Hyster-Yale(US:HY)2020-08-04 21:20Financial Performance - Total revenues for the second quarter of 2020 were $654.4 million, a decrease of 23.6% compared to $856.2 million in the same period of 2019[8] - Gross profit for the second quarter of 2020 was $103.6 million, down 25.7% from $139.4 million in the second quarter of 2019[8] - Net income attributable to stockholders for the second quarter of 2020 was $3.6 million, a decline of 77.8% compared to $16.2 million in the same quarter of 2019[8] - Basic earnings per share for the second quarter of 2020 were $0.21, down from $0.97 in the same quarter of 2019[8] - The net income for the quarter ending June 30, 2020, was $3.6 million, compared to $16.2 million for the same period in the previous year, reflecting a decrease of approximately 77.8%[12] - The Company reported total revenues of $654.4 million for the three months ended June 30, 2020, with significant contributions from dealer sales ($346.9 million) and aftermarket sales ($118.2 million) [33] - Revenues decreased by 23.6% to $654.4 million in Q2 2020 from $856.2 million in Q2 2019, primarily due to lower unit and parts volumes across all geographic segments[94] - Net income attributable to stockholders was $3.6 million in Q2 2020, a decrease of 77.8% from $16.2 million in Q2 2019[8] - Diluted earnings per share dropped by 78.4% to $0.21 in Q2 2020 from $0.97 in Q2 2019[90] - Operating profit decreased by 62.0% to $8.7 million in Q2 2020 compared to $22.9 million in Q2 2019, mainly due to lower gross profit[95] Assets and Liabilities - Total assets decreased to $1,734.9 million as of June 30, 2020, from $1,847.2 million as of December 31, 2019, representing a decline of 6.1%[7] - Total liabilities decreased to $1,171.2 million as of June 30, 2020, down from $1,270.2 million as of December 31, 2019, a reduction of 7.8%[7] - Cash and cash equivalents at the end of the second quarter of 2020 were $60.5 million, a decrease from $64.6 million at the end of 2019[11] - The total stockholders' equity as of June 30, 2020, was $563.7 million, down from $570.1 million as of March 31, 2020[12] Cash Flow and Dividends - The company reported a net cash used for operating activities of $12.0 million for the six months ended June 30, 2020, compared to $70.9 million for the same period in 2019[11] - Cash dividends declared during the quarter totaled $5.3 million, a slight increase from $5.2 million in the previous quarter[12] - The company paid cash dividends of $10.6 million during the six months ended June 30, 2020, compared to $10.4 million in the same period of 2019[11] Cost Management and Operational Efficiency - The company plans to continue focusing on cost management and operational efficiency to navigate the current market challenges[8] - The Company has initiated several cost reduction measures, including spending and travel restrictions, significant reductions in temporary personnel, and salary reductions, to ease liquidity pressure over the next twelve months [21] - The Company has realized approximately $28 million in cost savings through June 30, 2020, as part of a broader initiative targeting $50 million to $75 million in operating expense savings for 2020[132] Market and Production Adjustments - Production was significantly reduced or suspended at the Company's Chinese and European facilities during the first half of 2020 due to the adverse effects of COVID-19 on economic activity and demand for products [21] - The Company has adjusted production levels at its manufacturing plants to align with reduced demand and is working closely with suppliers to ensure continuity when the market improves [21] - The global lift truck market decreased by 22% in Q2 2020 compared to Q1 2020 and 25% compared to Q2 2019 due to pandemic-related shutdowns[127] Revenue Recognition and Accounting - The Company recognizes revenue when control of the trucks, parts, or services is transferred to the customer, with payment terms varying by customer type and location [27] - The Company’s financial statements are prepared in accordance with U.S. generally accepted accounting principles, and all necessary adjustments for fair presentation have been included [22] - The Company is currently evaluating the impact of recently issued accounting standards on its financial position and results of operations [24] Inventory and Manufacturing - The company reported a total inventory of $521.4 million as of June 30, 2020, down from $559.9 million at the end of 2019, reflecting a decrease of approximately 6.8%[63] - The company’s finished goods and service parts inventory increased to $280.5 million as of June 30, 2020, from $276.2 million at the end of 2019, reflecting an increase of approximately 0.8%[63] - The company’s total manufactured inventories decreased from $608.8 million at December 31, 2019, to $571.1 million at June 30, 2020, a decline of approximately 6.2%[63] Subsidiaries and Joint Ventures - Hyster-Yale's subsidiary, Nuvera Fuel Cells, focuses on developing hydrogen fuel-cell technology, which is a key area of innovation for the company[19] - The company continues to expand its market presence through its subsidiary Bolzoni, which specializes in lift-truck attachments and industrial material handling solutions[18] - The Company operates a 50%-owned joint venture, Sumitomo NACCO Forklift Co., Ltd., which has manufacturing facilities in Japan, the Philippines, and Vietnam [20] Tax and Legal Matters - The reported income tax rate for the first half of 2020 was 8.4%, down from 22.7% in the same period of 2019[44] - The company recognized a discrete tax benefit of $4.3 million related to uncertain tax positions during Q2 2020[44] - The company’s Brazilian legal advisors estimated a refund of approximately $18 million related to overpaid taxes, based on a favorable judicial decision[71]