Hyster-Yale (HY) Q4 2015 earnings summary

Executive summary

• 2015 revenue fell 6.8% to $2,578.1M; operating profit declined to $103.5M and net income attributable to stockholders to $74.7M.

• Strong U.S. dollar translation, lower volumes and mix shifts weighed on results; Nuvera added a $24.6M operating loss.

• 2016 sales, shipments and parts revenue are expected to rise, while operating profit and net income are forecast lower.

Financial highlights

• Revenue was $2,578.1M, down 6.8% YoY; foreign currency reduced revenue by $159.9M.

• Operating profit was $103.5M vs. $148.8M; 2014 included a $17.7M Brazil asset-sale gain and $3.1M of Nuvera acquisition costs.

• Net income attributable to stockholders was $74.7M vs. $109.8M; diluted EPS was $4.57 vs. $6.58.

• Gross profit was $430.8M vs. $447.7M; net cash from operating activities was $89.4M vs. $100.0M.

Outlook and guidance

• 2016 global lift truck markets are expected to remain roughly stable; revenue, shipments and parts sales are forecast to increase, but operating profit and net income to decline.

• Lower first-half operating profit is expected, with improvement in the second half; cash flow before financing activities is forecast positive but lower YoY.

• Planned 2016 capital expenditures are $61.4M, mainly for product development, IT infrastructure, manufacturing improvements and equipment.

• Nuvera expects a 2016 operating loss of $23M–$26M; quarterly break-even is targeted by late 2017 or early 2018 at approximately 700 PowerEdge and 10 PowerTap units per quarter.