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Sep 30, 2020
Hyster-Yale Q3 2020 Earnings Report
Results were affected by the continuing COVID-19 pandemic.
Key Takeaways
Hyster-Yale's Q3 2020 results were adversely affected by the continuing COVID-19 pandemic with shipments decreased vs. Q3 2019, but increased over Q2 2020. Bookings in Q3 2020 were comparable to Q3 2019 and up substantially from Q2 2020. HY expects Q4 2020 results to be significantly higher than Q3 2020 and Q4 2019.
Significant declines in economic activity from shutdowns in Q2 2020 continued to effect global demand for HY’s products in Q3 2020
Shipments decreased vs. Q3 2019, but increased over Q2 2020, which was significantly impacted due to pandemic-related shutdowns and lower production rates
Bookings in Q3 2020 were comparable to Q3 2019 and up substantially from Q2 2020
Strong Q3 2020 bookings led to a modest increase in Q3 2020 backlog over Q2.
Revenue by Segment
Forward Guidance
Operating profit and net income in Q4 2020 expected to by significantly higher than Q3 2020 and Q4 2019. Severity and duration of pandemic and resulting economic impact remains uncertain, specifically in light of recent spikes in various countries, including HY’s largest markets, and this uncertainty continues to limit ability to forecast bookings and expected shipment levels during 2021.
Positive Outlook
- Market activity and bookings have improved faster than anticipated
- Level of future bookings is still uncertain
- Operating profit and net income in Q4 2020 expected to by significantly higher than Q3 2020 and Q4 2019
- Focused on actions that will enhance cash flow before financing and liquidity, including cost containment actions targeted to achieve $60m-$75m in cost savings in 2020
- Strategic projects continue to move forward, but in light of COVID-19, the pace of certain projects have been prioritized over others.
Challenges Ahead
- Revenue decrease due to lower units and parts volumes in all Lift Truck geographic segments & at Bolzoni as a result of lower Q2 2020 bookings and the decline in global economic activity subsequent to the pandemic-related shutdowns
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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