CLEVELAND, July 30, 2019 /PRNewswire/ --
Quarter Highlights:
- Consolidated revenues increased 11.8% over Q2 2018
- Lift Truck revenues increased 12.9% over Q2 2018
- Consolidated operating profit increased to $22.9 million from $10.8
million in Q2 2018 due to a 68% increase in Lift Truck
operating profit and a lower Nuvera operating loss
- Earnings per share increased to $0.97 per share from $0.34 per share in Q2 2018
Hyster-Yale Materials Handling, Inc. (NYSE: HY) today announced
consolidated revenues of $856.2
million and consolidated net income of $16.2 million, or $0.97 per diluted share, for the second quarter
of 2019 compared with consolidated revenues of $765.9 million and consolidated net income of
$5.6 million, or $0.34 per diluted share, for the second quarter
of 2018. Second-quarter consolidated operating profit
increased to $22.9 million in 2019
from $10.8 million in 2018.
Financial information for the 2019 second quarter includes three
months of Hyster-Yale Maximal results compared with only one month
in the 2018 second quarter following its June 1, 2018 acquisition.
For the six months ended June 30, 2019, the Company
reported consolidated revenues of $1.7
billion and net income of $19.6
million, or $1.17 per diluted
share, compared with consolidated revenues of $1.6 billion and net income of $20.5 million, or $1.24 per diluted share, for the first six months
of 2018. Consolidated operating profit was $26.3 million for the first half of 2019 compared
with $30.0 million for the first half
of 2018. Operating profit in 2018 included $2.4 million of Maximal acquisition costs.
At June 30, 2019, the Company had
cash on hand of $50.3 million and
debt was $370.9 million compared with
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 second quarter of 2019 and 2018:
(in
millions)
|
*Hyster-Yale
Group
|
|
Bolzoni
|
|
Nuvera
|
|
Q2
2019
|
|
Q2 2018
|
|
Q2
2019
|
|
Q2 2018
|
|
Q2
2019
|
|
Q2 2018
|
Revenues
|
$
|
812.7
|
|
|
$
|
720.1
|
|
|
$
|
90.8
|
|
|
$
|
88.0
|
|
|
$
|
2.2
|
|
|
$
|
0.7
|
|
Operating Profit
(Loss)
|
$
|
29.1
|
|
|
$
|
17.3
|
|
|
$
|
2.3
|
|
|
$
|
3.2
|
|
|
$
|
(8.2)
|
|
|
$
|
(9.5)
|
|
Net Income
(Loss)
|
$
|
20.3
|
|
|
$
|
11.0
|
|
|
$
|
1.6
|
|
|
$
|
2.1
|
|
|
$
|
(6.0)
|
|
|
$
|
(6.9)
|
|
*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
June 30, 2019
|
|
Quarter Ended
March 31, 2019
|
|
Quarter Ended
June 30, 2018
|
Unit
Shipments
|
26,300
|
|
25,700
|
|
23,900
|
Unit
Bookings
|
30,200
|
|
22,000
|
|
29,500
|
Unit Bookings $
value
|
$620
|
|
$530
|
|
$720
|
Unit
Backlog
|
44,100
|
|
40,200
|
|
41,700
|
Unit Backlog $
value
|
$1,130
|
|
$1,130
|
|
$1,080
|
While unit backlog in the 2019 second quarter increased from the
2019 first quarter and the 2018 second quarter, the average sales
price per unit in bookings and backlog decreased compared with both
periods as a result of increased bookings of lower-priced
units. Shipments of higher-priced units, particularly
including Big Trucks, increased during the 2019 second quarter as
supplier parts shortages for Big Trucks abated.
Americas Results
Revenues in the Americas segment, which includes the
North America, Latin America and Brazil markets, increased to $537.7 million in the second quarter of 2019 from
$471.6 million in the second quarter
of 2018. This increase was primarily the result of increased
unit and parts volumes and product mix, as well as price increases
implemented to offset higher material costs and tariffs. Unit
shipments increased by approximately 400 units from the prior year
second quarter primarily driven by an increase in shipments in
Brazil where the market continues
to strengthen. In North America, higher shipments of
higher-capacity Class 4 lift trucks, Class 2 electric, warehouse
trucks and Class 1 electric, counterbalanced trucks, as well as
Class 5 Big Trucks drove an overall increase in shipments, but this
increase was mostly offset by fewer shipments of lower-capacity
Class 5 lift trucks, primarily as a result of a continued shortage
of component parts from certain key suppliers.
In the second quarter of 2019, operating profit in the Americas
also improved to $26.2 million from
$18.0 million in the prior year
second quarter. 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, net of material cost and freight inflation and
continuing import tariffs, $4.9
million of favorable retroactive tariff exclusion
adjustments for certain components imported from China, which includes $3.1 million of refunds for tariffs incurred
prior to the 2019 second quarter, and higher unit and parts
volumes. A shift in mix to lower-margin products and
unfavorable currency movements of $2.0
million partly offset the increase in gross profit.
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. These increased
expenses were partially offset by lower employee-related costs and
the absence of $1.9 million of
Maximal acquisition-related costs incurred in the 2018 second
quarter.
EMEA Results
Revenues for the EMEA segment, which includes operations in the
Europe, Middle East and Africa markets, increased to $202.1 million in the second quarter of 2019 from
$191.0 million in the second quarter
of 2018 mainly as a result of an increase in unit shipments of
higher-priced lift trucks, partly offset by unfavorable currency
movements of $14.1 million from the
translation of sales into U.S. dollars. Unit shipments
increased by approximately 600 units from the prior year second
quarter primarily due to an increase in shipments of all truck
classes, but mainly higher-priced Big Trucks as component shortages
for these trucks have abated.
EMEA operating profit increased to $4.7
million in the second quarter of 2019 from $1.4 million in the second quarter of 2018
primarily as a result of increased sales, improved manufacturing
efficiencies resulting from higher unit sales, and price increases,
net of material cost inflation.
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 since it was acquired in
June 2018, increased to $72.9 million in the second quarter of 2019 from
$57.5 million in the second quarter
of 2018. Hyster-Yale Maximal shipments increased by 1,400
units and revenue increased $16.3
million in the second quarter of 2019 compared with only one
month of results in the second quarter of 2018 following the
June 1, 2018 acquisition.
Unfavorable currency movements of $2.6
million partially offset the increase in revenues.
JAPIC generated a lower operating loss of $1.8 million in the second quarter of 2019
compared with an operating loss of $2.1
million in the second quarter of 2018. Hyster-Yale
Maximal contributed $0.9 million to
this improvement in operating results.
Bolzoni Results
During the second quarter of 2019, Bolzoni's revenue increased
to $90.8 million from $88.0 million in 2018. The increase was
mainly due to higher volumes, partially offset by unfavorable
currency movements of $3.4 million
from the translation of sales into U.S. dollars.
Bolzoni's operating profit decreased to $2.3 million in the second quarter of 2019 from
$3.2 million in the 2018 second
quarter. The decrease was primarily due to costs of
$0.6 million associated with the
restructuring of Bolzoni's North
America operations, which commenced in the 2019 first
quarter, and $0.3 million of currency
translation.
Nuvera Results
Nuvera revenues increased to $2.2
million in the second quarter of 2019 from $0.7 million in 2018. Revenues increased as
a result of development funding received associated with Nuvera's
third-party development agreements.
Nuvera's 2019 second-quarter operating loss decreased compared
with the prior year quarter mainly as a result of the product
development funding received from third-parties.
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
remainder of 2019 and in 2020, and then generally remain at or
below the 2019 levels for the next several years. 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 results are
expected to improve considerably in 2019 over 2018. While
results in the first half of the year were moderately lower than
the first half of 2018, results in the second half of 2019 are
expected to improve significantly over both the second half of 2018
and the first half of 2019, principally in the fourth
quarter. Beginning in 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. Bolzoni's results are expected to decrease in 2019
primarily due to the restructuring of its Americas operations, but
results in the following years are expected to improve with a
target of achieving a 7% operating profit margin. Nuvera's
results are expected to improve moderately over the course of 2019
with break-even expected to be reached during the second half of
2020. Nuvera's quarterly break-even target has been adjusted
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.
Significantly improved earnings are expected at Nuvera in 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 volume, decreased product costs and
improved pricing, partially offset by a higher level of operating
expense. Overall, 2019 consolidated operating profit is
expected to increase significantly over 2018, with the improvement
coming in the fourth quarter.
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 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-duty trucks
for global markets and standard trucks for the Chinese
market. 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 new
lower-cost Class 3 walkie and stacker global products are expected
to be introduced during the second half of 2019. A range of
lower-cost Class 3 lift trucks was launched in certain markets
during the second quarter. Further, additional products are
being added to the product line-up in 2020. To further
enhance productivity for customers, Hyster-Yale Group is developing
additional 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 BBRs for Class 1, 2 and
3 forklift trucks over the next two years, beginning with the first
model in the first quarter of 2020, that are expected 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 two to three years.
Hyster-Yale Group's largest manufacturing facilities in
Berea, Craigavon and Greenville are undergoing significant change
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 by
the end of 2019.
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 exact customer needs at lowest cost, 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.
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. 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 Americas market by having
responsibility for Hyster-Yale Group's Sulligent plant, where it is 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 the
Homewood area. At
March 31, 2019, Bolzoni recorded a
restructuring charge associated with these plans. Payments
related to this restructuring plan are expected to be made through
2019. In addition to the restructuring charge of $1.4 million recorded in the first quarter,
Bolzoni incurred charges during the second quarter of $0.6 million and anticipates it will incur
additional charges during the second half of 2019 of approximately
$2.2 million to $3.5 million for further restructuring-related
costs.
There is a large opportunity for 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 planning to establish 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. Nuvera
is focused on continuously improving the quality of its fuel cell
engines. Also, the cost of its fuel cell engines has been
improving. 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 and Class 3 BBRs in early 2020, Nuvera will be focused
entirely on fuel cell stacks and engines by mid-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 one of two planned online by the end of 2019. In
overview, Nuvera's objective is to reduce its loss in the second
half of 2019 compared with the second half of 2018 and to reach
break-even during the second half of 2020, with increasing
profitability over the following three years.
In summary, Hyster-Yale believes it is approaching an inflection
point in its business. While the third quarter of 2019 is
expected to reflect continued investment in these programs, similar
to the first half of the year, the fourth quarter is expected
to improve significantly in comparison to the 2018 fourth quarter
and the first three quarters of 2019. Efforts to abate some
of the most critical Big Truck supplier issues have succeeded, but
there are still significant shortages from key suppliers in
the United States that are not
expected to be resolved fully until the fourth quarter. Plans
established in 2018 to find offsets to the tariff-driven,
unprecedented material cost inflation witnessed last year began to
mature in the first half of 2019 and are expected to continue to
mature and result in recovering margins during the remainder of the
year. In addition, on April 18,
2019, the U.S. Trade Representative posted a notice
announcing its determination to grant additional exclusion requests
for certain duties on Chinese goods. 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. Certain components of fork lift
trucks, including counterweights and forks were listed in the
notice as exclusions for the duties, while other components that
the Company and its suppliers import from China are still subjected to certain
tariffs. During the second quarter, the Company recorded
duties recoverable for the period of July 6,
2018 through the 2019 second quarter. The Company
expects to be able to record additional recoveries later in the
year when it receives recovered tariff costs from certain
suppliers. In May 2019,
additional tariffs were imposed on certain Chinese goods. The
Company expects that the favorable impact of the exclusions
announced in April is greater than the anticipated
unfavorable effect of the new tariffs announced in May.
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 will take some
time to mature. These agreements reduced profitability in the
first half of 2019 and will continue to have an impact on results
in the second half of the year. Margins are expected to
recover fully from the 2018 material cost inflation and the heavily
discounted deals by the fourth quarter of 2019, as well as continue
to be enhanced by the exemption of tariffs on certain Chinese
components.
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. This decrease is primarily due to
increased working capital, particularly accounts receivable, during
the first half of the year, as well as higher capital
expenditures. Working capital is expected to improve
significantly in the second half of 2019 as the inventory supplier
issues are resolved, but the improvement is not expected to fully
offset the higher working capital in the first half of the
year.
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, with a few, particularly those
involving dealer structure and excellence, being 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 substantial softening, particularly in the Americas, and to
a lesser extent EMEA, in the first half of 2019. While
markets are still at historically high levels, it appears the
market could be at the beginning of a downturn, which is currently
projected to be moderate and of limited duration. As a
result, in 2019, the Company is currently forecasting strong but
moderating 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, July 31, 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: 9657298, 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 7, 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 or the imposition of tariffs, 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
|
|
Six Months
Ended
|
|
June 30
|
|
June 30
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(In millions, except
per share data)
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
856.2
|
|
|
$
|
765.9
|
|
|
$
|
1,691.0
|
|
|
$
|
1,554.4
|
|
Cost of
sales
|
716.8
|
|
|
640.6
|
|
|
1,425.4
|
|
|
1,297.0
|
|
Gross
Profit
|
139.4
|
|
|
125.3
|
|
|
265.6
|
|
|
257.4
|
|
Selling, general and
administrative expenses
|
116.5
|
|
|
114.5
|
|
|
239.3
|
|
|
227.4
|
|
Operating
Profit
|
22.9
|
|
|
10.8
|
|
|
26.3
|
|
|
30.0
|
|
Other (income)
expense
|
|
|
|
|
|
|
|
Interest expense
|
5.1
|
|
|
4.0
|
|
|
9.6
|
|
|
8.0
|
|
Income from unconsolidated
affiliates
|
(3.1)
|
|
|
(2.4)
|
|
|
(5.8)
|
|
|
(5.2)
|
|
Other, net
|
(0.4)
|
|
|
(0.3)
|
|
|
(3.5)
|
|
|
(2.1)
|
|
Income before
Income Taxes
|
21.3
|
|
|
9.5
|
|
|
26.0
|
|
|
29.3
|
|
Income tax
provision
|
4.4
|
|
|
3.8
|
|
|
5.9
|
|
|
8.7
|
|
Net income
attributable to noncontrolling interest
|
(0.7)
|
|
|
(0.1)
|
|
|
(0.5)
|
|
|
(0.1)
|
|
Net Income
Attributable to Stockholders
|
$
|
16.2
|
|
|
$
|
5.6
|
|
|
$
|
19.6
|
|
|
$
|
20.5
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.97
|
|
|
$
|
0.34
|
|
|
$
|
1.18
|
|
|
$
|
1.24
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
|
0.97
|
|
|
$
|
0.34
|
|
|
$
|
1.17
|
|
|
$
|
1.24
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
16.655
|
|
|
16.550
|
|
|
16.628
|
|
|
16.525
|
|
Diluted weighted
average shares outstanding
|
16.709
|
|
|
16.587
|
|
|
16.695
|
|
|
16.578
|
|
|
|
|
|
|
|
|
|
EBITDA
RECONCILIATION
|
|
Quarter
Ended
|
|
|
|
9/30/2018
|
|
12/31/2018
|
|
3/31/2019
|
|
6/30/2019
|
|
LTM
6/30/2019
|
|
(In
millions)
|
Net Income (loss)
Attributable to Stockholders
|
$
|
15.4
|
|
|
$
|
(1.2)
|
|
|
$
|
3.4
|
|
|
$
|
16.2
|
|
|
$
|
33.8
|
|
Noncontrolling
interest income (loss)
|
(0.5)
|
|
|
—
|
|
|
(0.2)
|
|
|
0.7
|
|
|
—
|
|
Income tax provision
(benefit)
|
(4.7)
|
|
|
(1.7)
|
|
|
1.5
|
|
|
4.4
|
|
|
(0.5)
|
|
Interest
expense
|
3.6
|
|
|
4.4
|
|
|
4.5
|
|
|
5.1
|
|
|
17.6
|
|
Interest
income
|
(0.4)
|
|
|
(0.2)
|
|
|
(0.4)
|
|
|
(0.4)
|
|
|
(1.4)
|
|
Depreciation and
amortization expense
|
11.6
|
|
|
11.6
|
|
|
11.2
|
|
|
10.8
|
|
|
45.2
|
|
EBITDA*
|
$
|
25.0
|
|
|
$
|
12.9
|
|
|
$
|
20.0
|
|
|
$
|
36.8
|
|
|
$
|
94.7
|
|
|
|
|
|
|
|
|
|
|
|
*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
|
|
Six Months
Ended
|
|
June 30
|
|
June 30
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(In
millions)
|
Revenues
|
|
|
|
|
|
|
|
Americas
|
$
|
537.7
|
|
|
$
|
471.6
|
|
|
$
|
1,072.2
|
|
|
$
|
967.5
|
|
EMEA
|
202.1
|
|
|
191.0
|
|
|
392.2
|
|
|
388.9
|
|
JAPIC
|
72.9
|
|
|
57.5
|
|
|
136.3
|
|
|
107.0
|
|
Hyster-Yale
Group
|
$
|
812.7
|
|
|
$
|
720.1
|
|
|
$
|
1,600.7
|
|
|
$
|
1,463.4
|
|
Bolzoni
|
90.8
|
|
|
88.0
|
|
|
182.6
|
|
|
177.5
|
|
Nuvera
|
2.2
|
|
|
0.7
|
|
|
6.7
|
|
|
1.3
|
|
Eliminations
|
(49.5)
|
|
|
(42.9)
|
|
|
(99.0)
|
|
|
(87.8)
|
|
Total
|
$
|
856.2
|
|
|
$
|
765.9
|
|
|
$
|
1,691.0
|
|
|
$
|
1,554.4
|
|
|
|
|
|
|
|
|
|
Gross profit
(loss)
|
|
|
|
|
|
|
|
Americas
|
$
|
90.1
|
|
|
$
|
79.1
|
|
|
$
|
171.5
|
|
|
$
|
164.9
|
|
EMEA
|
28.4
|
|
|
25.1
|
|
|
53.5
|
|
|
50.9
|
|
JAPIC
|
8.4
|
|
|
6.1
|
|
|
14.5
|
|
|
10.6
|
|
Hyster-Yale
Group
|
$
|
126.9
|
|
|
$
|
110.3
|
|
|
$
|
239.5
|
|
|
$
|
226.4
|
|
Bolzoni
|
15.5
|
|
|
16.8
|
|
|
31.1
|
|
|
33.8
|
|
Nuvera
|
(2.7)
|
|
|
(1.6)
|
|
|
(4.5)
|
|
|
(2.5)
|
|
Eliminations
|
(0.3)
|
|
|
(0.2)
|
|
|
(0.5)
|
|
|
(0.3)
|
|
Total
|
$
|
139.4
|
|
|
$
|
125.3
|
|
|
$
|
265.6
|
|
|
$
|
257.4
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
|
|
|
|
|
|
|
Americas
|
$
|
26.2
|
|
|
$
|
18.0
|
|
|
$
|
41.5
|
|
|
$
|
45.9
|
|
EMEA
|
4.7
|
|
|
1.4
|
|
|
4.7
|
|
|
2.3
|
|
JAPIC
|
(1.8)
|
|
|
(2.1)
|
|
|
(6.3)
|
|
|
(4.3)
|
|
Hyster-Yale
Group
|
$
|
29.1
|
|
|
$
|
17.3
|
|
|
$
|
39.9
|
|
|
$
|
43.9
|
|
Bolzoni
|
2.3
|
|
|
3.2
|
|
|
3.5
|
|
|
5.9
|
|
Nuvera
|
(8.2)
|
|
|
(9.5)
|
|
|
(16.6)
|
|
|
(19.5)
|
|
Eliminations
|
(0.3)
|
|
|
(0.2)
|
|
|
(0.5)
|
|
|
(0.3)
|
|
Total
|
$
|
22.9
|
|
|
$
|
10.8
|
|
|
$
|
26.3
|
|
|
$
|
30.0
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to stockholders
|
|
|
|
|
|
|
|
Americas
|
$
|
17.7
|
|
|
$
|
10.2
|
|
|
$
|
29.8
|
|
|
$
|
30.6
|
|
EMEA
|
4.1
|
|
|
1.3
|
|
|
4.0
|
|
|
2.3
|
|
JAPIC
|
(1.5)
|
|
|
(0.5)
|
|
|
(3.9)
|
|
|
(1.2)
|
|
Hyster-Yale
Group
|
$
|
20.3
|
|
|
$
|
11.0
|
|
|
$
|
29.9
|
|
|
$
|
31.7
|
|
Bolzoni
|
1.6
|
|
|
2.1
|
|
|
1.9
|
|
|
4.0
|
|
Nuvera
|
(6.0)
|
|
|
(6.9)
|
|
|
(12.1)
|
|
|
(14.2)
|
|
Eliminations
|
0.3
|
|
|
(0.6)
|
|
|
(0.1)
|
|
|
(1.0)
|
|
Total
|
$
|
16.2
|
|
|
$
|
5.6
|
|
|
$
|
19.6
|
|
|
$
|
20.5
|
|
HYSTER-YALE
MATERIALS HANDLING, INC.
|
FINANCIAL
HIGHLIGHTS
|
|
|
CASH FLOW AND
CAPITAL STRUCTURE
|
|
Six Months
Ended
|
|
June 30
|
|
2019
|
|
2018
|
|
(In
millions)
|
Net cash provided by
(used for) operating activities
|
$
|
(70.9)
|
|
|
$
|
52.0
|
|
Net cash used for
investing activities
|
(17.6)
|
|
|
(89.5)
|
|
Cash Flow Before Financing Activities
|
$
|
(88.5)
|
|
|
$
|
(37.5)
|
|
|
|
|
|
|
June 30,
2019
|
|
December 31,
2018
|
Debt
|
$
|
370.9
|
|
|
$
|
301.5
|
|
Cash
|
50.3
|
|
|
83.7
|
|
Net Debt
|
$
|
320.6
|
|
|
$
|
217.8
|
|
|
|
|
|
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SOURCE Hyster-Yale Materials Handling, Inc.