 High-capacity Hyster forklift |
Hyster-Yale Materials Handling Inc, Terex Corp's aerial work platform (AWP) segment and Oshkosh Corp's JLG-led access equipment segment have all reported higher sales for the quarter ended 30 September.
Hyster-YaleThe Mayfield Heights, Ohio-based forklift manufacturer reports profit of USD28.4 million on sales of USD695.8 million for its 2014 third quarter - up from profit of USD23.5 million on sales of USD643.9 million for the comparable 2013 period.
Hyster-Yale attributes the sales gain, in part, to a shift in sales of higher-priced forklifts in the Americas and an increase in unit volumes mainly in North America and Europe. An offset was the decrease of units sold in Brazil.
By geographic region, Hyster-Yale had sales of USD479.1 million in the Americas, USD163.5 million in Europe and USD53.2 million in Asia-Pacific. Each was an increase for the third quarter over the 2013 period.
Hyster-Yale recorded a gain on the sale of assets of USD17.7 million, or USD11.5 million net of taxes of USD6.2 million, from the sale of the company's still operating São Paulo, Brazil facility that has been used for assembly and marketing functions since the early 1990s. Synergy Empreendimentos E Participacoes Ltda acquired the real estate and building. Hyster-Yale is using the proceeds to fund the building of a new Brazil plant.
In 2013, the firm contracted with Constructora Toda Do Brasil S/A to construct the plant, now nearing completion in the municipality of Itu, north-west of São Paulo. A ramp-up of production will occur in the first quarter of 2015 with full operational capability during the second half of the year.
The facility will incorporate a global manufacturing information technology system. SAP SE of Walldorf, Germany will supply the system, which by 2017 will have a presence in all Hyster-Yale manufacturing sites. An internal team of experienced individuals is dedicated to implementing the globally transferable program on a location-to-location basis.
Since the December 2012 start of a USD50 million stock repurchase program, Hyster-Yale has purchased almost 535,000 shares for an aggregate purchase price of USD38.5 million. About 431,000 shares for an aggregate purchase price of USD33.3 million were purchased during the 2014 third quarter.
TerexWestport, Connecticut-based Terex says AWP sales increased to USD598.7 million from USD533.3 million in the comparable 2013 period. Income from AWP operations decreased to USD68.4 million from USD80.7 million.
"While our AWP business is performing well, we had planned for a stronger second half of 2014 than has materialised which has put pressure on margins," says Ronald M DeFeo, Terex chairman and chief executive officer. "AWP profitability was further negatively affected by currency movements late in the quarter, primarily the Brazilian Real, higher commodity costs and continued manufacturing startup costs related to the production of telehandlers at our Oklahoma City facility. As a result, we removed approximately 500 team members from AWP in the third quarter, which will aid in the return to more normal mid-teens margins within the next 12 months."
DeFeo believes that rental companies are managing their businesses more carefully. "They're not adding huge amounts of fleets and are continuing to have high utilisations," DeFeo notes. The rental firms appear to be diversifying partially from the AWP category.
At the same time, DeFeo anticipates the possibility that Terex may have a USD100 million AWP business in China soon, after earlier thoughts that this market would reach only USD25 million.
On 29 October, Terex disclosed an agreement to sell 51% of its ASV Inc unit of Grand Rapids, Minnesota to Manitex International Inc of Bridgeview, Illinois and the creation of a joint venture in manufacturing compact track loaders and skid steers. Terex retains 49% and expects to receive more than USD125 million in cash from a recapitalisation of ASV prior to closing and significant tax benefits.
ASV was founded in 1983 as All Seasons Vehicles Inc. Terex acquired the business in February 2008. The acquisition included offices, manufacturing and warehousing occupying 199,000 sqft. (18,487 sqm).
For all operations during the third quarter, Terex reports profit of USD64.2 million on sales of USD1.81 billion versus profit of USD93.7 million on sales of USD1.76 billion for the comparable 2013 period. In addition to AWP, the four other Terex business segments involve construction, cranes, materials handling/port solutions and materials processing.
OshkoshThe equipment manufacturer reports fourth quarter sales of USD450.4 million for AWPs, USD315.4 million for telehandlers and USD166.9 million for other access equipment.
"Our access equipment and commercial segments led the way in fiscal 2014, with the access equipment segment surpassing last year's record operating income margins by nearly 200 basis points," says Charles L Szews, chief executive officer.
Sales for the JLG-led access equipment segment increased to USD932.7 million for the fourth quarter from USD780.6 million for the corresponding year-earlier period. The 19.5% improvement was principally the result of the continued recovery of the global access equipment market. That result was offset in part by the absence of US military telehandler sales under a contract that Oshkosh completed in the fourth quarter of fiscal 2013. Sales of access equipment excluding the US military telehandler sales in fiscal 2013 rose 22.4% in the fourth quarter of fiscal 2014.
Access equipment segment sales in the quarter were higher than prior-year levels in all regions except Latin America. Oshkosh projects continued growth in the access equipment market in 2015.
A portion of higher telehandler sales in North America was credited to customers moving in advance of a US Environmental Protection Agency engine emission standards change in January 2015.
In fiscal 2014, the access equipment segment logged its second consecutive year of record sales, operating income and operating income margins. The results reflect continued recovery in the global access equipment markets and further Oshkosh operational improvements.
For all continuing operations during its fourth quarter, the Oshkosh, Wisconsin-based corporation reports profit of USD77.8 million on sales of USD1.67 billion versus profit of USD36.3 million on sales of USSD1.73 billion for the comparable 2013 period.
Both sales and profits declined for the fiscal year 2014 versus 2013. Sales fell to USD6.81 billion from USD7.67 billion, and profit ebbed to $309.3 million from USD318.0 million. In addition to specialty access equipment, Oshkosh has commercial, fire/emergency and military business segments.
During the fourth quarter of fiscal 2014, Oshkosh repurchased 5.2 million shares of its common stock at an aggregate cost of USD250.5 million.