Financial Data and Key Metrics Changes - In Q1 2021, consolidated revenues decreased by 6.8% to $732.2 million from $785.7 million in Q1 2020, primarily due to lower shipments in the Americas [16][18] - Consolidated net income fell to $5.6 million or $0.33 per share, down from $15.3 million or $0.91 per share in the prior year [18] - Operating profit decreased to $3.1 million from $20.2 million in the prior year, impacted by increased material costs and manufacturing variances [17][18] Business Line Data and Key Metrics Changes - In the Lift Truck business, operating profit decreased by $2.2 million from $28 million in the prior year quarter due to supply chain challenges [19] - Bolzoni's revenues decreased by 9.6%, with operating profit dropping to $8,000 from $2.7 million in the prior year [19][20] - Nuvera experienced a revenue decrease and an increase in operating loss to $9.8 million from $9.4 million in the previous year [21] Market Data and Key Metrics Changes - The global lift truck market grew significantly, with a 46% increase compared to Q1 2020, excluding China [24] - In Q1 2021, the global lift truck market, including China, increased by 20% compared to Q4 2020, driven by strong demand in EMEA and the Americas [25] - Despite increased bookings, unit shipments were lower than Q1 2020 due to production rate adjustments to match component availability [26] Company Strategy and Development Direction - The company is focusing on strategic projects to enhance market share and has introduced new modular product families for both internal combustion and electric trucks [31][32] - Bolzoni is implementing a "One Company Three Brands" approach to streamline operations and strengthen its North American presence [34] - Nuvera is concentrating on heavy-duty applications and accelerating commercialization of its hydrogen engines [36] Management's Comments on Operating Environment and Future Outlook - Management noted that supply chain disruptions significantly impacted production and material costs, leading to lower earnings in Q1 2021 [8][10] - The company expects market growth to moderate but anticipates increased bookings for the full year compared to 2020 [28][29] - Future production levels are uncertain due to ongoing supply chain challenges, but management is optimistic about resolving these issues in the second half of the year [43][44] Other Important Information - The company reinstated pre-pandemic salaries and benefits effective January 1, 2021, while continuing other cost containment measures [39] - As of March 31, 2021, the company had cash on hand of $103 million and debt of $285.4 million, with unused borrowing capacity of approximately $265.3 million [50] Q&A Session Summary Question: Did supply chain constraints become more challenging as Q1 progressed? - Management indicated that while challenges persisted throughout the quarter, visibility into the supply chain improved over time, with specific issues being addressed [58][62] Question: How sticky is the backlog? - Management expressed confidence that the majority of the backlog is stable, as customers are aware of lead times and market challenges [65][67] Question: What is the impact of tariff exclusions? - Management highlighted concerns regarding the lack of a tariff exclusion process under the new administration, which could lead to increased costs [73][74] Question: What opportunities exist for Nuvera? - Management noted increased opportunities for product demonstrations, particularly in heavy-duty vehicle markets, with traction seen in Europe and North America [84][86]
Hyster-Yale(HY) - 2021 Q1 - Earnings Call Transcript