Hyster-Yale(HY)2025-02-25 21:41Revenue Performance - Revenues for the Americas segment increased by 11.1% to 2,899.3 million in 2023[144] - EMEA segment revenues decreased by 13.8% to 820.5 million in 2023[144] - The lift truck business overall reported a revenue increase of 4.9% to 3,920.9 million in 2023[144] - For the year ended December 31, 2024, the company reported revenues of 4,118.3 million in 2023, primarily driven by higher lift truck revenues and improved pricing[147] - The company's bookings for the year ended December 31, 2024, were approximately 1,270 million in 2023, indicating a significant increase[146] - The backlog for the company as of December 31, 2024, was approximately 2,300 million in 2023[146] Profitability - Gross profit for the Americas segment rose by 23.0% to 564.9 million in 2023[144] - Operating profit for 2024 was 208.7 million in 2023, attributed to improved gross profit from higher pricing and reduced customer incentives[149] - Net income attributable to stockholders increased to 125.9 million in 2023, reflecting a 8.04 in 2024, up from 85.0 million, or 36.5%, primarily due to improved gross profit from higher pricing[151] - EMEA reported an operating loss of 12.1 million in 2023, due to manufacturing inefficiencies[152] Expenses and Charges - Selling, general and administrative expenses increased by 8.9% to 576.9 million in 2023[144] - The company incurred restructuring and impairment charges totaling 17.8 million in 2024, primarily for streamlining manufacturing operations[150] Cash Flow and Debt - Cash provided by operating activities increased by 170.7 million in 2024, driven by higher net income and favorable changes in assets and liabilities[157] - As of December 31, 2024, the Company had a total borrowing capacity of 210 million in U.S. borrowing capacity and 217.1 million under the Term Loan, with a net amount outstanding of 242.7 million under the Facility and an additional 1.41 billion, with significant obligations due in 2025[171] Future Outlook - The Company anticipates a slight improvement in the global lift truck market in 2025, primarily in EMEA and JAPIC regions[180] - Lift Truck expects a significant year-over-year revenue decrease in 2025 due to lower production levels, with operating profit anticipated to be significantly lower than the exceptionally strong 2024 performance[185] - The Company expects to generate significant income and cash benefits from its manufacturing improvement programs starting in 2027, estimated between 40 million annually[179] - Planned capital expenditures for 2025 range from 80 million, primarily for manufacturing improvements and product development[175] - Capital expenditures for 2025 are projected to range between 80 million, influenced by economic and geopolitical uncertainties[190] - The Company is focused on cash generation and improving working capital efficiency, expecting cash flow from operations in 2025 to remain strong and comparable to 2024 levels[190] Strategic Initiatives - The Company aims to achieve 7% operating profit margins across business cycles, but expects 2025 revenues, production levels, and profits to decline significantly compared to robust 2024 results[189] - The Company plans to phase out Bolzoni's lower-margin legacy component manufacturing to create space for profitable attachment growth[184] - Lift Truck intends to remain agile with its pricing strategy in response to potential tariff changes, aiming to keep margins above target levels in 2025[184] - The Company believes that ongoing strategic initiatives will contribute to long-term revenue and operating profit growth rates above the material handling market's expected growth rates[191] Product Development - Nuvera's revenues significantly declined by 67.4% to 4.3 million in 2023[144] - Nuvera anticipates full-year revenues to increase in 2025 largely due to the HydroCharge™ product, which began customer demonstrations in September 2024[187][188] - Nuvera's development of a more powerful 125kW fuel cell engine is expected to incur modest increases in product development costs year-over-year[188] - Bolzoni's product margins are expected to improve modestly year-over-year, despite decreased revenues, due to the planned phase-out of lower-margin legacy component sales[186]