Hyster-Yale Materials Handling, Inc. Announces Fourth Quarter And Full Year 2013 Results

 Hyster-Yale Materials Handling, Inc. Announces Fourth Quarter And Full Year
                                 2013 Results

PR Newswire

CLEVELAND, Feb. 19, 2014

CLEVELAND, Feb. 19, 2014 /PRNewswire/ --

Highlights:

  oFourth quarter operating profit increases 20.7% on revenue increase of
    10.1%
  oFull year operating profit increases 20.2% on revenue increase of 8.0%

Hyster-Yale Materials Handling, Inc. (NYSE: HY) today announced revenues of
$717.9 million and net income of $25.7 million, or $1.53 per diluted share,
for the fourth quarter of 2013 compared with revenues of $652.0 million and
net income of $32.4 million, or $1.93 per diluted share, for the fourth
quarter of 2012. Operating profit increased to $35.0 million for the fourth
quarter of 2013 from $29.0 million in 2012. The 2012 fourth quarter net
income included a tax benefit of $10.0 million, or $0.59 per share, primarily
for the release of previously recorded valuation allowances related to the
Company's U.S. state and Australian deferred tax assets.

Revenues were $2.7 billion for the year ended December 31,2013 and net income
was $110.0 million, or $6.54 per diluted share, compared with revenues of $2.5
billion and net income of $98.0 million, or $5.83 per diluted share, for the
year ended December 31, 2012. Operating profit increased to $134.3 million
for the full year 2013 from $111.7 million in 2012. Operating margin
increased to 5.0% from 4.5%. Full-year 2013 net income included a tax benefit
of $12.8 million, or $0.76 per diluted share, due to the second quarter 2013
release of certain portions of previously recorded income tax valuation
allowances related to the Company's United Kingdom operations. The full year
effect of the 2012 valuation allowance releases was $10.7 million, or $0.64
per share.

Lift truck shipments in 2013 increased 11 percent to approximately 85,500
units from approximately 76,900 units in 2012.

EBITDA for the fourth quarter of 2013 and the year ended December 31, 2013 was
$41.2 million and $164.8 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 2013 full year, the Company's cash flow before financing activities
was $126.8 million, which was comprised of net cash provided by operating
activities of $152.9 million less net cash used for investing activities of
$26.1 million. 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. The Company's cash position was $175.7
million as of December 31, 2013, up from $151.3 million as of December 31,
2012. Debt as of December 31, 2013 decreased to $69.5 million from $142.2
million as of December 31, 2012. In December 2013, the Company entered into a
new revolving credit agreement. Concurrently with the new financing, the
Company repaid the remaining $86.9 million outstanding under its term loan.

Since the inception of a stock repurchase program in December 2012, which
permits the repurchase of up to $50 million of the Company's outstanding Class
A common stock, Hyster-Yale has purchased approximately 103,600 shares for an
aggregate purchase price of $5.2 million, including $3.0 million purchased
during 2013. The Company did not repurchase any shares during the fourth
quarter of 2013.

Discussion of Fourth Quarter Results

Revenues increased in the fourth quarter of 2013 compared with the fourth
quarter of 2012 primarily as a result of increases in unit volumes, mainly in
the Americas and Europe. An increase in fleet services and parts volumes in
the Americas, as well as higher unit prices in all markets, but principally in
the Americas, also favorably affected revenues. Price increases in the
Americas were implemented in Brazil during 2013 mainly to offset the impact of
weakness in the Brazilian real. A shift in sales to lower-priced products
primarily in the Americas partially offset the improvement in revenues.
Unfavorable currency movements from the further weakening of the Brazilian
real and Australian dollar against the U.S. dollar were fully offset by the
strengthening of the euro against the U.S. dollar.

In the fourth quarter of 2013, worldwide new unit shipments were approximately
22,700 units compared with shipments of approximately 20,100 units in the
fourth quarter of 2012 and shipments of approximately 21,200 units in the
third quarter of 2013. Worldwide backlog was approximately 28,200 units at
December 31, 2013 compared with approximately 27,300 units at December 31,
2012 and approximately 28,400 units at September30, 2013. Excluding China,
the Company gained market share in 2013 in all major global regions. In
China, the Company's share of the foreign brand market, the portion of that
market segment where the Company is effectively competing, also increased in
2013 compared with 2012.

In the fourth quarter of 2013, operating profit increased but net income
declined compared with the fourth quarter of 2012 primarily due to the absence
of a $10.0 million valuation allowance release taken in the fourth quarter of
2012 and the 2013 fourth-quarter write-off of $2.8 million pre-tax of deferred
financing fees as a result of the full repayment of the Company's term loan.
Operating profit for the fourth quarter of 2013 improved mainly due to an
increase in unit and parts volumes, the favorable effect of price increases
and production efficiencies driven by higher volumes, all mainly in the
Americas and Europe. These improvements were partially offset by higher
selling, general and administrative expenses. Selling, general and
administrative expenses increased primarily due to higher marketing expenses
in the Americas and Europe to support the Company's five strategic initiatives
and higher incentive compensation expenses in the fourth quarter of 2013
compared with the fourth quarter of 2012, including a $3.2 million pre-tax
increase in the non-cash equity component in the 2013 fourth quarter compared
with the 2012 fourth quarter.

Outlook

The global market for forklift trucks is expected to grow slightly in all
major global regions in 2014 compared with 2013. As a result of this market
growth, combined withexpected increases in market share and a strong ending
backlog in 2013, the Company anticipates an overall increase in unit shipments
and parts volumes in 2014 compared with 2013. The majority of this increase
is expected to come from the Americas, with smaller increases in the
Asia-Pacific and European unit shipments.

The Company expects material costs in 2014 to increase slightly compared with
2013, particularly during the second half of the year. Although commodity
costs appear to have stabilized, these markets, particularly steel, remain
volatile and sensitive to changes in the global economy. The Company will
continue to monitor economic conditions, currency movements and the resulting
effects on costs and pricing, and will take appropriate pricing actions, if
necessary.

While sales are expected to increase moderately in 2014 compared with 2013,
the Company expects to generate an increase in operating profit, excluding the
anticipated gain on the sale of the Company's current Brazil plant, in excess
of the rate of sales increase, with a decrease in the first half of 2014
compared with 2013 that is expected to be more than offset by improvements in
the second half of 2014 compared with 2013. The favorable effect of
anticipated increased unit volumes resulting from the Company's strategic
initiatives, increased parts volumes and product enhancements are all expected
to contribute to this improvement. In addition, a lower estimate for equity
incentive compensation that is in part driven by changes in the market price
of the Company's stock, which increased 91% during 2013, is also expected to
contribute to the improved operating profit. These favorable items are
expected to be partially offset by the full year impact of marketing and
employee costs associated with the strategic initiatives that were put in
place over the course of 2013 and by unfavorable foreign currency movements in
the Americas and Asia-Pacific. After excluding the gain from the sale of the
Company's Brazilian plant in 2014 and after excluding the $12.8 million
valuation allowance release taken in 2013, net income in 2014 is expected to
improve moderately compared with 2013. The effect of improved operating profit
as well as lower interest expense due to lower debt outstanding and to lower
interest rates under its new revolving credit agreement are expected to be
partially offset by a higher expected effective income tax rate. The higher
effective income tax rate in 2014 is expected to result primarily from the
effect of higher U.S. state, United Kingdom and Australian income taxes as a
result of the 2012 and 2013 valuation allowance releases, combined with an
anticipated increase in income in the Americas operations, which have a higher
tax rate.

Full year 2014 operating profit results, excluding the anticipated gain on
sale of the Brazil plant, are expected to improve in the Americas segment,
which includes the North America, Latin America and Brazil markets, with
anticipated increases in unit and parts margins partially offset by an
expected strong euro and slight material cost increases. Operating profit in
the Europe segment, which includes the Middle East and Africa markets, is
expected to increase in 2014 compared with 2013 due to volume increases and
the anticipated benefits of the current strength of the euro, but these
improvements are expected to be partially offset by the full year effect of
increased marketing and employee costs implemented during 2013. Asia-Pacific
results for 2014 are expected to be lower largely due to the weakness of the
Australian dollar despite the favorable effect of increased volume.

Cash flow before financing activities for 2014 is expected to decrease from
2013 primarily due to an increase in capital expenditures, largely driven
bythe construction of a new plant in Brazil. These capital expenditures will
be partially offset by the final cash payment which is expected to be received
in mid-2014 when the sale of the current facility is expected to be finalized.

The Company remains focused on gaining market share over time, as well as on
improving margins in its internal combustion engine business, through the
execution of its five strategic initiatives: (1) understanding customer needs
at the product and aftermarket levels in order to create and provide a full
range of differentiated 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) 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, (4) 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, 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.

To meet the specific application needs of its customers, the Company is
focusing on developing utility, standard and premium products. To this
end,development programs are underway for its electric-rider, warehouse,
internal combustion engine (ICE) and big truck product lines. The Company is
in the process of launching a new mast for the 2 to 3 ton electric and ICE
counterbalanced trucks. The changes to the mast are focused on improving
visibility, performance and robustness on these trucks which in turn is
expected to lead to lower cost of operations. In addition, in October 2013,
the Company introduced a new Reach Truck, predominantly for the European
warehouse market. This productentered production in January 2014. The
Company also introduced two new Big Truck models in the fourth quarter of 2013
to better serve specialized Big Truck market segments.

In 2014, the Companyis instituting a new model year update program for annual
improvements of key performance and capability features of each of its
existing lift truck model platforms. This new program is expected to keep
these platforms soundly positioned in the market over time. The first model
year updates are expected to occur in April 2014 on the 1 to 3 ton and 4 to 9
ton ICE counterbalanced lift trucks. The 1 to 3 ton platform will receive a
new premium spark ignited engine with improved robustness and durability and
is expected to lower the customer's cost of ownership through improved fuel
economy and service intervals. The 4 to 9 ton platform will have features
optimized to handle the increasingly demanding needs of key industry
segments. Further, new platforms are expected to be developed and launched
over the next few years based on longer-term segment needs or technological
change opportunities.

In mid-2011, the Company introduced into certain Latin American markets a
UTILEV^®_branded 1 to 3.5 ton ICE pneumatic tire lift truck model to meet the
needs of lower-intensity users. This UTILEV^®-branded utility lift truck was
gradually introduced into global markets during 2012. During the third
quarter of 2013, the Company expanded the UTILEV^®-branded series of lift
trucks by introducing a 1 to 3 ton ICE cushion tire truck in North America and
a 3-wheel electric rider truck globally. The UTILEV^®-branded series of lift
trucks is expected to continue to gain market position in 2014. The Company
offers one model of the standard ICE lift truck for medium-duty applications
in both pneumatic and cushion tires for both Hyster^® and Yale^®. The Company
expects to launch additional trucks in the standard ICE model series in future
years.

All of these new products and upgraded products are expected to help increase
market share, to improve revenues and to enhance operating margins. 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 launched 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, February 20, 2014 at
11:00 a.m. eastern time. The call may be accessed by dialing (888) 713-4215
(Toll Free) or (617) 213-4867 (International), Passcode: 72084207, 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, 2014. 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, (12) changes mandated by federal, state and other
regulation, including health, safety or environmental legislation, (13)
delays in or increased costs associated with the Brazil plant construction,
and (14) delays in or cancellation of the sale of the existing Brazil facility
and land.

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
                                    2013      2012      2013        2012
                                    (In millions, except per share data)
Revenues                            $ 717.9   $ 652.0   $ 2,666.3   $ 2,469.1
Cost of sales                       592.0     544.7     2,205.3     2,065.9
Gross profit                        125.9     107.3     461.0       403.2
Selling, general and administrative 90.9      78.3      326.7       291.5
expenses
Operating profit                    35.0      29.0      134.3       111.7
Other (income) expense
 Interest expense               1.8       2.7       9.0         12.4
 Income from unconsolidated     (1.4)     (0.8)     (3.9)       (5.6)
affiliates
 Loss on debt extinguishment    2.8       —         2.8         —
 Other, net                     (0.2)     (0.5)     (1.0)       (0.2)
Income before income taxes          32.0      27.6      127.4       105.1
Income tax provision (benefit)      6.2       (4.9)     17.2        7.0
Net income                          25.8      32.5      110.2       98.1
Net income attributable to          (0.1)     (0.1)     (0.2)       (0.1)
noncontrolling interest
Net income attributable to          $ 25.7    $ 32.4    $ 110.0     $ 98.0
stockholders
Basic earnings per share            $ 1.54    $ 1.93    $ 6.58      $ 5.84
Diluted earnings per share          $ 1.53    $ 1.93    $ 6.54      $ 5.83
Basic weighted average shares       16.714    16.767    16.725      16.768
outstanding
Diluted weighted average shares     16.851    16.800    16.808      16.800
outstanding



EBITDA RECONCILIATION
                    Three Months Ended              Twelve Months Ended
                    December 31                     December 31
                    2013               2012         2013           2012
                    (In millions)
Net income
attributable to     $    25.7          $  32.4      $   110.0      $  98.0
stockholders
Noncontrolling      0.1                0.1          0.2            0.1
interest income
Income tax          6.2                (4.9)        17.2           7.0
provision (benefit)
Interest expense    1.8                2.7          9.0            12.4
Interest income     (0.4)              (0.3)        (1.8)          (1.5)
Depreciation and
amortization        7.8                7.5          30.2           28.0
expense
EBITDA*             $    41.2          $  37.5      $   164.8      $  144.0
*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
                                    2013      2012      2013        2012
                                    (In millions)
Revenues
 Americas                         $ 462.0   $ 410.6   $ 1,762.3   $ 1,563.7
 Europe                           202.5     176.3     695.4       677.9
 Asia-Pacific                     53.4      65.1      208.6       227.5
 Total                       $ 717.9   $ 652.0   $ 2,666.3   $ 2,469.1
Operating profit
 Americas                         $ 26.7    $ 22.2    $ 107.8     $ 75.6
 Europe                           8.9       5.9       23.8        31.6
 Asia-Pacific                     (0.6)     0.9       2.7         4.5
 Total                       $ 35.0    $ 29.0    $ 134.3     $ 111.7
Net income attributable to
stockholders
 Americas                         $ 18.2    $ 25.9    $ 72.6      $ 62.8
 Europe                           7.3       5.4       33.8        29.7
 Asia-Pacific                     0.2       1.1       3.6         5.5
 Total                       $ 25.7    $ 32.4    $ 110.0     $ 98.0



CAPITAL STRUCTURE
                                          Twelve Months Ended
                                          December 31
                                          2013        2012
                                          (In millions)
Net cash provided by operating activities $ 152.9     $ 128.7
Net cash used for investing activities    (26.1)      (19.5)
 Cash Flow Before Financing Activities $ 126.8     $ 109.2
                                          December 31
                                          2013        2012
                                          (In millions)
Cash                                      $ 175.7     $ 151.3
Debt                                      69.5        142.2
 Net Debt                              $ (106.2)   $ (9.1)



SOURCE Hyster-Yale Materials Handling, Inc.

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