CLEVELAND, March 26, 2020 /PRNewswire/ -- Hyster-Yale
Materials Handling, Inc. (NYSE: HY) today announced actions taken
in response to the impact of the COVID-19 pandemic.
Broad measures taken by governments, businesses and others
across the globe to limit the spread of the virus are adversely
affecting the Company and its customers and suppliers. The ultimate
magnitude of the COVID-19 pandemic, including the extent of its
impact on Hyster-Yale's financial and operational results, will be
determined by the length of time that the pandemic continues, its
effect on the demand for the Company's products and services, its
effects on the Company's supply chain and the effect of
governmental regulations and other measures implemented in response
to the pandemic. The combined effect of these factors could
be material to the Company's results over the course of 2020.
Production has been significantly reduced or suspended in
several of the Company's European facilities for varying periods
through April 15, 2020, largely due
to material shortages from suppliers which have closed their
manufacturing plants and other constraints in the European supply
chain, including increased controls at borders, border closures and
traffic delays due to the effects of the coronavirus. Additional
production disruptions in other regions are expected over time. As
an essential critical infrastructure business, the Company expects
to continue its U.S. operations and plans to continue to operate in
other parts of the world to the extent possible. These operations,
however, may be affected by issues such as adherence to social
distancing guidelines and other COVID-19-related challenges.
Challenges associated with COVID-19 that have affected, and may
continue to affect, the Company include the following: availability
of the Company's employees; employees' working arrangements; the
supply chain and the ability to receive goods on a timely basis at
anticipated costs; logistics costs; the ability to continue normal
operations of Company facilities; and reduced demand for the
Company's products.
The Company cannot predict if or when any further disruptions
will occur due to the rapidly changing environment as the COVID-19
pandemic and related events continue to evolve. The Company's
financial results for the first quarter of 2020 will be lower than
previously expected due to these factors. A more significant
concern is the uncertainty about demand and other business
conditions for the remainder of 2020. Given these unprecedented
events and government actions, the 2020 outlook previously provided
by the Company, which did not factor in the effects of the
coronavirus pandemic, is no longer the Company's perspective on its
2020 outlook. The Company expects to provide an update on its 2020
outlook in connection with its first-quarter earnings announcement
but does not expect to provide any additional information until
then.
In the meantime, the Company is committed to the safety and
well-being of its employees and is doing everything possible to
ensure that its facilities follow the highest standards of safety
and hygiene. At the same time, the Company and its employees remain
committed to meeting the needs of customers and ensuring they
receive equipment, parts and services in a timely manner. During
disruption in production, supporting dealers´ and customers´
service demands remains a top priority.
As of December 31, 2019, the
Company had $64.6 million of
consolidated cash on hand and unused borrowing capacity of
approximately $250 million under
existing revolving credit facilities.
"The Company is fortunate to have very experienced leaders who
have managed through challenging situations in the past. We
expect to successfully navigate through this difficult period as
well," commented Alfred M. Rankin,
Jr., Chairman, President and CEO.
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)
unfavorable effects of the COVID-19 pandemic on either the
Company's or its suppliers plants' capabilities to produce and ship
products if the epidemic spreads or quarantines are extended, (2)
reduction in demand for lift trucks, attachments and related
aftermarket parts and service on a global basis, (3) 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, (4) delays in manufacturing
and delivery schedules, (5) the successful commercialization of
Nuvera's technology, (6) customer acceptance of pricing, (7) the
political and economic uncertainties in the countries where the
Company does business, (8) 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, (9) 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, (10) bankruptcy of or loss of major dealers,
retail customers or suppliers, (11) customer acceptance of, changes
in the costs of, or delays in the development of new products, (12)
introduction of new products by, or more favorable product pricing
offered by, competitors, (13) product liability or other
litigation, warranty claims or returns of products, (14) the
effectiveness of the cost reduction programs implemented globally,
including the successful implementation of procurement and sourcing
initiatives, (15) changes mandated by federal, state and other
regulation, including tax, health, safety or environmental
legislation, and (16) 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.
About Hyster-Yale Materials Handling
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.
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SOURCE Hyster-Yale Materials Handling, Inc.