CLEVELAND, Oct. 29, 2019 /PRNewswire/ --
Quarter Highlights:
- Q3 2019 consolidated operating profit increased to
$19.5 million from $12.2 million in Q3 2018 driven by a 44% increase
in Lift Truck operating profit primarily from tariff recoveries in
the Americas and improved JAPIC results
- Q3 2019 revenue decreased 2.3% from Q3 2018 due to lower
shipments primarily caused by supplier issues
- Q3 2019 tax expense vs. Q3 2018 substantial tax benefit from
U.S. tax reform resulted in decline in net income, and decrease in
earnings per share to $0.76/ share
from $0.93/ share in Q3 2018
Hyster-Yale Materials Handling, Inc. (NYSE: HY) today announced
consolidated revenues of $766.0
million and consolidated net income of $12.8 million, or $0.76 per diluted share, for the third quarter of
2019 compared with consolidated revenues of $783.9 million and consolidated net income of
$15.4 million, or $0.93 per diluted share, for the third quarter of
2018. Third-quarter 2019 consolidated operating profit
increased to $19.5 million from
$12.2 million in 2018, which included
$4.0 million of unfavorable one-time
purchase accounting adjustments related to the acquisition of
Maximal in June 2018. Third-quarter 2018 net income included
tax benefits of $5.5 million related
to U.S. tax reform adjustments. Both third quarters reflect
the normal seasonal plant shutdown and costs associated with
customary third-quarter production schedules at the Company's
manufacturing plants.
For the nine months ended September 30, 2019, the
Company reported consolidated revenues of $2.5 billion and net income of $32.4 million, or $1.94 per diluted share, compared with
consolidated revenues of $2.3 billion
and net income of $35.9 million, or
$2.16 per diluted share, for the
first nine months of 2018. Year-to-date consolidated
operating profit was $45.8 million in
2019 compared with $42.2 million in
2018. Lift truck shipments increased to approximately 75,500
units in the first nine months of 2019 from approximately 74,300
units in the first nine months of 2018.
At September 30, 2019, the Company
had cash on hand of $62.8 million and
debt of $351.1 million compared with
cash on hand of $50.3 million and
debt of $370.9 at June 30, 2019, and cash on hand of $83.7 million and debt of $301.5 million as of December 31, 2018.
Segment Financial Results
Summary results for the Company's three business segments were
as follows for the third quarter of 2019 and 2018:
(in
millions)
|
*Hyster-Yale
Group
|
|
Bolzoni
|
|
Nuvera
|
|
Q3
2019
|
|
Q3 2018
|
|
Q3
2019
|
|
Q3 2018
|
|
Q3
2019
|
|
Q3 2018
|
Revenues
|
$
|
725.3
|
|
|
$
|
740.8
|
|
|
$
|
75.8
|
|
|
$
|
84.4
|
|
|
$
|
2.4
|
|
|
$
|
2.0
|
|
Operating Profit
(Loss)
|
$
|
28.0
|
|
|
$
|
19.4
|
|
|
$
|
0.7
|
|
|
$
|
1.7
|
|
|
$
|
(9.3)
|
|
|
$
|
(9.0)
|
|
Net Income
(Loss)
|
$
|
19.5
|
|
|
$
|
18.7
|
|
|
$
|
0.7
|
|
|
$
|
1.4
|
|
|
$
|
(5.8)
|
|
|
$
|
(6.4)
|
|
*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
Hyster-Yale Group unit shipments, bookings and backlog were as
follows:
($ in
millions)
|
Quarter
Ended
September 30, 2019
|
|
Quarter
Ended
June 30, 2019
|
|
Quarter
Ended
September 30, 2018
|
Unit
Shipments
|
23,500
|
|
26,300
|
|
25,600
|
Unit
Bookings
|
22,800
|
|
30,200
|
|
26,200
|
Unit Bookings $
value
|
$540
|
|
$620
|
|
$560
|
Unit
Backlog
|
43,400
|
|
44,100
|
|
42,300
|
Unit Backlog $
value
|
$1,130
|
|
$1,130
|
|
$1,090
|
Unit shipments decreased compared with the 2019 second quarter
and the 2018 third quarter as shipments in the 2019 third quarter
were impacted by a continuing shortage of key components on certain
heart-of-the-line products from key suppliers. These
shortages also contributed to a changed mix of products within the
backlog, which resulted in a higher average sales price per unit in
the 2019 third quarter. The supplier issues are reaching
resolution, with production levels expected to return to normal by
the end of the 2019 fourth quarter. Lower bookings in the
2019 third 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.
Americas Results
Revenues in the Americas segment, which includes the
North America, Latin America and Brazil markets, increased modestly to
$505.8 million in the third quarter
of 2019 from $503.9 million in the
2018 third quarter, despite a 1,400 unit decrease in
shipments. This improvement was primarily the result of price
increases implemented to offset material cost inflation and
tariffs, an increase in other revenue related to higher sales of
attachments and an increase in unit shipments in Brazil, where the market continued to
strengthen. These revenue improvements were mostly offset by
a substantial decrease in North
America unit volumes driven primarily by fewer shipments of
lower-capacity Class 5 lift trucks, specifically as a result of a
continued shortage of component parts from certain key
suppliers. Revenues from shipments of Class 1, Class 3 and
Class 5 Big Trucks also decreased but were offset by increased
shipments of higher-priced Class 2 electric warehouse trucks.
In the third quarter of 2019, operating profit in the Americas
improved to $29.5 million from
$25.5 million in the third 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 and $8.7 million of
favorable retroactive tariff exclusion adjustments from suppliers
for certain components imported from China partially offset by reduced unit
volumes, higher manufacturing costs due to supplier constraints, a
shift in mix to lower-margin products and unfavorable currency
movements.
Operating expenses increased primarily as a result of increased
product development costs to support a planned major upgrade of a
number of the Company's core product platforms and additional
investments in the expansion of Hyster-Yale Group's
industry-focused sales and marketing teams. Higher
employee-related costs also contributed to the increased operating
expenses.
EMEA Results
Revenues for the EMEA segment, which includes operations in the
Europe, Middle East and Africa markets, decreased to $161.7 million in the third quarter of 2019 from
$172.2 million in the third quarter
of 2018. Revenues declined primarily due to a decrease in
shipments, predominantly in Western
Europe and to a lesser extent Middle East and Africa, of approximately 600 units over all
lift truck classes and unfavorable currency movements of
$7.8 million from the translation of
sales into U.S. dollars. A portion of the decline in
shipments was the result of the same component shortages
experienced in the Americas. Price increases implemented to offset
higher material costs partially offset the revenue decrease.
EMEA operating profit increased to $1.0
million in the third quarter of 2019 from $0.1 million in the third quarter of 2018
primarily as a result of price increases partially offset by
unfavorable currency movements, lower unit volumes and a shift in
mix to lower-margin products.
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 $57.8 million in the third quarter of 2019 from
$64.7 million in the third quarter of
2018 primarily as a result of a decrease in shipments of
approximately 200 units. Unfavorable currency movements of
$1.0 million also contributed to the
decrease in revenues.
JAPIC generated a lower operating loss of $2.5 million in the third quarter of 2019
compared with an operating loss of $6.2
million in the third quarter of 2018. The improvement was
primarily the result of the absence of $4.0
million of unfavorable one-time purchase accounting
adjustments made in the prior year third quarter associated with
the Maximal acquisition.
Bolzoni Results
During the third quarter of 2019, Bolzoni's revenue decreased to
$75.8 million from $84.4 million in 2018. The decrease was
mainly due to lower sales in the United
States, primarily as a result of transition issues
associated with the movement of all production from Homewood, Illinois to Sulligent, Alabama, a continued shortage of
component parts from certain key suppliers and unfavorable currency
movements of $1.9 million from the
translation of sales into U.S. dollars.
Bolzoni's operating profit decreased to $0.7 million in the third quarter of 2019 from
$1.7 million in the 2019 second
quarter. The decrease was primarily due to costs, including
$0.5 million of restructuring
expenses, related to the transfer of Bolzoni's North America attachment manufacturing to
Sulligent.
Nuvera Results
Nuvera revenues increased to $2.4
million in the third quarter of 2019 from $2.0 million in 2018 primarily as a result of
development funding received associated with Nuvera's third-party
development agreements.
Nuvera's 2019 third-quarter operating loss increased compared
with the prior year quarter mainly as a result of higher warranty
expense and an increase in material costs, partially offset by
product development funding received from third-parties.
Despite an increase in the operating loss, Nuvera's net loss
decreased 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 five
years.
For some time, the Company has been focused on six strategic
initiatives:
- 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 initiatives have
been, in general, initiated over the last several years and many
are now moving toward completion. Further, many of the
projects supporting these strategic initiatives 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 projects cover a very 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.
Over the course of the past two years, these investments, both
expense and capital, have increased significantly. Further
increased investments are expected to continue to be made in the
2019 fourth quarter and peak in the 2020 full year. Capital
expenditures are expected to decline significantly in 2021 but
remain at levels higher than 2019, while expense investments are
expected to generally remain at the 2020 levels for the next
several years, excluding the impact of normal inflation. The return
from these investments has started to be realized and is expected
to increase over the course of Hyster-Yale's five-year planning
period. In this context, Hyster-Yale Group's operating profit
is expected to improve considerably in the 2019 fourth quarter and
full year over the comparable 2018 periods, and increase more
significantly in 2020 over 2019, with improvements in each quarter
over the respective 2019 quarter. 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. Bolzoni's operating profit is expected to decrease
substantially in the 2019 fourth quarter and full year from the
prior year periods primarily due to the restructuring of its
Americas operations, but results in 2020 are expected to
significantly improve, with further improvements in the following
years, with a target of achieving a 7% operating profit
margin. Nuvera's results are expected to improve in the 2019
fourth quarter and full year over the comparable prior year
periods, with break-even targeted to be achieved in the fourth
quarter of 2020. Nuvera's quarterly break-even target was
adjusted in the second quarter primarily due to a delay in
shipments of engines for a key customer in China resulting from the need for additional,
unplanned, customer-driven product validation. Shipments are
expected to ramp up throughout the second half of 2020, but if
there are further delays with validation and production for this
China customer, it may push out
the break-even date unless other opportunities currently being
pursued are realized. Earnings 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 the 2019 fourth quarter and full year are expected to
increase significantly over the comparable 2018 periods, excluding
the impact of the $5.5 million tax
benefit realized in the third quarter of 2018. Consolidated
operating profit and net income in 2020 are also 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.
Implementation of these programs is expected to begin in the second
half of 2020 with the introduction of the first 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, Hyster-Yale Group's
majority-owned joint venture in China. A line of trucks from
Hyster-Yale Maximal has been engineered 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 beginning with the
JAPIC, Brazil and Latin America markets during the 2019 fourth
quarter and increasing over the course of 2020 to all
countries. In addition, Hyster-Yale Group's partner in
India is expected to expand local
production of larger trucks. Further, in the first quarter of 2019,
a new end rider and a new automated Reach Truck were launched in
the North America market, and a
range of lower-cost Class 3 lift trucks was launched in certain
markets during the second quarter. New lower-cost Class 3 walkie
and stacker global products were launched in certain markets in the
third quarter and are expected to be introduced in other markets
during the 2019 fourth quarter. All of these new products are
expected to have a significant impact on results in 2020.
Further, additional products are being added to the product line-up
in 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. New generations of lift
trucks will offer a fully integrated telematics solution.
Finally, Hyster-Yale Group anticipates introducing new fuel cell
battery box replacements ("BBR") for Class 1, 2 and 3 forklift
trucks over the next few years, beginning with the first model in
the first 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. This transition will occur in two phases, with the
first phase anticipated to be completed by the end of 2019, and the
second phase 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 supported 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 Group'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
Group 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 its peak. 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. All of the strategies are expected to be
completed for all countries, or groups of countries, around the
world by the end of 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 in place and 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 two years,
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 Hyster-Yale
Group's Sulligent plant, where it
is now manufacturing attachments and also continuing the plant's
support of Hyster-Yale Group through the supply of cylinders and
various other components. In the first half of 2019, Bolzoni
phased out production at its current Homewood, Illinois facility and substantially
completed the shift of manufacturing to Sulligent. Bolzoni is
still maintaining a distribution center and certain other
operations in Homewood. In
addition to the restructuring charges of $2.5 million recorded in the first nine months of
2019 associated with these plans, Bolzoni anticipates that, during
the fourth quarter of 2019 and into 2020, it will incur additional
charges of approximately $0.8 million
to $1.5 million for further
restructuring-related costs.
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, which will continue to be
expanded. 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 three
to four years.
Nuvera is approaching the point where it will move from being a
venture business focused on commercializing leading technology to a
stable, 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 has
successfully certified its first 45kW engine for China and has begun the vehicle certification
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
the second and third quarters of 2019, Nuvera will be focused
entirely on fuel cell stacks and engines by 2020. To enhance
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 expects to bring the
first online during the fourth quarter of 2019. In overview,
Nuvera's objective is to reduce its loss in the fourth quarter of
2019 compared with the fourth quarter of 2018 and to target
break-even during the fourth quarter of 2020, although this is
dependent on the ramp up in engine supply mentioned above. In
the long term, Nuvera is expected to contribute substantially to
the Company's overall earnings.
In summary, Hyster-Yale believes it is approaching an inflection
point in its business. The third quarter reflected continued
investment in these programs, similar to the first half of the
year, but fourth quarter results are expected to improve
significantly in comparison to the 2018 fourth quarter.
Efforts to abate significant shortages from key suppliers in
the United States are
succeeding. These shortages are expected to substantially
ease during the 2019 fourth quarter and be resolved fully by the
end of the year. 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
granted exclusions and partly offset by the Company's supply chain
group securing alternative non-Chinese suppliers and negotiating
price reductions. The exclusions were applied retroactively
to the July 6, 2018 effective date
and extend for one year after the notice of exclusions, or April
2020. During the second quarter, the Company recorded duties
recoverable for the period of July 6,
2018 through the 2019 second quarter. The Company
recorded additional recoveries in the third quarter from suppliers
who provided components for which retrospective exemptions were
granted. Some further, but substantially lower, recovery is
anticipated in the fourth quarter.
The current lift truck backlog contains certain deal-specific
pricing agreements at less than target margins to gain targeted
accounts and for which margin improvement efforts have taken some
time to mature. These agreements reduced profitability in the
first nine months of 2019. However, margins are expected to
recover fully from the 2018 material cost inflation and the heavily
discounted deals by the end of the 2019 fourth quarter.
Margins are also expected to continue to be enhanced by the
exemption of tariffs on certain Chinese components, although the
Company has reduced the tariff surcharge it applies to products
sold to customers.
For the 2019 full year, consolidated cash flow before financing
activities is expected to decrease significantly compared with
2018, after excluding the impact of the 2018 acquisition of
Hyster-Yale Maximal. The decrease is primarily due to changes
in working capital, particularly accounts receivable, as well as
higher capital expenditures. Working capital is expected to
improve significantly in the fourth quarter of 2019 as the
inventory supplier issues are resolved, but the improvement is not
expected to fully offset the higher working capital experienced in
the earlier parts of the year. 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 come
to 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 the first nine months of 2019.
While markets are still at historically high levels, the market
appears to be in a downturn, which is currently projected to be
moderate and of limited duration. As a result, in the
remainder of 2019 and in 2020, the Company is currently forecasting
strong but lower forklift market levels. The Company
continues to forecast a resolution to Brexit in a way that does not
significantly harm Hyster-Yale's business prospects.
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, October 30, 2019 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: 8366818, 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 November 6, 2019. 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.
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, (16) delays in or increased costs of moving Bolzoni's
North America attachment
manufacturing from Homewood,
Illinois, to Sulligent,
Alabama, and (17) Hyster-Yale may not be able to
successfully integrate Maximal's operations and employees.
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
|
|
Nine Months
Ended
|
|
September
30
|
|
September
30
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(In millions, except
per share data)
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
766.0
|
|
|
$
|
783.9
|
|
|
$
|
2,457.0
|
|
|
$
|
2,338.3
|
|
Cost of
sales
|
631.0
|
|
|
666.2
|
|
|
2,056.4
|
|
|
1,963.2
|
|
Gross
Profit
|
135.0
|
|
|
117.7
|
|
|
400.6
|
|
|
375.1
|
|
Selling, general and
administrative expenses
|
115.5
|
|
|
105.5
|
|
|
354.8
|
|
|
332.9
|
|
Operating
Profit
|
19.5
|
|
|
12.2
|
|
|
45.8
|
|
|
42.2
|
|
Other (income)
expense
|
|
|
|
|
|
|
|
Interest expense
|
5.3
|
|
|
3.6
|
|
|
14.9
|
|
|
11.6
|
|
Income from unconsolidated
affiliates
|
(2.1)
|
|
|
(2.2)
|
|
|
(7.9)
|
|
|
(7.4)
|
|
Other, net
|
(1.7)
|
|
|
0.6
|
|
|
(5.2)
|
|
|
(1.5)
|
|
Income before
Income Taxes
|
18.0
|
|
|
10.2
|
|
|
44.0
|
|
|
39.5
|
|
Income tax provision
(benefit)
|
4.9
|
|
|
(4.7)
|
|
|
10.8
|
|
|
4.0
|
|
Net (income) loss
attributable to noncontrolling interest
|
(0.3)
|
|
|
0.5
|
|
|
(0.8)
|
|
|
0.4
|
|
Net Income
Attributable to Stockholders
|
$
|
12.8
|
|
|
$
|
15.4
|
|
|
$
|
32.4
|
|
|
$
|
35.9
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.77
|
|
|
$
|
0.93
|
|
|
$
|
1.95
|
|
|
$
|
2.17
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
|
0.76
|
|
|
$
|
0.93
|
|
|
$
|
1.94
|
|
|
$
|
2.16
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
16.660
|
|
|
16.555
|
|
|
16.638
|
|
|
16.534
|
|
Diluted weighted
average shares outstanding
|
16.735
|
|
|
16.601
|
|
|
16.709
|
|
|
16.586
|
|
EBITDA
RECONCILIATION
|
|
Quarter
Ended
|
|
|
|
12/31/2018
|
|
3/31/2019
|
|
6/30/2019
|
|
9/30/2019
|
|
LTM
9/30/2019
|
|
(In
millions)
|
Net Income (Loss)
Attributable to Stockholders
|
$
|
(1.2)
|
|
|
$
|
3.4
|
|
|
$
|
16.2
|
|
|
$
|
12.8
|
|
|
$
|
31.2
|
|
Noncontrolling
interest income (loss)
|
—
|
|
|
(0.2)
|
|
|
0.7
|
|
|
0.3
|
|
|
0.8
|
|
Income tax provision
(benefit)
|
(1.7)
|
|
|
1.5
|
|
|
4.4
|
|
|
4.9
|
|
|
9.1
|
|
Interest
expense
|
4.4
|
|
|
4.5
|
|
|
5.1
|
|
|
5.3
|
|
|
19.3
|
|
Interest
income
|
(0.2)
|
|
|
(0.4)
|
|
|
(0.4)
|
|
|
(0.2)
|
|
|
(1.2)
|
|
Depreciation and
amortization expense
|
11.6
|
|
|
11.2
|
|
|
10.8
|
|
|
10.3
|
|
|
43.9
|
|
EBITDA*
|
$
|
12.9
|
|
|
$
|
20.0
|
|
|
$
|
36.8
|
|
|
$
|
33.4
|
|
|
$
|
103.1
|
|
|
|
|
|
|
|
|
|
|
|
*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 (loss) 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
|
|
Nine Months
Ended
|
|
September 30
|
|
September 30
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(In
millions)
|
Revenues
|
|
|
|
|
|
|
|
Americas
|
$
|
505.8
|
|
|
$
|
503.9
|
|
|
$
|
1,578.0
|
|
|
$
|
1,471.4
|
|
EMEA
|
161.7
|
|
|
172.2
|
|
|
553.9
|
|
|
561.1
|
|
JAPIC
|
57.8
|
|
|
64.7
|
|
|
194.1
|
|
|
171.7
|
|
Hyster-Yale
Group
|
$
|
725.3
|
|
|
$
|
740.8
|
|
|
$
|
2,326.0
|
|
|
$
|
2,204.2
|
|
Bolzoni
|
75.8
|
|
|
84.4
|
|
|
258.4
|
|
|
261.9
|
|
Nuvera
|
2.4
|
|
|
2.0
|
|
|
9.1
|
|
|
3.3
|
|
Eliminations
|
(37.5)
|
|
|
(43.3)
|
|
|
(136.5)
|
|
|
(131.1)
|
|
Total
|
$
|
766.0
|
|
|
$
|
783.9
|
|
|
$
|
2,457.0
|
|
|
$
|
2,338.3
|
|
|
|
|
|
|
|
|
|
Gross profit
(loss)
|
|
|
|
|
|
|
|
Americas
|
$
|
90.3
|
|
|
$
|
76.4
|
|
|
$
|
261.8
|
|
|
$
|
241.3
|
|
EMEA
|
26.1
|
|
|
23.5
|
|
|
79.6
|
|
|
74.4
|
|
JAPIC
|
8.6
|
|
|
3.8
|
|
|
23.1
|
|
|
14.4
|
|
Hyster-Yale
Group
|
$
|
125.0
|
|
|
$
|
103.7
|
|
|
$
|
364.5
|
|
|
$
|
330.1
|
|
Bolzoni
|
13.0
|
|
|
14.4
|
|
|
44.1
|
|
|
48.2
|
|
Nuvera
|
(3.1)
|
|
|
(0.5)
|
|
|
(7.6)
|
|
|
(3.0)
|
|
Eliminations
|
0.1
|
|
|
0.1
|
|
|
(0.4)
|
|
|
(0.2)
|
|
Total
|
$
|
135.0
|
|
|
$
|
117.7
|
|
|
$
|
400.6
|
|
|
$
|
375.1
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
|
|
|
|
|
|
|
Americas
|
$
|
29.5
|
|
|
$
|
25.5
|
|
|
$
|
71.0
|
|
|
$
|
71.4
|
|
EMEA
|
1.0
|
|
|
0.1
|
|
|
5.7
|
|
|
2.4
|
|
JAPIC
|
(2.5)
|
|
|
(6.2)
|
|
|
(8.8)
|
|
|
(10.5)
|
|
Hyster-Yale
Group
|
$
|
28.0
|
|
|
$
|
19.4
|
|
|
$
|
67.9
|
|
|
$
|
63.3
|
|
Bolzoni
|
0.7
|
|
|
1.7
|
|
|
4.2
|
|
|
7.6
|
|
Nuvera
|
(9.3)
|
|
|
(9.0)
|
|
|
(25.9)
|
|
|
(28.5)
|
|
Eliminations
|
0.1
|
|
|
0.1
|
|
|
(0.4)
|
|
|
(0.2)
|
|
Total
|
$
|
19.5
|
|
|
$
|
12.2
|
|
|
$
|
45.8
|
|
|
$
|
42.2
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to stockholders
|
|
|
|
|
|
|
|
Americas
|
$
|
20.8
|
|
|
$
|
21.6
|
|
|
$
|
50.6
|
|
|
$
|
52.2
|
|
EMEA
|
1.0
|
|
|
0.2
|
|
|
5.0
|
|
|
2.5
|
|
JAPIC
|
(2.3)
|
|
|
(3.1)
|
|
|
(6.2)
|
|
|
(4.3)
|
|
Hyster-Yale
Group
|
$
|
19.5
|
|
|
$
|
18.7
|
|
|
$
|
49.4
|
|
|
$
|
50.4
|
|
Bolzoni
|
0.7
|
|
|
1.4
|
|
|
2.6
|
|
|
5.4
|
|
Nuvera
|
(5.8)
|
|
|
(6.4)
|
|
|
(17.9)
|
|
|
(20.6)
|
|
Eliminations
|
(1.6)
|
|
|
1.7
|
|
|
(1.7)
|
|
|
0.7
|
|
Total
|
$
|
12.8
|
|
|
$
|
15.4
|
|
|
$
|
32.4
|
|
|
$
|
35.9
|
|
HYSTER-YALE
MATERIALS HANDLING, INC.
|
FINANCIAL
HIGHLIGHTS
|
|
|
CASH FLOW AND
CAPITAL STRUCTURE
|
|
Nine Months
Ended
|
|
September 30
|
|
2019
|
|
2018
|
|
(In
millions)
|
Net cash provided by
(used for) operating activities
|
$
|
(17.3)
|
|
|
$
|
92.3
|
|
Net cash used for
investing activities
|
(24.5)
|
|
|
(97.3)
|
|
Cash Flow Before Financing Activities
|
$
|
(41.8)
|
|
|
$
|
(5.0)
|
|
|
|
|
|
|
September 30,
2019
|
|
December 31,
2018
|
Debt
|
$
|
351.1
|
|
|
$
|
301.5
|
|
Cash
|
62.8
|
|
|
83.7
|
|
Net Debt
|
$
|
288.3
|
|
|
$
|
217.8
|
|
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SOURCE Hyster-Yale Materials Handling, Inc.