Nacco Material Handling Group (NMHG) Wholesale expects 2005 to be a challenging year as the company works to moderate the effect of steel price increases despite a stronger forklift market.

In a statement releasing its annual fiscal results, NMHG Wholesale said although price increases implemented in 2004 were expected to partially offset the effect of increased material costs, it did not anticipate a full cost recovery this year.

For the year ended December 31, 2004, NMHG Wholesale reported net income of USD22.3 million on revenues of USD1.9 billion, compared with net income of USD22.4 million on revenues of USD1.6 billion for the previous fiscal year.

Forklift shipments in 2004 increased to 77,493 compared with 70,406 in 2003.

The 15 per cent increase in revenues for 2004 was driven by increased unit volumes, mainly in the Americas and Europe, favourable foreign currency movements, a shift in mix to higher-priced forklifts in the Americas, increased parts volume and the effect of price increases implemented during 2004, the company said.

NMHG Wholesale expects stronger forklift markets this year in the Americas and Asia-Pacific and relatively flat forklift markets in Europe compared with the previous year.

While the fourth quarter backlog rose significantly compared with the previous year, NMHG Wholesale expected unit shipment levels for 2005 would increase at controlled rates to accommodate the phase in of newly designed products.

NMHG Wholesale's worldwide backlog increased to 25,700 units at December 31, 2004, compared with 19,100 units at December 31, 2003.

Meanwhile, NMHG Retail reported a net loss of USD7.2 million on revenues of USD195.2 million compared with a net loss of USD6.0 million on revenues of USD162.6 million in 2003.

NMHG Retail expects to continue programs to improve the performance of its wholly owned dealerships this year to meet its longer-term aim of achieving break-even results while building its market position.
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Forkliftaction.com would like to inform readers of an error in last week's story titled: Nacco's 'ambitious program' targets market share. Alfred Rankin is chairman, president and chief executive officer of NMHG's holding company, Nacco Industries; not NMHG.