Hyster-Yale Materials Handling, Inc. Announces Fourth Quarter and Full Year 2012 Results

 Hyster-Yale Materials Handling, Inc. Announces Fourth Quarter and Full Year
                                 2012 Results

Highlights:

- Fourth quarter operating profit increases 3.6% on revenue decline of 3.7%

- Fourth quarter net income rises 37 percent to $32.4 million, largely due to
a tax benefit of $10.0 million

PR Newswire

CLEVELAND, Feb. 19, 2013

CLEVELAND, Feb. 19, 2013 /PRNewswire/ --Hyster-Yale Materials Handling, Inc.
(NYSE: HY) today announced net income of $32.4 million, or $1.93 per diluted
share, for the fourth quarter of 2012 and revenues of $652.0 million compared
with net income of $23.6 million, or $1.40 per diluted share, and revenues of
$677.4 million for the fourth quarter of 2011. Operating profit increased to
$29.0 million for the fourth quarter of 2012 from $28.0 million in 2011.
Operating margins increased to 4.4% from 4.1%.

Net income for the year ended December 31,2012 was $98.0 million, or $5.83
per diluted share, and revenues were $2.469 billion compared with net income
of $82.6 million, or $4.91 per diluted share, and revenues of $2.541 billion
for the year ended December 31, 2011. Operating profit increased to $111.7
million for the full year 2012 from $110.0 million in 2011. Operating margins
increased to 4.5% from 4.3%.

Fourth quarter net income includes a tax benefit of $10.0 million, or $0.59
per share, primarily from the release of previously recorded valuation
allowances related to the Company's U.S. state and Australian deferred tax
assets. The full year 2012 effect of the valuation allowance release was $10.7
million, or $0.64 per share.

EBITDA for the fourth quarter of 2012 and the year ended December 31, 2012,
was $37.5 million and $144.0 million, respectively. EBITDA in this press
release is provided solely as a supplemental non-GAAP disclosure with respect
to operating results. For reconciliations from GAAP results to the non-GAAP
results, see page 6.

For the 2012 full year, the Company's cash flow before financing activities
was $109.2 million, which was comprised of net cash provided by operating
activities of $128.7 million less net cash used for investing activities of
$19.5 million. For the 2011 full year, the Company's cash flow before
financing activities was $38.7 million, which was comprised of net cash
provided by operating activities of $54.6 million less net cash used for
investing activities of $15.9 million. The Company's cash position was $151.3
million as of December 31, 2012 after paying down debt and paying a special
dividend of $2.00 per share on December 27, 2012 and a new regular quarterly
dividend of $0.25 per share on December 14, 2012 to stockholders. Debt as of
December 31, 2012 decreased to $142.2 million from $226.0 million as of
December 31, 2011.

Discussion of Fourth Quarter Results

Revenues decreased in the fourth quarter of 2012 compared with the fourth
quarter of 2011 primarily as a result of a decrease in unit volumes and
unfavorable foreign currency movements. Unit volume declines in Europe and
the Americas were partially offset by higher shipments in Asia-Pacific during
the quarter. Unfavorable foreign currency movements were primarily caused by
a weakening of the euro and Brazilian real against the U.S. dollar.

In the fourth quarter of 2012, worldwide new unit shipments were approximately
20,100 units compared with shipments of approximately 20,700 units in the
fourth quarter of 2011 and shipments of approximately 18,000 units in the
third quarter of 2012. Worldwide backlog was approximately 27,300 units at
December 31, 2012 compared with approximately 24,700 units at December 31,
2011 and approximately 25,600 units at September30, 2012. During the fourth
quarter of 2012, the Company gained market share, based on bookings, in the
Americas and Asia-Pacific and generally maintained share in Europe compared
with the prior year fourth quarter and prior full year. Momentum generated
during the fourth quarter helped the Company attain full year market share
improvements in the Americas and Asia-Pacific compared with 2011 but fourth
quarter improvements in Europe did not offset market share weakness earlier in
2012.

The significant improvement in fourth quarter 2012 net income compared with
the previous year's fourth quarter was driven primarily by a $10.0 million tax
benefit. Operating profit for the fourth quarter of 2012 improved modestly
compared with 2011 primarily due to an improvement in gross profit and
favorable foreign currency movements partially offset by higher selling,
general and administrative expenses. Gross profit increased mainly as a
result of lower material costs, a favorable shift in sales mix in Europe and
the Americas to higher-margin products and the favorable effect of price
increases primarily in Europe and the Americas, partially offset by lower unit
volumes. These improvements were partially offset by higher selling, general
and administrative expenses, mainly as a result of higher employee-related
expenses in the fourth quarter of 2012, primarily due to increased headcount
in marketing and engineering to support the Company's five strategic
initiatives, and higher bad debt expense and product liability as favorable
adjustments in 2011 did not recur in 2012.

Outlook

The overall global market is expected to grow moderately in 2013 compared with
2012, driven primarily by increased volumes in the Americas, principally as a
result of moderate growth in Brazil and Latin America, and moderate growth in
the Asia-Pacific and Middle East and Africa markets. Europe is expected to
continue to decline, mainly as a result of Western Europe macro-economic
conditions. In the context of these market conditions and expected increases
in market share, the Company anticipates an overall increase in shipments and
parts volumes in all markets in 2013 compared with 2012, with the majority of
this increase driven by the Americas.

The Company anticipates moderate increases in material costs in 2013. Price
increases implemented in 2012 and proposed for 2013 are expected generally to
offset these anticipated higher material costs in 2013. Although commodity
costs stabilized in 2012, these markets are highly volatile and remain
sensitive to changes in the global economy and the Company will continue to
monitor economic conditions and the resulting effects on costs to determine
the need for future price increases.

The Company expects a moderate decline in operating profit in 2013 compared
with 2012, with lower operating profit in the first half of 2013 compared with
the prior year somewhat offset by slight improvements in the second half of
the year. An increase in operating expenses, as a result of increases in
marketing and employee-related costs put in place over the course of 2012 to
support the Company's five strategic initiatives and the full year effect of
incremental public company costs the Company will incur as a standalone public
entity, is expected to more than offset an expected increase in gross profit
as a result of increased sales volumes. Net income in 2013 is expected to
decline compared with 2012 as a result of the absence of the $10.7 million
valuation allowance release taken in 2012, an expected higher effective income
tax rate primarily because the Company will record the effect of U.S. state
and Australian income taxes in 2013 and future years, a shift in income from
Europe to the Americas and the moderate decline in operating profit.

Full-year 2013 geographic segment results are expected to improve in the
Americas segment, which includes the North America, Latin America and Brazil
markets, but decrease significantly in the Europe segment, which includes the
Middle East and Africa markets. Within Europe, the anticipated decline in the
Western European market and the absence in 2013 of the significant benefit
gained in 2012 from currency hedging are expected to contribute to the decline
in the Europe segment results. Cash flow before financing activities in 2013
is expected to decline moderately compared with 2012 as the Company
anticipates an increase in capital expenditures in 2013.

Over time, the Company is focused on gaining market share as well as improving
margins on new lift truck units, especially in its internal combustion engine
business, through the execution of five strategic initiatives: (1)
understanding customer needs at the product and aftermarket levels in order to
create and provide a differentiated, full range of product and service
solutions for specific industry applications, (2) offering the lowest cost of
ownership by utilizing the Company's understanding of customers' major cost
drivers and developing solutions that consistently lower cost of ownership and
create a differentiated competitive position, (3) improving the Company's
warehouse market position through enhancing dealer and customer support,
adding products, increasing incentives, and implementing programs to increase
focus on key customers, (4) enhancing independent distribution by implementing
programs aimed at broadening account coverage of the market, expanding the
Company's dual-brand ownership strategy, and ensuring dealer excellence in all
areas of the world, and (5) expanding in Asian markets by offering products
geared to the needs of these markets, enhancing distribution excellence and
focusing on strategic alliances with local partners in China, India and Japan.

In order to meet specific application needs of its customer, the Company is
focusing on developing utility, standard and premium products. To this end,
the Company has development programs underway for its electric-rider,
warehouse, internal combustion engine and big truck product lines. The
electric-rider lift truck program is designed to bring a full line of newly
designed products to market. The Company launched the 4 to 5 ton
electric-rider truck in Europe in July 2012 and expects to launch the final
model in the electric-rider lift truck program - the 4 to 5 ton cushion tire
electric-rider truck - in the Americas in the first quarter of 2013. The
Company also expects to introduce a new European Reach Truck for the warehouse
industry in the fourth quarter of 2013.

In mid-2011, the Company introduced into certain Latin American markets a new
range of UTILEV^®_branded lift trucks, which meet the needs of lower-intensity
users. This new UTILEV^®-branded series of internal combustion engine utility
lift trucks was gradually introduced into global markets during 2012, and is
expected to continue to gain market position in 2013. The Company currently
offers only 1 to 3 ton internal combustion engine UTILEV^® lift truck models
and one model for both Hyster^® and Yale^® of the standard internal combustion
engine lift truck for medium-duty applications. In 2013, the Company expects
to begin expanding the UTILEV^® lift truck series. The Company also expects to
add more trucks to the standard model series in future years.

All of these new products are expected to improve revenues and enhance
operating margins, as well as help increase customer satisfaction. In
addition, stricter diesel emission regulations for new trucks began to go into
effect in 2011 and will be fully in effect by 2015 in certain global markets.
The Company has begun to launch and expects to continue to launch lift truck
series over this period that will meet these new emission requirements.

* * * * *

Conference Call
In conjunction with this news release, the management of Hyster-Yale Materials
Handling, Inc. will host a conference call on Wednesday, February 20, 2013 at
11:00 a.m. eastern time. The call may be accessed by dialing (888) 713-4211
(Toll Free) or (617) 213-4864 (International), Passcode: 97553929, or over the
Internet through Hyster-Yale's website at www.hyster-yale.com. Please allow
15 minutes to register, download and install any necessary audio software
required to listen to the broadcast. A replay of the call will be available
shortly after the end of the conference call through February 27, 2013. The
online archive of the broadcast will be available on the Hyster-Yale website.

Annual Report on Form 10-K
Hyster-Yale Materials Handling Inc.'s Annual Report on Form 10-K has been
filed with the Securities and Exchange Commission. This document may be
obtained free of charge by directing such requests to Hyster-Yale Materials
Handling, Inc., 5875 Landerbrook Drive, Cleveland, Ohio 44124, Attention:
Investor Relations, by calling (440) 229-5168, or from Hyster-Yale Materials
Handling's website at www.hyster-yale.com.

Other Measures
For purposes of this earnings release, discussions about net income refer to
net income attributable to stockholders.

Forward-looking Statements Disclaimer
The statements contained in this news release that are not historical facts
are "forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. These forward-looking statements are made subject to certain risks and
uncertainties, which could cause actual results to differ materially from
those presented. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. The
Company undertakes no obligation to publicly revise these forward-looking
statements to reflect events or circumstances that arise after the date
hereof. Among the factors that could cause plans, actions and results to
differ materially from current expectations are, without limitation: (1)
reduction in demand for lift trucks and related aftermarket parts and service
on a global basis, (2) the ability of dealers, suppliers and end-users to
obtain financing at reasonable rates, or at all, as a result of current
economic and market conditions, (3) customer acceptance of pricing, (4) delays
in delivery or increases in costs, including transportation costs, of raw
materials or sourced products and labor or changes in or unavailability of
quality suppliers, (5) exchange rate fluctuations, changes in foreign import
tariffs and monetary policies and other changes in the regulatory climate in
the foreign countries in which the Company operates and/or sells products, (6)
delays in manufacturing and delivery schedules, (7) bankruptcy of or loss of
major dealers, retail customers or suppliers, (8) customer acceptance of,
changes in the costs of, or delays in the development of new products, (9)
introduction of new products by, or more favorable product pricing offered by,
competitors, (10) product liability or other litigation, warranty claims or
returns of products, (11) the effectiveness of the cost reduction programs
implemented globally, including the successful implementation of procurement
and sourcing initiatives and (12) changes mandated by federal, state and other
regulation, including health, safety or environmental legislation.

About Hyster-Yale Materials Handling, Inc.
Hyster-Yale Materials Handling, Inc., headquartered in Cleveland, Ohio,
through its wholly-owned operating subsidiary, NACCO Materials Handling Group,
Inc., designs, engineers, manufactures, sells and services a comprehensive
line of lift trucks and aftermarket parts marketed globally primarily under
the Hyster^® and Yale^® brand names. For more information about Hyster-Yale
Materials Handling, Inc. or NACCO Materials Handling Group, Inc., visit the
Company's website at www.hyster-yale.com.

* * * * *

HYSTER-YALE MATERIALS HANDLING, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
                                    Three Months Ended  Twelve Months Ended
                                    December 31         December 31
                                    2012      2011      2012        2011
                                    (In millions, except per share data)
Revenues                            $ 652.0   $ 677.4   $ 2,469.1   $ 2,540.8
Cost of sales                       544.7     576.6     2,065.9     2,157.3
Gross profit                        107.3     100.8     403.2       383.5
Selling, general and administrative 78.5      72.8      291.6       273.3
expenses
Loss on sale of assets              —         —         0.1         0.2
Restructuring reversal              (0.2)     —         (0.2)       —
Operating profit                    29.0      28.0      111.7       110.0
Other (income) expense
 Interest expense               2.7       3.9       12.4        15.8
 Income from other              (0.8)     (3.2)     (5.6)       (6.0)
unconsolidated affiliates
 Other                          (0.5)     (0.4)     (0.2)       (1.3)
Income before income taxes          27.6      27.7      105.1       101.5
Income tax provision (benefit)      (4.9)     4.0       7.0         18.9
Net income                          32.5      23.7      98.1        82.6
Net income attributable to          (0.1)     (0.1)     (0.1)       —
noncontrolling interest
Net income attributable to          $ 32.4    $ 23.6    $ 98.0      $ 82.6
stockholders
Basic earnings per share            $ 1.93    $ 1.41    $ 5.84      $ 4.93
Diluted earnings per share          $ 1.93    $ 1.40    $ 5.83      $ 4.91
Basic weighted average shares       16.767    16.782    16.768      16.767
outstanding
Diluted weighted average shares     16.800    16.822    16.800      16.815
outstanding



EBITDA RECONCILIATION


                    Three Months Ended              Twelve Months Ended
                    December 31                     December 31
                    2012               2011         2012           2011
                    (In millions)
Net income
attributable to     $    32.4          $  23.6      $   98.0       $  82.6
stockholders
Noncontrolling      0.1                0.1          0.1            —
interest income
Income tax          (4.9)              4.0          7.0            18.9
provision (benefit)
Interest expense    2.7                3.9          12.4           15.8
Interest income     (0.3)              (0.3)        (1.5)          (1.8)
Depreciation and
amortization        7.5                7.7          28.0           31.3
expense
EBITDA*             $    37.5          $  39.0      $   144.0      $  146.8
*EBITDA in this press release is provided solely as a supplemental disclosure
with respect to operating results. EBITDA does not represent net income, as
defined by U.S. GAAP and should not be considered as a substitute for net
income or net loss, or as an indicator of operating performance. The Company
defines EBITDA as income before income taxes and non-controlling interest
income plus net interest expense and depreciation and amortization expense.
EBITDA is not a measurement under U.S. GAAP and is not necessarily comparable
with similarly titled measures of other companies.



HYSTER-YALE MATERIALS HANDLING, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
                                    Three Months Ended  Twelve Months Ended
                                    December 31         December 31
                                    2012      2011      2012        2011
                                    (In millions)
Revenues
 Americas                         $ 410.6   $ 422.1   $ 1,563.7   $ 1,573.4
 Europe                           176.3     202.5     677.9       751.7
 Asia-Pacific                     65.1      52.8      227.5       215.7
 Total                         $ 652.0   $ 677.4   $ 2,469.1   $ 2,540.8
Operating profit
 Americas                         $ 22.2    $ 21.1    $ 75.6      $ 86.0
 Europe                           5.9       6.5       31.6        21.9
 Asia-Pacific                     0.9       0.4       4.5         2.1
 Total                         $ 29.0    $ 28.0    $ 111.7     $ 110.0
Net income attributable to
stockholders
 Americas                         $ 25.9    $ 15.4    $ 62.8      $ 57.3
 Europe                           5.4       6.1       29.7        20.5
 Asia-Pacific                     1.1       2.1       5.5         4.8
 Total                         $ 32.4    $ 23.6    $ 98.0      $ 82.6



CAPITAL STRUCTURE
                                          Twelve Months Ended
                                          December 31
                                          2012       2011
                                          (In millions)
Net cash provided by operating activities $  128.7   $ 54.6
Net cash used for investing activities    (19.5)     (15.9)
 Cash Flow Before Financing Activities $  109.2   $ 38.7
                                          December 31
                                          2012       2011
                                          (In millions)
Cash                                      $  151.3   $ 184.9
Debt                                      142.2      $ 226.0
 Net Debt                              $  (9.1)   $ 41.1

SOURCE Hyster-Yale Materials Handling, Inc.

Website: http://www.hyster-yale.com
Contact: Christina Kmetko, +1-440-229-5168
 
Press spacebar to pause and continue. Press esc to stop.