HYSTER-YALE MATERIALS HANDLING ANNOUNCES FIRST QUARTER 2023 RESULTS.

CLEVELAND: Hyster-Yale Materials Handling, Inc. (NYSE: HY) reported the following consolidated results for the three months ended March 31, 2023:

Three Months Ended

($ in millions except per share amounts)

3/31/23

3/31/22

Change

Fav (Unfav)

Revenues

$999.3

$827.6

$171.7

Operating Profit (Loss)

$42.6

$(18.3)

$60.9

Net Income (Loss)

$26.6

$(25.0)

$51.6

Diluted Earnings (Loss) /share

$1.55

$(1.48)

$3.03

Lift Truck Business Results

Revenues and shipments by geographic segment were as follows:

($ in millions)

Q1 2023

Q1 2022

Change

Fav (Unfav)

Revenues

$948.7

$779.1

$169.6

Americas(1)

$685.9

$557.7

$128.2

EMEA(1)

$214.9

$169.7

$45.2

JAPIC(1)

$47.9

$51.7

$(3.8)

(1) The Americas segment includes the North America, Latin America and Brazil markets, EMEA includes operations in the Europe, Middle East and Africa markets, and JAPIC includes operations in the Asia and Pacific markets, including China.

(Rounded to nearest hundred)

Q1 2023

Q1 2022

Change

Fav (Unfav)

Q4 2022

Change

Fav (Unfav)

Unit Shipments

25,200

23,900

1,300

27,100

(1,900)

Americas

16,100

14,600

1,500

16,000

100

EMEA

6,800

6,500

300

7,800

(1,000)

JAPIC

2,300

2,800

(500)

3,300

(1,000)

First-quarter 2023 lift truck revenues increased by 21.8% compared with the prior year first quarter while consolidated unit shipments increased by 5.4%. Revenue growth outpaced shipment growth as previously implemented price increases, designed to offset significant cost inflation in 2021 and 2022, were realized. Higher parts volumes and a favorable shift in sales mix, primarily to higher-priced Class 1 and Class 5 trucks, including Big Trucks, also contributed to the revenue growth. Unfavorable currency movements due to a stronger U.S. dollar compared with the prior year were a $14.2 million headwind in the quarter, primarily in EMEA.

Unit shipments decreased 7% from fourth-quarter 2022 as a result of fewer shipments in EMEA and JAPIC. While supply challenges in the Americas have moderated, continued difficulties sourcing certain critical components, particularly in EMEA, and labor shortages for skilled positions hampered first-quarter 2023 production rates and shipments.

Gross profit and operating profit (loss) by geographic segment were as follows:

($ in millions)

Q1 2023

Q1 2022

Change

Fav (Unfav)

Gross Profit

$155.6

$85.9

$69.7

Americas

$121.2

$67.0

$54.2

EMEA

$26.9

$14.4

$12.5

JAPIC

$7.5

$4.5

$3.0

Operating Profit (Loss)

$47.8

$(10.7)

$58.5

Americas

$47.5

$4.4

$43.1

EMEA

$2.6

$(11.4)

$14.0

JAPIC

$(2.3)

$(3.7)

$1.4

For the first quarter of 2023, the Lift Truck business reported significantly higher gross and operating profits compared with the prior year period. This better-than-expected performance resulted in a 5% operating profit margin. Improvements over the prior year were led by pricing benefits of $74.3 million, favorable sales mix, higher parts volumes and elevated fleet revenues. Gross and operating profits improved despite a nearly $21 million increase in material and freight costs compared to the prior year. Higher operating expenses, including employee-related costs, and $5.2 million of unfavorable currency effects partly offset the profit improvements.

The Company continues to make steady progress reducing the number of lower-priced units, booked in prior years in its extended backlog. First-quarter 2023 margin growth was constrained due to the production and shipment of a number of these lower-margin backlog units during the quarter as component availability improved.

Geographically, the Americas reported revenues of $685.9 million and a $43.1 million operating profit improvement compared with the 2022 first quarter. These improvements stemmed from higher lift truck pricing, favorable sales mix, increased parts volumes and manufacturing efficiencies tied to higher production volumes. These improvements more than offset the combination of material cost inflation, higher employee-related costs and unfavorable currency movements. First-quarter 2022 results included $3.5 million of tariff recovery income.

EMEA reported operating profit of $2.6 million in first-quarter 2023, returning to profitability for the first time since second-quarter 2021. Benefits achieved from price increases, favorable sales mix and lower manufacturing costs more than offset material cost inflation of $17.5 million and unfavorable currency movements compared with the prior year first quarter. Inflation and supply chain challenges continue to constrain the Company's efforts to increase production levels and further recover margins. In this context, EMEA is taking longer than planned to work through its aged backlog and achieve significant margin improvement, despite higher prices offsetting material inflation.

Operating results in JAPIC improved as a result of a favorable sales mix and higher pricing that more than offset increased costs and the impact of lower unit volumes.

Bolzoni Results

($ in millions)

Q1 2023

Q1 2022

Change

Fav (Unfav)

Revenues

$98.6

$95.1

$3.5

Gross Profit

$20.7

$18.8

$1.9

Operating Profit

$4.4

$2.1

...