Hyster-Yale Materials Handling Announces First Quarter 2021 Results

By Hyster Yale Materials Handling8 days ago

CLEVELAND, May 4, 2021 /PRNewswire/ --

Quarter Highlights:

  • Significant increases in unit shipments in EMEA and JAPIC over Q1 2020 were more than offset by a substantial decrease in unit shipments in the Americas due to significant supply chain constraints resulting from the pace of the economic recovery
  • Q1 2021 consolidated revenues decreased 6.8% from very strong Q1 2020 revenues due to lower shipments in the Americas
  • Q1 2021 consolidated operating profit decreased to $3.1 million from $20.2 million in Q1 2020, driven by lower unit volumes, as well as higher manufacturing variances and material and freight costs of $5.2 million and $4.9 million, respectively, partly offset by lower operating expenses despite the add back of $9.0 million of incentive compensation that was suspended in 2020
  • Q1 2021 consolidated other income includes a $4.6 million gain on sale of Nuvera's investment in preferred shares of OneH2, as well as gains from favorable changes to market values of other equity investments
  • Q1 2021 net income of $5.6 million, or $0.33 per share, decreased from $15.3 million, or $0.91 per share, in Q1 2020
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Hyster-Yale Materials Handling, Inc. (NYSE: HY) today announced consolidated revenues of $732.2 million and consolidated net income of $5.6 million, or $0.33 per diluted share, for the first quarter of 2021 compared with consolidated revenues of $785.7 million and consolidated net income of $15.3 million, or $0.91 per diluted share, for the first quarter of 2020. Consolidated operating profit decreased to $3.1 million in 2021 from $20.2 million in 2020.

Late in the 2020 fourth quarter and continuing throughout the 2021 first quarter, demand for lift truck products has surged but the global supply chain, which has also had to ramp up production, has struggled to keep pace. This slow ramp up, exacerbated by continuing pandemic-related labor shortages and logistics constraints, has led to significant component shortages and material and freight cost inflation. As a result of these factors, Hyster-Yale's 2021 first-quarter shipments were substantially lower than expected, particularly in the Americas, resulting in earnings that were significantly lower than both the 2020 fourth and first quarters.

Segment Financial Results

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