Q4 and Full-Year 2023 Highlights:
- Q4 consolidated operating profit of $48.7 million up 146% from Q4 2022, despite
$9.6 million of equity incentive
compensation expense specifically due to appreciation in the
Company's stock price during Q4 2023
- Q4 consolidated revenue growth of $42
million, or 4%, compared with Q4 2022
- Q4 Lift Truck operating profit of $54.2 million and margin of 5.5% increased
significantly over Q4 2022 due to improved product margins
- Average sales price per backlog unit up 16% over Q4 2022 and
2% over Q3 2023
- Q4 consolidated net income of $25.2 increased from $7.6
million in Q4 2022
- Full-year net income of $125.9
million increased by $200
million from 2022 loss of $74.1
million
- Full-year 2024 consolidated net income expected to be
comparable to 2023 results
CLEVELAND, Feb. 27,
2024 /PRNewswire/ -- Hyster-Yale Materials Handling,
Inc. (NYSE: HY) reported the following consolidated results for the
three months and year ended December 31,
2023. All comparisons are to the three months ended
December 31, 2022, unless otherwise
noted.
|
Three Months
Ended
|
Twelve Months
Ended
|
($ in millions
except per share amounts)
|
12/31/23
|
|
12/31/22
|
|
Change
Fav (Unfav)
|
|
12/31/23
|
|
12/31/22
|
|
Change
Fav (Unfav)
|
Revenues
|
$1,027.2
|
|
$985.2
|
|
$42.0
|
|
$4,118.3
|
|
$3,548.3
|
|
$570.0
|
Operating Profit
(Loss)
|
$48.7
|
|
$19.8
|
|
$28.9
|
|
$208.7
|
|
$(39.1)
|
|
$247.8
|
Net Income
(Loss)
|
$25.2
|
|
$7.6
|
|
$17.6
|
|
$125.9
|
|
$(74.1)
|
|
$200.0
|
Diluted Earnings
(Loss)/share
|
$1.43
|
|
$0.44
|
|
$0.99
|
|
$7.24
|
|
$(4.38)
|
|
$11.62
|
Lift Truck Business Results
Revenues and shipments by
geographic segment were as follows:
($ in
millions)
|
Q4
2023
|
|
Q4 2022
|
|
Change
Fav (Unfav)
|
|
Revenues
|
$981.5
|
|
$938.0
|
|
$43.5
|
|
Americas(1)
|
$708.4
|
|
$679.8
|
|
$28.6
|
|
EMEA(1)
|
$221.1
|
|
$190.3
|
|
$30.8
|
|
JAPIC(1)
|
$52.0
|
|
$67.9
|
|
$(15.9)
|
|
|
(1) The Americas
segment includes the North America, Latin America and Brazil
markets, EMEA includes operations in the Europe, Middle East and
Africa markets, and JAPIC includes operations in the Asia and
Pacific markets, including China.
|
|
|
(Rounded to nearest
hundred)
|
Q4
2023
|
|
Q4 2022
|
|
Change
Fav (Unfav)
|
|
Q3 2023
|
|
Change
Fav (Unfav)
|
Unit
Shipments
|
23,600
|
|
27,100
|
|
(3,500)
|
|
25,700
|
|
(2,100)
|
Americas
|
15,600
|
|
16,000
|
|
(400)
|
|
17,100
|
|
(1,500)
|
EMEA
|
5,400
|
|
7,800
|
|
(2,400)
|
|
5,900
|
|
(500)
|
JAPIC
|
2,600
|
|
3,300
|
|
(700)
|
|
2,700
|
|
(100)
|
Fourth-quarter 2023 Lift Truck revenues increased approximately
5% compared with 2022. Revenue growth was led by the favorable
effect of previously implemented price increases in all regions and
favorable currency effects of $18
million, primarily in EMEA. A positive sales mix shift,
mainly to higher-priced, higher-capacity Class 4 and Class 5
trucks, including Big Trucks, and increased parts sales also
contributed to the revenue growth. These benefits were
partially offset by lower unit volumes.
Consolidated unit shipments decreased 13% year-over-year and 8%
sequentially from third-quarter 2023. The year-over-year decline
was largely due to a 30% decrease in EMEA shipments, while fewer
Americas' shipments drove the decrease from third-quarter 2023.
These declines were primarily due to the negative effect of certain
product launch and component supply issues mainly in EMEA
compounded with lower market demand in certain areas. Ongoing
skilled labor challenges also impeded progress on planned
production rate increases and shipments during the quarter.
The Company shipped approximately 102,200 units in full-year
2023. This compares with approximately 100,800 units in 2022.
Gross profit and operating profit (loss) by geographic segment
were as follows:
($ in
millions)
|
Q4
2023
|
|
Q4 2022
|
|
Change
Fav (Unfav)
|
|
Gross
Profit
|
$192.8
|
|
$129.2
|
|
$63.6
|
|
Americas
|
$151.1
|
|
$110.1
|
|
$41.0
|
|
EMEA
|
$37.6
|
|
$11.0
|
|
$26.6
|
|
JAPIC
|
$4.1
|
|
$8.1
|
|
$(4.0)
|
|
Operating Profit
(Loss)
|
$54.2
|
|
$27.2
|
|
$27.0
|
|
Americas
|
$55.0
|
|
$38.4
|
|
$16.6
|
|
EMEA
|
$6.0
|
|
$(11.2)
|
|
$17.2
|
|
JAPIC
|
$(6.8)
|
|
$—
|
|
$(6.8)
|
|
Fourth-quarter 2023 Lift Truck operating profit increased
substantially over the prior year, resulting in a 5.5% operating
profit margin. This year-over-year increase generated a 62%
incremental margin in the quarter, demonstrating strong growth and
disciplined execution. Product margins increased significantly in
the Americas and EMEA due to favorable price-to-cost ratios and an
improved sales mix. Favorable currency movements also contributed
to the profit growth. Higher operating costs partly offset the
profit improvement. The operating cost increase was primarily due
to higher employee-related expenses, including increased incentive
compensation attributable to strong fourth-quarter 2023 results and
$9.6 million ($8.2 million net of taxes of $1.4 million) for the equity component
specifically due to appreciation of the Company's stock price in
fourth-quarter 2023. Elevated marketing costs, in part resulting
from promotions of new product launches, also contributed to the
increase.
Geographically, the Americas' fourth-quarter 2023 operating
profit improved 43%, with 4% revenue growth, compared with
fourth-quarter 2022. Continued product margin improvements and a
favorable sales mix more than offset lower unit volumes and
increased employee-related, product development and marketing
expenses.
EMEA fourth-quarter 2023 revenues increased $30.8 million, or 16%, while operating profit
improved by $17.2 million when
compared with a substantial 2022 loss. Benefits from price
increases, favorable currency movements and lower material and
freight costs more than offset the effect of lower unit and parts
volumes and elevated operating expenses. New product launch issues
and certain component parts shortages continued to constrain
production and shipment levels during fourth quarter 2023.
JAPIC reported a fourth-quarter 2023 operating loss of
$6.8 million compared with break-even
results in 2022. The lower results were primarily due to lower unit
and parts volumes, unfavorable manufacturing variances, higher
labor and freight costs and increased operating expenses. JAPIC
shipments decreased year-over-year largely due to strong prior-year
shipments. This was caused by previously unfavorable lead times on
products sourced from affiliate regions that led to dealer
overstocking in fourth-quarter 2022.
Bolzoni Results
($ in
millions)
|
Q4
2023
|
|
Q4 2022
|
|
Change
Fav (Unfav)
|
|
Revenues
|
$87.3
|
|
$92.0
|
|
$(4.7)
|
|
Gross Profit
|
$19.4
|
|
$19.3
|
|
$0.1
|
|
Operating
Profit
|
$2.6
|
|
$2.0
|
|
$0.6
|
|
Bolzoni's fourth-quarter 2023 revenues decreased $4.7 million while operating profit improved by
$0.6 million compared with 2022.
Fourth-quarter 2022 results included a $2.4
million loss on sale of a business. Excluding the effect of
the sale, operating profit decreased substantially year-over-year
primarily due to higher operating expenses. Bolzoni's product and
gross margins improved over the prior year despite comparable gross
profit dollars. Favorable currency movements and price increases
implemented in prior years were offset by a mix shift to lower
margin products, reduced sales volumes and material cost
increases.
Nuvera Results
($ in
millions)
|
Q4
2023
|
|
Q4 2022
|
|
Change
Fav (Unfav)
|
|
Revenues
|
$0.2
|
|
$1.3
|
|
$(1.1)
|
|
Gross Profit
(Loss)
|
$(2.4)
|
|
$(1.7)
|
|
$(0.7)
|
|
Operating
Loss
|
$(8.0)
|
|
$(9.3)
|
|
$1.3
|
|
Nuvera's fourth-quarter 2023 operating loss decreased to
$8.0 million from $9.3 million in 2022. This was primarily due to
lower product development costs resulting from U.S. government
funding received to support certain fuel cell research and
development expenses. The lower expenses more than offset a decline
in fourth-quarter 2023 revenues due to fewer engine shipments
compared with 2022.
Balance Sheet and Liquidity
($ in
millions)
|
December 31,
2023
|
|
September 30,
2023
|
|
Change
Fav (Unfav)
|
Debt
|
$494.0
|
|
$510.6
|
|
$16.6
|
Cash
|
78.8
|
|
78.2
|
|
0.6
|
Net
Debt
|
$415.2
|
|
$432.4
|
|
$17.2
|
During fourth-quarter 2023, the Company reduced its net debt by
$17 million, or 4%, compared with
September 30, 2023. The net debt
reduction was primarily due to increased cash resulting from the
Company's ongoing efforts to improve working capital efficiency.
Overall, the Company generated cash flow from operations of almost
of $46 million in the fourth quarter
and $151 million for full-year 2023.
These results mark a significant improvement over the prior-year
periods, with $6 million and
$41 million of cash generated in
fourth-quarter 2022 and full-year 2022, respectively.
The Company's debt to total capital ratio of 55% at December 31, 2023 improved sequentially by 600
basis points from September 30, 2023,
due to significant profitability and a lower debt balance.
The Company had unused borrowing capacity of approximately
$270 million under its revolving
credit facilities as of December 31,
2023, compared with $254
million on September 30,
2023.
Fourth-quarter 2023 days inventory outstanding decreased by one
day compared with third-quarter 2023 levels despite comparable
inventory balances between periods. The Company remains focused on
improving inventory efficiency as production rates increase.
Market Commentary
Generally, the 2023 global economy
performed better than anticipated. The Company's core lift truck
market remains strong and above pre-pandemic levels in most
regions. Nonetheless, some external market factors, including
ongoing geopolitical instability, most recently evidenced by the
tensions in the Red Sea, continue to create a significant amount of
uncertainty within the global economic outlook. Due to this and
abnormally high industry volumes from 2020 to 2022, global market
activity declined across 2023, particularly in EMEA.
The latest publicly available lift truck market data indicates
that new unit, third-quarter 2023 booking activity decreased
globally and in all major geographies except China and India compared with strong 2022 levels.
Internal company estimates suggest that fourth-quarter 2023 global
lift truck market bookings decreased compared with the prior year.
Its estimated that the rate of decline slowed in EMEA and
accelerated somewhat in the Americas.
In 2024, global market bookings are expected to be generally
comparable to 2023 levels. An anticipated first-half decline is
expected to be offset by a second-half increase. For both
full-years 2023 and 2024, market unit volumes are projected to
remain strong.
Consolidated Strategic Perspective
The Company's
significantly improved 2023 results are due to the global team's
ongoing execution of strategic initiatives and actions to offset
external headwinds and improve the business' resiliency over time.
These actions include key projects and process improvements to help
the Company achieve long-term growth rates above the material
handling market's expected growth rates. The Company's mature Lift
Truck and Bolzoni businesses are the foundation for growth, while
the Company believes the Nuvera Fuel Cell business' substantial
growth prospects should be additive in future years. Hyster-Yale is
focused on transforming the way the world moves materials from
Port to Home. The Company plans to do this through two
customer promises. First, by providing optimized product solutions
and second, by providing exceptional customer care. The Company
believes these actions will contribute to an increased and
sustainable competitive advantage over time.
Operational Perspectives - Lift Truck Business
Lift
Truck unit bookings and backlog were as follows:
(Bookings &
Backlog $ Value in millions)
|
Q4
2023
|
|
Q4 2022
|
Change
Fav (Unfav)
|
Q3 2023
|
Change
Fav (Unfav)
|
Unit
Bookings
|
16,700
|
|
21,000
|
(4,300)
|
18,200
|
(1,500)
|
Unit Bookings $
Value
|
$480
|
|
$690
|
$(210)
|
$580
|
$(100)
|
Average Sales
Price/Unit booked
|
$28,743
|
|
$32,857
|
$(4,114)
|
$31,868
|
$(3,125)
|
Unit Backlog
|
78,400
|
|
102,100
|
(23,700)
|
85,300
|
(6,900)
|
Unit Backlog $
Value
|
$3,330
|
|
$3,730
|
$(400)
|
$3,540
|
$(210)
|
Average Sales
Price/Unit of backlog
|
$42,474
|
|
$36,533
|
$5,941
|
$41,501
|
$973
|
Given the Company's extended backlog position, it continues to
prioritize booking orders with strong margins. This focus combined
with declining market demand, particularly in the Americas,
resulted in an 8% decrease in fourth-quarter 2023 lift truck
bookings compared with third-quarter 2023 and a 20% decline from
strong prior-year levels.
Looking forward, the Company expects to be price competitive
with the market, but will work to maintain targeted bookings
margins even as backlog levels are reduced. Overall, the Company
expects 2024 bookings to increase compared to 2023. This
improvement is primarily due to anticipated market share gains,
especially in warehouse products, within an overall flat global
lift truck market. These expected increases are primarily the
result of the Company's strategic initiatives, particularly those
focused on emerging technology solutions for warehouse-related
markets. These technology solutions had strong 2023 growth rates,
and the Company expects to build on that momentum in 2024. Planned
production rate increases combined with anticipated market
decreases in the first half of 2024 should help the Company reduce
its extended lead times and backlog closer to pre-pandemic levels
over 2024. However, given current expectations, the Company
believes lead times and backlog levels will likely remain above
optimal levels on certain product lines for an extended period.
Specific lines, such as warehouse products, are expected to return
to more normal lead time and backlog levels in 2024.
The Company's extended backlog, valued at $3.3 billion, represents almost ten months of
revenue and should serve as a cushion for the business if bookings
decline more than anticipated in 2024. Overall, customer
cancellations, which can impact backlog levels, trended up modestly
in 2023 from prior year rates. Hyster-Yale's cancellation rate
remains substantially below the industry average.
Full-year 2024 production and shipment rates are expected to
increase compared with 2023 as production launch issues and
lingering component and labor constraints dissipate. The Company's
focus remains on maintaining a full production pipeline across its
facilities within this moderated market demand environment.
The trend of higher average unit backlog prices and margins
continued in the fourth quarter. This trend was largely due to the
Company's ongoing focus on booking orders at strong margins and
benefits from prior-year price increases to offset inflation.
Fourth-quarter 2023 average booking prices decreased compared with
both the third-quarter 2023 and the prior year largely due to the
shift toward lower-priced warehouse products with shorter average
lead times.
While material costs decreased modestly in 2023, forward
economic indicators suggest stabilizing material costs and
moderately higher labor costs in 2024. Elevated freight costs tied
to geopolitical events are expected throughout 2024, particularly
in the first half of the year. In this context, the Company expects
to maintain its strong price-to-cost ratio in the first half of
2024 as higher-priced backlog units are shipped. This, combined
with an anticipated increase in unit volumes, is expected to lead
to higher gross margins and an improved operating profit in the
first half of the year compared with 2023.
The expiration of tariff exemptions in late May 2024, shipment of trucks ordered in 2024's
more competitive pricing environment and the mix effect of
increased warehouse product shipments are likely to temper unit
margins in the second half of the year. For the full-year, gross
profit margins should be comparable to 2023 levels. The Company is
working to reduce the earnings impact from externally driven
factors through increased manufacturing productivity and expense
control. The Company will continue to monitor labor and material
costs closely, as well as the impacts from tariffs and competition,
and will adjust forward pricing accordingly.
Overall, higher production and shipment rates along with stable
gross profit margins are expected to generate increased Lift Truck
revenues and operating profit in 2024 compared to the prior
year.
Strategic Perspectives - Lift Truck
From a broad
perspective, the Lift Truck business has three core strategies that
are expected to transform the Company's competitiveness, market
position and economic performance over time. The first core
strategy is to provide products that improve customer productivity
at the lowest cost of ownership. The Lift Truck business'
capabilities in this area are expected to be enhanced by bringing
to market a wide variety of vehicle innovations, including new
modular and scalable product families, truck electrification
projects and technology advancements in operator assist systems
(OAS), power options and vehicle automation.
The Company continues to make progress on its high priority
projects. The Company's heart-of-the-line modular, scalable 2- to
3.5-ton internal combustion engine lift trucks have been launched
in the EMEA and Americas markets. The production ramp-up continues
to occur gradually given the current extended backlog. However,
bookings and shipments accelerated in 2023. A first-quarter 2024
launch of the full 2-to 3-ton internal combustion product line,
which includes value, standard and premium truck configurations, is
expected for the JAPIC market. Similar enhancements to the 2- to
3.5-ton electric truck platforms are also expected over 2024 and
2025. The modular, scalable product platform is expected to enhance
multiple areas of the business, including reducing supply chain
costs, improving working capital levels and helping optimize the
Company's manufacturing footprint, while providing customers with a
more customizable product that better meets their needs.
Other key projects include electrifying trucks used for
applications now dominated by internal combustion engine trucks
that capitalize on advancements in electric powertrain options. The
Company currently has its first electrified fuel cell Container
Handler operating at the Port of Los
Angeles, and its first electrified fuel cell Reach Stacker
operating at the Port of Valencia,
Spain. Hyster-Yale anticipates delivering a new electrified
fuel cell Terminal Tractor and an electrified fuel cell Empty
Container Handler to a customer in Hamburg, Germany in 2024.
The Company is exploring options for additional electrification
projects within the European Union and the United States. Hyster-Yale also has key
projects focused on applying its technology advancements to
additional OAS and automated product options. Notably, during
third-quarter 2023, the Company entered into an agreement with a
technology-service provider to co-develop further robotics software
technology for automated lift truck solutions.
The Lift Truck business also has a key project focused on
expanding global sourcing options of container handlers. The
Company expects its Hyster® RS45 ReachStackers, as well
as Empty Container Handlers, to be sourced from production
locations in both Nijmegen, the
Netherlands, and Fuyang, China during 2024. This dual-source supply
chain will help the Company better meet the needs of the global
market, enabling customers to benefit from time efficient delivery
for economically viable trucks.
The second core strategy is be the leader in the delivery of
industry- and customer-focused solutions by transforming the
Company's sales approach to ensure it meets a wide variety of
customer needs across a broad set of end markets. To meet
diversified customer product needs, the Company is transforming its
sales processes by using an industry-focused approach. The Company
believes that understanding the customers' applications is best
done by segmenting the market into two broad umbrella categories:
industrial and warehousing applications. The Company's
Hyster® brand will increasingly focus on industrial
applications, while the Yale® brand will increasingly focus on
warehouse applications. This focus separation will reinforce a
natural differentiation between the two brands that already exists
in the marketplace.
The third core strategy is to be the leader in independent
distribution by focusing on effectively coordinating dealer and
major account coverage, enhancing dealer excellence and ensuring
outstanding dealer ownership globally. The Company is committed to
helping its excellent dealer group be the leaders in their
territories.
Operational and Strategic Perspectives -
Bolzoni
Bolzoni anticipates a modest increase in 2024
revenues compared with 2023 as legacy products begin to be phased
out and attachment volumes increase. Operating profit is expected
to increase year-over-year as higher product margins and
anticipated manufacturing efficiency improvements are projected to
more than offset higher material and operating costs.
Bolzoni's core strategy is to be the leader in the attachments
business. In this context, Bolzoni continues to concentrate on
driving its "One Company - 3 Brands" approach globally, increasing
its Americas business and focusing on strengthening its ability to
serve key attachment industries and customers in global markets. As
part of this approach, Bolzoni also intends to increase its sales,
marketing and product capabilities especially in North America to support its industry-specific
sales strategy.
Operational and Strategic Perspectives -
Nuvera
Nuvera's core strategy is to be a leader in the
heavy-duty fuel cell market. Nuvera continues to focus on placing
45kW and 60kW fuel cell production engines for demonstration in a
limited number of niche, heavy-duty vehicle applications with
expected significant fuel cell adoption potential where batteries
alone cannot meet the market's need. As a result, these
applications are expected to have nearer-term fuel cell adoption
potential. Nuvera has announced several projects with various third
parties to test Nuvera® engines in targeted
applications, including the Port of Los
Angeles and the Port of Valencia, and most recently with Helinor
Energy for zero-emission energy solutions for maritime
applications. Nuvera expects to have additional products being
tested in bus applications in China and India and in a German port by mid-2024. Nuvera
is also developing a new, larger 125kW fuel cell engine for
heavier-duty applications, which is projected to be available in
2025, and is working with customers to launch modular fuel cells
for stationary and mobile generator applications.
Nuvera is focused on increasing customer product demonstrations
and customer bookings in 2024. Nuvera is also expanding its
presence in Europe and
China. Orders from current
customers have been booked and are expected to result in higher
sales in 2024 compared with 2023. Nuvera expects these higher sales
to be offset by increased development costs, leading to comparable
year-over-year operating results. The increased engine
demonstration volumes should significantly enhance the foundation
for future fuel cell engine technology adoption and improved
financial returns in future years.
Consolidated Outlook
At the consolidated level, the
Company expects 2024 operating profit to increase while net income
is expected to be comparable to 2023. The latter is due to higher
projected 2024 income tax expense driven by an elevated income tax
rate. This results from full utilization of U.S. net operating
losses in 2023 combined with ongoing capitalization of research and
development costs for tax purposes in 2024. The Company anticipates
continued strong product margins from shipments of fixed-price
backlog units to drive year-over-year profit growth in the first
half of the year. However, the expiration of tariff exemptions and
shipments of orders placed in 2024's more competitive pricing
environment will likely temper second half results. As an offset to
any competitive pricing adjustments, the Company will continue to
focus on effectively managing its ongoing component and labor costs
and production levels. The Company made solid progress toward its
7% operating profit margin and greater than 20% return on total
capital employed goals at both the Lift Truck and Bolzoni
businesses in 2023 and will work to make continued progress in 2024
toward achieving these goals.
Hyster-Yale is committed to continuing to reduce its leverage
and enhance its cash flows through ongoing working capital
reductions and continued discipline over operating expenses.
Capital expenditures were $35.4
million in 2023 and are expected to be $87 million in 2024. This full-year increase over
restrained 2023 levels includes a return to investing for business
growth and network efficiency. While the Company expects to make
these substantial additional investments in the business,
maintaining liquidity also continues to be a priority. Working
capital control continues to be an area of intense focus for the
Company. Inventory levels remain elevated and above pre-pandemic
levels but are slowly declining from their peak in mid-2023.
Efforts to maximize the use of on-hand inventory are expected to
help significantly reduce excess inventory levels in 2024 despite
intermittent supply chain and some periodic labor constraints. As a
result of these actions, the Company expects a significant increase
in cash flow from operations in 2024 compared with 2023.
*****
Conference Call
The management of Hyster-Yale
Materials Handling, Inc. will conduct a conference call with
investors and analysts on Wednesday,
February 28, 2024, at 11:00 a.m.
Eastern Time to discuss the financial results. The
conference call will be broadcast and can be accessed through
Hyster-Yale's website at
https://www.hyster-yale.com/investor-overview. Please allow 15
minutes to register, download and install any necessary audio
software required to listen to the webcast. An archive of the
webcast will be available on the Company's website two hours after
the live call ends. Further information regarding the Company's
strategic initiatives can also be found in the Company's Q4 2023
Investor Deck that will be made available on the Hyster-Yale
website after the call.
Annual Report on Form 10-K
Hyster-Yale Materials
Handling. Inc.'s Annual Report on Form 10-K has been filed with the
Securities and Exchange Commission. This document may be obtained
free of charge by directing such requests to Hyster-Yale Materials
Handling, Inc., 5875 Landerbrook Drive, Cleveland, Ohio 44124, Attention: Investor
Relations, by calling (440) 449-9589, or from Hyster-Yale Materials
Handling's website at www.hyster-yale.com.
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"). For
certain pre-tax disclosures included in this release, the resulting
after-tax amount and the related income tax amount have been
included. Certain after-tax amounts are considered non-GAAP
measures. Management believes that after-tax information is useful
in analyzing the Company's net income.
EBITDA in this release is provided solely as supplemental
non-GAAP disclosures of operating results. EBITDA does not
represent operating profit (loss) or net income (loss), as defined
by GAAP, and should not be considered as a substitute for operating
profit (loss) or net income (loss). Hyster-Yale defines EBITDA as
income (loss) before income taxes and noncontrolling interest
income and dividends plus net interest expense and depreciation and
amortization expense. EBITDA is not a measurement under GAAP and is
not necessarily comparable with similarly titled measures of other
companies. 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 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." 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) delays in delivery and other supply chain
disruptions, or increases in costs as a result of inflation or
otherwise, including materials, critical components and
transportation costs and shortages, the imposition of tariffs, or
the renewal of tariff exclusions, on raw materials or sourced
products, and labor, or changes in or unavailability of quality
suppliers or transporters, including the impacts of the foregoing
risks on the Company's liquidity, (2) delays in manufacturing and
delivery schedules, (3) customer acceptance of pricing, (4) the
ability of Hyster-Yale and its dealers, suppliers and end-users to
access credit in the current economic environment, or obtain
financing at reasonable rates, or at all, as a result of interest
rate volatility and current economic and market conditions,
including inflation, (5) reduction in demand for lift trucks,
attachments and related aftermarket parts and service on a global
basis, including any cyclical reduction in demand in the lift truck
industry, (6) unfavorable effects of geopolitical and legislative
developments on global operations, including without limitation the
entry into new trade agreements and the imposition of tariffs
and/or economic sanctions, including the Uyghur Forced Labor
Prevention Act (the "UFLPA") which could impact Hyster-Yale's
imports from China, as well as
armed conflicts, including the Russia/Ukraine conflict, the Israel and Gaza conflict and/or the conflict in the Red
Sea, and their regional effects, (7) exchange rate fluctuations,
interest rate volatility and monetary policies and other changes in
the regulatory climate in the countries in which the Company
operates and/or sells products, (8) the effectiveness of the cost
reduction programs implemented globally, including the successful
implementation of procurement and sourcing initiatives, (9) the
successful commercialization of Nuvera's technology, (10) the
political and economic uncertainties in the countries where the
Company does business, as well as the effects of any withdrawals
from such countries, (11) bankruptcy of or loss of major dealers,
retail customers or suppliers, (12) customer acceptance of, changes
in the costs of, or delays in the development of new products, (13)
introduction of new products by, more favorable product pricing
offered by or shorter lead times available through competitors,
(14) product liability or other litigation, warranty claims or
returns of products, (15) changes mandated by federal, state and
other regulation, including tax, health, safety or environmental
legislation, (16) the ability to attract, retain, and replace
workforce and administrative employees, (17) disruptions resulting
from natural disasters, public health crises, political crises or
other catastrophic events, and (18) the ability to protect the
Company's information technology infrastructure against service
interruptions, data corruption, cyber-based attacks or network
breaches.
About Hyster-Yale Materials Handling, Inc.
Hyster-Yale
Materials Handling, Inc., headquartered in Cleveland, Ohio, is a globally integrated
company offering a full line of high-quality, application-tailored
lift trucks and solutions, including attachments and hydrogen fuel
cell power products, as well as telematics, automation and other
services aimed at meeting the specific materials handling needs of
its customers. Hyster-Yale's vision is to transform the way
the world moves material from Port to Home and deliver on
its customer promises of: (1) thoroughly understanding customer
applications and offering optimal solutions that will improve
productivity at the lowest cost of ownership, and (2) providing
exceptional customer care to create increasing value from initial
engagement through the product lifecycle. The Company's wholly
owned operating subsidiary, Hyster-Yale Group, Inc., designs,
engineers, manufactures, sells and services a comprehensive line of
lift trucks, attachments and aftermarket parts marketed globally
primarily under the Hyster® and Yale® brand names. Subsidiaries of
Hyster-Yale include Bolzoni S.p.A., a leading worldwide producer of
attachments, forks and lift tables marketed under the
Bolzoni®, Auramo® and Meyer® brand
names and Nuvera Fuel Cells, LLC, an alternative-power technology
company focused on fuel cell stacks and engines. Hyster-Yale Group
also has an unconsolidated joint venture in Japan (Sumitomo NACCO). 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
|
|
Twelve Months
Ended
|
|
December 31
|
|
December 31
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(In millions, except
per share data)
|
|
|
|
|
|
|
|
|
Revenues
|
$
1,027.2
|
|
$
985.2
|
|
$
4,118.3
|
|
$
3,548.3
|
Cost of
sales
|
817.5
|
|
838.5
|
|
3,332.7
|
|
3,114.4
|
Gross
Profit
|
209.7
|
|
146.7
|
|
785.6
|
|
433.9
|
Selling, general and
administrative expenses
|
161.0
|
|
126.9
|
|
576.9
|
|
473.0
|
Operating Profit
(Loss)
|
48.7
|
|
19.8
|
|
208.7
|
|
(39.1)
|
Other (income)
expense
|
|
|
|
|
|
|
|
Interest expense
|
9.1
|
|
9.5
|
|
37.3
|
|
28.4
|
Income from unconsolidated affiliates
|
(2.0)
|
|
(1.4)
|
|
(9.8)
|
|
(11.0)
|
Other, net
|
(0.1)
|
|
(1.4)
|
|
0.2
|
|
5.9
|
Income (Loss) before
Income Taxes
|
41.7
|
|
13.1
|
|
181.0
|
|
(62.4)
|
Income tax
expense
|
16.0
|
|
5.2
|
|
52.9
|
|
9.2
|
Net income attributable
to noncontrolling interests
|
(0.3)
|
|
0.1
|
|
(0.6)
|
|
(1.5)
|
Net income attributable
to redeemable noncontrolling interests
|
—
|
|
(0.2)
|
|
(0.7)
|
|
(0.5)
|
Accrued dividend to
redeemable noncontrolling interests
|
(0.2)
|
|
(0.2)
|
|
(0.9)
|
|
(0.5)
|
Net Income (Loss)
Attributable to Stockholders
|
$
25.2
|
|
$
7.6
|
|
$
125.9
|
|
$
(74.1)
|
|
|
|
|
|
|
|
|
Basic Earnings
(Loss) per Share
|
$
1.47
|
|
$
0.45
|
|
$
7.35
|
|
$
(4.38)
|
|
|
|
|
|
|
|
|
Diluted Earnings
(Loss) per Share
|
$
1.43
|
|
$
0.44
|
|
$
7.24
|
|
$
(4.38)
|
|
|
|
|
|
|
|
|
Basic Weighted
Average Shares Outstanding
|
17.184
|
|
16.936
|
|
17.137
|
|
16.901
|
Diluted Weighted
Average Shares Outstanding
|
17.568
|
|
17.137
|
|
17.385
|
|
16.901
|
|
|
|
|
|
|
|
|
EBITDA
RECONCILIATION
|
|
Quarter
Ended
|
|
|
|
3/31/2023
|
|
6/30/2023
|
|
9/30/2023
|
|
12/31/2023
|
|
LTM
12/31/2023
|
|
(In
millions)
|
Net Income Attributable
to Stockholders
|
$
26.6
|
|
$
38.3
|
|
$
35.8
|
|
$
25.2
|
|
$
125.9
|
Noncontrolling interest
income and dividends
|
0.6
|
|
0.5
|
|
0.6
|
|
0.5
|
|
2.2
|
Income tax
expense
|
8.7
|
|
12.0
|
|
16.2
|
|
16.0
|
|
52.9
|
Interest
expense
|
10.2
|
|
8.4
|
|
9.6
|
|
9.1
|
|
37.3
|
Interest
income
|
(0.6)
|
|
(0.6)
|
|
(0.7)
|
|
(0.7)
|
|
(2.6)
|
Depreciation and
amortization expense
|
11.2
|
|
11.3
|
|
11.3
|
|
11.3
|
|
45.1
|
EBITDA*
|
$
56.7
|
|
$
69.9
|
|
$
72.8
|
|
$
61.4
|
|
$
260.8
|
|
|
|
|
|
|
|
|
|
|
*EBITDA in this press
release is provided solely as a supplemental disclosure. EBITDA
does not represent net income (loss), as defined by
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 and dividends plus net interest
expense and
depreciation and amortization expense. EBITDA is not a measurement
under GAAP and is not necessarily comparable with similarly
titled
measures of other companies.
|
HYSTER-YALE
MATERIALS HANDLING, INC.
|
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December 31
|
|
December 31
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(In
millions)
|
Revenues
|
|
|
|
|
|
|
|
Americas
|
$
708.4
|
|
$
679.8
|
|
$
2,899.3
|
|
$
2,405.4
|
EMEA
|
221.1
|
|
190.3
|
|
820.5
|
|
704.2
|
JAPIC
|
52.0
|
|
67.9
|
|
201.1
|
|
250.0
|
Lift Truck
Business
|
$
981.5
|
|
$
938.0
|
|
$
3,920.9
|
|
$
3,359.6
|
Bolzoni
|
87.3
|
|
92.0
|
|
375.3
|
|
355.7
|
Nuvera
|
0.2
|
|
1.3
|
|
4.3
|
|
3.4
|
Eliminations
|
(41.8)
|
|
(46.1)
|
|
(182.2)
|
|
(170.4)
|
Total
|
$
1,027.2
|
|
$
985.2
|
|
$
4,118.3
|
|
$
3,548.3
|
|
|
|
|
|
|
|
|
Gross profit
(loss)
|
|
|
|
|
|
|
|
Americas
|
$
151.1
|
|
$
110.1
|
|
$
564.9
|
|
$
303.4
|
EMEA
|
37.6
|
|
11.0
|
|
121.0
|
|
45.0
|
JAPIC
|
4.1
|
|
8.1
|
|
25.5
|
|
22.6
|
Lift Truck
Business
|
$
192.8
|
|
$
129.2
|
|
$
711.4
|
|
$
371.0
|
Bolzoni
|
19.4
|
|
19.3
|
|
82.2
|
|
70.7
|
Nuvera
|
(2.4)
|
|
(1.7)
|
|
(8.2)
|
|
(7.2)
|
Eliminations
|
(0.1)
|
|
(0.1)
|
|
0.2
|
|
(0.6)
|
Total
|
$
209.7
|
|
$
146.7
|
|
$
785.6
|
|
$
433.9
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
|
|
|
|
|
|
|
Americas
|
$
55.0
|
|
$
38.4
|
|
$
233.1
|
|
$
46.8
|
EMEA
|
6.0
|
|
(11.2)
|
|
12.1
|
|
(46.6)
|
JAPIC
|
(6.8)
|
|
—
|
|
(15.6)
|
|
(10.6)
|
Lift Truck
Business
|
$
54.2
|
|
$
27.2
|
|
$
229.6
|
|
$
(10.4)
|
Bolzoni
|
2.6
|
|
2.0
|
|
15.3
|
|
6.2
|
Nuvera
|
(8.0)
|
|
(9.3)
|
|
(36.4)
|
|
(34.3)
|
Eliminations
|
(0.1)
|
|
(0.1)
|
|
0.2
|
|
(0.6)
|
Total
|
$
48.7
|
|
$
19.8
|
|
$
208.7
|
|
$
(39.1)
|
HYSTER-YALE
MATERIALS HANDLING, INC.
|
FINANCIAL
HIGHLIGHTS
|
|
|
CASH FLOW, CAPITAL
STRUCTURE AND WORKING CAPITAL
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
December 31
|
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
(In
millions)
|
Net cash provided by
operating activities
|
|
|
|
$
150.7
|
|
$
40.6
|
Net cash used for
investing activities
|
|
|
|
|
(34.5)
|
|
(35.4)
|
Cash Flow Before Financing Activities
|
|
|
|
|
$
116.2
|
|
$
5.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2023
|
|
September 30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
(In
millions)
|
Debt
|
$
494.0
|
|
$
510.6
|
|
$
542.3
|
|
$
560.6
|
Cash
|
78.8
|
|
78.2
|
|
65.7
|
|
64.6
|
Net Debt
|
$
415.2
|
|
$
432.4
|
|
$
476.6
|
|
$
496.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2023
|
|
September 30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
(In
millions)
|
Accounts
Receivable
|
$
497.5
|
|
$
512.0
|
|
$
582.1
|
|
$
535.9
|
Inventory
|
815.7
|
|
815.4
|
|
820.1
|
|
854.7
|
Accounts
Payable
|
530.2
|
|
549.6
|
|
593.2
|
|
627.6
|
Working
Capital
|
$
783.0
|
|
$
777.8
|
|
$
809.0
|
|
$
763.0
|
|
|
|
|
|
|
|
|
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SOURCE Hyster-Yale Materials Handling, Inc.