Hyster-Yale Earnings Surpass Est. - Analyst Blog
May 09 2013 - 4:40AM
Zacks
Hyster-Yale Materials Handling, Inc.’s (HY)
earnings increased 17% to $1.47 per share in the first quarter of
2013 from $1.26 a share in the year-ago quarter, and was way ahead
of the Zacks Consensus Estimate of 88 cents. The year-over-year
growth was attributable to the favorable effect of price increase
and incremental sales of higher-margin products.
Operational Updates
Revenues in the reported quarter nudged up 2.4% year over year to
$644.9 million, beating the Zacks Consensus Estimate of $604
million. This was led by an increase in unit volumes and rise in
shipments in the Americas and Asia-Pacific, partly offset by fewer
shipments in Europe and an unfavorable impact of foreign currency
movements.
Revenues grew 6% year over year to $418.5 million in America,
driven by favorable effect of unit price increase and an increase
in parts sales. However, sales in Europe fell 4% year over year to
$174.6 million due to fewer shipments. Revenues in the Asia-Pacific
region were $51.8 million, down from $52.3 million in the year-ago
quarter.
Cost of sales was $535.7 million in the first quarter compared with
$530.5 million in the year-ago quarter. Gross profit increased 10%
year over year to $109.2 million. Consequently, gross margin
expanded 120 basis points (bps) to 16.9% in the quarter.
Selling, general and administrative expenses increased 11% year
over year to $77 million. Operating profit in the reported quarter
increased 7.7% to $32 million. Operating margin also expanded 30
bps to 5% in the quarter.
Backlog
Worldwide backlog was around 27,500 units as of Mar 31, 2013
compared with 22,300 units as of Mar 31, 2012. In the first quarter
of 2013, worldwide new unit shipments were 20,756 units compared
with shipments of 20,079 units in the first quarter of 2012.
Financial Update
Hyster-Yale ended the quarter with cash of $131 million and debt of
$138.8 million. Cash flow from operating activities was $0.4
million in the reported quarter compared with $19.1 million in the
prior-year quarter.
Outlook
Hyster-Yale expects the global market to grow moderately in 2013,
due to increased volumes in America and modest growth in
Asia-Pacific, the Middle East and Africa. However, the company
anticipates the European scenario to worsen as a result of
volatility in macroeconomic conditions.
Moreover, for the full year 2013, the company anticipates an
overall increase in shipments and parts volumes in all markets.
However, material costs are expected to remain flat. Operating
profit is supposed to be in the same level compared to 2012.
Nevertheless, Hyster-Yale forecasts that marketing and
employee-related costs will rise, resulting in increased operating
expenses. Net income in 2013 is expected to fall compared with
2012. The company anticipates an increase in capital expenditures
in 2013, largely due to building a new plant and the related
additional information technology enhancements in Brazil.
Cleveland, Ohio-based Hyster-Yale designs, engineers, manufactures,
sells and services a comprehensive line of lift trucks and
aftermarket parts. Hyster-Yale currently has a short-term Zacks
Rank #3 (Hold). Other stocks worth considering in the industrial
products sector are Graco Inc. (GGG) with a Zacks
Rank #1 (Strong Buy) and W.W. Grainger, Inc. (GWW)
with a Zacks Rank #2 (Buy).
Peer Performance
Key Technology, Inc. (KTEC) reported
second-quarter 2013 earnings of 38 cents per share, reversing its
year-ago loss of 13 cents per share, and way ahead of the Zacks
Consensus Estimate of 9 cents. Columbus McKinnon
Corp. (CMCO) will release its quarterly results on May 20,
2013.
COLUMBUS MCKINN (CMCO): Free Stock Analysis Report
GRACO INC (GGG): Free Stock Analysis Report
GRAINGER W W (GWW): Free Stock Analysis Report
HYSTER-YALE MAT (HY): Get Free Report
KEY TECHNOLOGY (KTEC): Free Stock Analysis Report
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