Hyster-Yale remains focused on increasing forklift unit volumes and marketshare

Hyster-Yale Materials Handling has announced consolidated revenues of USD765.6 million (up 11.7%) and consolidated net income of USD5.6 million (down 38.3% from the same period last year) for the second quarter of 2018.

The results were impacted by the acquisition of 75% of the outstanding shares of Zhejiang Maximal Forklift Co., Ltd. for an aggregate purchase price of USD90 million, funded by cash on hand. Consolidated net income in the second quarters of 2018 and 2017 includes USD1.9 million and USD5,000 pre-tax of Maximal acquisition-related costs, respectively, reported in the Americas segment, as well as an increase in 2018 tax expense of USD1.1 million related to accumulated non-deductible acquisition costs.

For the 2018 full year, the company expects its consolidated operating profit to increase over 2017 primarily due to a lower operating loss at Nuvera, principally in the fourth quarter of 2018, and an expected improvement in Bolzoni's operating profit. These improvements are expected to be partially offset by a modest decrease in full-year operating profit at the lift truck business due to the lower operating profit in the first half of 2018, combined with a modest decline in the third quarter, mostly offset by a substantial increase in operating profit in the fourth quarter.

The Lift Truck business reported revenues of USD720.1 million and net income of USD11 million for the second quarter of 2018, compared with revenues of USD647.7 million and net income of USD23.8 million for the second quarter of 2017. Lift truck operating profit was USD17.3 million for the second quarter of 2018, down from USD27.8 million for the second quarter of 2017.
Consolidated worldwide new unit shipments increased to approximately 23,900 units in the second quarter of 2018 from approximately 22,200 units in the second quarter of 2017, but decreased from 24,800 units in the first quarter of 2018, primarily due to temporary supply issues. These issues have been resolved and are not expected to affect shipments in the remainder of 2018.

Second quarter 2018 bookings were approximately 29,500 units, or approximately USD720 million, compared with approximately 25,300 units, or approximately USD575 million, in the second quarter of 2017. Worldwide backlog was approximately 41,700 units, or approximately USD1.1 billion, at June 30, 2018, compared with approximately 35,300 units, or approximately USD820 million, at June 30, 2017 and approximately 36,100 units, or approximately USD930 million, at March 31, 2018. Average unit backlog value increased due to the mix of products within the backlog as the company continued to sell more higher-priced units and fewer lower-priced Class 3 products.

Hyster-Yale remains focused on increasing unit volumes and marketshare in its lift truck business over the remainder of 2018 and in future years through the continued implementation of its key strategic initiatives, which include delivering industry- and customer-focused solutions, providing low cost of ownership and enhanced productivity for customers, enhancing independent distribution, growing in emerging markets, maintaining leadership in the attachments business and providing leadership in fuel cells and their applications. The company has realigned its sales and marketing teams and increased its sales resources to execute the company's specific industry strategies more effectively.

The company anticipates that commodity costs will continue to increase as the year progresses, although these costs, particularly for steel, remain volatile and sensitive to changes in the global economy and to tariffs. The company will continue to monitor and forecast these costs and tariff implications closely and adjust pricing accordingly.