HYSTER-YALE MATERIALS HANDLING ANNOUNCES SECOND QUARTER 2023 RESULTS
Q2 2023 Highlights:
- Consolidated revenues of
increased$1.1 billion 22% over Q2 2022 due to higher sales volumes and pricing - Consolidated operating profit of
compared with a loss in Q2 2022$58.8 million - Lift Truck operating profit and margin of
and$62.5 million 6.0% were significantly ahead of expectations due to higher pricing and improved sales mix - Average sales price per backlog unit increased
23% over Q2 2022 and5% over Q1 2023 - Bolzoni operating profit of
increased$5.4 million 59% over Q2 2022
H2 2023 Outlook:
- Substantial second-half consolidated net income is projected, including seasonally lower third-quarter results
Three Months Ended | Six Months Ended | ||||||||||
($ in millions except per share amounts) | 6/30/23 | 6/30/22 | Change | 6/30/23 | 6/30/22 | 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) | Q2 2023 | Q2 2022 | Change | |||
Revenues | ||||||
| ||||||
EMEA(1) | ||||||
JAPIC(1) |
(1) The |
(Rounded to nearest hundred) | Q2 2023 | Q2 2022 | Change | Q1 2023 | Change | ||||
Unit Shipments | 27,700 | 25,300 | 2,400 | 25,200 | 2,500 | ||||
| 18,300 | 13,900 | 4,400 | 16,100 | 2,200 | ||||
EMEA | 7,000 | 7,800 | (800) | 6,800 | 200 | ||||
JAPIC | 2,400 | 3,600 | (1,200) | 2,300 | 100 |
Second-quarter 2023 lift truck revenues increased
Supply chain conditions continue to improve, and as a result, the
Gross profit and operating profit (loss) by geographic segment were as follows:
($ in millions) | Q2 2023 | Q2 2022 | Change | |||
Gross Profit | ||||||
| ||||||
EMEA | ||||||
JAPIC | ||||||
Operating Profit (Loss) | ||||||
| ||||||
EMEA | ||||||
JAPIC |
Second-quarter 2023 Lift Truck gross and operating profits increased substantially from the prior year, leading to a
The Company's second-quarter results were also significantly ahead of the expectations reflected in the first quarter earnings release. The additional week of production in the
Geographically, the
EMEA reported operating profit of
JAPIC's second-quarter 2023 operating results improved modestly over the prior year due to a more favorable sales mix, lower material and freight costs and higher pricing that more than offset the effect of lower unit volumes. JAPIC shipments decreased largely due to an enhanced focus on increasing lift truck margins. Higher outside services and warranty expenses also muted JAPIC's second-quarter 2023 results.
Bolzoni Results
($ in millions) | Q2 2023 | Q2 2022 | Change | |||
Revenues | ||||||
Gross Profit | ||||||
Operating Profit |
Bolzoni's 2023 second-quarter revenues increased nearly
Nuvera Results
($ in millions) | Q2 2023 | Q2 2022 | Change | |||
Revenues | ||||||
Gross Profit (Loss) | ||||||
Operating Loss |
Nuvera's second-quarter 2023 revenues increased over the prior year primarily as a result of after-market component and engine sales to the Lift Truck Business. The operating loss was higher than prior year largely due to increased product development costs and higher employee-related costs.
Balance Sheet and Liquidity
As of June 30, 2023, the Company's net debt was approximately
The Company had unused borrowing capacity of approximately
Second-quarter 2023 total inventory decreased by
Market Commentary
The global economic outlook remains uncertain with continuing moderating activity in certain parts of the world, including EMEA. This weakness is due to tight monetary policies designed to contain inflation and labor market shortages, among other factors. Despite these challenges, the deceleration in the
The latest publicly available lift truck market data indicates that new unit, first-quarter 2023 booking activity decreased in all major geographies compared with strong prior-year levels but was still ahead of pre-pandemic volumes. Internal company estimates suggest that the global lift truck market decline accelerated in the second quarter of 2023, with all major geographies experiencing booking declines compared with the prior year.
Looking ahead, the Company continues to expect a full-year 2023 lift truck market decline in all regions compared with 2022. This decline is anticipated to accelerate in the second half of 2023 compared with the first half in all markets. However, 2023's market unit volumes are projected to remain reasonably strong in most regions compared with pre-pandemic levels.
Consolidated Strategic Perspective
The Company believes the improving 2023 results are due to actions taken since the COVID-19 pandemic began, implementation of key strategies and projects and significant process improvements made over the past few years, all of which position the Company for substantial longer-term growth. The Company believes its more mature Lift truck and Bolzoni businesses are the foundation for this improvement, while the Nuvera Fuel Cell business has substantial growth prospects that have yet to be realized.
Operational Perspectives - Lift Truck Business
Lift truck unit bookings and backlog were as follows:
($ in millions, except Avg. sales price) | Q2 2023 | Q2 2022 | Change | Q1 2023 | Change | |
Unit Bookings | 21,300 | 23,200 | (1,900) | 22,300 | (1,000) | |
Unit Bookings $ Value | ||||||
Average Sales Price/Unit booked | ||||||
Unit Backlog** | 92,800 | 112,000 | (19,200) | 99,200 | (6,400) | |
Unit Backlog $ Value** | ||||||
Average Sales Price/Unit of backlog |
**As of June 30, 2023, March 31, 2023 and June 30, 2022, Unit Backlogs were reduced by 2,500 units, 2,600 units and 2,700 units, respectively, while Unit Backlog $ values were reduced by |
Second-quarter 2023 lift truck bookings decreased moderately from first-quarter 2023 and prior-year levels due to several factors, including a healthy, but declining, global market and a continued focus on booking orders with strong margins. Despite the bookings decrease, market share improved compared to the prior year. Looking forward, second-half 2023 booking levels are projected to be comparable year-over-year due to a steadier-than-expected market and anticipated market share gains. Full-year 2023 bookings are forecasted to decline compared with full-year 2022.
Production and shipment volumes are anticipated to continue to increase in second-half 2023 compared with the prior year period. The Company expects its extended backlog to continue trending lower toward more normal levels over time as planned production rates increase and given bookings expectations. At the end of second-quarter 2023, the backlog of nearly 93,000 units was down
The trend of higher average unit booking and backlog prices and margins continued in the second quarter largely due to order selectivity and enhanced pricing to offset prior years' inflation. Although certain material and labor cost increases continue, the rate of increase has slowed substantially, particularly in the
The factors outlined above, as well as the benefits from the Company's maturing strategic initiatives, are expected to lead to significant increases in revenue and operating profit in second-half 2023 compared with the respective prior year period. Operating profit in the third quarter is expected to decrease from the strong second-quarter results due to normal business seasonality combined with ongoing EMEA production challenges and an anticipated mix shift toward lower margin sales channels. Fourth-quarter 2023 results are expected to increase meaningfully over the third quarter, due in part to anticipated improvements in EMEA and the absence of planned production outages. However, these forecasts are highly sensitive, in particular to the impact of global supply chain adjustments 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:
- 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 vehicle automation, power options 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 heart-of-the-line modular, scalable lift trucks in the EMEA and
The Lift Truck business has key projects geared toward electrifying trucks used for applications now dominated by internal combustion engine trucks through the use of advancements in electric power options. The Company also has key projects focused on applying technology advancements in automation product options and operator assist systems. The Company delivered its first electrified fuel cell Container Handler to the Port of
Operational and Strategic Perspectives - Bolzoni
Bolzoni anticipates a modest decline in revenues in second-half 2023 due to a projected market decline. As a result, second-half 2023 operating profit is expected to moderate from the strong first-half performance, but significantly exceed the prior-year second half as a result of continuing year-over-year margin improvement.
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 heavy-duty vehicle applications for which battery-only electrification does not provide an adequate solution. As a result, these applications are expected to have significant and 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
In the second half of 2023, Nuvera plans to continue to focus on increasing customer product demonstrations and customer bookings. Nuvera is expanding its presence in
Consolidated Outlook
At the consolidated level, second-half 2023 operating profit and net income are expected to be significantly higher than second-half 2022. Full-year 2023 margin expansion, led by strong first-half improvements, is expected to generate substantial operating profit and net income for the 2023 full year. This should drive solid progress toward the Company's
The programs to reduce inventory and generate cash are anticipated to show substantial progress in the second half of 2023. The Company is committed to reducing its leverage and enhancing its cash flows through 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, August 2, 2023, at 11:00 a.m. Eastern Time. To participate in the live call, please register more than 15 minutes in advance at https://conferencingportals.com/event/ejqmGqeU 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 August 9, 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 Q2 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 | Six Months Ended | ||||||
June 30 | June 30 | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(In millions, except per share data) | |||||||
Revenues | $ 1,090.6 | $ 895.4 | $ 2,089.9 | $ 1,723.0 | |||
Cost of sales | 892.7 | 796.3 | 1,717.6 | 1,522.7 | |||
Gross Profit | 197.9 | 99.1 | 372.3 | 200.3 | |||
Selling, general and administrative expenses | 139.1 | 114.8 | 270.9 | 234.3 | |||
Operating Profit (Loss) | 58.8 | (15.7) | 101.4 | (34.0) | |||
Other (income) expense | |||||||
Interest expense | 8.4 | 6.1 | 18.6 | 11.2 | |||
Income from unconsolidated affiliates | (3.1) | (4.1) | (4.9) | (7.0) | |||
Other, net | 2.7 | 4.1 | 1.0 | 4.9 | |||
Income (Loss) before Income Taxes | 50.8 | (21.8) | 86.7 | (43.1) | |||
Income tax expense (benefit) | 12.0 | (3.1) | 20.7 | (0.2) | |||
Net income attributable to noncontrolling interests | — | (0.7) | (0.2) | (1.5) | |||
Net income attributable to redeemable noncontrolling interests | (0.2) | — | (0.4) | — | |||
Accrued dividend to redeemable noncontrolling interests | (0.3) | — | (0.5) | — | |||
Net Income (Loss) Attributable to Stockholders | $ 38.3 | $ (19.4) | $ 64.9 | $ (44.4) | |||
Basic Earnings (Loss) per Share | $ 2.23 | $ (1.15) | $ 3.80 | $ (2.63) | |||
Diluted Earnings (Loss) per Share | $ 2.21 | $ (1.15) | $ 3.76 | $ (2.63) | |||
Basic Weighted Average Shares Outstanding | 17.164 | 16.907 | 17.099 | 16.875 | |||
Diluted Weighted Average Shares Outstanding | 17.307 | 16.907 | 17.265 | 16.875 | |||
EBITDA RECONCILIATION | |||||||||
Quarter Ended | |||||||||
9/30/2022 | 12/31/2022 | 3/31/2023 | 6/30/2023 | LTM | |||||
(In millions) | |||||||||
Net Income (Loss) Attributable to Stockholders | $ (37.3) | $ 7.6 | $ 26.6 | $ 38.3 | $ 35.2 | ||||
Noncontrolling interest income and dividends | 0.7 | 0.3 | 0.6 | 0.5 | 2.1 | ||||
Income tax expense | 4.2 | 5.2 | 8.7 | 12.0 | 30.1 | ||||
Interest expense | 7.7 | 9.5 | 10.2 | 8.4 | 35.8 | ||||
Interest income | (0.4) | (0.3) | (0.6) | (0.6) | (1.9) | ||||
Depreciation and amortization expense | 10.9 | 10.4 | 11.2 | 11.3 | 43.8 | ||||
EBITDA* | $ (14.2) | $ 32.7 | $ 56.7 | $ 69.9 | $ 145.1 | ||||
*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 | Six Months Ended | ||||||
June 30 | June 30 | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(In millions) | |||||||
Revenues | |||||||
| $ 788.5 | $ 596.6 | $ 1,474.4 | $ 1,154.3 | |||
EMEA | 200.6 | 184.8 | 415.5 | 354.5 | |||
JAPIC | 49.6 | 64.9 | 97.5 | 116.6 | |||
Lift Truck Business | $ 1,038.7 | $ 846.3 | $ 1,987.4 | $ 1,625.4 | |||
Bolzoni | 96.6 | 86.4 | 195.2 | 181.5 | |||
Nuvera | 1.0 | 0.3 | 2.6 | 0.9 | |||
Eliminations | (45.7) | (37.6) | (95.3) | (84.8) | |||
Total | $ 1,090.6 | $ 895.4 | $ 2,089.9 | $ 1,723.0 | |||
Gross profit (loss) | |||||||
| $ 143.4 | $ 66.1 | $ 264.6 | $ 133.1 | |||
EMEA | 27.1 | 11.3 | 54.0 | 25.7 | |||
JAPIC | 6.5 | 3.9 | 14.0 | 8.4 | |||
Lift Truck Business | $ 177.0 | $ 81.3 | $ 332.6 | $ 167.2 | |||
Bolzoni | 22.6 | 18.9 | 43.3 | 37.7 | |||
Nuvera | (1.8) | (1.6) | (3.9) | (3.5) | |||
Eliminations | 0.1 | 0.5 | 0.3 | (1.1) | |||
Total | $ 197.9 | $ 99.1 | $ 372.3 | $ 200.3 | |||
Operating profit (loss) | |||||||
| $ 65.2 | $ 3.1 | $ 112.7 | $ 7.5 | |||
EMEA | 1.1 | (10.8) | 3.7 | (22.2) | |||
JAPIC | (3.8) | (4.0) | (6.1) | (7.7) | |||
Lift Truck Business | $ 62.5 | $ (11.7) | $ 110.3 | $ (22.4) | |||
Bolzoni | 5.4 | 3.4 | 9.8 | 5.5 | |||
Nuvera | (9.2) | (7.9) | (19.0) | (16.0) | |||
Eliminations | 0.1 | 0.5 | 0.3 | (1.1) | |||
Total | $ 58.8 | $ (15.7) | $ 101.4 | $ (34.0) |
HYSTER-YALE MATERIALS HANDLING, INC. | |||||||
FINANCIAL HIGHLIGHTS | |||||||
CASH FLOW, CAPITAL STRUCTURE AND WORKING CAPITAL | |||||||
Six Months Ended | |||||||
June 30 | |||||||
2023 | 2022 | ||||||
(In millions) | |||||||
Net cash provided by operating activities | $ 44.8 | $ 0.2 | |||||
Net cash used for investing activities | (11.9) | (22.9) | |||||
Cash Flow Before Financing Activities | $ 32.9 | $ (22.7) | |||||
June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | ||||
(In millions) | |||||||
Debt | $ 542.3 | $ 560.6 | $ 552.9 | $ 545.0 | |||
Cash | 65.7 | 64.6 | 59.0 | 68.6 | |||
Net Debt | $ 476.6 | $ 496.0 | $ 493.9 | $ 476.4 | |||
June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | ||||
(In millions) | |||||||
Accounts Receivable | $ 582.1 | $ 535.9 | $ 523.6 | $ 460.1 | |||
Inventory | 820.1 | 854.7 | 799.5 | 779.0 | |||
Accounts Payable | 593.2 | 627.6 | 607.4 | 552.9 | |||
Working Capital | $ 809.0 | $ 763.0 | $ 715.7 | $ 686.2 | |||
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SOURCE Hyster-Yale Materials Handling, Inc.