Hyster-Yale Materials Handling warned of a decline in the global forklift market this year while posting an increase in revenue and profit in the second quarter and forecasting a strong full-year result.

The company reported a 22% increase in consolidated revenue of USD1.1 billion in the quarter due to higher sales volumes and pricing.

Consolidated operating profit was USD58.8 million, compared with a loss in the same period last year.

The company’s forklift segment posted operating profit of USD62.5 million, ahead of expectations due to higher pricing and improved sales mix, while Bolzoni reported a 59% increase in operating profit to USD5.4 million.

The company said it expects substantial second half consolidated net income, including seasonally lower third-quarter results.

"At the consolidated level, second-half 2023 operating profit and net income are expected to be significantly higher than second-half 2022," the company said in a statement. "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."

Second-quarter 2023 forklift revenues increased 23% over the prior year, with consolidated unit shipments increasing nearly 10%.

Revenue growth continued to outpace shipment growth because previously implemented price increases, designed to offset significant cost inflation in prior years, were being realised, the company said.

Geographically, the Americas' second-quarter 2023 revenues increased by 32%, the result of higher forklift prices, increased parts volumes and lower material and freight costs.

In Europe, the Middle East and Africa (EMEA), Hyster-Yale reported operating profit of USD1.1 million in the second-quarter 2023 compared with a substantial loss in the prior year.

Price increases offset higher material costs, increased warranty expense, lower volumes and increased manufacturing costs compared with the prior year.

The company said EMEA production levels were hampered by critical component parts and labour availability.

Hyster-Yale’s operations in the Asia and Pacific markets, including China, improved modestly in the second quarter, with lower material and freight costs and higher pricing offsetting lower unit volumes.

Hyster-Yale said the global economic outlook remained uncertain, with moderating activity in the EMEA region.

“This weakness is due to tight monetary policies designed to contain inflation and labour market shortages, among other factors.”

The company said the deceleration of the United States economy and forklift market had been more moderate than expected.

“The latest publicly available forklift 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.”