Hyster-Yale (HY) Q4 2016 earnings summary

Executive summary

• FY16 revenue was nearly flat at $2,569.7M, while operating profit fell to $34.9M and net income attributable to stockholders declined to $42.8M.

• Lower truck pricing and volumes, unfavorable currency movements and higher expenses pressured lift-truck earnings; investment and acquisition activity supported longer-term growth initiatives.

Financial highlights

• Revenue was $2,569.7M vs. $2,578.1M in 2015; lower lift-truck volumes, pricing and currency effects were partly offset by $115.6M of Bolzoni revenue.

• Operating profit was $34.9M vs. $103.5M; attributable net income was $42.8M vs. $74.7M, with a $4.0M income tax benefit in 2016.

• Gross profit was $427.5M vs. $430.8M; selling, general and administrative expenses rose to $392.9M from $327.3M, including $6.6M of acquisition-related costs.

Outlook and guidance

• FY17 global lift-truck markets are expected to be comparable to 2016; higher unit and parts revenue and operating profit are expected from share gains, pricing and new products.

• Lift-truck net income is expected to increase modestly in 2017; higher operating profit is partly offset by a higher tax rate and no repeat of 2016 tax benefits.

• Bolzoni expects FY17 revenue growth vs. FY16, comparable to annualized Q4 2016; higher profit is expected from integration and the absence of 2016 one-time purchase accounting adjustments.

• Nuvera expects significantly higher 2017 unit shipments and revenue, lower net loss than 2016 and quarterly operating break-even during 2018.

• Planned 2017 capital expenditures are $49.5M, primarily for product development, IT infrastructure and manufacturing improvements.