Hyster-Yale(US:HY)2024-08-06 20:54Financial Performance - Revenues for Q2 2024 reached $1,168.1 million, a 7.1% increase from $1,090.6 million in Q2 2023[5] - Gross profit for the six months ended June 30, 2024, was $495.0 million, up 33.0% from $372.3 million in the same period last year[5] - Operating profit for Q2 2024 was $95.6 million, representing a 62.8% increase compared to $58.8 million in Q2 2023[5] - Net income attributable to stockholders for Q2 2024 was $63.3 million, a 65.3% increase from $38.3 million in Q2 2023[5] - Basic earnings per share for Q2 2024 were $3.62, compared to $2.23 in Q2 2023, reflecting a 62.1% increase[5] - Total revenues for the six months ended June 30, 2024, were $2,089.9 million, compared to $1,090.6 million for the same period in 2023, representing an increase of 91.8%[23] - Operating profit for the first six months of 2024 was $179.4 million, up from $101.4 million in the first six months of 2023, driven by higher pricing and favorable material costs[83] - Net income attributable to stockholders for the six months ended June 30, 2024, was $114.8 million, representing a 76.9% increase from $64.9 million in 2023[72] Cash Flow and Debt - The company reported a net cash provided by operating activities of $19.9 million for the six months ended June 30, 2024, down from $44.8 million in the same period last year[10] - Total debt additions for the period amounted to $89.0 million, while reductions of debt were $104.1 million[10] - The balance of cash and cash equivalents at the end of the period was $66.5 million, compared to $65.7 million at the end of the previous year[10] - As of June 30, 2024, the company had total debt of $501.9 million, with a debt to total capitalization ratio of 51%[99] - The carrying value of revolving credit agreements and long-term debt was $475.8 million as of June 30, 2024, compared to $466.7 million on December 31, 2023[38] Regional Performance - Dealer sales in the Americas for the six months ended June 30, 2024, were $1,012.6 million, while EMEA dealer sales were $320.3 million, indicating strong regional performance[25] - The Americas segment generated revenue of $881.5 million in the three months ended June 30, 2024, compared to $788.5 million in the same period of 2023, reflecting a growth of 11.8%[32] - The EMEA segment's revenue for the three months ended June 30, 2024, was $187.8 million, a decrease from $200.6 million in the same period of 2023, reflecting a decline of approximately 6.9%[32] Inventory and Warranties - Total manufactured inventories decreased from $906.6 million as of December 31, 2023, to $887.8 million as of June 30, 2024[53] - The total inventory value as of June 30, 2024, was $790.7 million, down from $815.7 million at the end of 2023[53] - The balance of warranty liabilities increased to $74.6 million as of June 30, 2024, from $68.1 million at the end of 2023[57] - The company provides standard warranties for lift trucks, generally for twelve months or 1,000 to 2,000 operating hours[54] Market Conditions and Future Outlook - The global lift truck market in Q2 2024 experienced a 56% year-over-year decrease in factory bookings in North America, indicating a significant market contraction[101] - The company expects below-trend North America factory bookings to continue into early 2025, as the market normalizes after elevated pandemic levels[101] - The company expects year-over-year revenue growth in the second half of 2024, driven by higher-priced backlog units, despite anticipated operating profit moderation due to increased costs[107] - Lift Truck's backlog stands at $2.6 billion, equivalent to 6 to 7 months of revenue at the current quarterly run rate, supporting business operations until market conditions improve[106] Comprehensive Income and Equity - Comprehensive income attributable to stockholders for Q2 2024 was $51.6 million, compared to $34.9 million in Q2 2023, indicating a significant increase[7] - As of June 30, 2023, total stockholders' equity was $290.5 million, an increase from $204.4 million on December 31, 2022, representing a growth of approximately 42.1%[12] - The total permanent equity as of June 30, 2024, was $467.9 million, reflecting an increase from $392.0 million on December 31, 2023, which is a growth of approximately 19.3%[12] Tax and Regulatory Matters - The reported income tax rate for the first six months of 2024 was 30.7%, compared to 23.9% for the same period in 2023, reflecting an increase of 28.4%[34] - The company has not adopted any recent accounting standards that materially affect its financial position or results of operations during the first six months of 2024[19] Derivatives and Financial Instruments - The Company held forward foreign currency exchange contracts with total notional amounts of $0.8 billion at June 30, 2024, down from $0.9 billion at December 31, 2023[43] - The fair value of foreign currency exchange contracts was a net liability of $27.6 million at June 30, 2024, compared to $12.2 million at December 31, 2023[43] - The Company has interest rate swap agreements with a notional amount of $180.0 million at June 30, 2024, maintaining an average fixed rate of 1.65%[45] - The fair value of interest rate swap agreements was a net asset of $13.1 million at June 30, 2024, up from $11.9 million at December 31, 2023[46] Capital Expenditures - Capital expenditures for the first six months of 2024 totaled $19.7 million, with planned expenditures for the remainder of 2024 expected to reach $32.4 million, bringing the total planned for 2024 to $48.4 million[97] - Capital expenditures for 2024 are projected to be $60 million, down from an earlier estimate of $84 million, reflecting a focus on maintaining liquidity[113]