Hyster-Yale has reported third-quarter 2022 revenues increasing by 13.1% from the same time last year while unit shipments grew by 5.6%. 

Revenue growth outpaced shipment growth as price increases put in place to combat inflation were realised in all regions and parts volumes increased at a faster pace. These revenue improvements were partially offset by unfavourable currency movements, particularly in EMEA, due to a strengthening US dollar.

Third-quarter unit shipments increased in each geographic segment, mainly due to moderating component shortages and fewer supply chain constraints. Despite reduced supply challenges, certain critical components remain difficult to source and those shortages negatively affected third-quarter 2022 production rates and prevented further increases in shipments, the company notes.

Hyster-Yale says shipments in the third quarter of 2022 declined from the second quarter of 2022, particularly in EMEA, largely due to normal third-quarter seasonal plant shutdowns.

In the Americas, higher forklift pricing more than offset the combination of material cost inflation and substantial manufacturing inefficiencies related to ongoing component shortages. 

Despite higher prices, EMEA operating results declined from third-quarter 2021 levels due to decreased margins resulting from recently elevated costs, including the effect of mounting energy prices due to the Russia/Ukraine conflict. Unfavourable currency movements partly offset the improved Americas' operating results and contributed to EMEA's decreased results.

While gross profit overall increased, operating results in the third quarter of 2022 declined versus the second quarter of 2022, as anticipated, mainly due to normal third-quarter seasonal plant shutdowns in EMEA and the Americas, which more than offset the improvement in JAPIC.

Bolzoni's 2022 third-quarter operating results decreased from the prior year. Benefits from price increases and a favourable sales shift toward higher-priced, higher-margin products were not enough to offset the effect of lower sales volumes from reduced customer demand, particularly for legacy components used by the forklift business. Higher manufacturing costs from supply chain-induced inefficiencies and unfavourable currency movements of USD1.4 million also contributed to the decline.

Looking ahead, Hyster-Yale anticipates that the global forklift market will decrease further in the fourth quarter 2022 and full-year 2023 compared with the respective prior year periods. However, global market unit volumes in 2023 are expected to remain relatively strong and above pre-pandemic levels, despite an increasing possibility of a global or regional recession.

The company continues to experience cost increases, particularly in EMEA, in part due to higher energy costs as a result of the ongoing Russia/Ukraine conflict. In contrast, Americas and JAPIC cost increases have slowed significantly. 

Forward economic indicators suggest moderate cost inflation trends in 2023, absent any additional effects from the Russia/Ukraine conflict or COVID-related global supply chain constraints. Due to the substantial inflationary pressure over the past 18 months, the Lift Truck business implemented several price increases. 

On a consolidated basis, the company continues to project a modest operating profit and income before tax in the fourth quarter of 2022. However, the company expects a modest net loss in the fourth quarter due to tax expense on profits in areas where a valuation allowance is not currently provided. In future periods, tax benefits currently offset by valuation allowances are expected to be recognised.