The forklift business should see higher unit and parts revenues
Hyster-Yale Materials Handling revenues for the first quarter rose 10.5% to USD788.2 million, up from USD713.1 million in the same period last year.
However, operating profit decreased 15% due to higher material and manufacturing costs.
The company expects its consolidated operating profit to be substantially higher for the 2018 full year. This is due to:
- an expected improvement in Bolzoni's operating profit attributable to anticipated higher sales volumes;
- a lower operating loss at Nuvera, primarily in the fourth quarter of 2018, from an expected reduction in component costs;
- and a modest improvement in operating profit at the forklift business as benefits from anticipated higher unit and parts revenues are expected to be largely offset by material cost inflation and higher operating expenses.
Also expected to impact on performance going forward is the purchase of a 75% stake in Zhejiang Maximal Forklift Company Limited which is expected to be completed during the second quarter of 2018.
The Lift Truck business shipped approximately 24,800 units in the first quarter of 2018 - increasing from approximately 23,300 units in the first quarter of 2017.
First-quarter 2018 bookings were approximately 27,100 units, compared with approximately 24,800 units in the same period last year. The worldwide backlog was approximately 36,100 units (approximately 32,200 units in Q1, 2017).
Hyster-Yale remains focused on increasing unit volumes and marketshare in its Lift Truck business in 2018 and beyond 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 has also increased sales resources to execute specific industry strategies more effectively.