Nacco Industries' Hyster and Yale forklifts and parts units reported reduced profits as tough market conditions continued in the first quarter 2002, ended March 31.

The materials handling group's wholesale unit returned to profitability after two quarters of losses, but the retail unit logged another loss, according to Nacco's financial report. While both units reported lower sales, wholesale and retail together accounted for 64.5 percent of Nacco sales for the quarter.

The wholesale unit has cut operating costs and invested in plant and information systems in recent years, and believes it is positioned to respond to any strengthening of the US economy this year, the company said. Investment continues in developing new products and enhancing existing lines.

The wholesale unit reported profit of USD5.6 million on sales of USD327.7 million, down from the USD12.4 million profit on sales of USD442.9 million for the comparable quarter in 2001. A weak market, particularly in the USA, resulted in lower shipments and reduced part sales. The wholesale unit shipped 14,971 units, compared to 21,624 units in the first quarter of 2001.

At March 31, wholesale's backlog was 16,300 units, down from 17,800 the previous year, but up from a low of 14,100 in June, 2001.

The retail unit reported a loss of USD1.3 million on sales of USD44.1 million, which was better than the USD4.1 million loss on USD52.7 million in sales for the same quarter in 2001.

"Retail operations in the USA and Europe essentially broke even during the first quarter of 2002, while the Asia-Pacific operations had a moderate loss," the company said. The retail unit cut operating expenses and restructured global operations last year.