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Jun 30, 2022
Hyster-Yale Q2 2022 Earnings Report
Results negatively impacted by material and freight cost inflation and component shortages.
Key Takeaways
Hyster-Yale's Q2 2022 consolidated operating loss and consolidated net loss were impacted by material and freight cost inflation, unfavorable manufacturing variances driven by component shortages and the absence of $6.3 million of income recorded in 2021 associated with a favorable court ruling. Consolidated revenues increased 17.0% over Q2 2021 due to an 11.5% increase in consolidated shipments, primarily driven by a 32.2% increase in EMEA lift truck shipments, and improved pricing, partly offset by unfavorable currency movements.
Overall Lift Truck market appeared to decline significantly in Q2 2022 compared with the high levels seen in Q2 2021 and Q1 2022
The market decline, combined with the Company’s focus on accepting only orders with expected sound margins, drove a decrease in Q2 2022 bookings from Q1 2022 and Q2 2021
Bolzoni’s Q2 2022 improved to an operating profit from an operating loss of $0.4 million in Q2 2021 due to a 19.6% improvement in gross profit
While still at unprofitable levels, Q2 2022 results better than expected when the outlook was provided in the Q1 2022 earnings release
Revenue by Segment
Forward Guidance
Lift Truck market is expected to continue to decline from historical 2021 highs for the remainder of 2022, while remaining above pre-pandemic levels. Consolidated – a larger net loss in Q3 2022 than previously projected, but a return to net income expected in Q4 2022. Q4 2022 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 – expected to have an increase, from a significant operating loss in H1 2022, to a substantial operating profit in Q4 2022.
- FY 2022 shipments still expected to increase over FY 2021
- As low-margin backlog is worked through in H2 2022 and early 2023, margins are expected to improve in Q4 2022 and in 2023
- Product and transportation costs expected to stabilize in H2, with continued improvement in component and logistics availability anticipated
- Solid operating profit expected in H2 2022 compared with H2 2021 operating loss, but expected to be significantly lower than H1 2022
Challenges Ahead
- Bookings – substantial decrease anticipated during H2 2022 vs. H2 2021 due to market decline, particularly in the Americas, and accepting only orders with expected sound margins
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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