HYSTER-YALE MATERIALS HANDLING ANNOUNCES FIRST QUARTER 2023 RESULTS
Q1 2023 Highlights:
- Consolidated revenues of nearly
$1 billion 21% over Q1 2022 due to higher pricing and sales volumes, and an improved sales mix - Consolidated operating profit of
$42.6 million $26.6 million - Lift Truck operating profit of
$47.8 million 5% operating margin were significantly ahead of expectations despite continued production challenges and currency headwinds - Average sales price per backlog unit increased nearly
34% over Q1 2022 and2% over Q4 2022 - Bolzoni operating profit of
$4.4 million
Full-Year 2023 Outlook:
- Substantial consolidated net income is expected for 2023 full year as a result of significantly improved profitability at the Lift Truck and Bolzoni businesses compared with 2022
Three Months Ended | ||||||
($ in millions except per share amounts) | 3/31/23 | 3/31/22 | Change | |||
Revenues | ||||||
Operating Profit (Loss) | ||||||
Net Income (Loss) | ||||||
Diluted Earnings (Loss) /share | ||||||
Lift Truck Business Results
Revenues and shipments by geographic segment were as follows:
($ in millions) | Q1 2023 | Q1 2022 | Change | |||
Revenues | ||||||
| ||||||
EMEA(1) | ||||||
JAPIC(1) |
(1) The |
(Rounded to nearest hundred) | Q1 2023 | Q1 2022 | Change | Q4 2022 | Change | ||||
Unit Shipments | 25,200 | 23,900 | 1,300 | 27,100 | (1,900) | ||||
| 16,100 | 14,600 | 1,500 | 16,000 | 100 | ||||
EMEA | 6,800 | 6,500 | 300 | 7,800 | (1,000) | ||||
JAPIC | 2,300 | 2,800 | (500) | 3,300 | (1,000) |
First-quarter 2023 lift truck revenues increased by
Unit shipments decreased
Gross profit and operating profit (loss) by geographic segment were as follows:
($ in millions) | Q1 2023 | Q1 2022 | Change | |||
Gross Profit | ||||||
| ||||||
EMEA | ||||||
JAPIC | ||||||
Operating Profit (Loss) | ||||||
| ||||||
EMEA | ||||||
JAPIC |
For the first quarter of 2023, the Lift Truck business reported significantly higher gross and operating profits compared with the prior year period. This better-than-expected performance resulted in a
The Company continues to make steady progress reducing the number of lower-priced units, booked in prior years in its extended backlog. First-quarter 2023 margin growth was constrained due to the production and shipment of a number of these lower-margin backlog units during the quarter as component availability improved.
Geographically, the
EMEA reported operating profit of
Operating results in JAPIC improved as a result of a favorable sales mix and higher pricing that more than offset increased costs and the impact of lower unit volumes.
Bolzoni Results
($ in millions) | Q1 2023 | Q1 2022 | Change | |||
Revenues | ||||||
Gross Profit | ||||||
Operating Profit |
Bolzoni's 2023 first quarter revenues increased modestly, while operating profit more than doubled compared with the first quarter of 2022. The improvement in both revenues and operating profit was driven primarily by price increase benefits combined with higher sales volumes. Lower material, freight and manufacturing costs also contributed to the significant increase in operating profit.
Nuvera Results
($ in millions) | Q1 2023 | Q1 2022 | Change | |||
Revenues | ||||||
Gross Profit (Loss) | ||||||
Operating Loss |
Nuvera's first-quarter 2023 revenues increased primarily as a result of after-market component and engine sales to the Lift Truck Business, as well as increased sales to third parties.
Nuvera's first-quarter 2023 operating loss was higher than the first-quarter 2022 largely due to increased product development costs and higher employee-related costs.
Balance Sheet and Liquidity
As of March 31, 2023, the Company's cash on hand was
The Company had unused borrowing capacity of approximately
The Company remains focused on reducing inventory days on hand as production rates increase. Total inventory increased in first-quarter 2023 compared with the prior year primarily due to higher finished goods inventory caused by elevated production levels late in the quarter, which led to trucks completed but not yet shipped. Raw material and component parts inventory at the end of first-quarter 2023 decreased compared with the prior year.
Market Commentary
The global economic outlook remains constrained and economic activity appears to be decelerating in many parts of the world. This deceleration is due to several factors, including tight monetary policies, designed to contain inflation, in many countries, continued supply chain disruptions and the likelihood of increased unemployment rates as companies reduce expenses. Despite these challenges, the
Looking ahead, the Company expects the global lift truck market to decline in all regions for the full-year 2023 compared with 2022. By pre-pandemic historical standards, 2023's global market unit volumes are expected to remain relatively strong in all regions except EMEA.
Several years of extraordinary lift truck market growth led to very significant supplier capacity constraints. A moderate market slowdown could put the lift truck component supply base in a position to meet their supply requirements more efficiently and effectively and allow the Company to work down its extended backlog more quickly.
Operational Perspectives - Lift Truck Business
Lift truck unit bookings and backlog were as follows:
($ in millions, except Avg. sales price) | Q1 2023 | Q1 2022 | Q1 '23 vs '22 | Q4 2022 | Q1 '23 vs Q4 '22 | |
Unit Bookings | 22,300 | 35,900 | (13,600) | 21,000 | 1,300 | |
Unit Bookings $ Value | $— | |||||
Average Sales Price/Unit booked | ||||||
Unit Backlog** | 99,200 | 114,100 | (14,900) | 102,100 | (2,900) | |
Unit Backlog $ Value** | ||||||
Average Sales Price/Unit of backlog |
**March 31, 2023 and December 31, 2022 Unit Backlogs were reduced by 2,600 units and Unit Backlog $ Values have been reduced by |
First-quarter 2023 lift truck bookings decreased significantly from robust prior-year levels due to several factors, including a declining, but still large, global market and a focus on booking orders with strong margins in the context of the Company's extended lead times. First-quarter 2023 bookings increased moderately from fourth-quarter 2022 driven by better-than-expected market conditions and bookings performance in the
Full-year 2023 production and shipment volumes are expected to increase compared with 2022, reducing extended lead times as a result of anticipated reduced bookings and continued supply chain improvements. Despite the lower booking rate and expected production improvements, lead times and backlog levels will likely remain above desired levels for some time. However, this extended backlog should serve as a shock absorber for the business if bookings decline more sharply as 2023 progresses.
The trend toward higher average prices and margins for both unit bookings and backlog continued in the first quarter largely due to enhanced pricing and order selectivity. The Company continues to experience material and labor cost increases, but the rate of increase has slowed substantially. Forward economic indicators suggest inflationary pressures are abating and cost inflation is expected to moderate throughout 2023. To offset the substantial inflationary pressure that occurred in 2021 and 2022, the Lift Truck business implemented several price increases. As of March 31, 2023, the Company has worked through a high proportion of its lower-priced, lower-margin backlog units booked before these price increases went into effect. In 2023, the Company expects a positive price-to-cost ratio, in part to address ongoing cost increases in certain areas. The Company will continue to monitor material and labor costs closely, as well as the impact of tariffs, and adjust forward pricing accordingly. As a result of slowing cost inflation and the current higher-priced backlog, the Company believes average unit margins will increase significantly in aggregate in 2023 compared to 2022. That improvement is expected to continue into 2024 as newer bookings, with higher margins, are scheduled for production.
The factors outlined above, as well as the benefits from the Company's maturing strategic initiatives, are expected to lead to a significant revenue increase and a substantial operating profit in 2023. The Lift Truck business first-quarter 2023 operating profit increased more than the Company anticipated. However, second-quarter 2023 Lift Truck operating profit is expected to decrease compared with first-quarter 2023 but significantly exceed fourth-quarter 2022 results. The expected decrease in the second quarter from first-quarter 2023 is due in part to an expected shift in mix toward lower margin sales channels. Second-half 2023 operating profit is expected to be comparable to the first half of the year. However, these forecasts are highly sensitive to the effect of various factors, particularly those that impact global supply chains and production capabilities.
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:
- To provide the lowest cost of ownership while improving customer productivity, including for low-intensity applications. 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 product automation, power options, telemetry and operator assist systems;
- Be the leader in the delivery of industry- and customer-focused solutions by transforming the Company's sales approach to meet a wide variety of customer needs across a broad set of end markets; and
- 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 continues to make progress on its high priority projects. The Lift Truck business launched its first modular, scalable lift trucks to the EMEA and
In addition to the new modular, scalable product lines, the Lift Truck business also has key projects geared toward electrification of applications now dominated by internal combustion engine trucks, as well as technology advancements in power options, automation product options, telemetry and operator assist systems. The Company delivered its first electrified fuel cell Container Handler to the Port of
Operational and Strategic Perspectives - Bolzoni
Building on its first-quarter 2023 performance, over the remainder of 2023 Bolzoni expects component shortages to continue moderating. Increased pricing is expected to offset higher input costs across 2023. As a result, margins are expected to improve year-over-year, leading to a significantly higher 2023 full-year operating profit compared with 2022, in large part due to the strong first-quarter 2023 performance.
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
Operational and Strategic Perspectives - Nuvera
Nuvera's core strategy is to be a leader in the fuel cell business. Nuvera continues to focus on placing 45kW and 60kW fuel cell engines in niche, heavy-duty vehicle applications for which battery-only electrification will not provide an adequate solution. As a result, these applications are expected to have significant and nearer-term fuel cell adoption potential, at the same time that Nuvera is shifting from a product to solution-selling emphasis. Nuvera has announced several projects with various third parties to test Nuvera® engines in targeted applications, including the Port of
In 2023, Nuvera expects continued focus on increasing customer product demonstrations and customer bookings. Nuvera is expanding its presence in
Consolidated Outlook
The Company is nearing completion of its program to build out the lower-priced, lower-margin backlog units held over from prior periods. As a result, continued margin expansion is expected to lead to substantial operating profit and net income for the 2023 full year, as well as solid progress toward the Company's
The programs to reduce inventory and to generate cash are expected to show substantial progress in the second half of 2023. The Company is committed to enhancing its cash flows through its ongoing action plans and continued discipline over capital expenditures and operating expenses. Capital expenditures are expected to be approximately
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Conference Call
In conjunction with this news release, the management of Hyster-Yale Materials Handling, Inc. will host a conference call on Wednesday, May 3, 2023 at 11:00 a.m. Eastern Time. To participate in the live call, please register more than 15 minutes in advance at https://www.netroadshow.com/events/login?show=c87b56d8&confId=48921 to obtain the dial-in information and conference call access codes. For those not planning to ask a question of management, the Company recommends listening to the call via the online webcast, which can be accessed through Hyster-Yale's website at https://www.hyster-yale.com/investors. Please allow 15 minutes to register, download and install any necessary audio software required to listen to the webcast. A replay of the conference call will be available shortly after the call ends through May 10, 2023. An archive of the webcast will also 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 Q1 2023 Investor Deck that will be made 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
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." 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 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 reduction in demand as a result of an economic recession, (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, as well as armed conflicts, including the
About Hyster-Yale Materials Handling, Inc.
Hyster-Yale Materials Handling, Inc., headquartered in
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HYSTER-YALE MATERIALS HANDLING, INC. | |||
FINANCIAL HIGHLIGHTS | |||
Three Months Ended | |||
March 31 | |||
2023 | 2022 | ||
(In millions, except per share data) | |||
Revenues | $ 999.3 | $ 827.6 | |
Cost of sales | 824.9 | 726.4 | |
Gross Profit | 174.4 | 101.2 | |
Selling, general and administrative expenses | 131.8 | 119.5 | |
Operating Profit (Loss) | 42.6 | (18.3) | |
Other (income) expense | |||
Interest expense | 10.2 | 5.1 | |
Income from unconsolidated affiliates | (1.8) | (2.9) | |
Other, net | (1.7) | 0.8 | |
Income (Loss) before Income Taxes | 35.9 | (21.3) | |
Income tax expense | 8.7 | 2.9 | |
Net income attributable to noncontrolling interests | (0.2) | (0.8) | |
Net income attributable to redeemable noncontrolling interests | (0.2) | — | |
Accrued dividend to redeemable noncontrolling interests | (0.2) | — | |
Net Income (Loss) Attributable to Stockholders | $ 26.6 | $ (25.0) | |
Basic Earnings (Loss) per Share | $ 1.56 | $ (1.48) | |
Diluted Earnings (Loss) per Share | $ 1.55 | $ (1.48) | |
Basic Weighted Average Shares Outstanding | 17.049 | 16.849 | |
Diluted Weighted Average Shares Outstanding | 17.214 | 16.849 | |
EBITDA RECONCILIATION | |||||||||
Quarter Ended | |||||||||
6/30/2022 | 9/30/2022 | 12/31/2022 | 3/31/2023 | LTM | |||||
(In millions) | |||||||||
Net Income (Loss) Attributable to Stockholders | $ (19.4) | $ (37.3) | $ 7.6 | $ 26.6 | $ (22.5) | ||||
Noncontrolling interest income and dividends | 0.7 | 0.7 | 0.3 | 0.6 | 2.3 | ||||
Income tax expense (benefit) | (3.1) | 4.2 | 5.2 | 8.7 | 15.0 | ||||
Interest expense | 6.1 | 7.7 | 9.5 | 10.2 | 33.5 | ||||
Interest income | (0.2) | (0.4) | (0.3) | (0.6) | (1.5) | ||||
Depreciation and amortization expense | 11.0 | 10.9 | 10.4 | 11.2 | 43.5 | ||||
EBITDA* | $ (4.9) | $ (14.2) | $ 32.7 | $ 56.7 | $ 70.3 | ||||
*EBITDA in this press release is provided solely as a supplemental disclosure. EBITDA does not represent net income (loss), as defined by | |||||||||
HYSTER-YALE MATERIALS HANDLING, INC. | |||
FINANCIAL HIGHLIGHTS | |||
Three Months Ended | |||
March 31 | |||
2023 | 2022 | ||
(In millions) | |||
Revenues | |||
| $ 685.9 | $ 557.7 | |
EMEA | 214.9 | 169.7 | |
JAPIC | 47.9 | 51.7 | |
Lift Truck Business | $ 948.7 | $ 779.1 | |
Bolzoni | 98.6 | 95.1 | |
Nuvera | 1.6 | 0.6 | |
Eliminations | (49.6) | (47.2) | |
Total | $ 999.3 | $ 827.6 | |
Gross profit (loss) | |||
| $ 121.2 | $ 67.0 | |
EMEA | 26.9 | 14.4 | |
JAPIC | 7.5 | 4.5 | |
Lift Truck Business | $ 155.6 | $ 85.9 | |
Bolzoni | 20.7 | 18.8 | |
Nuvera | (2.1) | (1.9) | |
Eliminations | 0.2 | (1.6) | |
Total | $ 174.4 | $ 101.2 | |
Operating profit (loss) | |||
| $ 47.5 | $ 4.4 | |
EMEA | 2.6 | (11.4) | |
JAPIC | (2.3) | (3.7) | |
Lift Truck Business | $ 47.8 | $ (10.7) | |
Bolzoni | 4.4 | 2.1 | |
Nuvera | (9.8) | (8.1) | |
Eliminations | 0.2 | (1.6) | |
Total | $ 42.6 | $ (18.3) | |
HYSTER-YALE MATERIALS HANDLING, INC. | |||||||
FINANCIAL HIGHLIGHTS | |||||||
CASH FLOW, CAPITAL STRUCTURE AND WORKING CAPITAL | |||||||
Three Months Ended | |||||||
March 31 | |||||||
2023 | 2022 | ||||||
(In millions) | |||||||
Net cash provided by operating activities | $ 9.0 | $ 59.1 | |||||
Net cash used for investing activities | (5.0) | (9.3) | |||||
Cash Flow Before Financing Activities | $ 4.0 | $ 49.8 | |||||
March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | ||||
(In millions) | |||||||
Debt | $ 560.6 | $ 552.9 | $ 545.0 | $ 580.6 | |||
Cash | 64.6 | 59.0 | 68.6 | 75.6 | |||
Net Debt | $ 496.0 | $ 493.9 | $ 476.4 | $ 505.0 | |||
March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | ||||
(In millions) | |||||||
Accounts Receivable | $ 535.9 | $ 523.6 | $ 460.1 | $ 531.2 | |||
Inventory | 854.7 | 799.5 | 779.0 | 790.2 | |||
Accounts Payable | 627.6 | 607.4 | 552.9 | 569.5 | |||
Working Capital | $ 763.0 | $ 715.7 | $ 686.2 | $ 751.9 | |||
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SOURCE Hyster-Yale Materials Handling, Inc.
