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Mar 31, 2022
Hyster-Yale Q1 2022 Earnings Report
Hyster-Yale's results were better than expected despite challenges.
Key Takeaways
Hyster-Yale Materials Handling, Inc. reported consolidated revenues increased 13.0% over Q1 2021. Lift Truck market growth rates moderated compared to early 2021 levels yet remain strong. Consolidated operating loss and consolidated net loss due to material and freight cost inflation, unfavorable manufacturing variances driven by component shortages, establishment of $3.2 million of reserves on Russian inventory and receivables, and increased operating expenses, as well as valuation allowances taken in 2021 that result in zero tax benefits on jurisdictions with losses but income tax expense in jurisdictions with income.
Consolidated revenues increased 13.0% over Q1 2021 from a 7.2% increase in consolidated shipments, primarily driven by an 18.7% increase in Americas lift truck shipments
Lift Truck market growth rates moderated compared to early 2021 levels yet remain strong
Despite improved Lift Truck shipments and record backlog level of 114,100, Lift Truck production continues to be disrupted by component and logistics constraints
Q1 2022 consolidated operating loss and consolidated net loss due to material and freight cost inflation, unfavorable manufacturing variances driven by component shortages, establishment of $3.2 million of reserves on Russian inventory and receivables, and increased operating expenses
Revenue by Segment
Forward Guidance
Hyster-Yale expects a larger net loss in Q2 2022 than in Q1 2022, with an expected lower but still substantial net loss in Q3 2022 and substantial net income in Q4 2022. Q4 net income not expected to offset losses in first nine months. Expectations based on expected resolution of component shortages and stabilization of costs.
Positive Outlook
- Lift Truck segment – expected to move from significant operating losses to substantial operating profit in Q4 2022 as margins increase in H2 2022
- FY 2022 shipments still expected to increase significantly over FY 2021
- Component shortages in H2 2022 expected to moderate and pricing expected to permit improving operating profit in Q3 and Q4 2022
- Nuvera focused on ramping up demonstrations, quotes and bookings for the E45kw and E60kw engines
- Excluding 2021 inventory and fixed asset charges, moderately reduced losses expected in 2022
Challenges Ahead
- Lift Truck market appears to have remained robust in Q1 2022 but expected to continue to decline from historical 2021 highs for the remainder of 2022, partly due to impact of Russia/Ukraine conflict, while continuing to remain above pre-pandemic levels
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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