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Mar 31, 2020
Hyster-Yale Q1 2020 Earnings Report
Hyster-Yale Materials Handling announced Q1 2020 results, with increased operating profit and net income despite a decrease in revenues due to lower market volumes and the impact of COVID-19.
Key Takeaways
Hyster-Yale Materials Handling reported a decrease in consolidated revenues to $785.7 million, but an increase in consolidated operating profit to $20.2 million and net income to $15.3 million, or $0.91 per diluted share, for the first quarter of 2020. The company's performance was affected by lower market volumes, primarily in Europe and China, and the impact of COVID-19.
Consolidated revenues decreased by 5.9% compared to Q1 2019 due to lower market volumes and the impact of COVID-19.
Consolidated operating profit increased to $20.2 million, up from $3.4 million in Q1 2019.
Net income increased to $15.3 million, or $0.91 per share, up from $3.4 million, or $0.20 per share, in Q1 2019.
The company anticipates a substantial decrease in bookings in the second quarter in all geographic regions due to the widespread impact of COVID-19.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company anticipates a substantial decrease in bookings in the second quarter in all geographic regions because markets and bookings have deteriorated as the actions taken to limit the spread of COVID-19 have become more widespread. Prospects for the second quarter, given Company plant closures and partial closures, and given potential supplier production disruptions, are for significant declines in shipments, revenue and operating profit, including the possibility of an operating loss.
Positive Outlook
- As lockdown measures are relaxed and market conditions improve, the Company expects that increased bookings and the strategic programs the Company continues to pursue will position each of its businesses to recover to sound long-term financial returns.
- The Company is focused on aggressive actions to moderate the near-term financial impact of COVID-19 as a result of lower markets, reduced bookings and factory and supply chain disruptions.
- All plants, with appropriate health and safety protocols in place for employee safety, are expected to be operating as of early May, assisted to some degree by the fact that in most countries, including the United States, the Company is considered an essential business.
- The Company has implemented procedures to limit its employees' exposure to COVID-19, including adjusting shift schedules to promote social distancing, enhancing cleaning and sanitation of equipment, work areas and common areas, promoting recommended hygiene practices, limiting workplace access and instituting remote working where possible.
- The projects required to execute these strategies continue to move forward, but in light of COVID-19, certain projects are being prioritized over others, and some have been delayed to reduce operating expenses and capital expenditures.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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