Financial Data and Key Metrics Changes - The consolidated revenues for Q3 2022 were $840 million, an increase of 12% or over $90 million compared to the prior year, driven by a 13% revenue increase in the Lift Truck business [16] - The company reported a consolidated operating loss of $24.9 million for Q3 2022, an improvement from an operating loss of $54.3 million in Q3 2021 [17] - The net loss for Q3 2022 was $37 million, compared to a net loss of $77 million in the prior year [17] Business Line Data and Key Metrics Changes - The Lift Truck business generated an operating loss of $15.3 million in Q3 2022, an improvement from a loss of $21.3 million in the prior year, driven by price increases that offset material and freight inflation [18] - Bolzoni reported an operating loss of $1.3 million in Q3 2022, compared to breakeven results in 2021, primarily due to lower sales volumes and higher manufacturing costs [19] - Nuvera's operating loss decreased to $9 million in Q3 2022 from a loss of $32.5 million in the prior year, although the loss increased due to product development costs [20] Market Data and Key Metrics Changes - The worldwide lift truck market is expected to decline in Q4 2022 and for the full year 2023 compared to prior year periods, although it remains above pre-pandemic levels [11] - The average sales price of a backlog unit increased by nearly 40% year-over-year and over 8% sequentially, supporting future unit margin expansion [12] Company Strategy and Development Direction - The company is focused on introducing new modular and scalable products and electrification of trucks, with ongoing projects in hydrogen fuel cell technology [26][27] - The strategic initiatives aim to improve margins and profitability, with a focus on managing costs and maintaining liquidity during the transitional period [25][28] Management's Comments on Operating Environment and Future Outlook - Management expects a modest operating profit in Q4 2022 and a return to solid operating profit and net income for the full year 2023, driven by improved margins and cash flow [24] - The company is optimistic about the easing of component shortages and the resolution of supply chain bottlenecks, which should support increased production and shipment volumes in 2023 [9][10] Other Important Information - The company generated cash and reduced net debt by nearly $30 million in Q3 2022, with cash on hand of $69 million and total debt of $545 million [22][23] - The CFO succession plan was discussed, with Scott Minder taking over from Kenneth Schilling, who will retire at the end of 2022 [29][30] Q&A Session Summary Question: Can you expand on the backlog serving as a shock absorber in any downturn? - Management noted that the extended backlog, while initially a challenge, is now seen as a protective advantage, allowing the company to maintain production levels through 2023 and into 2024 despite potential market downturns [33][34] Question: What is the focus on electrification and Nuvera's role? - The company is seeing strong customer interest in zero-emission solutions and is actively developing electric trucks and fuel cell technology, with ongoing projects in both North America and Europe [47][48] Question: How is the backlog structured geographically? - Backlogs are higher in North America compared to Europe, but both regions have extended backlogs that should sustain operations through economic slowdowns [64][65]
Hyster-Yale(HY) - 2022 Q3 - Earnings Call Transcript