Hyster-Yale (HY) Q4 2012 earnings summary

Executive summary

• 2012 revenue declined 2.8% YoY to $2,469.1M, while operating profit rose to $111.7M and net income attributable to stockholders reached $98.0M.

• The September 2012 spin-off established an independent public company; 2013 guidance calls for higher shipments but moderately lower operating profit and net income.

Financial highlights

• Revenue was $2,469.1M vs. $2,540.8M in 2011; lower volumes, FX and other revenue outweighed higher truck prices, mix and parts revenue.

• Operating profit was $111.7M vs. $110.0M; higher gross profit from pricing and favorable mix was partly offset by manufacturing costs and SG&A.

• Net income attributable to stockholders was $98.0M vs. $82.6M; diluted EPS was $5.83 vs. $4.91.

• Operating cash flow rose to $128.7M from $54.6M, primarily on working-capital changes and higher net income.

Outlook and guidance

• 2013 global markets expected to grow moderately; shipments and parts volumes forecast to increase across all regions, led by the Americas.

• 2013 operating profit expected to decline moderately, with a weaker H1 partly offset by slight H2 improvement; higher operating expenses are expected to exceed gross-profit gains.

• 2013 net income expected to decline, reflecting the absence of the $10.7M valuation-allowance release, higher tax rate and lower operating profit.

• Americas segment results expected to improve; Europe expected to decline significantly amid Western European weakness and no repeat of 2012's significant currency-hedging benefit.

• Planned 2013 capital expenditures are $60.2M; cash flow before financing activities is expected to decline moderately from 2012.