The latest results include three months of Hyster-Yale Maximal results
Hyster-Yale has reported consolidated revenues of USD856.2 million and consolidated net income of USD16.2 million for the second quarter of 2019 - up from USD765.9 million and USD5.6 million for the second quarter of 2018. Second-quarter consolidated operating profit more than doubled to USD22.9 million in 2019 from USD10.8 million in 2018.
The latest results include three months of Hyster-Yale Maximal results, compared with only one month in the 2018 second quarter following its 1 June 2018 acquisition.
For the six months ended 30 June 2019, the company reported consolidated revenues of USD1.7 billion and net income of USD19.6 million, compared with consolidated revenues of USD1.6 billion and net income of USD20.5 million for the first six months of 2018.
Consolidated operating profit was down, falling from USD30 million in 2018 to USD26.3 million in the current period.
While unit backlog in the 2019 second quarter increased from the 2019 first quarter and the 2018 second quarter, the average sales price per unit in bookings and backlog decreased compared with both periods as a result of increased bookings of lower-priced units.
Shipments of higher-priced units, particularly Big Trucks, increased during the 2019 second quarter as supplier parts shortages for Big Trucks abated.
In their explanatory notes, directors note that Hyster-Yale is currently undertaking the largest set of programs in its history. These programs are expected to have a transformational impact on the company's competitiveness, market position and economic performance over the next three to five years.
"In total, these projects have required, and continue to require, significant up-front expense and capital expenditure investment. The projects cover a very broad range of Hyster-Yale activities, including product development, supply chain, IT, manufacturing, sales and marketing for each of the company's three major businesses: Hyster-Yale Group, Bolzoni and Nuvera," according to the results report.
"Hyster-Yale believes it is approaching an inflection point in its business. While the third quarter of 2019 is expected to reflect continued investment in these programs, similar to the first half of the year, the fourth quarter is expected to improve significantly in comparison to the 2018 fourth quarter and the first three quarters of 2019."
For the 2019 full year, consolidated cash flow before financing activities is expected to decrease significantly compared with 2018, after excluding the impact of the 2018 acquisition of Hyster-Yale Maximal. In 2020 and 2021, a considerable portion of the new projects is expected to have reached completion and the company believes the full impact of these programs can lead to profitability improvements for a number of years to come. The remainder of the programs are expected to come to maturity mainly in 2022 and 2023, with a few, particularly those involving dealer structure and excellence, being more in the nature of continuous improvement projects rather than projects which reach maturity at a given time, according to Hyster-Yale.