Nacco Material Handling Group (NMHG) Wholesale foresees "substantially higher" forklift orders and shipments during 2006 and early 2007, reflecting strength in global markets, the company said.
The outlook anticipates strong market demand in North and South America and the Asia-Pacific region and moderate increases in Europe.
NMHG Wholesale forklift shipments increased 7.6 per cent last year to 83,361 units from 77,493 in 2004.
Revenues jumped 19 per cent, in part because of a shift in mix to higher-priced forklifts in North and South America and Europe, more unit sales in North and South America and the Asia-Pacific region, price increases and greater parts volume. NMHG Wholesale reported an operating profit of USD26 million on 2005 sales of USD2.2 billion. In 2004, operating profit was USD17.9 million from revenues of USD1.9 billion.
Newly designed models were entering the market, NMHG said. During a phase-in period, NMHG Wholesale plans to limit shipment rates for its new internal combustion engine forklifts, which can handle 8,000 pounds-14,000 pounds (3,600kg-6,300kg).
Past investments in NMHG Wholesale product developments, expense reductions now underway and manufacturing improvements show promise of yielding improved results beginning in 2006's first half.
NMHG Retail, which operates wholly owned dealerships, reported an operating loss of USD7.9 million on 2005 sales of USD185.8 million, compared with an operating loss of USD7.2 million on 2004 sales of USD195.2 million. Two European retail dealerships were sold last year accounting, in part, for the lower sales.
Unfavorable margins on new units and higher operating expenses in the Asia-Pacific region were responsible for the unit's increased loss. Efforts continued to achieve at least break-even results for NMHG Retail in future years, the company said.
NMHG parent holding company Nacco Industries Inc, of Cleveland, reported profit of USD62.5 million on 2005 sales of USD3.16 billion. In 2004, profit was USD47.9 million on sales of USD2.78 billion.