Hyster-Yale(US:HY)2022-03-01 20:54Financial Data and Key Metrics Changes - The company reported a consolidated revenue increase of 15.3% year-over-year, reaching $829.7 million compared to $719.6 million in the prior year [16] - Despite higher revenues, the company faced an operating loss of $107 million, a significant decline from an operating profit of $13.7 million in the prior year [17] - The consolidated net loss was $103.3 million, compared to a net income of $13.1 million in the prior year quarter [20] Business Line Data and Key Metrics Changes - Lift Truck bookings increased by 16.5% year-over-year but decreased by 10.5% from the third quarter, totaling 33,200 units [15] - The Lift Truck business, excluding goodwill impairment, reported an adjusted operating loss of $37.6 million compared to an operating profit of $24.4 million in the prior year [20][21] - Bolzoni's revenues increased by 36.9% year-over-year, but it still reported an operating loss of $2.2 million [23] Market Data and Key Metrics Changes - The global lift truck market grew by more than 15% year-over-year, but growth moderated compared to the first nine months of the year [26] - The EMEA market saw a significant increase of nearly 19%, while the Americas market experienced a 12.5% decrease [26] Company Strategy and Development Direction - The company aims to introduce new modular and scalable products and transform its sales approach to meet customer needs [35] - Strategic initiatives include ramping up fuel cell capabilities and optimizing manufacturing operations [80] - The company expects to achieve significant operating profit and net income in 2023, driven by improved margins and backlog management [45][92] Management Comments on Operating Environment and Future Outlook - Management acknowledged ongoing supply chain challenges but expressed optimism about improving conditions in the second half of 2022 [41][44] - The company anticipates continued material cost inflation but expects to manage these through price increases and operational efficiencies [42][91] - Management emphasized the importance of maintaining liquidity and managing capital expenditures during this challenging period [49] Other Important Information - The company recorded a non-cash goodwill impairment charge of $55.6 million in the JAPIC segment due to supply chain disruptions [17] - Cash on hand at the end of the quarter was $65.5 million, with total debt of $518.5 million [51] Q&A Session Summary Question: Trends in lift truck gross margins for Q1 and Q2 - Management indicated that gross margins are expected to improve as production increases and supply chain issues lessen [59][60] Question: Improvement in deliveries despite holiday season - Management attributed improved deliveries to effective inventory management and a large backlog of trucks [62][66] Question: Working capital trends and liquidity - Management expressed confidence in liquidity, expecting inventory levels to decrease as production ramps up [69][70] Question: Strategic investments and delays - Management confirmed that while some strategic investments have been delayed, critical programs remain funded [80][84] Question: Main supply chain constraints - Management highlighted ongoing issues with electronics and wiring systems as primary constraints affecting production [108][109] Question: Nuvera's growth potential and partnerships - Management discussed the importance of collaboration in the hydrogen business and the potential for strategic partnerships [117][119]