Hyster-Yale Materials Handling Announces First Quarter 2020 Results

Tageszeitungen (Symbolbild). pixabay.com

PR Newswire

CLEVELAND, May 5, 2020

CLEVELAND, May 5, 2020 /PRNewswire/ --

Quarter Highlights:

Q1 2020 consolidated revenues decreased 5.9% from Q1 2019 due to lower market volumes, primarily in Europe and China, and to the impact of COVID-19
Q1 2020 consolidated operating profit increased to $20.2 million, up from $3.4 million in Q1 2019
Q1 2020 net income of $15.3 million, or $0.91 per share, up from $3.4 million, or $0.20 per share, in Q1 2019

Hyster-Yale Materials Handling, Inc. (NYSE: HY) today announced consolidated revenues of $785.7 million and consolidated net income of $15.3 million, or $0.91 per diluted share, for the first quarter of 2020 compared with consolidated revenues of $834.8 million and consolidated net income of $3.4 million, or $0.20 per diluted share, for the first quarter of 2019. Consolidated operating profit increased to $20.2 million in 2020 from $3.4 million in 2019.

Because of the impact across the world of COVID-19, the Company's future prospects have been adversely affected. The significant decline in economic activity has reduced the current demand for the Company's products from customers and reduced the availability of components from suppliers. The effects of the rapid deterioration in economic conditions, all driven by COVID-19 required the Company to evaluate certain assets at March 31, 2020 for impairment.

At the time of this release, the Company has not concluded whether an impairment exists and was not able to reasonably estimate a provisional impairment amount because it is still evaluating several scenarios for the forward forecast necessary to complete the impairment assessment. Based on preliminary analysis, the Company estimates that it could have an impairment in the range of $0 to $10 million. The analysis is expected to be finalized and any impairment reported as part of the Company's final first quarter 2020 results as included in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, which will be filed at a later date.

Segment Financial Results

Summary results for the Company's three business segments were as follows for the first quarter of 2020 and 2019:

ARIVA.DE Börsen-Geflüster

Kurse

Hyster-Yale Materials Handling

61,61 $

+2,77%

(in millions)	*Hyster-Yale Group				Bolzoni				Nuvera
	Q1 2020		Q1 2019		Q1 2020		Q1 2019		Q1 2020		Q1 2019
Revenues	$	747.4	$	788.0	$	87.9	$	91.8	$	1.4	$	4.5
Operating Profit (Loss)	$	28.0	$	10.8	$	2.7	$	1.2	$	(9.4)	$	(8.4)
Net Income (Loss)	$	20.1	$	9.6	$	2.7	$	0.3	$	(6.7)	$	(6.1)

*For purposes of this release, Hyster-Yale Group refers to the Company's Lift Truck business, Bolzoni is the Attachment business and Nuvera is the Fuel Cell business.

Hyster-Yale Group Results

Hyster-Yale Group unit shipments, bookings and backlog were as follows:

($ in millions)	Quarter Ended March 31, 2020	Quarter Ended December 31, 2019	Quarter Ended March 31, 2019
Unit Shipments	23,300	24,800	25,700
Unit Bookings	19,400	22,600	22,000
Unit Bookings $ Value	$500	$550	$530
Unit Backlog	37,300	41,200	40,200
Unit Backlog $ Value	$960	$1,070	$1,130

Unit shipments, bookings and backlog all decreased compared with the 2019 fourth and first quarters primarily due to lower market and bookings levels, and some impact from COVID-19 late in the quarter. Generally markets were lower in the first quarter of 2020 than in the 2019 first quarter. The Company ended the first quarter of 2020 with a strong backlog, but at a lower level than the extended-lead-time backlog in the prior year first quarter which was affected by lower production due to supplier shortages. In addition, while unit bookings decreased from prior periods, the average sales price per unit in bookings increased compared with the fourth quarter of 2019 as a result of an increase in bookings of higher-priced units. Production was reduced or suspended in several of the Company's Asian and European facilities during the first quarter due to COVID-19's impact on the Company's production facilities, and to material shortages from suppliers who closed their manufacturing plants or could not deliver components as a result of increased controls at borders, border closures and traffic delays.

Americas Results

Revenues in the Americas segment, which includes the North America, Latin America and Brazil markets, increased to $550.7 million in the first quarter of 2020 from $534.5 million in the 2019 first quarter. This increase was primarily the result of increased unit and parts volumes. Unit shipments increased by approximately 800 units from the prior year first quarter primarily driven by higher shipments in North America of Class 1 electric counterbalanced trucks, Class 2 and Class 3 warehouse trucks and Class 5 Big Trucks, partially offset by lower shipments of Class 5 1- to 8-ton trucks.

In the first quarter of 2020, the Americas' operating profit increased to $38.5 million from $15.3 million in the first quarter of 2019. Operating profit improved as a result of higher gross profit and lower operating expenses. The improvement in gross profit was mainly due to favorable pricing actions taken in 2019, higher unit volumes and a shift in sales to higher-margin lift trucks. Operating expenses decreased primarily as a result of the reduction or elimination of certain employee-related costs as the Company implemented its initial cost containment actions to mitigate the expected impact of the COVID-19 pandemic.

EMEA Results

Revenues for the EMEA segment, which includes operations in the Europe, Middle East and Africa markets, decreased to $152.1 million in the first quarter of 2020 from $190.1 million in the first quarter of 2019. Revenues declined primarily due to a decrease in shipments of approximately 2,300 units in all lift truck classes, except Class 5 Big Trucks greater than 16 tons, and unfavorable currency movements of $5.0 million related to the translation of sales into U.S. dollars. Price increases implemented to offset higher material costs partially offset the revenue decrease. The decline in shipments, predominantly in Western and Eastern Europe, was mainly the result of lower fourth-quarter 2019 bookings, and in the latter part of the first quarter, from reduced plant shipments due to COVID-19.

EMEA had an operating loss of $4.5 million in the first quarter of 2020 compared with breakeven results in the first quarter of 2019. The operating loss in EMEA was primarily due to unfavorable foreign currency movements of $3.7 million, lower gross profit as a result of lower unit volumes and unfavorable manufacturing variances, partially offset by the favorable impact of pricing actions on lift truck sales and a shift in sales to higher-margin lift trucks. The reduction in operating profit was partially offset by lower operating expenses primarily as a result of the reduction or elimination of certain employee-related costs as the Company implemented its initial cost containment actions to mitigate the expected impact of the COVID-19 pandemic.

JAPIC Results

Revenues in the JAPIC segment, which includes operations in the Asia and Pacific markets, including China, decreased to $44.6 million in the first quarter of 2020 from $63.4 million in the first quarter of 2019. Revenues decreased primarily as a result of a decrease in shipments of approximately 900 units, mainly due to weakening JAPIC markets and the closure of facilities in China as result of COVID-19, as well as $0.9 million of unfavorable currency movements from the translation of sales into U.S. dollars.

In the first quarter of 2020, JAPIC had an operating loss of $6.0 million compared with an operating loss of $4.5 million in the first quarter of 2019. The increased loss was primarily the result of unfavorable foreign currency movements of $1.4 million and lower unit volumes, partially offset by a shift in mix of sales to higher-margin lift trucks and price increases.

Bolzoni Results

During the first quarter of 2020, Bolzoni's revenue decreased to $87.9 million from $91.8 million in 2019. The decrease in revenues was due to lower sales as a result of extended plant closures in China early in the first half of the quarter and the closure of Bolzoni's Italian facilities in the latter part of the quarter both as a result of COVID-19, as well as unfavorable currency movements of $1.5 million from the translation of sales into U.S. dollars.

Bolzoni's operating profit increased to $2.7 million in the first quarter of 2020 from $1.2 million in the 2019 first quarter. The increase was primarily due to the absence of a $1.4 million restructuring charge taken in the prior year quarter related to the transfer of Bolzoni's North America attachment manufacturing from Homewood, Illinois to Sulligent, Alabama in 2019.

Nuvera Results

Nuvera's revenues decreased to $1.4 million in the first quarter of 2020 from $4.5 million in 2019. The revenue decrease was primarily the result of reduced receipts of development funding associated with third-party development agreements and lower sales of fuel cell battery box replacements in the first quarter of 2020 than in the first quarter of 2019.

Mehr Nachrichten zur Hyster-Yale Materials Handling Aktie kostenlos abonnieren

E-Mail-Adresse

Benachrichtigungen von ARIVA.DE
(Mit der Bestellung akzeptierst du die Datenschutzhinweise)

Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte.