NMHG predicts strong Pacific Rim forklift sales growth

News Story
- 11 Aug 2004 ( #170 ) - MAYFIELD HEIGHTS, OH, United States
1 min read
The Nacco Material Handling Group's (NMHG) wholesale wing has forecast substantially stronger near-term forklift market growth in the Americas, China, Japan and other parts of Asia - but continuing flat sales in Europe.
Part of the Nacco Industries conglomerate, NMHG designs, manufactures and supplies forklifts and parts under the Hyster and Yale brands worldwide.
The operation shipped 18,772 forklifts during the last quarter, compared to 16,961 units for the comparable period in 2003.
NMHG's worldwide backlog increased 27% to 24,700 units at June 30, compared with 19,400 units a year earlier.
For the quarter, NMHG recorded a 14% increase in revenues, but a decrease in profit.
Higher material costs of USD8.9 million, mostly from steel price increases and adverse currency movements, were blamed for the profit drop.
"As these trends became apparent early in 2004, NMHG implemented price increases, the effect of which is expected to be increasingly realised over the course of the third and fourth quarters of 2004," the company said.
"In addition, results were reduced ... (as a result) of the transition in manufacturing to accommodate new engine emission requirements and the introduction of new products in early 2005."
NMHG Wholesale reported second quarter profit of USD4.4 million on sales of USD445.5 million, versus a profit of USD6.3 million on sales of USD389.2 million in the comparable 2003 period.
NMHG's retail business suffered a loss of USD1.9 million on sales of USD50.2 million in the second quarter, compared to a profit of USD600,000 on sales of USD39.2 million in the same period last year.
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