Material-handling manufacturer Hyster-Yale increased second-quarter shipments to the Americas as product backlogs eased.
Shipments grew 31.7% year over year in Q2, landing at 18,300 units, according to the company’s earnings release. The company posted total shipments of 27,700 units in Q2, up 9.5% YoY, “principally due to Americas supply chain improvements, partially offset by production shortfalls in our EMEA factories,” President and Chief Executive Rajiv Prasad said during the company’s Wednesday earnings call.
Improving supply chain conditions in the Americas facilitated a 14% quarter-over-quarter production increase, which was reflected in shipment figures, Prasad said. However, component and labor shortages persist, he said.
“While the environment has improved, many of our factories still experience production complications due to ongoing skilled labor shortages and shortages of critical components,” he said.
Hyster-Yale bookings down 8% YoY
Bookings for Hyster-Yale vehicles clocked in at 21,300 units for Q2, down 4.5% QoQ and 8.2% YoY, according to the release. The average sale price per unit booked decreased 2.6% YoY, landing at $31,924 per unit, as the company seeks higher-margin orders.
“A healthy but declining global market and our continued focus on booking orders with solid margins contributed to the drop,” Prasad said. “While our bookings decreased, we increased market share in the second quarter compared to the prior year as our strategic programs gained traction.”
Hyster-Yale backlogs for Q2 declined to 92,800 units, down 6.5% QoQ and 17.1% YoY, according to the release. The average sales price per unit in the backlog increased 23% YoY to $38,901.
Despite the decline in backlogged units, the company’s backlog remains above optimal levels, Prasad said.
“We’re projecting our unit backlog and lead times to trend toward normal levels over time as our production rates increase and booking levels moderate,” he said. “However, both are likely to remain above preferred levels for some time.”
HYG Financial Services dividends dip
HYG Financial Services (HYGFS) is a joint venture between Hyster-Yale and Wells Fargo Financial Leasing, which provides financial services to independent Hyster-Yale dealers and customers in the United States, according to the company’s 10-Q filing. Hyster-Yale owns 20% of the joint venture but does not possess a controlling interest.
Loans from Wells Fargo to HYGFS totaled $1.2 billion at the end of Hyster-Yale’s second quarter on June 30, according to the 10-Q. HYGFS dividends paid to Hyster-Yale declined 29.5% YoY, landing at $10.5 million.
The company’s incremental obligation to Wells Fargo, excluding the HYGFS receivables guaranteed from HYGFS’ loans, is $221.2 million, which is secured by 20% of HYGFS’ customer receivables and other secured assets of $288.9 million, according to the 10-Q.
Shares of Hyster-Yale Materials Handling Inc. [Nasdaq: HY] were trading at $48.61 at market close, down $0.74 or 1.55% from market open. Hyster-Yale has a market capitalization of $834.85 million.
