CLEVELAND, July 31, 2018 /PRNewswire/ --
Quarter Highlights:
- Q2 2018 consolidated revenues increased 11.7% over Q2 2017,
including currency translation
- Q2 2018 consolidated operating profit decreased
38.3%
- Strong Q2 2018 Lift Truck bookings and ending
backlog
- HY Maximal contributed $7.2
million in revenues and generated a $0.2 million net loss since acquisition on
June 1, 2018
- Bolzoni Q2 2018 revenues increased 25.3% over Q2 2017 and
operating profit increased to $3.2
million from $0.5
million
- Nuvera Q2 2018 operating loss decreased to $9.5 million from $10.5
million in Q2 2017
Hyster-Yale Materials Handling, Inc. (NYSE: HY) today announced
consolidated revenues of $765.6
million and consolidated net income of $5.6 million, or $0.34 per diluted share, for the second quarter
of 2018, compared with consolidated revenues of $685.5 million and consolidated net income of
$16.4 million, or $0.99 per diluted share, in the second quarter of
2017. Consolidated operating profit was $10.8 million for the second quarter of 2018
compared with $17.5 million for the
second quarter of 2017.
As previously announced on June 1,
2018, the Company completed its acquisition of 75 percent of
the outstanding shares of Zhejiang Maximal Forklift Co., Ltd. for
an aggregate purchase price of $90
million, funded by cash on hand. With the conclusion
of the acquisition, Zhejiang Maximal Forklift Co., Ltd. was renamed
Hyster-Yale Maximal Forklift (Zhejiang) Co., Ltd. ("HY Maximal").
Consolidated net income in the second quarters of 2018 and 2017
includes $1.9 million and
$0.5 million pre-tax of Maximal
acquisition-related costs, respectively, reported in the Americas
segment, as well as an increase in 2018 tax expense of $1.1 million related to accumulated
non-deductible acquisition costs.
For the six months ended June 30, 2018, the Company
reported consolidated revenues of $1.6
billion and net income of $20.5
million, or $1.24 per diluted
share, compared with consolidated revenues of $1.4 billion and net income of $34.5 million, or $2.09 per diluted share, for the first six months
of 2017. Consolidated operating profit was $30.0 million for the first half of 2018 compared
with $40.1 million in the first half
of 2017. Operating profit in 2018 and 2017 includes
$2.4 million and $1.4 million of Maximal acquisition costs,
respectively.
The Company's cash position was $152.4
million as of June 30, 2018
compared with $220.1 million as of
December 31, 2017. Debt as of
June 30, 2018 decreased to
$273.1 million from $290.7 million as of December 31, 2017.
Adjusted EBITDA for the second quarter and trailing twelve
months ended June 30, 2018 was
$21.9 million and $141.3 million, respectively. Adjusted
EBITDA in this press release is provided solely as a supplemental
non-GAAP disclosure with respect to operating results. For
reconciliations from GAAP results to the non-GAAP results, see page
10.
For the 2018 full year, the Company expects its consolidated
operating profit to increase over 2017 primarily due to a lower
operating loss at Nuvera, principally in the fourth quarter of
2018, and an expected improvement in Bolzoni's operating
profit. These improvements are expected to be partially
offset by a modest decrease in full year operating profit at the
Lift Truck business due to the lower operating profit in the first
half of 2018, combined with a modest decline in the third quarter,
mostly offset by a substantial increase in operating profit in the
fourth quarter.
Consolidated 2018 net income is expected to increase
substantially over 2017 due to the absence of unfavorable tax
adjustments of $18.4 million made in
2017 as a result of U.S. tax reform legislation.
Excluding the cash paid for HY Maximal in June 2018 and the favorable effect from the 2016
unplanned acceleration of payments on the first quarter of 2017,
consolidated cash flow before financing activities is expected to
decrease significantly in the second half of 2018 and for the 2018
full year compared with the prior year periods, primarily due to
anticipated increased working capital and higher capital
expenditures.
Consolidated Lift Truck Results
The Lift Truck business reported revenues of $720.1 million and net income of $11.0 million for the second quarter of 2018
compared with revenues of $647.7
million and net income of $23.8
million for the second quarter of 2017. Lift truck
operating profit was $17.3 million
for the second quarter of 2018 compared with $27.8 million for the second quarter of 2017.
The second-quarter 2018 Lift Truck net income includes a
$2.6 million pre-tax unfavorable
mark-to-market adjustment for the Company's equity investment in a
third party and a $0.7 million
unfavorable pension settlement adjustment reported in the
Americas. Net income in 2017 also included a net discrete tax
benefit of $2.8 million, of which
$4.4 million of discrete tax benefits
were reported in the Americas and a $1.6
million discrete tax expense was reported in JAPIC.
Consolidated worldwide new unit shipments increased to
approximately 23,900 units in the second quarter of 2018 from
approximately 22,200 units in the second quarter of 2017, but
decreased from 24,800 units in the first quarter of 2018, primarily
due to temporary supply issues. These issues have been
resolved and are not expected to affect shipments in the remainder
of 2018.
Second quarter 2018 bookings were approximately 29,500 units, or
approximately $720 million, compared
with approximately 25,300 units, or approximately $575 million, in the second quarter of
2017. Worldwide backlog was approximately 41,700 units, or
approximately $1.1 billion, at
June 30, 2018 compared with
approximately 35,300 units, or approximately $820 million, at June 30,
2017 and approximately 36,100 units, or approximately
$930 million, at March 31, 2018. Average unit backlog value
increased due to the mix of products within the backlog as the
Company continued to sell more higher-priced units and fewer
lower-priced Class 3 products.
For the six months ended June 30,
2018, the Lift Truck business reported revenues of
$1.5 billion and net income of
$31.7 million compared with revenues
of $1.3 billion and net income of
$46.1 million for the six months
ended June 30, 2017. Lift truck
shipments increased to approximately 48,700 units in the first half
of 2018 from approximately 45,500 units in the first half of
2017.
Americas Results
Revenues in the Americas segment, which includes the
North America, Latin America and Brazil markets, increased 8.9% to $471.6 million in the second quarter of 2018 from
$432.9 million in the second quarter
of 2017, mainly due to an increase in unit shipments of
higher-priced trucks and an increase in parts sales. Unit
shipments increased by approximately 700 units over the second
quarter of 2017. Revenues increased primarily as a result of
increased sales of Class 5 internal combustion engine lift trucks,
including Big Trucks and the XT/MX standard truck, partially offset
by reduced sales of lower-priced Class 1 electric trucks.
Despite higher unit volumes and parts sales, operating profit in
the Americas decreased to $18.0
million in the second quarter of 2018 from $27.7 million in the prior year quarter,
primarily driven by material and freight cost inflation of
$7.7 million, net of modest price
increases, an increase in operating expenses of $6.1 million and unfavorable currency
movements. The Americas implemented price increases during
the first half of the year to offset higher than planned material
cost inflation but the second-quarter operating results reflect the
lag between when price increases go into effect and when they are
fully realized since customer orders in backlog are generally price
protected. Operating expenses increased as a result of an
increase in sales and product development expenses incurred to
execute the Company's strategic initiatives, and higher acquisition
costs.
Americas - Outlook
The Americas market remained strong in the second quarter of
2018 but moderated from the double digit growth experienced in the
first quarter. For the remainder of 2018, the Company expects
the overall Americas market to be at levels comparable to the
second half of 2017. Despite this moderated market
environment, the Company expects unit shipments, revenues and parts
sales to continue to increase over the remainder of 2018 compared
with the second half of 2017 as share gain initiatives continue to
mature.
Operating profit in the Americas is also expected to increase in
the second half of 2018, with an anticipated modest decrease in the
third quarter expected to be significantly offset by anticipated
improvements in the fourth quarter. The decrease in the third
quarter operating profit is expected to be driven primarily by
shipments of backlog orders that were booked at prices in effect
prior to the Americas' price increases, as well as higher operating
expenses. The improvements in the fourth quarter are the
result of an expected increase in sales volumes of higher-priced
Class 5 internal combustion engine trucks, including Big Trucks, as
well as an expected improvement in product pricing as trucks booked
at the new higher prices are shipped. As a result, full-year
2018 operating profit is expected to be comparable to 2017.
The Americas implemented price increases to help recover
anticipated material cost inflation, including the impact of
tariffs, and expects to continue to implement pricing actions as
needed. The Company is still working to determine the full impact
of the most recent tariffs on its future operating results, and at
the same time reviewing a number of strategies to minimize their
effect. The Americas intends to adjust sourcing, as
appropriate, to help mitigate the effects of the newly enacted and
impending tariffs.
EMEA Results
Revenues in the EMEA segment, which includes operations in the
Europe, Middle East and Africa markets, increased 10.7% to
$191.0 million in the second quarter
of 2018 from $172.6 million in the
second quarter of 2017. Due to favorable currency movements,
revenues increased by $17.1 million
as a result of the translation of EMEA's sales into U.S.
dollars. An increase in parts sales also contributed to the
revenue increase. Despite an increase in shipments of
approximately 100 units, the unfavorable effect of a shift in sales
to lower-priced Class 2 and Class 3 warehouse trucks combined with
fewer shipments of higher-priced Class 5 internal combustion engine
trucks, including Big Trucks, partially offset the increase in
revenues.
Despite an increase in revenues, EMEA's operating profit
decreased to $1.4 million in the
second quarter of 2018 from $2.3
million in the second quarter of 2017. An increase in
operating expenses, including higher sales costs to support the
Company's strategic initiatives and $1.2
million of unfavorable currency movements, was partially
offset by an increase in gross profit. Gross profit improved
primarily as a result of favorable currency movements of
$1.0 million and higher parts sales,
partially offset by increased material and manufacturing costs, net
of price increases, and a shift in sales mix to lower-margin
products.
EMEA - Outlook
The EMEA market is expected to continue to grow in the second
half of 2018 but at a more moderate rate than the double digit
growth seen in the first half of 2018. As a result of these
current market conditions and anticipated market share gains,
volume is expected to increase moderately in the second half of
2018 compared with the second half of 2017 due to an increase in
shipments of lower-priced Class 3 warehouse trucks and
lower-capacity Class 5 internal combustion engine trucks. An
increase in parts sales is expected to further increase revenues
during the second half of 2018, resulting in an overall moderate
increase in 2018 full year revenues over 2017.
Despite the increase in revenues, operating profit in EMEA is
expected to decrease in the second half of 2018, resulting in a
decrease in full year 2018 operating profit compared with
2017. Anticipated higher operating expenses to support the
Company's strategic initiatives, as well as expected material cost
inflation, net of price increases, are expected to offset the
benefits to operating profit from the anticipated revenue increase
and favorable currency effects expected at current currency rates.
The Company also continues to be concerned about political tensions
and sanctions in Russia, which
could have a material impact on results from that country.
JAPIC Results
Revenues in the JAPIC segment, which includes operations in the
Asia and Pacific markets,
including China, and one month of
results from HY Maximal, increased to $57.5
million in the second quarter of 2018 from $42.2 million in the second quarter of
2017. Second quarter 2018 revenues included $7.2 million generated from shipments of
approximately 600 units at HY Maximal, which was acquired
June 1, 2018. Excluding the
impact of the HY Maximal acquisition, JAPIC revenues increased
mainly as a result of an increase in shipments of approximately 300
units, primarily in higher-priced Class 2 electric trucks, as well
as Class 5 internal combustion engine lift trucks, including Big
Trucks. Favorable currency movements of $1.7 million and higher parts revenues also
contributed to the revenue increase.
JAPIC generated an operating loss of $2.1
million in the second quarter of 2018 compared with an
operating loss of $2.2 million in the
second quarter of 2017. Included in the 2018 operating loss
are $0.5 million of HY Maximal
post-acquisition expenses related to the purchase and amortization
of intangibles.
JAPIC - Outlook
Over the remainder of 2018, the JAPIC market is expected to be
comparable to 2017 as a result of market declines in most market
areas except China, which is
expected to have only modest growth in the second half of the
year. Despite this market environment, JAPIC revenues are
expected to improve in the remainder of 2018 compared with the
prior year period as a result of the continued implementation of
the Company's strategic initiatives, including the acquisition of
HY Maximal. However, operating results in the second half and
for the 2018 full year are expected to decrease compared with the
respective 2017 periods as costs to integrate HY Maximal increase
over the remainder of 2018. In addition, purchase price
accounting adjustments associated with the acquisition of HY
Maximal will be required and are expected to unfavorably affect
JAPIC results.
Overall Lift Truck Outlook
Hyster-Yale remains focused on increasing unit volumes and
market share in its Lift Truck business over the remainder of 2018
and in future years through the continued implementation of its key
strategic initiatives, which include delivering industry- and
customer-focused solutions, providing low cost of ownership and
enhanced productivity for customers, enhancing independent
distribution, growing in emerging markets, maintaining leadership
in the attachments business and providing leadership in fuel cells
and their applications. The Company has realigned its sales
and marketing teams and increased its sales resources to execute
the Company's specific industry strategies more effectively.
To meet customer needs, the Company is developing new products
in many segments that are expected to support its increased market
share objectives. The Company is currently enhancing its
electric and warehouse products. In late 2017 and mid-2018,
the Company launched new versions of the Class 3 electric-stacker
warehouse truck and new Class 1 electric counterbalanced trucks in
EMEA, and expects to launch a new EMEA retail Reach Truck in the
second half of 2018. For the Americas, the Company expects to
introduce a new Class 3 end-rider truck in the second half of 2018.
The Company also expects to introduce a new mast and front end,
with improved visibility, for its 8- to 16-ton Class 5 Big Trucks
in the second half of 2018. Hyster-Yale is also working with
a customer to test a 52-ton Big Truck powered by lithium-ion
batteries, and is testing an 8 to 9 ton high-performance,
lithium-ion counterbalanced truck in EMEA. The first
prototype is expected to move to customer testing in early
2019. The Company has additional plans to expand its Big
Truck product line. These new products, as well as those
recently launched and the introduction of other new products in the
pipeline, including trucks with new Nuvera® Fuel Cell
System battery box replacements ("BBRs"), are expected to
contribute to market share gains, improve revenues and enhance
operating
margins.
The overall global lift truck market remained strong in the
first half of 2018, but is expected to grow only modestly in the
second half of 2018 compared with both the second half of 2017 and
the first half of 2018. Unit shipments and unit and parts
revenues in the Lift Truck business are expected to increase during
the second half and for the 2018 full year compared with the same
periods in 2017.
Operating profit is also expected to increase in the second half
of 2018, with a modest decrease in the third quarter expected to be
more than offset by improvements in the fourth quarter due to an
expected increase in product pricing as price increases come into
effect on trucks shipped. These improvements are expected to
be partially offset by material cost inflation, and by higher
operating expenses driven by continued investments in the Company's
strategic initiatives. However, the improvements in the
second half of 2018 are not expected to offset the reduced
operating profit in the first half of 2018. As a result, the
Company expects an overall moderate decrease in full year 2018
operating profit compared with 2017. Nevertheless, net income
in the second half of 2018 is expected to increase substantially
over the second half of 2017 as a result of the absence of the tax
adjustments made in 2017 for U.S. tax reform legislation.
The Company anticipates that commodity costs will continue to
increase as the year progresses, although these costs, particularly
for steel, remain volatile and sensitive to changes in the global
economy and to tariffs. The Company will continue to monitor and
forecast these costs, and tariff implications, closely and adjust
pricing accordingly.
Bolzoni Results
Bolzoni reported net income of $2.1
million and revenues of $52.5
million for the second quarter of 2018 compared with a net
loss of $0.1 million and revenues of
$41.9 million for the second quarter
of 2017. Bolzoni's operating profit was $3.2 million for the second quarter of 2018
compared with $0.5 million for the
second quarter of 2017.
Bolzoni's revenue increase was driven primarily by higher sales
volumes in EMEA. In addition, due to favorable currency
movements, revenues increased $4.7
million as a result of the translation of Bolzoni's sales
into U.S. dollars.
Bolzoni's operating profit improved as a result of an increase
in gross profit of $4.4 million,
including the absence of unfavorable currency movements in the
prior year of $1.6 million, partially
offset by higher operating expenses.
For the six months ended June 30,
2018, Bolzoni reported net income of $4.0 million and revenues of $103.7 million compared with net income of
$1.4 million and revenues of
$83.5 million for the six months
ended June 30, 2017.
Bolzoni Outlook
The majority of Bolzoni's revenues are generated in the EMEA
market, primarily Western and Eastern
Europe, and, to a lesser degree, in North America. As
a result of anticipated growth in the EMEA market and the continued
implementation of sales enhancement programs, Bolzoni expects
revenues in the second half of 2018 to increase compared with the
second half of 2017, primarily in the third quarter. The
improvement in revenues in the second half of 2018 is expected to
be at a lower level than in the first half of 2018.
In addition to the anticipated increase in revenues and the
expected operating leverage resulting from the sales growth, the
continued implementation of several key strategic programs is
expected to generate substantial growth in Bolzoni's operating
profit and net income for the remainder of 2018, as well as for the
2018 full year, compared with the respective 2017 periods.
Nuvera Results
Nuvera reported revenues of $0.4 million, an operating loss of $9.5 million and a net loss of $6.9 million for the second quarter of 2018
compared with revenues of $0.4
million, an operating loss of $10.5
million and a net loss of $6.3
million for the second quarter of 2017. In the second
quarter of 2018, Nuvera shipped 91 BBR units compared with 31 in
the prior year quarter, but revenue on these units has been
deferred until a later period.
Nuvera's operating loss decreased in the second quarter of 2018
compared with both the prior year second quarter and the 2018 first
quarter operating loss of $10.0
million, mainly as a result of lower product development
costs. Nuvera's net loss increased primarily as a result of
Nuvera realizing a smaller tax benefit on its pre-tax losses due to
a lower effective income tax rate under the U.S. tax reform
legislation.
For the six months ended June 30,
2018, Nuvera reported a net loss of $14.2 million and revenues of $0.7 million compared with a net loss of
$12.0 million and revenues of
$3.0 million for the six months ended
June 30, 2017.
Nuvera Outlook
BBR unit shipments increased in the first half of 2018 and
Nuvera expects shipments to continue to increase in the second half
of the year. The unit backlog was just over 250 BBRs as of
June 30, 2018. Nuvera expects
demand to increase throughout the remainder of 2018 and expects its
cost base to continue to decrease due to substantial cost
reductions on future purchases of core components. Nuvera
expects to continue to leverage improved designs and higher volumes
through its supply chain to generate further cost reductions in
2019, although recently implemented tariffs on imported components
will partially offset these reductions. Nuvera is working
closely with suppliers to find alternative sourcing for affected
components.
Production of BBRs at Nuvera's Billerica, Massachusetts facility is expected
to be phased out and transferred to the Lift Truck business.
The manufacturing of BBR products at the Lift Truck business' plant
in Greenville, North Carolina is
expected to begin in 2019, with a steady ramp up in demand
anticipated.
With the phase out of BBR production in Billerica, Nuvera will focus on the design,
manufacture and sales and marketing of fuel cell stacks and
engines. In addition to growing demand for engines used in
BBRs, reinforced by the recently extended federal fuel cell tax
credit, Nuvera is experiencing significant interest in its stacks
and fuel cell engines for applications outside of the BBR lift
truck market, particularly in China, and believes this could be a
significant and profitable growth opportunity.
Early in the third quarter of 2018, Nuvera finalized an
agreement to manufacture and assemble fuel cell engines designed by
Nuvera for use in the Chinese "New Energy Vehicle" market.
The agreement provides a product license for the exclusive
manufacture of 45 kW fuel cell engines, based on Nuvera's
Orion® Gen1 fuel cell stack, for sale in China over the next three years. The units are
expected to be integrated in transit buses, delivery vehicles and
other motive platforms in the cities of Ningbo, Hangzhou, Kunming, and Xi'an. In
addition to the fuel cell engine manufacturing license, the
agreement also provides royalty and technology services revenue to
Nuvera. The agreement incorporates a minimum initial purchase
volume of 500 fuel cell stacks after successful testing of the
engines with annual minimum purchases increasing significantly
throughout the three-year term of the contract. The fuel cell
stacks used in these engines will be manufactured exclusively by
Nuvera, initially at its facility in Billerica, Massachusetts. Localized
manufacturing in China is
anticipated in the 2019-2020 timeframe.
In addition, earlier in 2018, Nuvera and the Lift Truck business
were selected to partner with the Center for Transportation and the
Environment, which received an award in the second quarter of 2018
from the California Air Resources Board, to demonstrate operations
of a Hyster® 1150-CH Top Loader Big Truck using an
electrified powertrain and Nuvera's Orion®-based fuel
cell engine for the Port of Los Angeles. This will be the
first demonstration of Nuvera's plan to develop easily integrated,
high-power fuel cell engines for use in OEM products.
The Company's current target is to achieve break-even by late
2019, although this target could be achieved earlier or later
depending on sales volumes for fuel cell-powered lift trucks, as
well as engine sales for other markets. The operating loss in
the second half of 2018 is expected to decrease compared with the
second half of 2017, especially in the fourth quarter, and moderate
more substantially over 2019. While the 2018 full year
operating loss is expected to be lower than in 2017 as a result of
improvements in the second half of the year, the 2018 full year net
loss is expected to be comparable to 2017 because a smaller tax
benefit is expected to be realized on Nuvera's losses due to a
lower effective income tax rate under U.S. tax reform
legislation.
*****
Conference Call
In conjunction with this news release,
the management of Hyster-Yale Materials Handling, Inc. will host a
conference call on Wednesday, August 1,
2018 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: 4672709, 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
August 8, 2018. The online
archive of the broadcast will be available on the Hyster-Yale
website.
Non-GAAP and Other Measures
This release contains
non-GAAP financial measures within the meaning of Regulation G
promulgated by the Securities and Exchange Commission.
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"). Adjusted EBITDA in this press
release is provided solely as a supplemental non-GAAP disclosure of
operating results. Management believes that Adjusted EBITDA assists
investors in understanding the results of operations of the
Company. In addition, management evaluates results using
Adjusted 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 or
the imposition of tariffs, of raw materials or sourced products and
labor or changes in or unavailability of quality suppliers, (3) the
successful commercialization of Nuvera's technology, (4) customer
acceptance of pricing, (5) the political and economic uncertainties
in the countries where the Company does business, (6) 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, (7) 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, (8)
delays in manufacturing and delivery schedules, (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, (16) Hyster-Yale may not be able to successfully
integrate Maximal's operations and employees, and (17) the
possibility that the final impact of the U.S. Tax Cuts and Jobs Act
on the 2018 financial results could be more unfavorable than the
provisional amount reported in the 2017 fourth quarter financial
results.
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 Group 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 Group also has
significant joint ventures in Japan (Sumitomo NACCO) and in China (Hyster-Yale Maximal). For more
information about Hyster-Yale Materials Handling, Inc. and its
subsidiaries, visit the Company's websites at
www.hyster-yale.com and www.bolzonigroup.com.
*****
HYSTER-YALE
MATERIALS HANDLING, INC.
|
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30
|
|
June 30
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(In millions, except
per share data)
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
765.6
|
|
|
$
|
685.5
|
|
|
$
|
1,553.8
|
|
|
$
|
1,398.6
|
|
Cost of
sales
|
639.4
|
|
|
563.8
|
|
|
1,295.5
|
|
|
1,150.8
|
|
Gross
Profit
|
126.2
|
|
|
121.7
|
|
|
258.3
|
|
|
247.8
|
|
Selling, general and
administrative expenses
|
115.4
|
|
|
104.2
|
|
|
228.3
|
|
|
207.7
|
|
Operating
Profit
|
10.8
|
|
|
17.5
|
|
|
30.0
|
|
|
40.1
|
|
Other (income)
expense
|
|
|
|
|
|
|
|
Interest expense
|
4.0
|
|
|
2.6
|
|
|
8.0
|
|
|
4.4
|
|
Income from unconsolidated
affiliates
|
(2.4)
|
|
|
(1.9)
|
|
|
(5.2)
|
|
|
(4.0)
|
|
Other
|
(0.3)
|
|
|
(1.5)
|
|
|
(2.1)
|
|
|
(2.9)
|
|
Income before
Income Taxes
|
9.5
|
|
|
18.3
|
|
|
29.3
|
|
|
42.6
|
|
Income tax
provision
|
3.8
|
|
|
1.9
|
|
|
8.7
|
|
|
8.1
|
|
Net income
attributable to noncontrolling interest
|
(0.1)
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
Net Income
Attributable to Stockholders
|
$
|
5.6
|
|
|
$
|
16.4
|
|
|
$
|
20.5
|
|
|
$
|
34.5
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.34
|
|
|
$
|
1.00
|
|
|
$
|
1.24
|
|
|
$
|
2.10
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
|
0.34
|
|
|
$
|
0.99
|
|
|
$
|
1.24
|
|
|
$
|
2.09
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
16.550
|
|
|
16.453
|
|
|
16.525
|
|
|
16.435
|
|
Diluted weighted
average shares outstanding
|
16.587
|
|
|
16.503
|
|
|
16.578
|
|
|
16.490
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA
RECONCILIATION
|
|
Quarter
Ended
|
|
|
|
9/30/2017
|
|
12/31/2017
|
|
3/31/2018
|
|
6/30/2018
|
|
LTM
6/30/2018
|
|
(In
millions)
|
Net Income
Attributable to Stockholders
|
$
|
16.5
|
|
|
$
|
(2.4)
|
|
|
$
|
14.9
|
|
|
$
|
5.6
|
|
|
$
|
34.6
|
|
Nuvera asset
impairment charge
|
—
|
|
|
4.9
|
|
|
—
|
|
|
—
|
|
|
4.9
|
|
Noncontrolling
interest income
|
0.2
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
0.4
|
|
Income tax provision
(benefit)
|
(0.8)
|
|
|
37.6
|
|
|
4.9
|
|
|
3.8
|
|
|
45.5
|
|
Interest
expense
|
6.2
|
|
|
4.0
|
|
|
4.0
|
|
|
4.0
|
|
|
18.2
|
|
Interest
income
|
(2.0)
|
|
|
(0.8)
|
|
|
(0.8)
|
|
|
(1.0)
|
|
|
(4.6)
|
|
Depreciation and
amortization expense
|
10.4
|
|
|
11.1
|
|
|
11.4
|
|
|
9.4
|
|
|
42.3
|
|
ADJUSTED
EBITDA*
|
$
|
30.5
|
|
|
$
|
54.5
|
|
|
$
|
34.4
|
|
|
$
|
21.9
|
|
|
$
|
141.3
|
|
|
|
|
|
|
|
|
|
|
|
*Adjusted EBITDA in
this press release is provided solely as a supplemental disclosure.
Adjusted EBITDA does not represent net income, 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 Adjusted EBITDA as income before asset
impairment charges, income taxes and noncontrolling interest income
plus net interest expense and depreciation and amortization
expense. Adjusted 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
|
|
Six Months
Ended
|
|
June 30
|
|
June 30
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
(In
millions)
|
Revenues
|
|
|
|
|
|
|
|
Americas
|
$
|
471.6
|
|
|
$
|
432.9
|
|
|
$
|
967.5
|
|
|
$
|
898.9
|
|
EMEA
|
191.0
|
|
|
172.6
|
|
|
388.9
|
|
|
335.0
|
|
JAPIC
|
57.5
|
|
|
42.2
|
|
|
107.0
|
|
|
86.0
|
|
Lift truck
business
|
$
|
720.1
|
|
|
$
|
647.7
|
|
|
$
|
1,463.4
|
|
|
$
|
1,319.9
|
|
Bolzoni
|
52.5
|
|
|
41.9
|
|
|
103.7
|
|
|
83.5
|
|
Nuvera
|
0.4
|
|
|
0.4
|
|
|
0.7
|
|
|
3.0
|
|
Eliminations
|
(7.4)
|
|
|
(4.5)
|
|
|
(14.0)
|
|
|
(7.8)
|
|
Total
|
$
|
765.6
|
|
|
$
|
685.5
|
|
|
$
|
1,553.8
|
|
|
$
|
1,398.6
|
|
|
|
|
|
|
|
|
|
Gross profit
(loss)
|
|
|
|
|
|
|
|
Americas
|
$
|
79.1
|
|
|
$
|
82.7
|
|
|
$
|
164.9
|
|
|
$
|
167.6
|
|
EMEA
|
25.1
|
|
|
23.6
|
|
|
50.9
|
|
|
46.1
|
|
JAPIC
|
6.1
|
|
|
4.2
|
|
|
10.6
|
|
|
9.7
|
|
Lift truck
business
|
$
|
110.3
|
|
|
$
|
110.5
|
|
|
$
|
226.4
|
|
|
$
|
223.4
|
|
Bolzoni
|
16.8
|
|
|
12.4
|
|
|
33.8
|
|
|
26.2
|
|
Nuvera
|
(0.7)
|
|
|
(0.9)
|
|
|
(1.6)
|
|
|
(1.5)
|
|
Eliminations
|
(0.2)
|
|
|
(0.3)
|
|
|
(0.3)
|
|
|
(0.3)
|
|
Total
|
$
|
126.2
|
|
|
$
|
121.7
|
|
|
$
|
258.3
|
|
|
$
|
247.8
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
|
|
|
|
|
|
|
Americas
|
$
|
18.0
|
|
|
$
|
27.7
|
|
|
$
|
45.9
|
|
|
$
|
57.3
|
|
EMEA
|
1.4
|
|
|
2.3
|
|
|
2.3
|
|
|
3.2
|
|
JAPIC
|
(2.1)
|
|
|
(2.2)
|
|
|
(4.3)
|
|
|
(2.9)
|
|
Lift truck
business
|
$
|
17.3
|
|
|
$
|
27.8
|
|
|
$
|
43.9
|
|
|
$
|
57.6
|
|
Bolzoni
|
3.2
|
|
|
0.5
|
|
|
5.9
|
|
|
2.8
|
|
Nuvera
|
(9.5)
|
|
|
(10.5)
|
|
|
(19.5)
|
|
|
(20.0)
|
|
Eliminations
|
(0.2)
|
|
|
(0.3)
|
|
|
(0.3)
|
|
|
(0.3)
|
|
Total
|
$
|
10.8
|
|
|
$
|
17.5
|
|
|
$
|
30.0
|
|
|
$
|
40.1
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to stockholders
|
|
|
|
|
|
|
|
Americas
|
$
|
10.2
|
|
|
$
|
23.8
|
|
|
$
|
30.6
|
|
|
$
|
44.3
|
|
EMEA
|
1.3
|
|
|
2.2
|
|
|
2.3
|
|
|
3.3
|
|
JAPIC
|
(0.5)
|
|
|
(2.2)
|
|
|
(1.2)
|
|
|
(1.5)
|
|
Lift truck
business
|
$
|
11.0
|
|
|
$
|
23.8
|
|
|
$
|
31.7
|
|
|
$
|
46.1
|
|
Bolzoni
|
2.1
|
|
|
(0.1)
|
|
|
4.0
|
|
|
1.4
|
|
Nuvera
|
(6.9)
|
|
|
(6.3)
|
|
|
(14.2)
|
|
|
(12.0)
|
|
Eliminations
|
(0.6)
|
|
|
(1.0)
|
|
|
(1.0)
|
|
|
(1.0)
|
|
Total
|
$
|
5.6
|
|
|
$
|
16.4
|
|
|
$
|
20.5
|
|
|
$
|
34.5
|
|
HYSTER-YALE
MATERIALS HANDLING, INC.
|
FINANCIAL
HIGHLIGHTS
|
|
|
CASH FLOW AND
CAPITAL STRUCTURE
|
|
Six Months
Ended
|
|
June 30
|
|
2018
|
|
2017
|
|
(In
millions)
|
Net cash provided by
operating activities
|
$
|
52.0
|
|
|
$
|
140.3
|
|
Net cash used for
investing activities
|
(89.5)
|
|
|
(22.7)
|
|
Cash Flow Before Financing Activities
|
$
|
(37.5)
|
|
|
$
|
117.6
|
|
|
|
|
|
|
June 30,
2018
|
|
December 31,
2017
|
Debt
|
$
|
273.1
|
|
|
$
|
290.7
|
|
Cash
|
152.4
|
|
|
220.1
|
|
Net Debt
|
$
|
120.7
|
|
|
$
|
70.6
|
|
|
|
|
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/hyster-yale-materials-handling-announces-second-quarter-2018-results-300689684.html
SOURCE Hyster-Yale Materials Handling, Inc.