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Jun 30, 2020
Hyster-Yale Q2 2020 Earnings Report
Hyster-Yale's Q2 2020 earnings decreased due to the impact of the global COVID-19 shutdowns, lower bookings and resulting lower shipments.
Key Takeaways
Hyster-Yale Materials Handling reported a decrease in consolidated revenues to $654.4 million and a decrease in net income to $3.6 million, or $0.21 per diluted share, for Q2 2020, compared to $856.2 million in revenues and $16.2 million in net income, or $0.97 per diluted share, for Q2 2019. The consolidated operating profit also decreased to $8.7 million from $22.9 million in the same quarter of the previous year.
Q2 2020 market levels decreased significantly from prior periods in the Company's primary markets.
Q2 2020 consolidated revenues decreased 23.6% from Q2 2019 due to the impact of the global COVID-19 shutdowns, lower bookings, and resulting lower shipments.
Q2 2020 consolidated operating profit decreased to $8.7 million from $22.9 million in Q2 2019.
Q2 2020 net income decreased to $3.6 million, or $0.21 per share, from $16.2 million, or $0.97 per share, in Q2 2019.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Hyster-Yale expects a modest loss in the third quarter of 2020 due to seasonal vacations, plant shutdowns, and customary lower third-quarter production schedules. Pandemic-related uncertainty continues to limit the Company's ability to forecast bookings over the remainder of 2020 and 2021, and expected shipment levels for the fourth quarter of 2020 and full-year 2021.
Positive Outlook
- Market activity has increased as economies have gradually reopened, translating into sequentially improved monthly bookings.
- The Company's bookings levels, while still significantly lower than in the same prior year periods, trended up in both May and June from their lowest point in April 2020.
- June bookings were approximately 25% lower than June 2019, an improvement from the more than 60% and 50% declines experienced in April and May, respectively.
- Based on current backlog levels and adjusted production levels, the Company expects to have adequate production support and minimal open production slots for the remainder of 2020.
- The Company has accelerated plans to move certain products that will provide more permanent structural changes and reduce costs while creating "Centers of Excellence" for other products at the Company's three largest plants.
Challenges Ahead
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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