Hyster-Yale (HY) Q4 2019 earnings summary

Executive summary

• Revenue rose 3.5% to $3.292B in 2019 despite softer markets; operating profit increased 38.9% to $53.9M, while net income attributable to stockholders reached $35.8M.

• Transformation investments, supply constraints and higher borrowing weighed on cash generation; shipments dipped to 100,300 units from 101,900 in 2018.

Financial highlights

• Revenue was $3,291.8M vs. $3,179.1M; operating profit was $53.9M vs. $38.8M; net income attributable to stockholders was $35.8M vs. $34.7M.

• Diluted EPS was $2.14 vs. $2.09; Adjusted EBITDA was $109.2M vs. $94.2M.

• Operating cash flow was $76.7M; cash flow before financing was $34.7M vs. $(43.3)M in 2018.

Outlook and guidance

• 2020 operating profit and net income are expected to increase significantly YoY; Lift Truck profit is expected to improve significantly, with stronger results in H2.

• Lift Truck targets a 7% operating margin and ROTCE of 20% or more over three to four years; Nuvera expects lower losses in 2020 and break-even thereafter.

• New modular product launches begin in H2 2020; product, capital and expense investments are expected to remain elevated for several years.

• Lift truck markets are forecast to remain strong but lower in 2020; market demand is expected to be relatively stable over the following years.