NYSE$HY

Hyster-Yale Materials Handling Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Results negatively impacted by material and freight cost inflation and component shortages.

Hyster-Yale's Q2 2022 consolidated operating loss and consolidated net loss were impacted by material and freight cost inflation, unfavorable manufacturing variances driven by component shortages and the absence of $6.3 million of income recorded in 2021 associated with a favorable court ruling. Consolidated revenues increased 17.0% over Q2 2021 due to an 11.5% increase in consolidated shipments, primarily driven by a 32.2% increase in EMEA lift truck shipments, and improved pricing, partly offset by unfavorable currency movements.

  • Overall Lift Truck market appeared to decline significantly in Q2 2022 compared with the high levels seen in Q2 2021 and Q1 2022
  • The market decline, combined with the Company’s focus on accepting only orders with expected sound margins, drove a decrease in Q2 2022 bookings from Q1 2022 and Q2 2021
  • Bolzoni’s Q2 2022 improved to an operating profit from an operating loss of $0.4 million in Q2 2021 due to a 19.6% improvement in gross profit
  • While still at unprofitable levels, Q2 2022 results better than expected when the outlook was provided in the Q1 2022 earnings release

Headline financials

Total Revenue

$895M

Previous: $766M+17.0%
EPS (adj)

-$1.15

Previous: $0.11-1145.5%
Capital Expenditures

$5.6M

Previous: -$18.1M+130.9%
Free Cash Flow

-$64.5M

Previous: -$16.2M-298.1%
Net Income

-$19.4M

Previous: $1.9M-1121.1%
Operating Income

-$15.7M

Previous: $5.9M-366.1%
Gross Profit

$99.1M

Previous: $116M-14.9%
Cash & Equivalents

$75.6M

Previous: $87.5M-13.6%
Total Assets

$2.05B

Previous: $1.99B+3.1%
Stock-Based Comp

$900K

Previous: $200K+350.0%

Revenue & EPS history

Hyster-Yale · Revenue · Quarterly

$895M

Q2 2022+17%vs Q2 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Hyster-Yale · $86.4M total across 1 segment · Q2 2022

  • Bolzoni
    $86.4M+1.9%

Forward guidance

Lift Truck market is expected to continue to decline from historical 2021 highs for the remainder of 2022, while remaining above pre-pandemic levels. Consolidated – a larger net loss in Q3 2022 than previously projected, but a return to net income expected in Q4 2022. Q4 2022 net income not expected to offset losses in first nine months. Expectations based on expected resolution of component shortages and stabilization of costs.

Tailwinds

  • Lift Truck – expected to have an increase, from a significant operating loss in H1 2022, to a substantial operating profit in Q4 2022.
  • FY 2022 shipments still expected to increase over FY 2021
  • As low-margin backlog is worked through in H2 2022 and early 2023, margins are expected to improve in Q4 2022 and in 2023
  • Product and transportation costs expected to stabilize in H2, with continued improvement in component and logistics availability anticipated
  • Solid operating profit expected in H2 2022 compared with H2 2021 operating loss, but expected to be significantly lower than H1 2022

Headwinds

  • Bookings – substantial decrease anticipated during H2 2022 vs. H2 2021 due to market decline, particularly in the Americas, and accepting only orders with expected sound margins
  • A significant loss is expected in Q3 2022 due to seasonal plant shutdowns, cuts in production volumes due to continued supply chain constrains and unfavorable foreign currency effects; Q4 2022 operating profit not expected to offset operating loss in the first nine months of 2022
  • Results in Q3 2022 expected to be near break even due to anticipated lower sales, inefficiencies from seasonal plant shutdowns and additional material inflation caused by Russia/Ukraine conflict.
  • H2 2022 losses expected to be higher than H1 2022
  • Consolidated – a larger net loss in Q3 2022 than previously projected, but a return to net income expected in Q4 2022. Q4 2022 net income not expected to offset losses in first nine months.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-0.1%

Avg return

Earnings day

-1.2%

Avg return

5 days after

-0.2%

Avg return

30 days after

41%

24 / 58 earnings

Positive

+34.7%

Q4 2022

Best reaction

-16.0%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.7%-3.3%-6.6%
Q4 2025-1.9%-14.3%-15.5%
Q3 2025-2.9%-4.4%-1.7%
Q1 2025-5.6%+4.5%+1.8%
Q4 2024+2.8%-14.2%-19.1%
Q3 2024-10.5%-14.8%-11.0%
Q2 2024-15.6%-13.3%-14.6%
Q1 2024+33.9%+24.9%+26.1%
Q4 2023-16.0%-17.9%-7.9%
Q3 2023+7.3%+9.0%+22.2%
Q2 2023-0.2%+4.1%-3.8%
Q4 2022+34.7%+50.0%+53.2%
Q3 2022+4.0%+2.1%+3.1%
Q2 2022-3.6%-7.6%-20.2%
Q1 2022+8.2%+7.3%+22.9%
Q4 2021-6.1%-2.7%-9.5%
Q3 2021-14.6%-9.3%-25.6%
Q2 2021-11.5%-13.6%-15.0%
Q1 2021-9.8%-6.0%-10.1%
Q4 2020-10.3%+2.0%-6.0%
Q3 2020+15.1%+14.5%+30.4%
Q2 2020+8.7%+8.9%+3.0%
Q4 2019-1.2%-16.6%-8.2%
Q3 2019-1.1%+0.5%+14.7%
Q2 2019+12.8%+1.8%-1.2%
Q1 2019-10.5%-11.4%-32.4%
Q4 2018-3.7%+2.2%+6.6%
Q3 2018-0.0%+6.3%+6.5%
Q2 2018-5.3%-3.2%-4.2%
Q1 2018-3.0%-5.1%-6.3%
Q4 2017-10.4%-2.0%+5.8%
Q3 2017+2.6%-0.1%+4.5%
Q2 2017-9.0%-8.3%+0.5%
Q1 2017+14.5%+18.8%+24.0%
Q4 2016+4.8%-3.9%-5.2%
Q3 2016-9.3%-9.8%+12.1%
Q2 2016-15.5%-18.9%-20.0%
Q1 2016-10.6%
Q4 2015-1.2%
Q3 2015-4.0%
Q2 2015+8.2%
Q1 2015-1.8%
Q4 2014+2.2%
Q3 2014+7.1%
Q2 2014-8.6%
Q1 2014-5.9%
Q4 2013+10.3%
Q3 2013-13.0%
Q2 2012+13.1%
Q2 2013+13.1%
Q1 2012+0.4%
Q1 2013+0.4%
Q1 2011-0.7%
Q4 2010-0.7%
Q2 2011-0.7%
Q3 2011+3.8%
Q4 2011+3.8%
Q3 2012+3.8%
Q4 2012

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