Hyster-Yale(US:HY)2020-05-10 08:19Financial Data and Key Metrics Changes - Consolidated revenues for Q1 2020 decreased to $785.7 million, down 5.9% from the previous year, primarily due to lower market volume in Europe and China and the impact of COVID-19 [10] - Consolidated operating profit increased to $20.2 million from $3.4 million last year, mainly due to improved earnings in the Lift Truck business' Americas segment [10] - Net income improved to $15.3 million or $0.91 per share from $3.4 million or $0.20 per share in the prior year quarter [10][11] Business Line Data and Key Metrics Changes - Lift Truck business revenues decreased to $747.4 million from $788 million in 2019, primarily due to lower shipments in EMEA and JAPIC, partially offset by higher shipments in the Americas [13] - Bolzoni segment reported net income of $2.7 million and revenues of $87.9 million, compared to net income of $300,000 and revenues of $91.8 million in the previous year [16] - Nuvera's revenues were $1.4 million, down from $4.5 million in the prior year, attributed to reduced development funding and fewer sales of fuel cell battery box replacements [17] Market Data and Key Metrics Changes - The global Lift Truck market decreased by 12% in Q1 2020 compared to Q4 2019, largely due to the initial impact of COVID-19 in China [23] - Significant decline in bookings anticipated in Q2 across all geographic regions due to widespread lockdown measures [24] Company Strategy and Development Direction - The company is focused on aggressive cost containment actions, targeting $80 million to $110 million in operating expense savings for 2020 [26] - Strategic programs are still moving forward, but some projects have been delayed to reduce operating expenses and capital expenditures [28] - The company is navigating through the crisis with a substantial backlog, which provides production support for the remainder of 2020 [30] Management's Comments on Operating Environment and Future Outlook - The management indicated that the global economy is likely entering a deep recession due to COVID-19, with uncertainty regarding the duration and severity of the downturn [19] - The impact of COVID-19 on financial and operational results will depend on the severity and duration of the economic downturn and its effect on demand for products [20] - Management expects different industries to recover at varying rates, with a focus on monitoring individual markets [36] Other Important Information - The company is implementing health and safety protocols to protect employees while maintaining operations [25] - As of March 31, 2020, the company had a cash position of $50 million and debt of $340.1 million, with unused borrowing capacity of approximately $194 million [29] Q&A Session Summary Question: Regarding the cost actions taken, how much of these cost cuts are permanent? - Management stated that if conditions return to pre-COVID-19 levels, they would want to reinstate expenses, but if conditions do not improve, they will not restore the full cost structure [34] Question: Have any signs of stabilization been noticed since the severe weeks in April? - Management indicated it is too early to see any real indications of stabilization, with different regions reopening at different rates [35] Question: Can you provide an update on Nuvera and the Chinese bus customer? - Management noted that discussions with regional governments about switching to fuel cell-based solutions are ongoing, and activities have resumed post-COVID-19 [44] Question: How have order trends been geographically? - Management observed that April was severely impacted by COVID-19 lockdowns, with no significant differences in order trends across regions [45]