Hyster-Yale results

Hyster-Yale Materials Handling has announced consolidated revenues of USD834.8 million for the first quarter of 2019, a rise of 5.9% from the 2018 comparable period. However, consolidated net income fell significantly from USD14.9 million in 2018 to USD3.4 million.

While Hyster-Yale Group's unit backlog in the 2019 first quarter decreased from the 2018 fourth quarter, the average sales price per unit in backlog increased over both the prior year first quarter and the 2018 fourth quarter as a result of product mix. Shipments of lower-priced units increased during the 2019 first quarter, while shipments of higher-priced units, including Big Trucks, were lower, primarily because of ongoing, although abating, supplier parts shortages.

Revenues in the Americas segment, which includes the North America, Latin America and Brazil markets, increased to USD534.5 million in the first quarter of 2019 from USD495.9 million in the first quarter of 2018 - primarily as a result of price increases implemented to offset higher material costs and tariffs and an increase in parts sales.

Although revenues increased, operating profit in the Americas, which includes corporate headquarters results, decreased to USD15.3 million in the first quarter of 2019 from USD27.9 million in the prior year first quarter. This was due both to an increase in operating expenses and to a decrease in gross profit.

Revenues for the EMEA segment, which includes operations in the Europe, Middle East and Africa markets, decreased to USD190.1 million in the first quarter of 2019 from USD197.9 million in the first quarter of 2018, mainly as a result of unfavourable currency movements of USD12.1 million from the translation of sales into US dollars.

Revenues in the JAPIC segment, which includes operations in the Asia and Pacific markets, including China, as well as results from Hyster-Yale Maximal since it was acquired in June 2018, increased to USD63.4 million in the first quarter of 2019 from USD49.5 million in the first quarter of 2018. Hyster-Yale Maximal shipped approximately 1,300 units and contributed USD16.4 million in revenues. Unfavourable currency movements of USD2.4 million partially offset the increase in revenues.

The group's Bolzoni unit saw revenue increased to USD91.8 million from USD89.5 million in 2018, thanks to higher volumes, partly offset by unfavourable currency movements of USD3.3 million.

Nuvera revenues increased to USD4.5 million in the first quarter of 2019 from USD600,000 in 2018.

Reflecting on the results, Hyster-Yale notes that it is currently undertaking the largest set of transformational programs in its history. "These programs are expected to have a very significant impact on Hyster-Yale's competitiveness, market position and economic performance over the next three to five years," according to the company.

The company is expecting to see some return on its significant investments and income is expected to improve in 2019, but results in the first half of the year are predicted to be lower than the first half of 2018, and then improve in the second half. "Beginning in 2020, further improved results are expected with significant increases through 2023," directors say.