer acceptance of, changes in the costs of, or
delays in the development of new products, (11) introduction of new
products by, or more favorable product pricing offered by,
competitors, (12) product liability or other litigation, warranty
claims or returns of products, (13) the effectiveness of the cost
reduction programs implemented globally, including the successful
implementation of procurement and sourcing initiatives, (14)
changes mandated by federal, state and other regulation, including
tax, health, safety or environmental legislation, (15) unfavorable
effects of geopolitical and legislative developments on global
operations, including without limitation, the United Kingdom's exit from the European Union,
the entry into new trade agreements and the imposition of tariffs
and/or economic sanctions, and (16) unfavorable effects of the
Coronavirus on either the Company's or its suppliers plants'
capabilities to produce and ship products if the epidemic spreads
or quarantines are extended.
About Hyster-Yale Materials Handling, Inc.
Hyster-Yale Materials Handling, Inc., headquartered in
Cleveland, Ohio, offers a broad
array of solutions to meet the specific materials handling needs of
customers' applications. The Company's wholly owned operating
subsidiary, Hyster-Yale Group, Inc., designs, engineers,
manufactures, sells and services a comprehensive line of lift
trucks and aftermarket parts marketed globally primarily under the
Hyster® and Yale® brand names.
Subsidiaries of Hyster-Yale include Nuvera Fuel Cells, LLC, an
alternative-power technology company focused on fuel cell stacks
and engines, and Bolzoni S.p.A., a leading worldwide producer of
attachments, forks and lift tables marketed under the
Bolzoni®, Auramo® and Meyer® brand
names. Hyster-Yale also has significant joint ventures in
Japan (Sumitomo NACCO) and in
China (Hyster-Yale Maximal).
For more information about Hyster-Yale and its subsidiaries,
visit the Company's website at www.hyster-yale.com.
*****
HYSTER-YALE
MATERIALS HANDLING, INC.
|
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December 31
|
|
December 31
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(In millions, except
per share data)
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
834.8
|
|
|
$
|
840.8
|
|
|
$
|
3,291.8
|
|
|
$
|
3,179.1
|
|
Cost of
sales
|
693.6
|
|
|
718.9
|
|
|
2,750.0
|
|
|
2,682.1
|
|
Gross
Profit
|
141.2
|
|
|
121.9
|
|
|
541.8
|
|
|
497.0
|
|
Selling, general and
administrative expenses
|
133.1
|
|
|
125.3
|
|
|
487.9
|
|
|
458.2
|
|
Operating Profit
(loss)
|
8.1
|
|
|
(3.4)
|
|
|
53.9
|
|
|
38.8
|
|
Other (income)
expense
|
|
|
|
|
|
|
|
Interest expense
|
4.9
|
|
|
4.4
|
|
|
19.8
|
|
|
16.0
|
|
Income from unconsolidated
affiliates
|
(1.4)
|
|
|
(2.6)
|
|
|
(9.3)
|
|
|
(10.0)
|
|
Other, net
|
0.7
|
|
|
(2.3)
|
|
|
(4.5)
|
|
|
(3.8)
|
|
Income (loss)
before Income Taxes
|
3.9
|
|
|
(2.9)
|
|
|
47.9
|
|
|
36.6
|
|
Income tax provision
(benefit)
|
0.5
|
|
|
(1.7)
|
|
|
11.3
|
|
|
2.3
|
|
Net (income) loss
attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
(0.8)
|
|
|
0.4
|
|
Net Income (loss)
Attributable to Stockholders
|
$
|
3.4
|
|
|
$
|
(1.2)
|
|
|
$
|
35.8
|
|
|
$
|
34.7
|
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per share
|
$
|
0.20
|
|
|
$
|
(0.07)
|
|
|
$
|
2.15
|
|
|
$
|
2.10
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
$
|
0.20
|
|
|
$
|
(0.07)
|
|
|
$
|
2.14
|
|
|
$
|
2.09
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
16.666
|
|
|
16.559
|
|
|
16.645
|
|
|
16.540
|
|
Diluted weighted
average shares outstanding
|
16.773
|
|
|
16.642
|
|
|
16.726
|
|
|
16.602
|
|
|
|
|
|
|
|
|
|
EBITDA
RECONCILIATION
|
|
Quarter
Ended
|
|
|
|
3/31/2019
|
|
6/30/2019
|
|
9/30/2019
|
|
12/31/2019
|
|
Year
Ended
12/31/2019
|
|
(In
millions)
|
Net Income
Attributable to Stockholders
|
$
|
3.4
|
|
|
$
|
16.2
|
|
|
$
|
12.8
|
|
|
$
|
3.4
|
|
|
$
|
35.8
|
|
Noncontrolling
interest income (loss)
|
(0.2)
|
|
|
0.7
|
|
|
0.3
|
|
|
—
|
|
|
0.8
|
|
Income tax
provision
|
1.5
|
|
|
4.4
|
|
|
4.9
|
|
|
0.5
|
|
|
11.3
|
|
Interest
expense
|
4.5
|
|
|
5.1
|
|
|
5.3
|
|
|
4.9
|
|
|
19.8
|
|
Interest
income
|
(0.4)
|
|
|
(0.4)
|
|
|
(0.2)
|
|
|
(0.8)
|
|
|
(1.8)
|
|
Depreciation and
amortization expense
|
11.2
|
|
|
10.8
|
|
|
10.3
|
|
|
11.0
|
|
|
43.3
|
|
EBITDA*
|
$
|
20.0
|
|
|
$
|
36.8
|
|
|
$
|
33.4
|
|
|
$
|
19.0
|
|
|
$
|
109.2
|
|
|
|
|
|
|
|
|
|
|
|
*EBITDA in this press
release is provided solely as a supplemental disclosure. EBITDA
does not represent net income (loss), as defined by U.S. GAAP, and
should not be considered as a substitute for net income or net
loss, or as an indicator of operating performance. Hyster-Yale
defines EBITDA as income (loss) before income taxes and
noncontrolling interest income plus net interest expense and
depreciation and amortization expense. EBITDA is not a measurement
under U.S. GAAP and is not necessarily comparable with similarly
titled measures of other companies.
|
HYSTER-YALE
MATERIALS HANDLING, INC.
|
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December 31
|
|
December 31
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(In
millions)
|
Revenues
|
|
|
|
|
|
|
|
Americas
|
$
|
545.3
|
|
|
$
|
516.1
|
|
|
$
|
2,123.3
|
|
|
$
|
1,987.5
|
|
EMEA
|
197.3
|
|
|
207.7
|
|
|
751.2
|
|
|
768.8
|
|
JAPIC
|
55.6
|
|
|
70.4
|
|
|
249.7
|
|
|
242.1
|
|
Hyster-Yale
Group
|
$
|
798.2
|
|
|
$
|
794.2
|
|
|
$
|
3,124.2
|
|
|
$
|
2,998.4
|
|
Bolzoni
|
87.0
|
|
|
87.1
|
|
|
345.4
|
|
|
349.0
|
|
Nuvera
|
1.0
|
|
|
13.7
|
|
|
10.1
|
|
|
17.0
|
|
Eliminations
|
(51.4)
|
|
|
(54.2)
|
|
|
(187.9)
|
|
|
(185.3)
|
|
Total
|
$
|
834.8
|
|
|
$
|
840.8
|
|
|
$
|
3,291.8
|
|
|
$
|
3,179.1
|
|
|
|
|
|
|
|
|
|
Gross profit
(loss)
|
|
|
|
|
|
|
|
Americas
|
$
|
93.0
|
|
|
$
|
73.0
|
|
|
$
|
354.8
|
|
|
$
|
314.3
|
|
EMEA
|
30.9
|
|
|
28.4
|
|
|
110.5
|
|
|
102.8
|
|
JAPIC
|
6.6
|
|
|
7.7
|
|
|
29.7
|
|
|
22.1
|
|
Hyster-Yale
Group
|
$
|
130.5
|
|
|
$
|
109.1
|
|
|
$
|
495.0
|
|
|
$
|
439.2
|
|
Bolzoni
|
14.0
|
|
|
15.5
|
|
|
58.1
|
|
|
63.7
|
|
Nuvera
|
(3.6)
|
|
|
(3.0)
|
|
|
(11.2)
|
|
|
(6.0)
|
|
Eliminations
|
0.3
|
|
|
0.3
|
|
|
(0.1)
|
|
|
0.1
|
|
Total
|
$
|
141.2
|
|
|
$
|
121.9
|
|
|
$
|
541.8
|
|
|
$
|
497.0
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
|
|
|
|
|
|
|
Americas
|
$
|
17.8
|
|
|
$
|
4.0
|
|
|
$
|
88.8
|
|
|
$
|
75.4
|
|
EMEA
|
5.0
|
|
|
4.2
|
|
|
10.7
|
|
|
6.6
|
|
JAPIC
|
(5.1)
|
|
|
(4.0)
|
|
|
(13.9)
|
|
|
(14.5)
|
|
Hyster-Yale
Group
|
$
|
17.7
|
|
|
$
|
4.2
|
|
|
$
|
85.6
|
|
|
$
|
67.5
|
|
Bolzoni
|
0.5
|
|
|
1.9
|
|
|
4.7
|
|
|
9.5
|
|
Nuvera
|
(10.4)
|
|
|
(9.8)
|
|
|
(36.3)
|
|
|
(38.3)
|
|
Eliminations
|
0.3
|
|
|
0.3
|
|
|
(0.1)
|
|
|
0.1
|
|
Total
|
$
|
8.1
|
|
|
$
|
(3.4)
|
|
|
$
|
53.9
|
|
|
$
|
38.8
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to stockholders
|
|
|
|
|
|
|
|
Americas
|
$
|
10.6
|
|
|
$
|
1.3
|
|
|
$
|
61.2
|
|
|
$
|
53.5
|
|
EMEA
|
4.0
|
|
|
3.8
|
|
|
9.0
|
|
|
6.3
|
|
JAPIC
|
(5.7)
|
|
|
1.2
|
|
|
(11.9)
|
|
|
(3.1)
|
|
Hyster-Yale
Group
|
$
|
8.9
|
|
|
$
|
6.3
|
|
|
$
|
58.3
|
|
|
$
|
56.7
|
|
Bolzoni
|
0.2
|
|
|
0.4
|
|
|
2.8
|
|
|
5.8
|
|
Nuvera
|
(7.3)
|
|
|
(7.3)
|
|
|
(25.2)
|
|
|
(27.9)
|
|
Eliminations
|
1.6
|
|
|
(0.6)
|
|
|
(0.1)
|
|
|
0.1
|
|
Total
|
$
|
3.4
|
|
|
$
|
(1.2)
|
|
|
$
|
35.8
|
|
|
$
|
34.7
|
|
HYSTER-YALE
MATERIALS HANDLING, INC.
|
FINANCIAL
HIGHLIGHTS
|
|
|
CASH FLOW AND
CAPITAL STRUCTURE
|
|
Year Ended
|
|
December 31
|
|
2019
|
|
2018
|
|
(In
millions)
|
Net cash provided by
operating activities
|
$
|
76.7
|
|
|
$
|
67.6
|
|
Net cash used for
investing activities
|
(42.0)
|
|
|
(110.9)
|
|
Cash Flow Before Financing Activities
|
$
|
34.7
|
|
|
$
|
(43.3)
|
|
|
|
|
|
|
December 31,
2019
|
|
December 31,
2018
|
Debt
|
$
|
287.0
|
|
|
$
|
301.5
|
|
Cash
|
64.6
|
|
|
83.7
|
|
Net Debt
|
$
|
222.4
|
|
|
$
|
217.8
|
|
|
|
|
|
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SOURCE Hyster-Yale Materials Handling, Inc.