Hyster-Yale(US:HY)2025-02-25 21:41Revenue Performance - Revenues for the Americas segment increased by 11.1% to $3,222.5 million in 2024 from $2,899.3 million in 2023[144] - EMEA segment revenues decreased by 13.8% to $707.6 million in 2024 from $820.5 million in 2023[144] - The lift truck business overall reported a revenue increase of 4.9% to $4,113.8 million in 2024 from $3,920.9 million in 2023[144] - For the year ended December 31, 2024, the company reported revenues of $4,308.2 million, a 5% increase from $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 $1,670 million, compared to $1,270 million in 2023, indicating a significant increase[146] - The backlog for the company as of December 31, 2024, was approximately $1,930 million, down from $2,300 million in 2023[146] Profitability - Gross profit for the Americas segment rose by 23.0% to $695.0 million in 2024 compared to $564.9 million in 2023[144] - Operating profit for 2024 was $244.8 million, representing a 17.3% increase from $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 $142.3 million in 2024 from $125.9 million in 2023, reflecting a $16.4 million increase[156] - The diluted earnings per share rose to $8.04 in 2024, up from $7.24 in 2023, marking an 11.0% increase[156] - Operating profit in the Americas increased by $85.0 million, or 36.5%, primarily due to improved gross profit from higher pricing[151] - EMEA reported an operating loss of $11.4 million in 2024, a decline from an operating profit of $12.1 million in 2023, due to manufacturing inefficiencies[152] Expenses and Charges - Selling, general and administrative expenses increased by 8.9% to $628.1 million in 2024 from $576.9 million in 2023[144] - The company incurred restructuring and impairment charges totaling $22.6 million in 2024, with no charges reported in 2023[144] - The company recognized restructuring and impairment charges of $17.8 million in 2024, primarily for streamlining manufacturing operations[150] Cash Flow and Debt - Cash provided by operating activities increased by $20.0 million to $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 $300 million, with $210 million in U.S. borrowing capacity and $90 million in non-U.S. borrowing capacity[164] - The Company reported outstanding debt of approximately $217.1 million under the Term Loan, with a net amount outstanding of $214.6 million after discounts and unamortized deferred financing fees[168] - The Company had excess availability of $242.7 million under the Facility and an additional $47.8 million related to other non-U.S. revolving credit agreements[169] - The Company's total contractual cash obligations as of December 31, 2024, amounted to $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 $30 million to $40 million annually[179] - Planned capital expenditures for 2025 range from $40 million to $80 million, primarily for manufacturing improvements and product development[175] - Capital expenditures for 2025 are projected to range between $40 million and $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 $1.4 million in 2024 from $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]