Nacco’s ‘ambitious program’ targets market share

News Story
- 31 Mar 2005 ( #202 ) - MAYFIELD HEIGHTS, OH, United States
1 min read
The Hyster S50FT Fortis forklift.
The Hyster S50FT Fortis forklift.

A Nacco Industries Inc subsidiary has embarked on "an ambitious program" to gain market share and showcase its ability to manufacture products for specific applications.

Alfred Rankin, chairman, president and chief executive officer of Nacco Material Handling Group (NMHG), told a March 17 conference call with security analysts the program was "far and away the most ambitious we have undertaken".

During 2004, NMHG invested USD50.8 million on product design and development, which helped support work on the new forklifts.

The new forklifts are initially being produced in the Berea, Kentucky, US plant.

Trucks in the initial launch have internal combustion (IC) engines, cushion tyres and lifting capacities of 4000lbs (1800kg) to 7000lbs (3150kg).

Over the next few months, NMHG will introduce three additional series of Hyster and Yale forklifts in 2000lbs (900kg) to 4000lbs (1800kg) IC cushion and pneumatic models and in 4000lbs (1800kg) to 7000lbs (3150kg) pneumatic versions.

NMHG said the new entries had better reliability than competitors' products, industry-best cooling performance and better adaptability to specific customer applications and requirements.

"The transition to the new products in the Americas and Europe will affect operations in the first and third quarters of 2005," Rankin said.

"The costs will pressure Nacco's profit potential, especially in the first quarter ending March 31.

"The pressure should be alleviated by the end of 2005 as manufacturing locations move into full production of this first wave of new products," Rankin said.

Product introductions under the NMHG program were projected to extend into 2008 and involve forklifts with lifting capacities up to 16,000lbs (7200 kg).
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