Hyster-Yale Materials Handling, Inc. Announces First Quarter 2013 Results

  Hyster-Yale Materials Handling, Inc. Announces First Quarter 2013 Results

Highlights:

-- First quarter operating profit increases 7.7% on revenue increase of 2.4%

-- Net income rises to $24.6 million, up 16%

PR Newswire

CLEVELAND, May 1, 2013

CLEVELAND, May 1, 2013 /PRNewswire/ -- Hyster-Yale Materials Handling, Inc.
(NYSE: HY) today announced net income of $24.6 million, or $1.47 per diluted
share, on revenues of $644.9 million for the first quarter of 2013 compared
with net income of $21.2 million, or $1.26 per diluted share, on revenues of
$629.5 million for the first quarter of 2012.Operating profit increased to
$32.1 million for the first quarter of 2013 from $29.8 million in
2012.Operating profit margins increased to 5.0% from 4.7%.

EBITDA for the first quarter of 2013 and the trailing twelve months ended
March 31, 2013, was $40.4 million and $147.2 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 5.

The Company's cash position was $131.1 million as of March 31, 2013. Debt as
of March 31, 2013 decreased to $138.8 million from $142.2 million as of
December 31, 2012.

Discussion of First Quarter Results

Revenues increased in the first quarter of 2013 compared with the first
quarter of 2012 primarily as a result of an increase in unit volumes, the
favorable effect of unit price increases implemented in 2012, primarily in the
Americas, and an increase in parts sales. An increase in shipments in the
Americas and Asia-Pacific was partially offset by fewer shipments in Europe.
Unfavorable foreign currency movements mainly attributable to a weakening of
the Brazilian real against the U.S. dollar partially offset the increase in
revenues.

In the first quarter of 2013, worldwide new unit shipments were 20,756 units
compared with shipments of 20,079 units in the first quarter of 2012 and
20,065 units in thefourth quarter of 2012. Worldwide backlog was
approximately 27,500 units at March 31, 2013 compared with approximately
22,300 units at March 31, 2012 and approximately 27,300 units at December 31,
2012.

The improvement in net income was driven primarily by improved gross margins
as a result of the favorable effect of price increases, mainly in the
Americas, and an increase in sales of higher-margin products in all geographic
areas. These improvements were partially offset by higher employee-related
expenses in the first quarter of 2013, primarily due to increased headcount in
marketing and engineering to support the Company's five strategic initiatives
and higher incentive compensation estimates. A lower income tax rate mainly
attributable to changes in certain U.S. and foreign tax laws and lower
interest expense on reduced debt levels also contributed to the increase in
net income.

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 growth in Brazil and Latin America, and moderate growth in
Asia-Pacific, 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 flat material costs for the 2013 full year, with
decreases generally expected during the first half of the year and small
increases in the second half. Price increases already implemented are
expected to offset the impact of net material cost changes projected through
year end. Although commodity costs continued to stabilize in the first three
months of 2013, 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 operating profit in 2013 to be comparable to 2012, with
improved operating profit in the first half and fourth quarter of 2013
compared with the prior year somewhat offset by lower operating profits in the
third quarter of 2013. 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 offset the 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 and an expected higher effective
income tax rate for the 2013 full year, primarily because the Company will
record the effect of U.S. state and Australian income taxes in 2013 and future
years and income is expected to shift from Europe to the Americas.

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 be significant but decline compared with 2012, as the Company
anticipates an increase in capital expenditures in 2013 largely due to
building a new plant and the related additional information technology
enhancements in Brazil.

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
aimed at 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 final model in the
electric-rider lift truck program, the 4 to 5 ton cushion tire electric-rider
truck, in the Americas during the first quarter of 2013. The Company also
expects to introduce a new Reach Truck for the European warehouse industry in
the fourth quarter of 2014.

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 to expand 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 market share. 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 Thursday, May 2, 2013 at 11:00
a.m. eastern time. The call may be accessed by dialing (888) 680-0869 (Toll
Free) or (617) 213-4854 (International), Passcode: 11511404, 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 May 9, 2013. The online
archive of the broadcast will be available on the Hyster-Yale website.

Other Measures

For purposes of this earnings release, discussions about net income (loss)
refer to net income (loss) 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.
UNAUDITED FINANCIAL HIGHLIGHTS
                                          Three Months Ended
                                          March 31
                                          2013                  2012
                                          (In millions, except per share data)
Revenues                                  $    644.9            $   629.5
Cost of sales                             535.7                 530.5
Gross profit                              109.2                 99.0
Selling, general and administrative       77.1                  69.2
expenses
Operating profit                          32.1                  29.8
Other (income) expense
 Interest expense                     2.5                   3.8
 Income from unconsolidated           (0.9)                 (1.0)
affiliates
Other                                (0.2)                 0.1
Income before income taxes                30.7                  26.9
Income tax provision                      6.1                   5.7
Net income attributable to stockholders   $    24.6             $   21.2
Basic earnings per share                  $    1.47             $   1.27
Diluted earnings per share                $    1.47             $   1.26
Basic weighted average shares outstanding 16.747                16.758
Diluted weighted average shares           16.780                16.788
outstanding

EBITDA RECONCILIATION
                  Quarter Ended
                                                                     3/31/13
                  6/30/2012      9/30/2012    12/31/2012  3/31/2013  Trailing
                                                                     12 Months
                  (In millions)
Net income
attributable to   $   19.5       $   24.9     $  32.4     $  24.6    $  101.4
stockholders
Noncontrolling    —              —            0.1         —          0.1
interest income
Income tax        2.0            4.2          (4.9)       6.1        7.4
provision
Interest expense  3.4            2.5          2.7         2.5        11.1
Interest income   (0.3)          (0.5)        (0.3)       (0.3)      (1.4)
Depreciation and
amortization      6.9            6.7          7.5         7.5        28.6
expense
EBITDA*           $   31.5       $   37.8     $  37.5     $  40.4    $  147.2
(All amounts are subject to annual audit by our independent registered public
accounting firm.)
*EBITDA in this press release is provided solely as a supplemental disclosure.
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. Hyster-Yale 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.
UNAUDITED FINANCIAL HIGHLIGHTS
                                        Three Months Ended
                                        March 31
                                        2013      2012
                                        (In millions)
Revenues
 Americas                            $ 418.5   $ 395.3
 Europe                              174.6     181.9
 Asia-Pacific                        51.8      52.3
Total                            $ 644.9   $ 629.5
Operating profit
 Americas                           $ 24.7    $ 19.1
Europe                             5.7       9.6
 Asia-Pacific                       1.7       1.1
Total                            $ 32.1    $ 29.8
Net income attributable to stockholders
 Americas                           $ 18.9    $ 10.9
Europe                             4.0       8.9
 Asia-Pacific                       1.7       1.4
 Total                            $ 24.6    $ 21.2





CASH FLOW AND CAPITAL STRUCTURE
                                 Three Months Ended
                                 March 31
                                 2013                         2012
                                 (In millions)
Net cash provided by operating   $       0.4                  $    19.1
activities
Net cash used for investing      (9.0)                        (1.6)
activities
 Cash Flow Before Financing   $       (8.6)                $    17.5
Activities
                                 March 31, 2013
Cash                             $       131.1
Debt                             138.8
 Net Debt                     $       7.7
(All amounts are subject to annual audit by our independent registered public
accounting firm.)



SOURCE Hyster-Yale Materials Handling, Inc.

Website: http://www.hyster-yale.com
Contact: Christina Kmetko, (440) 229-5168
 
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