SECURITIES AND EXCHANGE COMMISSION

For the transition period from to

Commission file number 000-54799

5875 LANDERBROOK DRIVE, SUITE 300 ~~CLEVELAND, OHIO~~

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, $0.01 Par Value Per Share	HY	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ~~YES~~þ NOoYes☑ No☐

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files).~~YES~~ þ NO o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filerþ

☐

Accelerated filero

☑

Non-accelerated filero

☐

Smaller reporting companyo

☐

Emerging growth companyo

~~(Do not check if a smaller reporting company)~~

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES o☐NO þ☑

Number of shares of Class A Common Stock outstanding at ~~October 27, 2017:~~ ~~12,561,017~~July 28, 2023: 13,395,287

Number of shares of Class B Common Stock outstanding at ~~October 27, 2017:~~ ~~3,901,303~~July 28, 2023: 3,781,994

HYSTER-YALE MATERIALS HANDLING, INC.

FINANCIAL INFORMATION

Item 1. Financial Statements

HYSTER-YALE MATERIALS HANDLING, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS


	JUNE 30 2023		DECEMBER 31 2022
	(In millions, except share data)
ASSETS
Current Assets
Cash and cash equivalents	$	65.7	$	59.0
Accounts receivable, net	582.1		523.6
Inventories, net	820.1		799.5
Prepaid expenses and other	84.4		76.6
Total Current Assets	1,552.3		1,458.7
Property, Plant and Equipment, Net	300.0		310.0
Intangible Assets, Net	41.3		42.7
Goodwill	52.2		51.3
Deferred Income Taxes	2.9		2.6
Investments in Unconsolidated Affiliates	52.0		59.4
Other Non-current Assets	109.2		101.5
Total Assets	$	2,109.9	$	2,026.2
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	576.9	$	585.8
Accounts payable, affiliates	16.3		21.6
Revolving credit facilities	133.9		137.1
Short-term debt and current maturities of long-term debt	156.2		148.8
Accrued payroll	58.9		64.4

Deferred revenue	120.3		139.8
Other current liabilities	308.8		245.4
Total Current Liabilities	1,371.3		1,342.9
Long-term Debt	252.2		267.0
Self-insurance Liabilities	34.8		33.5
Pension Obligations	6.0		6.2
Deferred Income Taxes	12.2		13.4
Other Long-term Liabilities	127.2		138.1
Total Liabilities	1,803.7		1,801.1
Temporary Equity
Redeemable Noncontrolling Interest	13.9		14.2
Stockholders' Equity
Common stock:
Class A, par value $0.01 per share, 13,387,306 shares outstanding (2022 - 13,154,918 shares outstanding)	0.1		0.1
Class B, par value $0.01 per share, convertible into Class A on a one-for-one basis, 3,782,295 shares outstanding (2022 - 3,783,597 shares outstanding)	0.1		0.1
Capital in excess of par value	309.3		297.7

Treasury stock	(0.1)		—
Retained earnings	206.5		152.7
Accumulated other comprehensive loss	(225.4)		(246.2)
Total Stockholders' Equity	290.5		204.4
Noncontrolling Interests	1.8		6.5
Total Permanent Equity	292.3		210.9
Total Liabilities and Equity	$	2,109.9	$	2,026.2

SEPTEMBER 30
2017 DECEMBER 31
2016
(In millions, except share data)
ASSETS

Current Assets

Cash and cash equivalents $ 238.2
$ 43.2
Accounts receivable, net 403.0
375.3
Inventories, net 419.9
352.2
Prepaid expenses and other 41.6
39.3
Total Current Assets 1,102.7
810.0
Property, Plant and Equipment, Net 256.6
255.1
Intangible Assets, Net 57.7
56.2
Goodwill 57.4
50.7
Deferred Income Taxes 35.1
43.9
Investment in Unconsolidated Affiliates 59.0
45.9
Other Non-current Assets 38.2
25.3
Total Assets $ 1,606.7
$ 1,287.1
LIABILITIES AND EQUITY

Current Liabilities

Accounts payable $ 384.3
$ 242.4
Accounts payable, affiliates 16.1
16.5
Revolving credit facilities 4.9
79.0
Current maturities of long-term debt 65.0
50.0
Accrued payroll 44.2
43.7
Accrued warranty obligations 28.9
27.8
Other current liabilities 128.2
117.1
Total Current Liabilities 671.6
576.5
Long-term Debt 224.2
82.2
Self-insurance Liabilities 30.8
19.7
Pension Obligations 24.5
37.2
Deferred Income Taxes 12.6
11.4
Other Long-term Liabilities 85.3
89.7
Total Liabilities 1,049.0
816.7
Stockholders' Equity

Common stock:

Class A, par value $0.01 per share, 12,548,549 shares outstanding (2016 - 12,466,463 shares outstanding) 0.1
0.1
Class B, par value $0.01 per share, convertible into Class A on a one-for-one basis, 3,909,765 shares outstanding (2016 - 3,924,291 shares outstanding) 0.1
0.1
Capital in excess of par value 320.1
319.6
Treasury stock (31.8 ) (36.9 )
Retained earnings 396.5
360.3
Accumulated other comprehensive loss (134.6 ) (179.4 )
Total Stockholders' Equity 550.4
463.8
Noncontrolling Interests 7.3
6.6
Total Equity 557.7
470.4
Total Liabilities and Equity $ 1,606.7
$ 1,287.1

See notes to unaudited condensed consolidated financial statements.

HYSTER-YALE MATERIALS HANDLING, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


	THREE MONTHS ENDED				SIX MONTHS ENDED
	JUNE 30				JUNE 30
	2023		2022		2023		2022
	(In millions, except per share data)
Revenues	$	1,090.6	$	895.4	$	2,089.9	$	1,723.0
Cost of sales	892.7		796.3		1,717.6		1,522.7
Gross Profit	197.9		99.1		372.3		200.3
Operating Expenses
Selling, general and administrative expenses	139.1		114.8		270.9		234.3

Operating Profit (Loss)	58.8		(15.7)		101.4		(34.0)
Other (income) expense
Interest expense	8.4		6.1		18.6		11.2
Income from unconsolidated affiliates	(3.1)		(4.1)		(4.9)		(7.0)
Other, net	2.7		4.1		1.0		4.9
	8.0		6.1		14.7		9.1
Income (Loss) Before Income Taxes	50.8		(21.8)		86.7		(43.1)
Income tax expense (benefit)	12.0		(3.1)		20.7		(0.2)
Net Income (Loss)	38.8		(18.7)		66.0		(42.9)
Net income attributable to noncontrolling interests	—		(0.7)		(0.2)		(1.5)
Net income attributable to redeemable noncontrolling interests	(0.2)		—		(0.4)		—
Accrued dividend to redeemable noncontrolling interests	(0.3)		—		(0.5)		—
Net Income (Loss) Attributable to Stockholders	$	38.3	$	(19.4)	$	64.9	$	(44.4)

Basic Earnings (Loss) per Share	$	2.23	$	(1.15)	$	3.80	$	(2.63)
Diluted Earnings (Loss) per Share	$	2.21	$	(1.15)	$	3.76	$	(2.63)

Dividends per Share	$	0.3250	$	0.3225	$	0.6475	$	0.6450

Basic Weighted Average Shares Outstanding	17.164		16.907		17.099		16.875
Diluted Weighted Average Shares Outstanding	17.307		16.907		17.265		16.875

THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2017 2016 2017 2016
(In millions, except per share data)
Revenues $ 691.1
$ 629.3
$ 2,089.7
$ 1,879.1
Cost of sales 569.7
524.7
1,720.5
1,562.6
Gross Profit 121.4
104.6
369.2
316.5
Operating Expenses
Selling, general and administrative expenses 103.5
99.2
309.6
290.0
Operating Profit 17.9
5.4
59.6
26.5
Other (income) expense

Interest expense 6.2
1.9
10.6
5.0
Income from unconsolidated affiliates (2.0 ) (1.8 ) (6.0 ) (4.8 )
Other (2.2 ) (1.6 ) (3.5 ) (1.3 )
2.0
(1.5 ) 1.1
(1.1 )
Income Before Income Taxes 15.9
6.9

58.5
27.6
Income tax provision (benefit) (0.8 ) (5.1 ) 7.3
(2.6 )
Net Income 16.7
12.0
51.2
30.2
Net (income) loss attributable to noncontrolling interests (0.2 ) 0.3
(0.2 ) 0.4
Net Income Attributable to Stockholders $ 16.5
$ 12.3
$ 51.0
$ 30.6

Basic Earnings per Share $ 1.00
$ 0.75

$ 3.10
$ 1.87
Diluted Earnings per Share $ 1.00
$ 0.75
$ 3.09
$ 1.86

Dividends per Share $ 0.3025
$ 0.2950
$ 0.9000
$ 0.8750

Basic Weighted Average Shares Outstanding 16.457
16.385
16.442
16.371
Diluted Weighted Average Shares Outstanding 16.526
16.439
16.502
16.420

See notes to unaudited condensed consolidated financial statements.

HYSTER-YALE MATERIALS HANDLING, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)


	THREE MONTHS ENDED				SIX MONTHS ENDED
	JUNE 30				JUNE 30
	2023		2022		2023		2022
	(In millions)
Net Income (Loss)	$	38.8	$	(18.7)	$	66.0	$	(42.9)
Other comprehensive income (loss)
Foreign currency translation adjustment	(6.0)		(40.3)		5.6		(44.9)
Current period cash flow hedging activity	(2.9)		(45.9)		(1.5)		(47.7)
Reclassification of hedging activities into earnings	4.4		5.7		15.3		7.4

Reclassification of pension into earnings	0.8		1.2		1.4		2.4
Comprehensive Income (Loss)	$	35.1	$	(98.0)	$	86.8	$	(125.7)

Net income attributable to noncontrolling interests	—		(0.7)		(0.2)		(1.5)
Net income attributable to redeemable noncontrolling interests	(0.2)		—		(0.4)		—
Accrued dividend to redeemable noncontrolling interests	(0.3)		—		(0.5)		—
Foreign currency translation adjustment attributable to noncontrolling interests	0.3		1.5		0.1		1.5
Comprehensive Income (Loss) Attributable to Stockholders	$	34.9	$	(97.2)	$	85.8	$	(125.7)

THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2017 2016 2017 2016
(In millions)
Net Income $ 16.7
$ 12.0
$ 51.2
$ 30.2
Other comprehensive income (loss)
Foreign currency translation adjustment 10.0
3.7
30.5
18.3
Unrealized gain on available-for-sale securities 1.4
—
2.8
—
Current period cash flow hedging activity —
(0.6 ) 7.0
4.9
Reclassification of hedging activities into earnings 0.6
0.4
1.3
0.2
Current period pension adjustment 1.1
—
1.1
—
Reclassification of pension into earnings 0.7
0.5
2.1
1.5
Comprehensive Income $ 30.5
$ 16.0
$ 96.0
$ 55.1
Other comprehensive (income) loss attributable to noncontrolling interests
Net (income) loss attributable to noncontrolling interests (0.2 ) 0.3
(0.2 ) 0.4
Foreign currency translation adjustment attributable to noncontrolling interests (0.1 ) 0.9
(0.5 ) 1.9
Comprehensive Income Attributable to Stockholders $ 30.2
$ 17.2
$ 95.3
$ 57.4

See notes to unaudited condensed consolidated financial statements.

HYSTER-YALE MATERIALS HANDLING, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


	SIX MONTHS ENDED
	JUNE 30
	2023		2022
	(In millions)
Operating Activities
Net income (loss)	$	66.0	$	(42.9)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	22.5		22.1
Amortization of deferred financing fees	0.7		0.6
Deferred income taxes	(1.2)		(1.7)



Stock-based compensation	10.8		2.6
Dividends from unconsolidated affiliates	10.5		15.6
Other non-current liabilities	(3.8)		(5.0)
Other	11.2		(5.0)
Working capital changes:
Accounts receivable	(55.4)		(100.4)
Inventories	(19.8)		(32.5)
Other current assets	(7.3)		(7.1)
Accounts payable	(15.5)		45.2
Other current liabilities	26.1		108.7
Net cash provided by operating activities	44.8		0.2
Investing Activities
Expenditures for property, plant and equipment	(10.6)		(15.3)
Proceeds from the sale of assets	0.8		0.8
Proceeds from the sale of business	1.1		—

Purchase of noncontrolling interest	(3.2)		(8.4)

Net cash used for investing activities	(11.9)		(22.9)
Financing Activities
Additions to debt	66.6		75.9
Reductions of debt	(79.0)		(35.8)
Net change to revolving credit agreements	(3.4)		4.5
Cash dividends paid	(11.1)		(10.9)
Cash dividends paid to noncontrolling interest	(1.3)		(0.2)
Financing fees paid	(0.6)		—
Purchase of treasury stock	(0.1)		—

Net cash provided by (used for) financing activities	(28.9)		33.5
Effect of exchange rate changes on cash	2.7		(0.7)
Cash and Cash Equivalents
Increase for the period	6.7		10.1
Balance at the beginning of the period	59.0		65.5
Balance at the end of the period	$	65.7	$	75.6

NINE MONTHS ENDED
SEPTEMBER 30
2017 2016
(In millions)
Operating Activities
Net income $ 51.2
$ 30.2
Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization 31.7
28.7
Amortization of deferred financing fees 1.0
0.8
Deferred income taxes (5.1 ) (0.3 )
Stock-based compensation 5.6
4.0
Dividends from unconsolidated affiliates 2.8
5.1
Other non-current liabilities (12.9 ) (6.0 )
Other 3.1
(9.1 )
Working capital changes, excluding the effect of business acquisitions:

Accounts receivable (0.8 ) 17.3
Inventories (52.7 ) (29.2 )
Other current assets 1.7
—
Accounts payable 124.3
18.3
Other current liabilities 7.4
(36.9 )
Net cash provided by operating activities 157.3
22.9

Investing Activities
Expenditures for property, plant and equipment (25.1 ) (28.3 )
Proceeds from the sale of assets 1.1
9.5
Investments in equity securities (5.6 ) —
Business acquisitions, net of cash acquired (1.0 ) (107.7 )
Net cash used for investing activities (30.6 )
(126.5 )

Financing Activities
Additions to long-term debt 246.2
24.8
Reductions of long-term debt (50.7 ) (40.1 )
Net change to revolving credit agreements (112.6 ) 59.4
Cash dividends paid (14.8 ) (14.3 )
Cash dividends paid to noncontrolling interest (0.3 ) (0.2 )
Financing fees paid (4.8 ) (1.6 )
Other (0.1 ) —
Net cash provided by financing activities 62.9
28.0

Effect of exchange rate changes on cash 5.4
5.3

Cash and Cash Equivalents

Increase (decrease) for the period 195.0
(70.3 )
Balance at the beginning of the period 43.2
155.1
Balance at the end of the period $ 238.2
$ 84.8

See notes to unaudited condensed consolidated financial statements.

HYSTER-YALE MATERIALS HANDLING, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN TEMPORARY AND PERMANENT EQUITY


	Temporary Equity		Permanent Equity
													Accumulated Other Comprehensive Income (Loss)
	Redeemable Noncontrolling Interest		Class A Common Stock		Class B Common Stock		Treasury Stock		Capital in Excess of Par Value		Retained Earnings		Foreign Currency Translation Adjustment			Deferred Gain (Loss) on Cash Flow Hedging			Pension Adjustment			Total Stockholders' Equity			Noncontrolling Interests			Total Permanent Equity
			(In millions)
Balance, March 31, 2022	$	—	$	0.1	$	0.1	$	—	$	312.3	$	218.2		$	(102.3)		$	(32.1)		$	(71.4)		$	324.9		$	26.6		$	351.5

Stock-based compensation	—		—		—		—		0.9		—			—			—			—			0.9			—			0.9
Stock issued under stock compensation plans	—		—		—		—		0.1		—			—			—			—			0.1			—			0.1

Net income (loss)	—		—		—		—		—		(19.4)			—			—			—			(19.4)			0.7			(18.7)
Cash dividends	—		—		—		—		—		(5.5)			—			—			—			(5.5)			(0.2)			(5.7)
Current period other comprehensive loss	—		—		—		—		—		—			(40.3)			(45.9)			—			(86.2)			—			(86.2)
Reclassification adjustment to net income (loss)	—		—		—		—		—		—			—			5.7			1.2			6.9			—			6.9
Purchase of noncontrolling interest	—		—		—		—		(12.8)		—			—			—			—			(12.8)			(11.1)			(23.9)
Reclassification from permanent equity to temporary equity	15.9		—		—		—		(9.3)		—			—			—			—			(9.3)			(6.6)			(15.9)
Foreign currency translation on noncontrolling interest	—		—		—		—		—		—			—			—			—			—			(1.5)			(1.5)
Balance, June 30, 2022	$	15.9	$	0.1	$	0.1	$	—	$	291.2	$	193.3		$	(142.6)		$	(72.3)		$	(70.2)		$	199.6		$	7.9		$	207.5

Balance, March 31, 2023	$	14.7	$	0.1	$	0.1	$	(0.1)	$	303.4	$	173.7		$	(125.4)		$	(25.4)		$	(70.9)		$	255.5		$	2.1		$	257.6

Stock-based compensation	—		—		—		—		5.9		—			—			—			—			5.9			—			5.9


Net income	0.2		—		—		—		—		38.3			—			—			—			38.3			—			38.3
Cash dividends	(0.9)		—		—		—		—		(5.5)			—			—			—			(5.5)			(0.4)			(5.9)
Accrued dividends	0.3		—		—		—		—		—			—			—			—			—			—			—
Current period other comprehensive income	—		—		—		—		—		—			(6.0)			(2.9)			—			(8.9)			—			(8.9)
Reclassification adjustment to net income	—		—		—		—		—		—			—			4.4			0.8			5.2			—			5.2




Foreign currency translation on noncontrolling interest	(0.4)		—		—		—		—		—			—			—			—			—			0.1			0.1
Balance, June 30, 2023	$	13.9	$	0.1	$	0.1	$	(0.1)	$	309.3	$	206.5		$	(131.4)		$	(23.9)		$	(70.1)		$	290.5		$	1.8		$	292.3

Accumulated Other Comprehensive Income (Loss)
Class A Common Stock Class B Common Stock Treasury Stock Capital in Excess of Par Value Retained Earnings Foreign Currency Translation Adjustment Deferred Gain on AFS Securities Deferred Gain (Loss) on Cash Flow Hedging Pension Adjustment Total Stockholders' Equity Noncontrolling Interests Total Equity
(In millions)
Balance, January 1, 2016 $ 0.1
$ 0.1
$ (42.5 ) $ 320.3
$ 336.7
$ (90.1 ) $ —
$ (4.0 ) $ (59.8 ) $ 460.8
$ 1.9
$ 462.7
Stock-based compensation —
—
—
4.0
—
—
—
—
—
4.0
—
4.0
Stock issued under stock compensation plans —
—
5.3
(5.3 ) —
—
—
—
—
—
—
—
Net income (loss) —
—
—
—
30.6
—
—
—
—
30.6
(0.4 ) 30.2
Cash dividends on common stock —
—
—
—
(14.3 ) —
—
—
—
(14.3 ) —
(14.3 )
Current period other comprehensive income —
—
—
—
—
18.3
—
4.9
—
23.2
—
23.2
Reclassification adjustment to net income —
—
—
—
—
—
—
0.2
1.5
1.7
—
1.7
Acquisition of Bolzoni —
—
—
—
—
—
—
—
—
—
69.8
69.8
Purchase of noncontrolling interest —
—
—
—
—
—
—
—
—
—
(62.2 ) (62.2 )
Cash dividends paid to noncontrolling interest —
—
—
—
—
—
—
—
—
—
(0.2 ) (0.2 )
Foreign currency translation on noncontrolling interest —
—
—
—
—
—
—
—
—
—
(1.9 ) (1.9 )
Balance, September 30, 2016 $ 0.1
$ 0.1
$ (37.2 ) $ 319.0
$ 353.0
$ (71.8 ) $ —
$ 1.1
$ (58.3 ) $ 506.0
$ 7.0
$ 513.0

Balance, January 1, 2017 $ 0.1
$ 0.1
$ (36.9 ) $ 319.6
$ 360.3
$ (92.0 ) $ —
$ (12.2 ) $ (75.2 ) $ 463.8
$ 6.6
$ 470.4
Stock-based compensation —
—
—
5.6
—
—
—
—
—
5.6
—
5.6
Stock issued under stock compensation plans —
—
5.1
(5.1 ) —
—
—
—
—
—
—
—
Net income (loss) —
—
—
—
51.0
—
—
—
—
51.0
0.2
51.2
Cash dividends on common stock —
—
—
—
(14.8 ) —
—
—
—
(14.8 ) —
(14.8 )
Current period other comprehensive income —
—
—
—
—
30.5
2.8
7.0
1.1
41.4
—
41.4
Reclassification adjustment to net income —
—
—
—
—
—
—
1.3
2.1
3.4
—
3.4
Acquisition of business —
—
—
—
—
—
—
—
—
—
0.3
0.3
Cash dividends paid to noncontrolling interest —
—
—
—
—
—
—
—
—
(0.3 ) (0.3 )
Foreign currency translation on noncontrolling interest —
—
—
—
—
—
—
—
—
—
0.5
0.5
Balance, September 30, 2017 $ 0.1
$ 0.1
$ (31.8 ) $ 320.1
$ 396.5

$ (61.5 ) $ 2.8
$ (3.9 ) $ (72.0 ) $ 550.4
$ 7.3
$ 557.7

See notes to unaudited condensed consolidated financial statements.

HYSTER-YALE MATERIALS HANDLING, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN TEMPORARY AND PERMANENT EQUITY


	Temporary Equity		Permanent Equity
													Accumulated Other Comprehensive Income (Loss)
	Redeemable Noncontrolling Interest		Class A Common Stock		Class B Common Stock		Treasury Stock		Capital in Excess of Par Value		Retained Earnings		Foreign Currency Translation Adjustment			Deferred Gain (Loss) on Cash Flow Hedging			Pension Adjustment			Total Stockholders' Equity			Noncontrolling Interests			Total Permanent Equity
			(In millions)
Balance, December 31, 2021	$	—	$	0.1	$	0.1	$	(4.5)	$	315.1	$	248.6		$	(97.7)		$	(32.0)		$	(72.6)		$	357.1		$	25.8		$	382.9

Stock-based compensation	—		—		—		—		2.6		—			—			—			—			2.6			—			2.6
Stock issued under stock compensation plans	—		—		—		4.5		(4.4)		—			—			—			—			0.1			—			0.1

Net income (loss)	—		—		—		—		—		(44.4)			—			—			—			(44.4)			1.5			(42.9)
Cash dividends	—		—		—		—		—		(10.9)			—			—			—			(10.9)			(0.2)			(11.1)
Current period other comprehensive loss	—		—		—		—		—		—			(44.9)			(47.7)			—			(92.6)			—			(92.6)
Reclassification adjustment to net income (loss)	—		—		—		—		—		—			—			7.4			2.4			9.8			—			9.8
Purchase of noncontrolling interest	—		—		—		—		(12.8)		—			—			—			—			(12.8)			(11.1)			(23.9)
Reclassification from permanent equity to temporary equity	15.9		—		—		—		(9.3)		—			—			—			—			(9.3)			(6.6)			(15.9)
Foreign currency translation on noncontrolling interest	—		—		—		—		—		—			—			—			—			—			(1.5)			(1.5)
Balance, June 30, 2022	$	15.9	$	0.1	$	0.1	$	—	$	291.2	$	193.3		$	(142.6)		$	(72.3)		$	(70.2)		$	199.6		$	7.9		$	207.5

Balance, December 31, 2022	$	14.2	$	0.1	$	0.1	$	—	$	297.7	$	152.7		$	(137.0)		$	(37.7)		$	(71.5)		$	204.4		$	6.5		$	210.9

Stock-based compensation	—		—		—		—		10.8		—			—			—			—			10.8			—			10.8

Purchase of treasury stock	—		—		—		(0.1)		—		—			—			—			—			(0.1)			—			(0.1)
Net income	0.4		—		—		—		—		64.9			—			—			—			64.9			0.2			65.1
Cash dividends	(0.9)		—		—		—		—		(11.1)			—			—			—			(11.1)			(0.4)			(11.5)
Accrued dividends	0.5		—		—		—		—		—			—			—			—			—			—			—
Current period other comprehensive income	—		—		—		—		—		—			5.6			(1.5)			—			4.1			—			4.1
Reclassification adjustment to net income	—		—		—		—		—		—			—			15.3			1.4			16.7			—			16.7

Purchase of noncontrolling interest	—		—		—		—		0.8		—			—			—			—			0.8			(4.0)			(3.2)
Sale of noncontrolling interest	—		—		—		—		—		—			—			—			—			—			(0.7)			(0.7)

Foreign currency translation on noncontrolling interest	(0.3)		—		—		—		—		—			—			—			—			—			0.2			0.2
Balance, June 30, 2023	$	13.9	$	0.1	$	0.1	$	(0.1)	$	309.3	$	206.5		$	(131.4)		$	(23.9)		$	(70.1)		$	290.5		$	1.8		$	292.3

See notes to unaudited condensed consolidated financial statements.

HYSTER-YALE MATERIALS HANDLING, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~SEPTEMBER 30, 2017~~

(Tabular Amounts in Millions, Except Per Share and Percentage Data)

Note 1—Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Hyster-Yale Materials Handling, Inc., a Delaware corporation, and the accounts of Hyster-Yale's wholly owned domestic and international subsidiaries and majority-owned joint ventures (collectively, "Hyster-Yale" or the "Company"). All intercompany accounts and transactions among the consolidated companies are eliminated in consolidation.

The Company, through its wholly owned operating subsidiary, Hyster-Yale Group, Inc. ("HYG"), designs, engineers, manufactures, sells and services a comprehensive line of lift trucks, attachments and aftermarket parts marketed globally primarily under the Hyster^®and Yale^® brand names, mainly to independent Hyster^® and Yale^® retail dealerships. Lift trucks and component parts are manufactured in the United States, China, Northern Ireland, Mexico, ~~Italy,~~ the Netherlands, ~~Vietnam, Japan,~~Brazil, the Philippines, ~~Brazil~~Italy, Japan and ~~China.~~Vietnam.

The Company ~~also~~ operates Bolzoni S.p.A. ("Bolzoni"). Bolzoni is a leading worldwide producer and distributor of attachments, forks and lift tables marketed under the Bolzoni®, Auramo^® and Meyer^® brand names. Bolzoni also produces components for lift truck manufacturers. Bolzoni products are manufactured in the United States, Italy, China, Germany ~~Finland~~ and ~~the United States.~~Finland. Through the design, production and distribution of a wide range of attachments, Bolzoni has a strong presence in the market niche of ~~lift-truck~~lift truck attachments and industrial material handling.

The Company ~~also~~ operates Nuvera Fuel Cells, LLC ("Nuvera"). Nuvera is an alternative-power technology company focused on ~~fuel-cell~~the design, manufacture and sale of hydrogen fuel cell stacks and engines. ~~Nuvera also supports on-site hydrogen production and dispensing systems that are designed to deliver clean energy solutions to customers.~~

Investments in Sumitomo NACCO Forklift Co., Ltd. (“SN”), a 50%-owned joint venture, and HYG Financial Services, Inc. ("HYGFS"), a 20%-owned joint venture, are accounted for by the equity method. SN operates manufacturing facilities in Japan, the Philippines and Vietnam from which the Company purchases certain components, service parts and lift trucks. Sumitomo Heavy Industries, Ltd. ("Sumitomo") owns the remaining 50% interest in SN. Each stockholder of SN is entitled to appoint directors representing 50% of the vote of SN’s board of directors. All matters related to policies and programs of operation, manufacturing and sales activities require mutual agreement between the Company and Sumitomo prior to a vote of SN’s board of directors. HYGFS is a joint venture with Wells Fargo Financial Leasing, Inc. (“WF”), formed primarily for the purpose of providing financial services to independent Hyster^® and Yale^® lift truck dealers and National Account customers in the United States. National Account customers are large customers with centralized purchasing and geographically dispersed operations in multiple dealer territories. The Company’s percentage share of the net income or loss from these equity investments is reported on the line “Income from unconsolidated affiliates” in the “Other (income) expense” ~~portion~~section of the unaudited condensed consolidated statements of operations.

These financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by ~~U.S. generally accepted accounting principles~~GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position of the Company as of ~~September~~June 30, ~~2017~~2023 and the results of its operations and changes in equity for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2023 and ~~2016~~2022, and the results of its cash flows ~~and changes in equity~~ for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2023 and ~~2016~~2022 have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, ~~2016~~.2022.

The accompanying unaudited condensed consolidated balance sheet at December 31, ~~2016~~2022 has been derived from the audited financial statements at that date but does not include all of the information or notes required by ~~U.S. generally accepted accounting principles~~GAAP for complete financial statements.

Note 2—Recently Issued Accounting Standards

~~The following table provides a brief description of~~In 2023, the Company did not adopt any recent accounting ~~pronouncements adopted January 1, 2017. The adoption of these standards did not have~~standard updates ("ASU") which had a material effect on the Company's financial position, results of operations, cash flows or related disclosures.



~~Standard~~		~~Description~~
~~ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory~~		The guidance requires inventory to be measured at the lower of cost or net realizable value. The guidance defines net realizable value as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation.
~~ASU No. 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships~~		The guidance clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship, provided that all other hedge accounting criteria continue to be met.
~~ASU No. 2016-07, Investments - Equity Method and Joint Ventures (Topic 323)~~		The guidance eliminates the requirement that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. In addition, the guidance requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting.
~~ASU No. 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting~~		The guidance simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows.

The following table provides a brief description of ~~recent accounting pronouncements~~ASUs not yet adopted:

Standard

Description

Required Date of Adoption

Effect on the financial statements or other significant matters

ASU ~~No. 2014-09, Revenue from Contracts with Customers~~2020-04 and ASU 2022-06, Reference Rate Reform (Topic ~~606) (Subsequent ASUs have been issued in 2015, 2016 and 2017 to update or clarify this guidance)~~

The new guidance is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract.

~~January 1, 2018~~

The Company's evaluation process of the new standard includes, but is not limited to, identifying contracts and revenue streams within the scope of the guidance, reviewing and documenting the accounting and identifying and determining the accounting for any related contract costs. The Company continues to document this evaluation and has begun to implement processes and controls for certain revenue streams as warranted by the guidance. The Company's evaluation of revenue streams and contracts at Bolzoni will continue in the fourth quarter of 2017. The Company plans to adopt the standard for the first quarter of 2018 using the modified retrospective approach and expects to record a cumulative adjustment to equity for open contracts as of January 1, 2018. At this time, the Company does not expect the impact of the standard on its financial statements, business processes and internal controls over financial reporting to be material. In addition, the standard requires new disclosures which the Company continues to evaluate, and which will first be required in the Company's March 31, 2018 Quarterly Report on Form 10-Q.

848)

The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met.

From the date of issuance through December 31, 2024

~~Standard~~

~~Description~~

~~Required Date of Adoption~~

~~Effect on the financial statements or other significant matters~~

~~ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities~~

The guidance requires equity investments previously accounted for under the cost method of accounting to be measured at fair value and recognized in net income. In addition, the guidance defines measurement and presentation of financial instruments.

~~January 1, 2018~~

The Company anticipates the adoption will increase the volatility of other (income) expense as a result of applying the guidance. The Company expects to record a cumulative adjustment to equity for deferred gains or losses related to an equity investment in a third-party as of January 1, 2018. Subsequent changes in the fair value of this investment will be recognized directly in earnings.

~~ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments~~

The guidance clarifies the classification of certain types of cash receipts and cash payments. In addition, the guidance provides for the application of the predominance principle when certain cash receipts and payments have aspects of more than one class of cash flows.

~~January 1, 2018~~

The Company does not expect ~~the adoption of~~ the guidance to have a material effect on its financial position, results of operations, cash flows orand related disclosures.

~~ASU No. 2016-16, Income Taxes (Topic 740)~~

The guidance allows for recognition of current and deferred income taxes for an intra-entity transfer of an asset other than inventory. The guidance allows for more accurate representation of the economics of an intra-entity asset transfer which will require income tax consequences of the transfer, including income taxes payable or paid.

~~January 1, 2018~~

~~The Company does not expect the adoption of the guidance to have a material effect on its financial position, results of operations, cash flows or related disclosures.~~

~~ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash~~

The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents.

~~January 1, 2018~~

~~The Company does not expect the adoption of the guidance to have a material effect on its financial position, results of operations, cash flows or related disclosures.~~

~~ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business~~

~~The guidance clarifies the definition of a business to assist entities in evaluating whether transactions should be accounted for as acquisitions or disposals of businesses.~~

~~January 1, 2018~~

~~The Company does not expect the adoption of the guidance to have a material effect on its financial position, results of operations, cash flows or related disclosures.~~

~~ASU 2017-05, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition~~

The guidance clarifies the scope and accounting of a financial asset that meets the definition of an "in-substance nonfinancial asset" and defines the term, "in-substance nonfinancial asset," in addition to partial sales of nonfinancial assets.

~~January 1, 2018~~

~~The Company does not expect the adoption of the guidance to have a material effect on its financial position, results of operations, cash flows or related disclosures.~~

~~ASU 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement~~

The guidance requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations.

~~January 1, 2018~~

The Company expects to present the components of net benefit cost, other than service cost, in other (income) expense for its U.S. and non-U.S. pension plans as of January 1, 2018. Service cost for the Company's U.S. and non-U.S. pension plans will continue to be reported in operating profit.

Revenue is recognized when obligations under the terms of a contract with the customer are satisfied, which occurs when control of the trucks, parts or services are transferred to the customer. Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing services. The satisfaction of performance obligations under the terms of a revenue contract generally gives rise for the right to payment from the customer. The Company's standard payment terms vary by the type and location of the customer and the products or services offered. Generally, the time between when revenue is recognized and when payment is due is not significant. Given the insignificant days between revenue recognition and receipt of payment, financing components do not exist between the Company and its customers. Taxes collected from customers are excluded from revenue. The estimated costs of product warranties are recognized as expense when the products are sold. See Note 11 for further information on product warranties.

The majority of the Company's sales contracts contain performance obligations satisfied at a point in time when title and risks and rewards of ownership have transferred to the customer. Revenues for service contracts are recognized as the services are provided.

The Company also records variable consideration in the form of estimated reductions to revenues for customer programs and incentive offerings, including special pricing agreements, promotions and other volume-based incentives. Lift truck sales revenue is recorded net of estimated discounts. The estimated discount amount is based upon historical experience and trend analysis for each lift truck model. In addition to standard discounts, dealers can also request additional discounts that allow them to offer price concessions to customers. From time to time, the Company offers special incentives to increase market share or dealer stock and offers certain customers volume rebates if a specified cumulative level of purchases is obtained.

For contracts with customers that include multiple performance obligations, judgment is required to determine whether performance obligations specified in these contracts are distinct and should be accounted for as separate revenue transactions for recognition purposes. For such arrangements, revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are generally determined based on the prices charged to customers or using expected cost plus margin. Impairment losses recognized on receivables or contract assets were not significant for the six months ended June 30, 2023 and 2022.

The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are reported on the line “Selling, general and administrative expenses” in the unaudited condensed consolidated statements of operations.

The Company pays for shipping and handling activities regardless of when control is transferred and has elected to account for shipping and handling as activities to fulfill the promise to transfer the good, rather than a promised service. These costs are reported on the line “Cost of sales” in the unaudited condensed consolidated statements of operations. The following table disaggregates revenue by category:


	THREE MONTHS ENDED
	JUNE 30, 2023
	Lift truck business
	Americas		EMEA		JAPIC		Bolzoni		Nuvera		Elims		Total
Dealer sales	$	412.8	$	165.5	$	41.2	$	—	$	—	$	—	$	619.5
Direct customer sales	176.1		2.0		—		—		—		—		178.1
Aftermarket sales	184.1		28.2		8.0		—		—		—		220.3
Other	15.5		4.9		0.4		96.6		1.0		(45.7)		72.7
Total Revenues	$	788.5	$	200.6	$	49.6	$	96.6	$	1.0	$	(45.7)	$	1,090.6


	THREE MONTHS ENDED
	JUNE 30, 2022
	Lift truck business
	Americas		EMEA		JAPIC		Bolzoni		Nuvera		Elims		Total
Dealer sales	$	301.6	$	150.6	$	56.1	$	—	$	—	$	—	$	508.3
Direct customer sales	119.9		3.3		—		—		—		—		123.2
Aftermarket sales	147.2		25.2		8.7		—		—		—		181.1
Other	27.9		5.7		0.1		86.4		0.3		(37.6)		82.8
Total Revenues	$	596.6	$	184.8	$	64.9	$	86.4	$	0.3	$	(37.6)	$	895.4

	SIX MONTHS ENDED
	JUNE 30, 2023
	Lift truck business
	Americas		EMEA		JAPIC		Bolzoni		Nuvera		Elims		Total
Dealer sales	$	776.9	$	342.6	$	82.0	$	—	$	—	$	—	$	1,201.5
Direct customer sales	298.6		4.5		—		—		—		—		303.1
Aftermarket sales	365.9		57.1		15.0		—		—		—		438.0
Other	33.0		11.3		0.5		195.2		2.6		(95.3)		147.3
Total Revenues	$	1,474.4	$	415.5	$	97.5	$	195.2	$	2.6	$	(95.3)	$	2,089.9


	SIX MONTHS ENDED
	JUNE 30, 2022
	Lift truck business
	Americas		EMEA		JAPIC		Bolzoni		Nuvera		Elims		Total
Dealer sales	$	591.5	$	281.2	$	102.8	$	—	$	—	$	—	$	975.5
Direct customer sales	219.4		9.4		—		—		—		—		228.8
Aftermarket sales	292.3		52.8		13.6		—		—		—		358.7
Other	51.1		11.1		0.2		181.5		0.9		(84.8)		160.0
Total Revenues	$	1,154.3	$	354.5	$	116.6	$	181.5	$	0.9	$	(84.8)	$	1,723.0

Dealer sales are recognized when the Company transfers control based on the shipping terms of the contract, which is generally when the truck is shipped from the manufacturing facility to the dealer. The majority of direct customer sales are to National Account customers. In these transactions, the Company transfers control and recognizes revenue when it delivers the product to the customer according to the terms of the contract. Aftermarket sales represent parts sales, extended warranty and maintenance services. For the sale of aftermarket parts, the Company transfers control and recognizes revenue when parts are shipped to the customer. When customers are given the right to return eligible parts and accessories, the Company estimates the expected returns based on an analysis of historical experience. The Company adjusts estimated revenues at the earlier of when the most likely amount of consideration expected to be received changes or when the consideration becomes fixed. The Company recognizes revenue for extended warranty and maintenance agreements based on the standalone selling price over the life of the contract, which reflects the costs to perform under these contracts and corresponds with, and thereby depicts, the transfer of control to the customer. Bolzoni revenue from external customers is primarily the sale of attachments to customers. In these transactions, the Company transfers control and recognizes revenue according to the shipping terms of the contract. In the United States, Bolzoni also has revenue for sales of lift truck components to the lift truck business. Nuvera's revenues include development funding from third-party development agreements and the sale of fuel cell stacks and engines to third parties and to the lift truck business. In all revenue transactions, the Company receives cash equal to the invoice price and amount of consideration received and the revenue recognized may vary with changes in marketing incentives. Intercompany revenues between Bolzoni, Nuvera and the lift truck business have been eliminated.

Deferred Revenue: The Company defers revenue for transactions that have not met the criteria for recognition at the time payment is collected, including extended warranties and maintenance contracts. In addition, for certain products, services and customer types, the Company collects payment prior to the transfer of control to the customer.



~~Standard~~				~~Description~~		~~Required Date of Adoption~~		~~Effect on the financial statements or other significant matters~~Deferred Revenue
~~ASU No. 2016-02, Leases (Topic 842)(Subsequent ASUs have been issued in 2017 to update or clarify this guidance)~~Balance, December 31, 2022	$	The guidance requires lessees (with the exception of short-term leases) to recognize, at the commencement date, a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.153.8		~~January 1, 2019~~		The Company's evaluation process of the new standard includes, but is not limited to, evaluating its current lease portfolio, identifying relevant contracts and attributes affected by the standard and determining the required accounting upon adoption. In addition, the Company expects to implement new processes and controls regarding asset financing transactions and financial reporting. The Company continues to evaluate its global leasing portfolio and has initiated training of relevant personnel. This evaluation will continue in the fourth quarter of 2017 and throughout 2018. While the Company's evaluation of the alternative methods of adoption and the effect on its financial position, results of operations, cash flows and related disclosures is ongoing; the Company anticipates the adoption will materially affect the consolidated balance sheets and will require changes to the Company's systems and processes.
~~ASU 2017-12, Derivatives~~Customer deposits and ~~Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities~~billings	14.3		The guidance makes targeted changes to the hedge accounting model intended to facilitate financial reporting that more closely reflects an entity’s risk management activities and to simplify the application of hedge accounting. Changes include expanding the types of risk management strategies eligible for hedge accounting, easing the documentation and effectiveness assessment requirements, changing how ineffectiveness is measured and changing the presentation and disclosure requirements for hedge accounting activities.		~~January 1, 2019~~		~~The Company is currently evaluating the adoption and the effect on its financial position, results of operations, cash flows and related disclosures.~~
~~ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326)~~Revenue recognized	(36.9)		The guidance eliminates the probable initial recognition threshold and requires an entity to reflect its current estimate of all expected credit losses. The guidance also requires additional disclosures in certain circumstances.		~~January 1, 2020~~		~~The Company is currently evaluating the alternative methods of adoption and the effect on its financial position, results of operations, cash flows and related disclosures.~~
~~ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment~~Foreign currency effect	0.2		~~The guidance removes the second step of the two-step test for the measurement of goodwill impairment. The guidance allows for early adoption for impairment testing dates after January 1, 2017.~~
Balance, June 30, 2023	$	~~January 1, 2020~~131.4		~~The Company is currently evaluating the timing of adoption and the effect on its current impairment testing process.~~

Note 3—4—Business Segments

The Company’s reportable segments for the lift truck business include the following three management units: the Americas, EMEA and JAPIC. Americas includes operations in the United States, Canada, Mexico, Brazil, Latin America and ~~its~~the corporate headquarters. EMEA includes operations in Europe, the Middle East and Africa. JAPIC includes operations in the Asia and Pacific regions, including China, as well as the equity earnings of SN operations. Certain amounts are allocated to these geographic management units and are included in the segment results presented below, including product development costs, corporate headquarter's expenses and certain information technology infrastructure costs. These allocations among geographic management units are determined by senior management and not directly incurred by the geographic operations. In addition, other costs are incurred directly by these geographic management units based upon the location of the manufacturing plant or sales units, including manufacturing variances, product liability, warranty and sales discounts, which may not be associated with the geographic management unit of the ultimate end user sales location where revenues and margins are reported. Therefore, the reported results of each segment for the lift truck business cannot be considered stand-alone entities as all segments are inter-related and integrate into a single global lift truck business.

The Company reports the results of both Bolzoni and Nuvera as separate segments. Intercompany sales between Nuvera, Bolzoni and the lift truck business have been eliminated. ~~Bolzoni was acquired on April 1, 2016 and its results~~

Operating profit is the measure of ~~operations have been included since the acquisition date.~~

segment profit or loss. Financial information for each reportable segment is presented in the following table:


	THREE MONTHS ENDED				SIX MONTHS ENDED
	JUNE 30				JUNE 30
	2023		2022		2023		2022
Revenues from external customers
Americas	$	788.5	$	596.6	$	1,474.4	$	1,154.3
EMEA	200.6		184.8		415.5		354.5
JAPIC	49.6		64.9		97.5		116.6
Lift truck business	1,038.7		846.3		1,987.4		1,625.4
Bolzoni	96.6		86.4		195.2		181.5
Nuvera	1.0		0.3		2.6		0.9
Eliminations	(45.7)		(37.6)		(95.3)		(84.8)
Total	$	1,090.6	$	895.4	$	2,089.9	$	1,723.0
Operating profit (loss)
Americas	$	65.2	$	3.1	$	112.7	$	7.5
EMEA	1.1		(10.8)		3.7		(22.2)
JAPIC	(3.8)		(4.0)		(6.1)		(7.7)
Lift truck business	62.5		(11.7)		110.3		(22.4)
Bolzoni	5.4		3.4		9.8		5.5
Nuvera	(9.2)		(7.9)		(19.0)		(16.0)
Eliminations	0.1		0.5		0.3		(1.1)
Total	$	58.8	$	(15.7)	$	101.4	$	(34.0)

THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2017 2016 2017 2016
Revenues from external customers
Americas $ 447.8
$ 410.7
$ 1,346.7

$ 1,241.9
EMEA 165.6
138.0
500.6

441.5
JAPIC 38.9
46.2
124.9

125.0
Lift truck business 652.3
594.9
1,972.2
1,808.4
Bolzoni 44.3
36.2
127.8

75.1
Nuvera 0.3
1.4
3.3

1.9
  Eliminations (5.8 ) (3.2 ) (13.6 )
(6.3 )
Total $ 691.1
$ 629.3
$ 2,089.7
$ 1,879.1
Gross profit (loss)

Americas $ 83.6
$ 72.8
$ 251.2
$ 217.8
EMEA 20.5
18.7
66.6
65.1
JAPIC 4.4
4.2
14.1
12.9
Lift truck business 108.5
95.7
331.9
295.8
Bolzoni 13.5

9.2
39.7

22.0
Nuvera (0.4 )
(0.3 ) (1.9 )
(1.3 )
     Eliminations (0.2 )
—
(0.5 )
—
Total $ 121.4
$ 104.6
$ 369.2
$ 316.5
Operating profit (loss)

Americas $ 27.8
$ 23.4
$ 85.5
$ 55.1
EMEA (1.1 ) (1.4 ) 3.3
4.2
JAPIC (2.6 ) (1.5 ) (5.5 ) (4.0 )
Lift truck business 24.1
20.5
83.3
55.3
Bolzoni 2.1

(2.5 ) 4.9

(1.8 )
Nuvera (8.1 )
(12.6 ) (28.1 )
(27.0 )
     Eliminations (0.2 )
—
(0.5 )
—
Total $ 17.9
$ 5.4
$ 59.6
$ 26.5
Net income (loss) attributable to stockholders

Americas $ 22.7
$ 20.2
$ 67.0
$ 43.2
EMEA (1.7 ) 1.9
1.6
6.4
JAPIC (1.3 ) (0.2 ) (2.8 ) (0.9 )
Lift truck business 19.7
21.9
65.8
48.7
Bolzoni 1.9
(2.0 ) 3.3
(1.9 )
Nuvera (4.9 ) (7.6 ) (16.9 ) (16.2 )
     Eliminations (0.2 ) —
(1.2 ) —
Total $ 16.5
$ 12.3
$ 51.0
$ 30.6

Table of Contents

Note 4—5—Income Taxes

The income tax provision includes U.S. federal, state and local, and foreign income taxes and is generally based on the application of a

forecasted annual income tax rate applied to the current quarter's year-to-date pre-tax income or loss. In determining the

estimated annual effective income tax rate, the Company analyzes various factors, including projections of the Company's

annual earnings or losses, taxing jurisdictions in which the earnings or losses will be generated, the impact of state and local income taxes, the

Company's ability to use tax credits and net operating loss carryforwards, ~~and~~carrybacks, capital loss carryforwards, and available tax planning alternatives. Discrete items, including the effect of changes in tax laws, tax rates and certain circumstances with respect to valuation allowances or the tax effect of other unusual or ~~non-recurring~~nonrecurring transactions or adjustments are reflected in

the period in which they occur as an addition to, or reduction from, the income tax provision, rather than included in the estimated annual effective ~~annual~~ income tax rate. Additionally, the Company's interim effective income tax rate is computed and applied without regard to pre-tax losses where such losses are not expected to generate a current-year tax ~~benefit, as reflected in the interim adjustment line in the table below.~~benefit.

A reconciliation of the ~~consolidated~~U.S. federal statutory rate to the reported income tax rate is as follows:


	THREE MONTHS ENDED						SIX MONTHS ENDED
	JUNE 30						JUNE 30
	2023			2022			2023			2022
Income (loss) before income taxes	$	50.8		$	(21.8)		$	86.7		$	(43.1)
Statutory taxes (21%)	$	10.7		$	(4.6)		$	18.2		$	(9.1)
Interim adjustment	—			0.9			(0.3)			(1.5)
Permanent adjustments:




Valuation allowance	0.9			5.0			0.5			15.9


Other	2.7			0.1			4.4			(0.2)









Discrete items	(2.3)			(4.5)			(2.1)			(5.3)
Income tax expense (benefit)	$	12.0		$	(3.1)		$	20.7		$	(0.2)
Reported income tax rate	23.6		%	14.2		%	23.9		%	0.5		%

THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2017 2016 2017 2016
Income before income taxes $ 15.9
$ 6.9
$ 58.5
$ 27.6
Statutory taxes at 35% $ 5.6
$ 2.4
$ 20.5
$ 9.7
Interim adjustment (0.1 ) —
0.2
—
Permanent adjustments:
Non-U.S. rate differences (1.9 ) (1.9 ) (6.7 ) (4.6 )
Equity interest earnings (0.4 ) (0.4 ) (1.8 ) (1.1 )
Valuation allowance 1.0
0.5
2.2
1.0
Federal tax credits (0.3 ) (0.6 ) (1.4 ) (1.1 )
State income taxes 0.3
(0.1 ) 0.8
0.1
Other (0.1 ) 0.1
0.2
0.3
$ (1.4 ) $ (2.4 ) $ (6.7 ) $ (5.4 )
Discrete items $ (4.9 ) $ (5.1 ) $ (6.7 ) $ (6.9 )
Income tax provision $ (0.8 ) $ (5.1 ) $ 7.3
$ (2.6 )
Reported income tax rate (5.0 )% (73.9 )% 12.5 % (9.4 )%

~~During the third quarter of 2017, the Company settled various federal obligations in Brazil through the utilization~~The Company's estimated annual effective income tax rate assumes that a significant portion of its ~~federal~~ net operating loss carryforwards will be utilized in 2023 along with the release of the associated valuation allowances. This release will be more than offset by the capitalization of research and development expenses under current U.S. tax rules for which a valuation allowance ~~was previously~~will be provided. ~~As a result~~The net of these items is included in the ~~utilization~~valuation allowance line in the table above.

During the first and second quarters of ~~deferred tax assets,~~2023, the Company ~~released~~recorded other permanent adjustments primarily relating to state income taxes and non-deductible compensation.

During the ~~associated valuation allowance previously provided~~second quarter of ~~$4.7 million.~~

~~In addition, during the first nine months of 2017,~~2023 and 2022, the Company recognized ~~a net~~ discrete tax ~~benefit~~benefits of ~~$4.4~~$2.3 million ~~from an internal sale of a subsidiary between consolidated companies~~and $4.5 million, respectively, mainly resulting in the repatriation of non-U.S. accumulated earnings taxed at higher rates, partially offset by a $1.6 million valuation allowance provided against deferred tax assets in China where the Company has determined that such deferred tax assets no longer meet the more likely than not standard for realization.

~~During the third quarter of 2016, the Company received a notice~~ from the ~~Italian Tax Authority approving~~expiration of the ~~transfer~~statute of ~~certain~~limitations for uncertain tax losses as part of an internal restructuring. As a result, the Company believed it is more likely than not that deferred tax assets for such losses of approximately $3.2 million will be realized in the foreseeable future and released the valuation allowance previously provided. In addition, the Company recognized a discrete tax benefit of $2.0 million,positions related to ~~provision-to-return items, primarily~~acquisitions. Of those amounts, an offsetting pre-tax indemnity receivable was recorded for ~~a U.S. tax benefit for manufacturing activities, adjustments for certain foreign earnings~~$2.1 million and ~~repatriations, and the research and development credit.~~

Other discrete items during the first nine months of 2016 include a discrete tax benefit of $4.0 million. As a result of the acquisition of Bolzoni, the Company changed its previous reinvestment assertion; consequently, all of the earnings of its European operations were considered permanently reinvested and the previously provided deferred tax liability was no longer required. In addition, the Company recognized a discrete tax expense of $1.6$3.8 million in the ~~first nine months~~second quarter of ~~2016 related to non-deductible acquisition expenses.~~2023 and 2022, respectively. The expense for the release of the indemnity receivable was recorded in pre-tax earnings on the line “Other, net” in the unaudited condensed consolidated statements of operations.

Table of Contents

Note 5—6—Reclassifications from OCI

The following table summarizes reclassifications out of ~~accumulated other comprehensive income (loss)~~Accumulated Other Comprehensive Income ("OCI") as recorded in the unaudited condensed consolidated statements of operations:


OCI Components	Amount Reclassified from OCI								Affected Line Item
	THREE MONTHS ENDED				SIX MONTHS ENDED
	JUNE 30				JUNE 30
	2023		2022		2023		2022
Gain (loss) on cash flow hedges:
Interest rate contracts	$	3.9	$	0.8	$	2.7	$	1.7	Interest expense

Foreign exchange contracts	(8.3)		(6.4)		(18.0)		(8.9)		Cost of sales
Total before tax	(4.4)		(5.6)		(15.3)		(7.2)		Income (loss) before income taxes
Tax (expense) benefit	—		(0.1)		—		(0.2)		Income tax expense (benefit)
Net of tax	$	(4.4)	$	(5.7)	$	(15.3)	$	(7.4)	Net income (loss)
Amortization of defined benefit pension items:
Actuarial loss	$	(0.7)	$	(1.2)	$	(1.4)	$	(2.4)	Other, net


Total before tax	(0.7)		(1.2)		(1.4)		(2.4)		Income (loss) before income taxes
Tax (expense) benefit	(0.1)		—		—		—		Income tax expense (benefit)
Net of tax	$	(0.8)	$	(1.2)	$	(1.4)	$	(2.4)	Net income (loss)
Total reclassifications for the period	$	(5.2)	$	(6.9)	$	(16.7)	$	(9.8)

Details about OCI Components Amount Reclassified from OCI Affected Line Item in the Statement Where Net Income Is Presented
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2017 2016 2017 2016
Gain (loss) on cash flow hedges:
Foreign exchange contracts $ (0.5 ) $ (0.9 ) $ (2.0 ) $ (1.8 ) Cost of sales
Total before tax (0.5 ) (0.9 ) (2.0 ) (1.8 ) Income before income taxes
Tax benefit (0.1 ) 0.5
0.7
1.6
Income tax provision (benefit)
Net of tax $ (0.6 ) $ (0.4 ) $ (1.3 ) $ (0.2 ) Net income
Amortization of defined benefit pension items:
Actuarial loss $ (1.1 ) $ (0.7 ) $ (3.3 ) $ (2.3 ) (a)
Prior service credit —
—
0.2
0.2
(a)
Total before tax (1.1 ) (0.7 ) (3.1 ) (2.1 ) Income before income taxes
Tax benefit 0.4
0.2
1.0
0.6
Income tax provision (benefit)
Net of tax $ (0.7 ) $ (0.5 ) $ (2.1 ) $ (1.5 ) Net income
Total reclassifications for the period $ (1.3 ) $ (0.9 ) $ (3.4 ) $ (1.7 )

~~(a) These OCI components are included in the computation of net pension cost (see~~ Note ~~7 for additional details).~~

~~Note 6—~~7—Financial Instruments and Derivative Financial Instruments

The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturities of these instruments. The fair values of revolving credit agreements and long-term debt, excluding ~~capital~~finance leases, were determined using current rates offered for similar obligations taking into account company credit risk. This valuation methodology is Level 2 as defined in the fair value hierarchy. At ~~September~~June 30, ~~2017~~,2023, the fair value and ~~book~~carrying value of revolving credit agreements and long-term debt, excluding ~~capital~~finance leases, was ~~$274.6~~$504.1 million and ~~$272.5~~$514.8 million, respectively. At December 31, ~~2016~~,2022, the fair value and ~~book~~carrying value of revolving credit agreements and long-term debt, excluding ~~capital~~finance leases, was ~~$184.5~~$486.4 million. and $490.3 million, respectively.

The Company uses forward foreign currency exchange contracts to partially reduce risks related to transactions denominated in foreign currencies. These contracts hedge firm commitments and forecasted transactions relating to cash flows associated with sales and purchases denominated in non-functional currencies. The Company offsets fair value amounts related to foreign currency exchange contracts executed with the same counterparty. Changes in the fair value of forward foreign currency exchange contracts that are effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI to the unaudited condensed consolidated statements of operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in cost of sales. ~~The ineffective portion of derivatives that are classified as hedges is immediately recognized in earnings and is also generally recognized in cost of sales.~~

The Company periodically enters into foreign currency exchange contracts that do not meet the criteria for hedge accounting. These derivatives are used to reduce the Company's exposure to foreign currency risk related to forecasted purchase or sales transactions or forecasted intercompany cash payments or settlements. Gains and losses on these derivatives are generally recognized in cost of sales.

The Company periodically enters into forward foreign currency contracts that are designated as net investment hedges of the Company's net investment in its foreign subsidiaries. For derivative instruments that are designated and qualified as a hedge of a net investment in foreign currency, the gain or loss is reported in ~~other comprehensive income~~OCI as part of the cumulative

translation adjustment to the extent it is effective. The Company utilizes the forward-rate method of assessing hedge effectiveness. ~~Any ineffective portion~~

During 2017, the Company entered into cross-currency swaps which hedge the variability of expected future cash flows that are attributable to foreign currency risk of certain intercompany loans. These agreements include initial and final exchanges of principal and associated interest payments from fixed euro denominated to fixed U.S.-denominated amounts. Changes in the fair value of cross-currency swaps that are effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI to the unaudited condensed consolidated statements of operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in other (income) expense and interest expense. The ineffective portion of derivatives that are classified as hedges is immediately recognized in earnings and is also generally recognized in other (income) expense.

The Company uses interest rate swap agreements to partially reduce risks related to floating rate financing agreements that are subject to changes in the market rate of interest. Terms of the interest rate swap agreements require the Company to receive a variable interest rate and pay a fixed interest rate. The Company's interest rate swap agreements and ~~its~~the associated variable rate financings are predominately based upon the ~~one or three-month LIBOR.~~one-month Secured Overnight Financing Rate ("SOFR"). Changes in the fair value of interest rate swap agreements that are effective as hedges are recorded in OCI. Deferred gains or losses are reclassified from OCI to the unaudited condensed consolidated statements of operations in the same period as the gains or losses from the underlying transactions are recorded and are generally recognized in interest expense. The ineffective portion of derivatives that are classified as hedges is immediately recognized in earnings and included on the line "Other" in the "Other (income) expense" section of the unaudited condensed consolidated statements of operations.

Cash flows from hedging activities are reported in the unaudited condensed consolidated statements of cash flows with the same classification as the hedged item, generally as a component of cash flows from operations.

The Company measures its derivatives at fair value on a recurring basis using significant observable inputs. This valuation methodology is Level 2 as defined in the fair value hierarchy. The Company uses a present value technique that incorporates yield curves and foreign currency spot rates to value its derivatives and also incorporates the effect of the Company's and its counterparties' credit risk into the valuation.

The Company does not currently hold any nonderivative instruments designated as hedges or any derivatives designated as fair value hedges.

Foreign Currency Derivatives: The Company held forward foreign currency exchange contracts with total notional amounts of ~~$850.7 million~~$0.9 billion at ~~September~~June 30, ~~2017,~~2023, primarily denominated in euros, Japanese yen, U.S. dollars, ~~Japanese yen,~~Chinese renminbi, Mexican pesos, Swedish kroner, British pounds ~~Swedish kroner~~ and ~~Mexican pesos.~~Australian dollars. The Company held forward foreign currency exchange contracts with total notional amounts of ~~$592.9 million~~$0.8 billion at December 31, ~~2016,~~2022, primarily denominated in euros, Japanese yen, U.S. dollars, ~~Japanese yen,~~Chinese renminbi, British pounds, Mexican pesos, Swedish kroner and ~~Mexican pesos.~~Australian dollars. The fair value of these contracts approximated a net liability of ~~$7.3~~$35.3 million and ~~$22.7~~$43.5 million at ~~September~~June 30, ~~2017~~2023 and December 31, ~~2016~~,2022, respectively.

Forward foreign currency exchange contracts that qualify for hedge accounting are generally used to hedge transactions expected to occur within the next 3624 months. The mark-to-market effect of forward foreign currency exchange contracts that are considered effective as hedges has been included in OCI. Based on market valuations at ~~September~~June 30, ~~2017, $1.9~~2023, $30.0 million of the amount of net deferred loss included in OCI at ~~September~~June 30, ~~2017~~2023 is expected to be reclassified as ~~a loss~~expense into the unaudited condensed consolidated ~~statement~~statements of operations over the next twelve months, as the transactions occur.

Interest Rate Derivatives: The Company holds certain contracts that hedge interest payments on its $225.0 million term loan borrowings. In addition, the ~~Term Loan borrowings and one and three-month LIBOR borrowings.~~ Company holds certain contracts that hedge interest payments on Bolzoni's debt.

The following table summarizes the notional amounts, related rates, excluding spreads, and remaining terms of interest rate swap agreements at ~~September~~June 30, ~~2017~~2023 and December 31, ~~2016:~~2022:


Notional Amount				Average Fixed Rate
JUNE 30		DECEMBER 31		JUNE 30		DECEMBER 31
2023		2022		2023		2022		Term at June 30, 2023
$	180.0	$	180.0	1.65	%	1.68	%	Extending to May 2027
$	21.2	$	22.4	0.20	%	0.18	%	Extending to May 2027

Notional Amount Average Fixed Rate
September 30 December 31 September 30 December 31
2017 2016 2017 2016 Term at September 30, 2017
$ 100.0
$ 100.0
1.47 % 1.47 % Extending to December 2018
56.5
—
1.94 % — % November 2017 to November 2022
83.5
—
2.20 % — % December 2018 to May 2023

~~The Company does not apply hedge accounting to the interest rate derivatives which expire December 2018.~~ The fair value of all interest rate swap agreements was a net ~~liability~~asset of ~~$0.7~~$16.5 million and ~~$0.3~~$16.1 million at ~~September~~June 30, ~~2017~~2023 and December 31, ~~2016,~~2022, respectively. The mark-to-market effect of interest rate swap agreements that are considered effective as hedges has been included in OCI. Based on market valuations at ~~September~~June 30, ~~2017,$0.1~~2023, $7.0 million of the amount included in OCI as net deferred gain is expected to be reclassified as ~~expense~~income in the unaudited condensed consolidated ~~statement~~statements of operations over the next twelve months, as cash flow payments are made in accordance with the interest rate swap agreements.

The following table summarizes the fair value of derivative instruments reflected on a gross basis by contract as recorded in the unaudited condensed consolidated balance sheets:


	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	JUNE 30 2023		DECEMBER 31 2022		Balance Sheet Location	JUNE 30 2023		DECEMBER 31 2022
Derivatives designated as hedging instruments
Cash Flow Hedges
Interest rate swap agreements
Current	Prepaid expenses and other	$	6.7	$	5.9	Prepaid expenses and other	$	—	$	—

Long-term	Other non-current assets	9.8		10.2		Other non-current assets	—		—


Foreign currency exchange contracts
Current	Prepaid expenses and other	—		—		Prepaid expenses and other	—		—
	Other current liabilities	5.3		2.6		Other current liabilities	34.1		32.1
Long-term	Other non-current assets	1.4		0.7		Other non-current assets	0.2		0.3
	Other long-term liabilities	1.4		1.0		Other long-term liabilities	8.5		17.3



Total derivatives designated as hedging instruments		$	24.6	$	20.4		$	42.8	$	49.7
Derivatives not designated as hedging instruments
Cash Flow Hedges





Foreign currency exchange contracts
Current	Prepaid expenses and other	—		—		Prepaid expenses and other	—		—
	Other current liabilities	3.7		4.9		Other current liabilities	4.3		3.0




Total derivatives not designated as hedging instruments		$	3.7	$	4.9		$	4.3	$	3.0
Total derivatives		$	28.3	$	25.3		$	47.1	$	52.7

Asset Derivatives Liability Derivatives
Balance Sheet Location SEPTEMBER 30
2017 DECEMBER 31
2016 Balance Sheet Location SEPTEMBER 30
2017 DECEMBER 31
2016
Derivatives designated as hedging instruments
Cash Flow Hedges
Interest rate swap agreements
Current Other current liabilities $ —
$ —
Other current liabilities $ 0.2
$ —
Long-term Other long-term liabilities —
—
Other long-term liabilities 0.4
—
Foreign currency exchange contracts
Current Prepaid expenses and other 2.9
$ —
Prepaid expenses and other 0.7
$ —
Other current liabilities 6.5
3.7
Other current liabilities 7.5
14.0
Long-term Other non-current assets 4.3
—
Other non-current assets 1.1
—
Other long-term liabilities 0.3
—
Other long-term liabilities 6.3
10.1
Total derivatives designated as hedging instruments $ 14.0
$ 3.7
$ 16.2
$ 24.1
Derivatives not designated as hedging instruments
Cash Flow Hedges
Interest rate swap agreements
Current Other current liabilities $ 0.1
$ —
Other current liabilities $ —
$ 0.3
Long-term Other non-current assets 0.1
0.2
Other non-current assets —
—
Other long-term liabilities —
—
Other long-term liabilities 0.3
0.2
Foreign currency exchange contracts
Current Prepaid expenses and other —
—
Prepaid expenses and other —
—
Other current liabilities 0.6
1.6
Other current liabilities 6.3
3.9
Total derivatives not designated as hedging instruments $ 0.8
$ 1.8
$ 6.6
$ 4.4
Total derivatives $ 14.8
$ 5.5
$ 22.8
$ 28.5


	Derivative Assets as of June 30, 2023								Derivative Liabilities as of June 30, 2023
	Gross Amounts of Recognized Assets		Gross Amounts Offset		Net Amounts Presented		Net Amount		Gross Amounts of Recognized Liabilities		Gross Amounts Offset		Net Amounts Presented		Net Amount
Cash Flow Hedges
Interest rate swap agreements	$	16.5	$	—	$	16.5	$	16.5	$	—	$	—	$	—	$	—
Foreign currency exchange contracts	1.2		(1.2)		—		—		36.5		(1.2)		35.3		35.3
Total derivatives	$	17.7	$	(1.2)	$	16.5	$	16.5	$	36.5	$	(1.2)	$	35.3	$	35.3

	Derivative Assets as of December 31, 2022								Derivative Liabilities as of December 31, 2022
	Gross Amounts of Recognized Assets		Gross Amounts Offset		Net Amounts Presented		Net Amount		Gross Amounts of Recognized Liabilities		Gross Amounts Offset		Net Amounts Presented		Net Amount
Cash Flow Hedges
Interest rate swap agreements	$	16.1	$	—	$	16.1	$	16.1	$	—	$	—	$	—	$	—
Foreign currency exchange contracts	0.4		(0.4)		—		—		43.9		(0.4)		43.5		43.5
Total derivatives	$	16.5	$	(0.4)	$	16.1	$	16.1	$	43.9	$	(0.4)	$	43.5	$	43.5

Derivative Assets as of September 30, 2017 Derivative Liabilities as of September 30, 2017
Gross Amounts of Recognized Assets Gross Amounts Offset Net Amounts Presented Net Amount Gross Amounts of Recognized Liabilities Gross Amounts Offset Net Amounts Presented Net Amount
Cash Flow Hedges
Interest rate swap agreements $ 0.1
$ (0.1 ) $ —
$ —
$ 0.8
$ (0.1 ) $ 0.7
$ 0.7
Foreign currency exchange contracts 5.4
(5.4 ) —
—
12.7
(5.4 ) 7.3
7.3
Total derivatives $ 5.5
$ (5.5 ) $ —
$ —
$ 13.5
$ (5.5 ) $ 8.0
$ 8.0

Derivative Assets as of December 31, 2016 Derivative Liabilities as of December 31, 2016
Gross Amounts of Recognized Assets Gross Amounts Offset Net Amounts Presented Net Amount Gross Amounts of Recognized Liabilities Gross Amounts Offset Net Amounts Presented Net Amount
Cash Flow Hedges
Interest rate swap agreements $ 0.2
$ (0.2 ) $ —
$ —
$ 0.5
$ (0.2 ) $ 0.3
$ 0.3
Foreign currency exchange contracts —
—
—
—
22.7
—
22.7
22.7
Total derivatives $ 0.2
$ (0.2 ) $ —
$ —
$ 23.2

$ (0.2 ) $ 23.0
$ 23.0

The following table summarizes the pre-tax impact of derivative instruments as recorded in the unaudited condensed consolidated statements of operations:


	Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)								Location of Gain or (Loss) Reclassified from OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion)
	THREE MONTHS ENDED				SIX MONTHS ENDED					THREE MONTHS ENDED				SIX MONTHS ENDED
	JUNE 30									JUNE 30
Derivatives Designated as Hedging Instruments	2023		2022		2023		2022			2023		2022		2023		2022
Cash Flow Hedges
Interest rate swap agreements	$	7.0	$	4.9	$	3.2	$	15.5	Interest expense	$	3.9	$	0.8	$	2.7	$	1.7
Foreign currency exchange contracts	(10.1)		(50.9)		(5.2)		(63.4)		Cost of sales	(8.3)		(6.4)		(18.0)		(8.9)
Total	$	(3.1)	$	(46.0)	$	(2.0)	$	(47.9)		$	(4.4)	$	(5.6)	$	(15.3)	$	(7.2)




Derivatives Not Designated as Hedging Instruments									Location of Gain or (Loss) Recognized in Income on Derivative	2023		2022		2023		2022
Cash Flow Hedges

Foreign currency exchange contracts									Cost of sales	$	(4.6)	$	(8.4)	$	(4.7)	$	(18.0)
Total										$	(4.6)	$	(8.4)	$	(4.7)	$	(18.0)

Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from OCI into Income (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
THREE MONTHS ENDED NINE MONTHS ENDED THREE MONTHS ENDED NINE MONTHS ENDED THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30 SEPTEMBER 30
Derivatives designated as hedging instruments 2017 2016 2017 2016 2017 2016 2017 2016 2017
2016 2017 2016
Cash Flow Hedges
Interest rate swap agreements $ (0.2 ) $ —
$ (0.6 ) $ —
Interest expense $ —
$ —
$ —
$ —
Other $ —

$ —
$ —

$ —
Foreign currency exchange contracts $ 1.5
$ (0.7 ) $ 15.2
$ 7.7
Cost of sales $ (0.5 ) $ (0.9 ) $ (2.0 ) $ (1.8 ) Cost of sales $ (0.1 )
$ (0.1 ) $ (0.1 )
$ (0.2 )
Total $ 1.3

$ (0.7 ) $ 14.6
$ 7.7
$ (0.5 ) $ (0.9 ) $ (2.0 ) $ (1.8 ) $ (0.1 ) $ (0.1 ) $ (0.1 ) $ (0.2 )

Amount of Gain or (Loss) Recognized in Income on Derivative
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30
Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized in Income on Derivative 2017 2016 2017 2016
Cash Flow Hedges
Interest rate swap agreements Other $ 0.1
$ 0.5
$ —
$ (1.2 )
Foreign currency exchange contracts Cost of sales (0.2 ) (0.2 ) 1.5
0.3
Total $ (0.1 ) $ 0.3
$ 1.5
$ (0.9 )

Note 7—8—Retirement Benefit Plans

The Company maintains various defined benefit pension plans that provide benefits based on years of service and average compensation during certain periods. The Company's policy is to make contributions to fund these plans within the range allowed by applicable regulations. Plan assets consist primarily of publicly traded stocks and government and corporate bonds.

Pension benefits for employees covered under the Company's U.S. and U.K. plans are frozen. Only certain grandfathered employees in the Netherlands still earn retirement benefits under a defined benefit pension plan. All other eligible employees of the Company, including employees whose pension benefits are frozen, receive retirement benefits under defined contribution retirement plans.

~~During~~The Company presents the ~~third quarter~~components of ~~2017,~~net benefit cost, other than service cost, in other (income) expense in the ~~Company recognized a settlement loss~~unaudited condensed consolidated statements of ~~$1.0 million resulting from lump-sum~~

~~distributions exceeding the total projected interest~~operations for its pension plans. Service cost for the Company's pension plan ~~year for one of its U.S. pension plans. The Company~~

remeasured the plan as of September 30, 2017 using a discount rate of 3.50% compared to the December 31, 2016 discount rate of 3.75%. As a result of the remeasurement, the funded status of the plan increased by $0.8 million and accumulated other comprehensive income increased by $1.8 million ($1.2 million net of tax).

~~The Company previously disclosed~~is reported in its Annual Report on Form 10-K for the year ended December 31, 2016 that it expected to make no contributions to its U.S. pension plans and contribute approximately $3.0 million to its non-U.S. pension plans in 2017. The Company now expects to contribute approximately $0.5 million and $9.2 million to its U.S. and non-U.S. pension plans, respectively, in 2017.

operating profit. The components of pension (income) expense are set forth below:


	THREE MONTHS ENDED				SIX MONTHS ENDED
	JUNE 30				JUNE 30
	2023		2022		2023		2022
U.S. Pension
Interest cost	$	0.7	$	0.4	$	1.3	$	0.8
Expected return on plan assets	(0.7)		(0.8)		(1.3)		(1.8)

Amortization of actuarial loss	0.5		0.4		1.0		0.9

Total	$	0.5	$	—	$	1.0	$	(0.1)
Non-U.S. Pension
Service cost	$	—	$	—	$	—	$	0.1
Interest cost	1.4		0.7		2.7		1.6
Expected return on plan assets	(1.9)		(1.9)		(3.7)		(3.9)
Amortization of actuarial loss	0.2		0.8		0.4		1.5
Total	$	(0.3)	$	(0.4)	$	(0.6)	$	(0.7)

THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2017 2016 2017 2016
U.S. Pension
Interest cost $ 0.6
$ 0.7
$ 2.0
$ 2.2
Expected return on plan assets (1.2 ) (1.3 ) (3.7 ) (3.7 )
Settlement loss 1.0
—
1.0
—
Amortization of actuarial loss 0.4
0.4
1.3
1.2
Amortization of prior service credit —
—
(0.2 ) (0.2 )
Total $ 0.8
$ (0.2 ) $ 0.4
$ (0.5 )
Non-U.S. Pension
Service cost $ —
$ —
$ 0.1
$ 0.1
Interest cost 1.0
1.2
3.0
3.8
Expected return on plan assets (2.3 ) (2.1 ) (6.8 ) (6.7 )
Amortization of actuarial loss 0.7
0.3
2.0
1.1
Total $ (0.6 ) $ (0.6 ) $ (1.7 ) $ (1.7 )
Note 9—Inventories

~~Note 8—Inventories~~

Inventories are summarized as follows:


	JUNE 30 2023		DECEMBER 31 2022
Finished goods and service parts	$	415.0	$	335.8
Work in process	40.8		36.0
Raw materials	457.1		522.1
Total manufactured inventories	912.9		893.9
LIFO reserve	(92.8)		(94.4)
Total inventory	$	820.1	$	799.5

SEPTEMBER 30
2017 DECEMBER 31
2016
Finished goods and service parts $ 208.3
$ 171.9
Work in process 21.2
26.1
Raw materials 231.1
191.4
Total manufactured inventories 460.6
389.4
LIFO reserve (40.7 ) (37.2 )
Total inventory $ 419.9
$ 352.2

~~The~~Inventories are stated at the lower of cost ~~of certain manufactured inventories, including service parts, has been determined using the last-in-first-out~~or market for last-in, first-out (“LIFO”) ~~method.~~inventory or lower of cost or net realizable value for first-in, first-out (“FIFO”) inventory. At ~~September~~June 30, ~~2017~~2023 and December 31, ~~2016, 49%~~2022, 50% and ~~54%~~52%, respectively, of total inventories were determined using the LIFO ~~method.~~method, which consists primarily of manufactured inventories, including service parts, for the lift truck business in the United States. The FIFO method is used with respect to all other inventories. An actual valuation of inventory under the LIFO method can be made only at the end of the year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations must be based on management's estimates of expected year-end inventory levels and costs. Because these estimates are subject to change and may be different than the actual inventory levels and costs at the end of the year, interim results are subject to the final year-end LIFO inventory valuation.

~~The~~On May 25, 2023, the Company ~~has a $200.0 million~~entered into an amendment of its secured, floating-rate revolving credit facility (the ~~"Facility”~~"Facility") ~~that expires in April 2022. On May 30, 2017,~~. As a result of the ~~Company amended the Facility to,~~amendment, among other ~~things, permit term~~items, (i) a new tranche of revolving loans ~~and related liens, reduce the availability from $240.0~~with aggregate commitments of $25.0 million ~~and extend the expiration of the Facility from April 2021. There were no borrowings outstanding~~(the “FILO Commitments”) was established under the Facility ~~at September 30, 2017. The excess availability~~and (ii) the benchmark interest rate for U.S. dollar-denominated borrowings under the Facility at September 30, 2017, was $196.0 million, which reflects reductions of $4.0 million for letters of credit and other restrictions. The Facility consists of a U.S. revolving credit facility in the maximum initial amount of $120.0 million and a non-U.S. revolving credit facility in the maximum initial amount of $80.0 million. The Facility can be increased upchanged from LIBOR to the total aggregate amount of $300.0 million over the term of the agreement in minimum increments of $10.0 million subject to certain conditions. The obligations under the Facility are generally secured by a first priority lien on the working capital assets of the borrowers in the Facility, which include but are not limited to, cash and cash equivalents, accounts receivable and inventory and a second priority lien on the Term ~~Loan Collateral (defined below). The approximate book value of assets held as collateral under the Facility was $1.0 billion as of September 30, 2017.~~

~~Borrowings bear interest at a floating rate based on a base rate or LIBOR,~~SOFR, each as defined in the ~~Facility, plus an applicable margin.~~ Facility.

The applicable margins, effective September 30, 2017, for U.S. base rate loans and LIBOR loans were 0.25% and 1.25%, respectively. The applicable margins, effective September 30, 2017, for non-U.S. base rate loans and LIBOR loans was 1.25%. The applicable LIBOR interest ratesFILO Commitments will terminate on May 1, 2024 unless otherwise terminated prior to such date by the Company in accordance with the terms of the Facility. Commencing December 1, 2023, the FILO Commitments will amortize on a monthly basis in the amount of $4.2 million per month. Loans under the Facility on September 30, 2017 were 2.48% and 1.25%, respectively, for the U.S. and non-U.S. facility including the applicable floating rate margin. The Facility also required the payment of a fee of 0.350% per annum on the unused commitment as of September 30, 2017.

The Facility includes restrictive covenants, which, among other things, limit additional borrowings and investments of the Company and its subsidiaries subject to certain thresholds, as defined in the Facility, and limits the payment of dividends. If availability for both total and U.S. revolving credit facilities on a pro forma basis, is greater than fifteen percent and less than or equal to twenty percent, the Company may pay dividends subject to achieving a minimum fixed charge coverage ratio of 1.00 to 1.00, as defined in the Facility. If the availability is greater than twenty percent for both total and U.S. revolving credit facilities on a pro forma basis, the Company may pay dividends without any minimum fixed charge coverage ratio requirement. The Facility also requires the Company to achieve a minimum fixed charge coverage ratio in certain circumstances in which total excess availability is less than ten percent of the total commitments under the Facility or excess availability under the U.S. revolving credit facility is less than ten percent of the U.S. revolver commitments, as defined in the Facility. At September 30, 2017, the Company was in compliance with the covenants in the Facility.

~~On May 30, 2017, the Company entered into an agreement for a $200.0 million term loan (the “Term Loan”~~FILO Commitments ("FILO Loans"), which matures on May 30, 2023. The Term Loan requires quarterly principal payments on the last day of each March, June, September and December commencing September 30, 2017 in an amount equal to $2.5 million and the final principal repayment due on the May 30, 2023. The Company may also be required to make mandatory prepayments, in certain circumstances, as provided in the Term Loan. At September 30, 2017, there was $197.5 million of principal outstanding under the Term Loan which has been reduced in the unaudited condensed consolidated balance sheet by $4.3 million of discounts and unamortized deferred financing fees.

The obligations under the Term Loan are generally secured by a first priority lien on the present and future shares of capital stock, material real property, fixtures and general intangibles consisting of intellectual property (collectively, the "Term Loan Collateral") and a second priority lien on the remaining collateral of the U.S. borrowers in the Facility. The approximate book value of assets held as collateral under the Term Loan was $690 million as of September 30, 2017.

~~Borrowings under the Term Loan~~ bear interest at a floating rate, which can be a base rate or ~~Eurodollar rate, as defined in the~~ Term ~~Loan,~~SOFR, plus an applicable margin. The applicable ~~margin is based on the consolidated leverage ratio, as provided in the Term Loan, and ranges from 2.75% to 3.00%~~margins for ~~U.S.~~FILO Loans are 2.25% for base rate loans and ~~3.75%~~3.25% for Term SOFR loans. Subsequent to ~~4.00% for Eurodollar loans. The weighted average interest rate on~~ the amount outstanding under the Term Loan at September 30, 2017 was 5.24%. In addition, the Term Loan includes restrictive covenants, which, among other things, limit additional borrowings and investments of the Company

subject to certain thresholds, as provided in the Term Loan. The Term Loan limits the payment of regularly scheduled dividends and other restricted payments to $50.0 million in any fiscal year, unless the consolidated total net leverage ratio, asamendment, existing U.S. Loans (as defined in the ~~Term Loan, does not exceed 1.75~~Facility) were reallocated to ~~1.00 at~~ the ~~time~~FILO Commitment. As a result of such reallocation, the FILO Commitment was fully utilized as of the ~~payment. The Term Loan also contains~~closing.

After giving effect to the amendment, the Facility consists of a ~~provision requiring a premium to be paid~~domestic revolving credit facility in the ~~event~~amount of $210.0 million, a repricing of the borrowings under the Term Loan, whether by amendment or entry into new loans, within the six month period following entry into the Term Loan. At September 30, 2017, the Company was in compliance with the covenantsforeign revolving credit facility in the ~~Term Loan.~~amount of $90.0 million and the FILO Commitments in the amount of $25.0 million.

The Company incurred approximately $0.6 million of additional deferred financing fees ~~and expenses of $4.8 million~~ in ~~2017 related to~~connection with the amendment ~~to the Facility and entry into the Term Loan. These fees were deferred and are being amortized as interest expense over the term~~ of the ~~applicable debt agreements. Fees related to the Term Loan are presented as a direct deduction of the corresponding debt.~~Facility.

~~The Company had other debt outstanding, excluding capital leases, of approximately $79.3 million at September 30, 2017.~~

Note ~~10—~~11—Product Warranties

The Company provides a standard warranty on its lift trucks, generally for twelve months or 1,000 to 2,000 hours. For certain series of lift trucks, the Company provides a standard warranty of one to two years or 2,000 or 4,000 hours. For certain components in some series of lift trucks, the Company provides a standard warranty of two to three years or 4,000 to 6,000 hours. The Company estimates the costs which may be incurred under its standard warranty programs and records a liability for such costs at the time product revenue is recognized.

In addition, the Company sells ~~separately-priced~~separately priced, extended warranty agreements for its lift trucks, which generally provide a warranty for an additional two to five years or up to 2,400 to 10,000 ~~hours~~.hours. The specific terms and conditions of those warranties vary depending upon the product sold and the country in which the Company does business. Revenue received for the sale of extended warranty contracts is deferred and recognized in the same manner as the costs incurred to perform under the warranty contracts.

The Company also maintains a quality enhancement program under which it provides for specifically identified field product improvements in its warranty obligation. Accruals under this program are determined based on estimates of the potential number of claims and the cost of those claims based on historical and anticipated costs.

The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Factors that affect the warranty liability include the number of units sold, historical and anticipated rates of warranty claims and the cost per claim.

Changes in the Company's current and long-term warranty obligations, including deferred revenue on extended warranty contracts, are as follows:


	2023
Balance at December 31, 2022	$	56.7
Current year warranty expense	21.2
Change in estimate related to pre-existing warranties	(3.6)
Payments made	(12.7)
Foreign currency effect	0.3
Balance at June 30, 2023	$	61.9

Note 12—Contingencies

2017
Balance at January 1 $ 52.3
Current year warranty expense 25.3
Change in estimate related to pre-existing warranties (4.9 )
Payments made (19.7 )
Foreign currency effect 1.7
Balance at September 30 $ 54.7

~~Note 11—Contingencies~~

Various legal and regulatory proceedings and claims have been or may be asserted against the Company relating to the conduct of its businesses, including product liability, environmental and other claims. These proceedings and claims are incidental to the ordinary course of business. Management believes that it has meritorious defenses and will vigorously defend the Company in these actions. Any costs that management estimates will be paid as a result of these claims are accrued when the liability is considered probable and the amount can be reasonably estimated. Although the ultimate disposition of these proceedings is not presently determinable, management believes, after consultation with its legal counsel, that the likelihood is remote that costs will be incurred materially in excess of accruals already recognized.

Note ~~12—~~13—Guarantees

Under various financing arrangements for certain customers, including independent retail dealerships, the Company provides recourse or repurchase obligations such that it would be obligated in the event of default by the customer. Terms of the third-party financing arrangements for which the Company is providing recourse or repurchase obligations generally range from one to five years. Total amounts subject to recourse or repurchase obligations at ~~September~~June 30, ~~2017~~2023 and December 31, ~~2016~~2022 were ~~$151.0~~$141.5 million and ~~$149.3~~$133.2 million, respectively. As of ~~September~~June 30, ~~2017,~~2023, losses anticipated under the terms of the recourse or repurchase obligations were not significant and reserves have been provided for such losses based on historical experience in the accompanying unaudited condensed consolidated financial statements. The Company generally retains a security interest in the related assets financed such that, in the event the Company would become obligated under the terms of the recourse or repurchase obligations, the Company would take title to the assets financed. The fair value of collateral held at ~~September~~June 30, ~~2017~~2023 was approximately ~~$194.6~~$195.4 million based on Company estimates. The Company estimates the fair value of the collateral using information regarding the original sales price, the current age of the equipment and general market conditions that influence the value of both new and used lift trucks. The Company also regularly monitors the external credit ratings of the entities for which it has provided recourse or repurchase obligations. As of ~~September~~June 30, ~~2017,~~2023, the Company did not believe there was a significant risk of non-payment or non-performance of the obligations by these entities; however, there can be no assurance that the risk may not increase in the future. In addition, the Company has an agreement with WF to limit its exposure to losses at certain eligible dealers. Under this agreement, losses related to ~~$32.1~~$25.5 million of recourse or repurchase obligations for these certain eligible dealers are limited to 7.5% of their original loan balance, or ~~$7.3~~$12.1 million as of ~~September~~June 30, ~~2017.~~2023. The ~~$32.1~~$25.5 million is included in the ~~$151.0~~$141.5 million of total amounts subject to recourse or repurchase obligations at ~~September~~June 30, ~~2017.~~2023.

Generally, the Company sells lift trucks through its independent dealer network or directly to customers. These dealers and customers may enter into a financing transaction with HYGFS or other unrelated third parties. HYGFS provides debt and lease financing to both dealers and customers. On occasion, the credit quality of a customer or credit concentration issues within WF may require the Company to provide recourse or repurchase obligations of the lift trucks purchased by customers and financed through HYGFS. At ~~September~~June 30, ~~2017,~~2023, approximately ~~$128.5~~$129.8 million of the Company's total recourse or repurchase obligations of ~~$151.0~~$141.5 million related to transactions with HYGFS. In connection with the joint venture agreement, the Company also provides a guarantee to WF for 20% of HYGFS’ debt with WF, such that the Company would become liable under the terms of HYGFS’ debt agreements with WF in the case of default by HYGFS. At ~~September~~June 30, ~~2017,~~2023, loans from WF to HYGFS totaled ~~$954.2 million.~~ $1.2 billion.

Although the Company’s contractual guarantee was ~~$190.8~~$244.5 million, the loans by WF to HYGFS are secured by HYGFS’ customer receivables, of which the Company guarantees ~~$128.5~~$129.8 million. Excluding the HYGFS receivables guaranteed by the Company from HYGFS’ loans to WF, the Company’s incremental obligation as a result of this guarantee to WF is ~~$170.1~~$221.2 million, which is secured by 20% of HYGFS' customer receivables and other secured assets of ~~$255.8~~$288.9 million. HYGFS has not defaulted under the terms of this debt financing in the past, and although there can be no assurances, the Company is not aware of any circumstances that would cause HYGFS to default in future periods.

~~The following table includes the exposure amounts related to the Company's guarantees at~~ ~~September 30, 2017~~:

Note 14—Equity and Debt Investments

HYGFS Total
Total recourse or repurchase obligations $ 128.5
$ 151.0
Less: exposure limited for certain dealers 32.1
32.1
Plus: 7.5% of original loan balance 7.3
7.3
103.7
126.2
Incremental obligation related to guarantee to WF 170.1
170.1
Total exposure related to guarantees $ 273.8
$ 296.3

~~Note 13—Equity Investments~~

The Company maintains an interest in one variable interest entity, HYGFS. HYGFS is a joint venture with WF formed primarily for the purpose of providing financial services to independent Hyster^® and Yale^® lift truck dealers and National Account customers in the United States and is included in the Americas segment. The Company does not have a controlling financial interest or have the power to direct the activities that most significantly affect the economic performance of HYGFS. Therefore, the Company is not the primary beneficiary and uses the equity method to account for its 20% interest in HYGFS. The Company does not consider its variable interest in HYGFS to be significant.

The Company has a 50% ownership interest in SN, a limited liability company which was formed primarily to manufacture and distribute Sumitomo-branded lift trucks in Japan and export Hyster^®- and Yale^®-branded lift trucks and related components and service parts outside of Japan. The Company purchases products from SN under agreed-upon terms. The Company's ownership in SN is also accounted for using the equity method of accounting and is included in the JAPIC segment.

The Company's percentage share of the net income or loss from its equity investments in HYGFS and SN is reported on the line “Income from unconsolidated affiliates” in the “Other (income) expense” section of the unaudited condensed consolidated statements of operations. The Company's equity investments are included on the line ~~“Investment~~“Investments in Unconsolidated Affiliates” in the unaudited condensed consolidated balance sheets. At ~~September 30, 2017~~ ~~and~~ ~~December 31, 2016, the Company's investment in HYGFS was $14.4 million and~~ ~~$13.8 million, respectively.~~

The Company's ~~investment in SN was $34.9 million and $31.6 million at~~ ~~September 30, 2017~~ ~~and~~ ~~December 31, 2016, respectively. Bolzoni's investment~~equity investments in unconsolidated affiliates ~~was $0.4 million~~recorded on the unaudited condensed consolidated balance sheets are as follows:


	June 30, 2023		December 31, 2022

HYGFS	$	17.2	$	21.8
SN	32.6		36.0
Bolzoni	0.3		0.4

Dividends received from unconsolidated affiliates are summarized below:


	SIX MONTHS ENDED
	JUNE 30
	2023		2022

HYGFS	$	10.5	$	14.9
SN	—		0.7
	$	10.5	$	15.6

Summarized financial information for HYGFS and ~~$0.5 million at September 30, 2017 and December 31, 2016, respectively.~~SN is as follows:


	THREE MONTHS ENDED				SIX MONTHS ENDED
	JUNE 30				JUNE 30
	2023		2022		2023		2022
Revenues	$	121.3	$	103.7	$	229.3	$	210.5
Gross profit	$	44.0	$	43.1	$	83.4	$	86.5
Income from continuing operations	$	15.9	$	17.1	$	27.6	$	31.1
Net income	$	15.9	$	17.1	$	27.6	$	31.1

~~During the first nine months of 2017, the~~The Company ~~acquired an~~has a non-U.S. equity investment in a third party ~~for $5.6 million. This investment is accounted for as an available-for-sale security and~~ valued using a quoted market price in an active market, or Level 1 in the fair value hierarchy. The Company's investment as of ~~September~~June 30, ~~2017~~2023 and December 31, 2022 was ~~$9.3~~$1.1 million ~~which includes a $3.7~~and $0.5 million, ~~unrealized~~respectively. Any gain ~~($2.8 million net~~or loss on the investment is included on the line "Other, net" in the "Other (income) expense" section of ~~tax) that was recorded in OCI in~~ the unaudited condensed consolidated ~~balance sheet.~~

~~Summarized financial information for HYGFS and SN is~~statements of operations as follows:

THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2017 2016 2017 2016
Revenues $ 94.1
$ 89.3
$ 272.1
$ 259.1
Gross profit $ 29.5
$ 27.8
$ 84.6
$ 79.6
Income from continuing operations $ 7.5
$ 6.0
$ 20.7
$ 17.1
Net income $ 7.5
$ 6.0
$ 20.7
$ 17.1


	THREE MONTHS ENDED				SIX MONTHS ENDED
	JUNE 30				JUNE 30
	2023		2022		2023		2022
Gain on equity investment	$	0.3	$	0.6	$	0.5	$	0.6

~~Note 14—Acquisitions~~

~~Subsequent to the filing~~The Company has a debt investment in a third party, OneH2, Inc. The Company's investment was $0.8 million as of ~~the Company's Annual Report on Form 10-K for the year ended~~each June 30, 2023 and December 31, ~~2016, the Company finalized its analysis~~2022.

Table of the fair value of contingent obligations and income taxes for the Bolzoni acquisition on April 1, 2016. As a result of this analysis, the Company recorded a decrease to deferred tax assets and a corresponding increase to goodwill of $1.0 million in the first quarter of 2017.Contents

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

(Tabular Amounts in Millions, Except Per Share and Percentage Data)

Hyster-Yale Materials Handling, Inc. ("Hyster-Yale" or the "Company") and its subsidiaries, including its operating company Hyster-Yale Group, Inc. ("HYG"), is a leading, globally integrated, full-line lift truck manufacturer. The Company offers a broad array of solutions aimed at meeting the specific materials handling needs of its customers, including attachments and hydrogen ~~fuel-cell~~fuel cell power products, telematics, automation and fleet management services, as well as ~~an array~~a variety of other power options for its lift trucks. The Company, through HYG, designs, engineers, manufactures, sells and services a comprehensive line of lift trucks, attachments and aftermarket parts marketed globally, primarily under the Hyster^® and Yale^® brand names, mainly to independent Hyster^® and Yale^® retail dealerships. The materials handling business historically has been cyclical because the rate of orders for lift trucks fluctuates depending on the general level of economic activity in the various industries and countries its customers serve. Lift trucks and component parts are manufactured in the United States, China, Northern Ireland, Mexico, ~~Italy,~~ the Netherlands, ~~Vietnam, Japan,~~Brazil, the Philippines, ~~Brazil~~Italy, Japan and ~~China.~~Vietnam.

The Company ~~also~~ operates Bolzoni S.p.A. ("Bolzoni"). Bolzoni is a leading worldwide producer and distributor of attachments, forks and lift tables marketed under the Bolzoni®,Auramo^® and Meyer^® brand names. Bolzoni also produces components for lift truck manufacturers. Bolzoni products are manufactured in the United States, Italy, China, Germany ~~Finland~~ and ~~the United States.~~Finland. Through the design, production and distribution of a wide range of attachments, Bolzoni has a strong presence in the market niche of ~~lift-truck~~lift truck attachments and industrial material handling.

The Company ~~also~~ operates Nuvera Fuel Cells, LLC ("Nuvera"). Nuvera is an alternative-power technology company focused on the design, manufacture and sale of hydrogen fuel cell stacks and engines. ~~Nuvera also supports on-site hydrogen production and dispensing systems that are designed to deliver clean energy solutions to customers.~~

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Please refer to the discussion of Critical Accounting Policies and Estimates as disclosed on pages 15 through 17 in the Company's Annual Report on Form 10-K for the year ended December 31, ~~2016.~~2022. Critical Accounting Policies and Estimates have not materially changed since December 31, ~~2016.~~2022.

FINANCIAL REVIEW

The results of operations for the Company were as follows:


	THREE MONTHS ENDED				Favorable / (Unfavorable)		SIX MONTHS ENDED				Favorable / (Unfavorable)
	JUNE 30						JUNE 30
	2023		2022		% Change		2023		2022		% Change
Lift truck unit shipments (in thousands)
Americas	18.3		13.9		31.7	%	34.4		28.5		20.7	%
EMEA	7.0		7.8		(10.3)	%	13.8		14.3		(3.5)	%
JAPIC	2.4		3.6		(33.3)	%	4.7		6.4		(26.6)	%
	27.7		25.3		9.5	%	52.9		49.2		7.5	%
Revenues
Americas	$	788.5	$	596.6	32.2	%	$	1,474.4	$	1,154.3	27.7	%
EMEA	200.6		184.8		8.5	%	415.5		354.5		17.2	%
JAPIC	49.6		64.9		(23.6)	%	97.5		116.6		(16.4)	%
Lift truck business	1,038.7		846.3		22.7	%	1,987.4		1,625.4		22.3	%
Bolzoni	96.6		86.4		11.8	%	195.2		181.5		7.5	%
Nuvera	1.0		0.3		233.3	%	2.6		0.9		188.9	%
Eliminations	(45.7)		(37.6)		21.5	%	(95.3)		(84.8)		12.4	%
	$	1,090.6	$	895.4	21.8	%	$	2,089.9	$	1,723.0	21.3	%

Table of Contents


																			THREE MONTHS ENDED								Favorable / (Unfavorable)				SIX MONTHS ENDED						Favorable / (Unfavorable)
	THREE MONTHS ENDED						Favorable / (Unfavorable)			NINE MONTHS ENDED						Favorable / (Unfavorable)			JUNE 30											JUNE 30
	SEPTEMBER 30								SEPTEMBER 30									2023				2022				% Change					2023			2022			% Change
	2017			2016				% Change			2017			2016				% Change
Lift truck unit shipments (in thousands)
Americas	14.0			13.7			2.2	%		42.3			40.3			5.0	%
EMEA	6.5			5.1			27.5	%		20.8			17.5			18.9	%
JAPIC	1.5			1.5			—	%		4.4			4.1			7.3	%
	22.0			20.3			8.4	%		67.5			61.9			9.0	%
Revenues
Gross profit																		Gross profit
Americas	$	447.8		$	410.7		9.0	%		$	1,346.7		$	1,241.9		8.4	%	Americas	$	143.4			$	66.1				116.9		%		$	264.6		$	133.1		98.8		%
EMEA	165.6			138.0			20.0	%		500.6			441.5			13.4	%	EMEA	27.1				11.3				139.8		%		54.0			25.7			110.1		%
JAPIC	38.9			46.2			(15.8	)%		124.9			125.0			(0.1	)%	JAPIC	6.5				3.9				66.7		%		14.0			8.4			66.7		%
Lift truck business	652.3			594.9			9.6	%		1,972.2			1,808.4			9.1	%	Lift truck business	177.0				81.3				117.7		%		332.6			167.2			98.9		%
Bolzoni ⁽¹⁾	44.3			36.2			22.4	%		127.8			75.1			n.m.
Nuvera	0.3			1.4			n.m.			3.3			1.9			n.m.
Eliminations	(5.8		)	(3.2		)	81.3	%		(13.6		)	(6.3		)	115.9	%
	$	691.1		$	629.3		9.8	%		$	2,089.7		$	1,879.1		11.2	%
Gross profit (loss)
Americas	$	83.6		$	72.8		14.8	%		$	251.2		$	217.8		15.3	%
EMEA	20.5			18.7			9.6	%		66.6			65.1			2.3	%
JAPIC	4.4			4.2			4.8	%		14.1			12.9			9.3	%
Lift truck business	108.5			95.7			13.4	%		331.9			295.8			12.2	%
Bolzoni ⁽¹⁾	13.5			9.2			46.7	%		39.7			22.0			n.m.
Bolzoni																		Bolzoni	22.6				18.9				19.6		%		43.3			37.7			14.9		%
Nuvera	(0.4		)	(0.3		)	n.m.			(1.9		)	(1.3		)	n.m.		Nuvera	(1.8)				(1.6)				(12.5)		%		(3.9)			(3.5)			(11.4)		%
Eliminations	(0.2		)	—			n.m.			(0.5		)	—			n.m.		Eliminations	0.1				0.5				n.m.				0.3			(1.1)			n.m.
	$	121.4		$	104.6		16.1	%		$	369.2		$	316.5		16.7	%		$	197.9			$	99.1			99.7		%		$	372.3		$	200.3		85.9		%
Selling, general and administrative expenses																		Selling, general and administrative expenses
Americas	$	55.8		$	49.4		(13.0	)%		$	165.7		$	162.7		(1.8	)%	Americas	$	78.2			$	63.0			(24.1)		%		$	151.9		$	125.6		(20.9)		%
EMEA	21.6			20.1			(7.5	)%		63.3			60.9			(3.9	)%	EMEA	26.0				22.1				(17.6)		%		50.3			47.9			(5.0)		%
JAPIC	7.0			5.7			(22.8	)%		19.6			16.9			(16.0	)%	JAPIC	10.3				7.9				(30.4)		%		20.1			16.1			(24.8)		%
Lift truck business	84.4			75.2			(12.2	)%		248.6			240.5			(3.4	)%	Lift truck business	114.5				93.0				(23.1)		%		222.3			189.6			(17.2)		%
Bolzoni ⁽¹⁾	11.4			11.7			2.6	%		34.8			23.8			n.m.
Bolzoni																		Bolzoni	17.2				15.5				(11.0)		%		33.5			32.2			(4.0)		%
Nuvera	7.7			12.3			37.4	%		26.2			25.7			(1.9	)%	Nuvera	7.4				6.3				(17.5)		%		15.1			12.5			(20.8)		%
	$	103.5		$	99.2		(4.3	)%		$	309.6		$	290.0		(6.8	)%
																			$	139.1			$	114.8			(21.2)		%		$	270.9		$	234.3		(15.6)		%
Operating profit (loss)																		Operating profit (loss)
Americas																		Americas	$	65.2			$	3.1			n.m.				$	112.7		$	7.5		n.m.
EMEA																		EMEA	1.1				(10.8)				n.m.				3.7			(22.2)			n.m.
JAPIC																		JAPIC	(3.8)				(4.0)				5.0		%		(6.1)			(7.7)			20.8		%
Lift truck business																		Lift truck business	62.5				(11.7)				n.m.				110.3			(22.4)			n.m.
Bolzoni																		Bolzoni	5.4				3.4				58.8		%		9.8			5.5			78.2		%
Nuvera																		Nuvera	(9.2)				(7.9)				(16.5)		%		(19.0)			(16.0)			(18.8)		%
Eliminations																		Eliminations	0.1				0.5				n.m.				0.3			(1.1)			n.m.
																			$	58.8			$	(15.7)			n.m.				$	101.4		$	(34.0)		n.m.
Interest expense																		Interest expense	$	8.4			$	6.1			(37.7)		%		$	18.6		$	11.2		(66.1)		%
Other (income) expense																		Other (income) expense	$	(0.4)			$	—			n.m.				$	(3.9)		$	(2.1)		85.7		%
Net income (loss) attributable to stockholders																		Net income (loss) attributable to stockholders	$	38.3			$	(19.4)			n.m.				$	64.9		$	(44.4)		n.m.
Diluted earnings (loss) per share																		Diluted earnings (loss) per share	$	2.21			$	(1.15)			n.m.				$	3.76		$	(2.63)		n.m.
Reported income tax rate																		Reported income tax rate	23.6		%		14.2		%						23.9		%	0.5		%
n.m. - not meaningful																		n.m. - not meaningful

THREE MONTHS ENDED Favorable / (Unfavorable) NINE MONTHS ENDED Favorable / (Unfavorable)
SEPTEMBER 30 SEPTEMBER 30
2017 2016 % Change 2017 2016 % Change
Operating profit (loss)
Americas $ 27.8
$ 23.4
18.8 % $ 85.5
$ 55.1
55.2 %
EMEA (1.1 ) (1.4 ) (21.4 )% 3.3
4.2
(21.4 )%
JAPIC (2.6 ) (1.5 ) (73.3 )% (5.5 ) (4.0 ) n.m.
Lift truck business 24.1
20.5
17.6 % 83.3
55.3
50.6 %
Bolzoni ⁽¹⁾
2.1
(2.5 ) n.m.
4.9
(1.8 ) n.m.
Nuvera (8.1 ) (12.6 ) 35.7 % (28.1 ) (27.0 ) (4.1 )%
Eliminations (0.2 ) —
n.m.
(0.5 ) —
n.m.
$ 17.9
$ 5.4
231.5 % $ 59.6
$ 26.5
124.9 %
Interest expense $ 6.2
$ 1.9
(226.3 )% $ 10.6
$ 5.0
(112.0 )%
Other (income) expense $ (4.2 ) $ (3.4 ) 23.5 % $ (9.5 ) $ (6.1 ) 55.7 %
Net income (loss) attributable to stockholders
Americas $ 22.7
$ 20.2
12.4 % $ 67.0
$ 43.2
55.1 %
EMEA (1.7 ) 1.9
n.m.
1.6
6.4
(75.0 )%
JAPIC (1.3 ) (0.2 ) n.m.
(2.8 ) (0.9 ) n.m.
Lift truck business 19.7
21.9
(10.0 )% 65.8
48.7
35.1 %
Bolzoni ⁽¹⁾
1.9
(2.0 ) n.m.
3.3
(1.9 ) n.m.
Nuvera (4.9 ) (7.6 ) 35.5 % (16.9 ) (16.2 ) (4.3 )%
Eliminations (0.2 ) —
n.m.
(1.2 ) —
n.m.
$ 16.5
$ 12.3
34.1 % $ 51.0
$ 30.6
66.7 %
Diluted earnings per share $ 1.00
$ 0.75
33.3 % $ 3.09
$ 1.86
66.1 %
Reported income tax rate n.m.
n.m.
12.5 % n.m.

(1) Bolzoni was acquired on April 1, 2016 and its results of operations have been included since the acquisition date.

Following is the detail of the Company's unit shipments, bookings and backlog of unfilled orders placed with its manufacturing and assembly operations for new lift trucks, reflected in thousands of units. "Other adjustments" in the first six months of 2022 below represents suspended orders for which the Company has no defined plans to fulfill. As of ~~September~~June 30, ~~2017,~~2023, unit backlog excludes 2,500 of these suspended orders. As of June 30, 2023, substantially all of the Company's backlog is expected to be sold within the next twelve months.

The following is the detail of the approximate sales value of the Company's lift truck unit bookings and backlog, reflected in millions of dollars. The dollar value of bookings and backlog is calculated using the current unit bookings and backlog and the forecasted average sales price per unit.


	THREE MONTHS ENDED				SIX MONTHS ENDED
	JUNE 30				JUNE 30
	2023		2022		2023		2022
Bookings, approximate sales value	$	680	$	760	$	1,370	$	1,710
Backlog, approximate sales value	$	3,610	$	3,530	$	3,610	$	3,530

~~Third~~Second Quarter of ~~2017~~2023 Compared with ~~Third~~Second Quarter of ~~2016~~2022

The following table identifies the components of change in revenues for the ~~third~~second quarter of ~~2017~~2023 compared with the ~~third~~second quarter of ~~2016~~:2022:


	Revenues
			Lift truck
	HY		Americas		EMEA		JAPIC
2022	$	895.4	$	596.6	$	184.8	$	64.9
Increase (decrease) in 2023 from:
Unit volume and product mix	91.8		116.6		(10.4)		(14.4)
Price	77.9		51.3		25.4		1.2
Parts	32.0		29.3		2.7		—
Bolzoni revenues	10.2		—		—		—
Nuvera revenues	0.7		—		—		—
Eliminations	(8.1)		—		—		—
Foreign currency	(3.2)		(1.1)		(0.2)		(1.9)
Other	(6.1)		(4.2)		(1.7)		(0.2)
2023	$	1,090.6	$	788.5	$	200.6	$	49.6

Revenues
2016 $ 629.3
Increase (decrease) in 2017 from:
Unit volume and product mix 33.8
Bolzoni revenues 8.1
Foreign currency 7.6
Price 7.5
Parts 4.9
Other (0.1 )
2017 $ 691.1

Revenues increased ~~9.8%~~21.8% to ~~$691.1~~$1,090.6 million in the ~~third~~second quarter of ~~2017~~2023 from ~~$629.3~~$895.4 million in the ~~third~~second quarter of ~~2016.~~2022. The increase in Lift Truck revenues was ~~mainly~~primarily due to higher unit and parts ~~volume, favorable foreign currency movements~~volumes, mainly in the Americas and improved pricing in ~~the lift truck business. In addition, increased Bolzoni revenues contributed to the~~all geographic regions. The improvement in ~~revenues during the third quarter of 2017 compared with the third quarter of 2016.~~

Revenues in the Americas increased in the third quarter of 2017 compared with the third quarter of 2016 primarily as a result of increased unit shipments of higher-priced trucks, less deal-specific pricing and increased part sales. Revenues increased from sales of Class 5 internal combustion engine lift trucks, including the new standard truck and big trucks and Class 1 and Class 2 electric trucks,revenue was partially offset by ~~lower sales of Class 4 trucks.~~a decline in unit shipments in EMEA and JAPIC.

~~EMEA's~~Bolzoni revenues increased in the ~~third~~second quarter of ~~2017~~2023 compared with the ~~third~~second quarter of ~~2016~~2022 mainly ~~as a result~~from higher volume and pricing.

Revenues in JAPIC decreased in the third quarter of 2017 compared with the third quarter of 2016, mainly as a result of fewer shipments of higher-priced, higher-capacity lift trucks, predominantly big trucks.

The following table identifies the components of change in operating profit (loss) for the ~~third~~second quarter of ~~2017~~2023 compared with the ~~third~~second quarter of ~~2016:~~2022:


	Operating Profit (Loss)
			Lift truck
	HY		Americas		EMEA		JAPIC
2022	$	(15.7)	$	3.1	$	(10.8)	$	(4.0)


Increase (decrease) in 2023 from:
Lift truck gross profit	95.3		77.3		15.8		2.6
Lift truck selling, general and administrative expenses	(21.5)		(15.2)		(3.9)		(2.4)
Bolzoni operations	2.0		—		—		—
Nuvera operations	(1.3)		—		—		—
2023	$	58.8	$	65.2	$	1.1	$	(3.8)

Operating Profit
2016 $ 5.4
Increase (decrease) in 2017 from:
Lift truck gross profit 12.6
Bolzoni operations 4.6
Nuvera operations 4.5
Lift truck selling, general and administrative expenses (9.2 )
2017 $ 17.9

The Company recognized an operating profit of ~~$17.9~~$58.8 million in the ~~third~~second quarter of ~~2017~~2023 compared with ~~$5.4~~an operating loss of $15.7 million in the ~~third~~second quarter of ~~2016.~~2022. The increase in Lift Truck operating profit was primarily due to ~~higher lift truck~~improved gross profit and favorable Nuvera and Bolzoni operations, partially offset by the increase in lift truck's selling, general and administrative expenses. The increase in the lift truck gross profit was primarily attributable to improvedfrom higher pricing ~~higher unit shipments and favorable currency movements~~ of ~~$7.2~~$77.9 million, ~~partially offset by material cost inflation.~~

~~Operating profit~~mainly in the Americas ~~increased~~and EMEA, a shift in ~~the third quarter of 2017~~sales to higher margin lift trucks and higher unit and parts sales compared with the ~~third~~second quarter of ~~2016 primarily as a result of improved gross profit mainly due to higher unit shipments and improved pricing, net of material cost inflation. The increase in gross profit was~~2022. These items were partially offset by higher selling, general and administrative expenses ~~mainly from higher~~for increased employee-related costs, ~~and for development and marketing of new products.~~including incentive compensation.

~~EMEA recognized an operating loss of $1.1 million~~Operating profit in the ~~third quarter of 2017 compared with $1.4 million in the third quarter of 2016. Higher~~Americas increased primarily due to improved gross profit from ~~favorable currency movements~~higher pricing of ~~$6.7~~$51.3 million, ~~and higher unit shipments was mainly offset by higher material costs,~~ a shift in sales ~~mix~~ to ~~lower-priced, lower-margin products~~higher margin lift trucks, higher unit and ~~an increase in selling, general and administrative expenses.~~

~~The operating loss in JAPIC increased in the third quarter of 2017 compared with the third quarter of 2016, primarily~~parts sales, as ~~a result of higher selling, general and administrative expenses~~well as ~~the Company continues to execute its strategic initiatives.~~

Bolzoni's operating profit increased in the third quarter of 2017 from the third quarter of 2016 primarily due to the absence of $2.6 million of one-time purchase accounting adjustments recorded in the third quarter of 2016 and higher gross profit from increased sales and higher productivity.

~~Nuvera's operating loss decreased in the third quarter of 2017 compared with the third quarter of 2016 primarily due to lower product development and production startup expenses which was~~favorable material costs, partially offset by higher selling, general and administrative expenses related to higher employee costs, including ~~employee-related costs~~incentive compensation.

EMEA recognized operating profit of $1.1 million in the second quarter of 2023 compared with an operating loss of $10.8 million in the second quarter of 2022, primarily from higher gross profit from improved pricing of $25.4 million, partially offset by manufacturing inefficiencies and ~~other~~higher selling, general ~~operating~~and administrative expenses.

Bolzoni's operating profit increased to $5.4 million in the second quarter of 2023 compared with $3.4 million in the second quarter of 2022 due to higher gross profit from improved pricing and higher sales volume.

The Company recognized net income attributable to stockholders of ~~$16.5~~$38.3 million in the ~~third~~second quarter of ~~2017~~2023 compared with ~~$12.3~~a net loss of $19.4 million in the ~~third~~second quarter of ~~2016.~~2022. The ~~increase~~improvement was primarily the result of ~~the increase in~~higher operating profit (loss), partially offset by higher income taxes and interest ~~expense in~~expense. See Note 5 of the ~~third quarter~~Company's condensed consolidated financial statements for further discussion of ~~2017 compared with~~ the ~~third quarter of 2016.~~Company's income tax provision.

First ~~Nine~~Six Months of ~~2017~~2023 Compared with First ~~Nine~~Six Months of ~~2016~~2022

The following table identifies the components of change in revenues for the first ~~nine~~six months of ~~2017~~2023 compared with the first ~~nine~~six months of ~~2016:~~2022:


	Revenues
			Lift truck
	HY		Americas		EMEA		JAPIC
2022	$	1,723.0	$	1,154.3	$	354.5	$	116.6
Increase (decrease) in 2023 from:
Unit volume and product mix	164.4		167.9		16.9		(20.4)
Price	152.2		96.6		53.1		2.5
Parts	64.1		56.7		5.5		1.9
Bolzoni revenues	13.7		—		—		—
Nuvera revenues	1.7		—		—		—
Foreign currency	(17.4)		(0.2)		(13.8)		(3.4)
Eliminations	(10.5)		—		—		—
Other	(1.3)		(0.9)		(0.7)		0.3
2023	$	2,089.9	$	1,474.4	$	415.5	$	97.5

Revenues
2016 $ 1,879.1
Increase (decrease) in 2017 from:
Unit volume and product mix 133.8
Bolzoni revenues
First quarter 2017 $ 41.6

Increase in second and third quarter 2017 revenues 11.1
52.7
Unit price 18.0
Parts 15.2
Other (5.8 )
Foreign currency (3.3 )
2017 $ 2,089.7

Table of Contents

Revenues increased ~~11.2%~~21.3% to ~~$2,089.7~~$2,089.9 million in the first ~~nine~~six months of ~~2017~~2023 from ~~$1,879.1~~$1,723.0 million in the first ~~nine~~six months of ~~2016.~~2022. The increase was ~~mainly attributable~~primarily due to ~~the lift truck business from~~ higher unit and parts ~~volumes and the favorable effect of a decrease in deal-specific pricing during the first nine months of 2017 compared with the first nine months of 2016.~~

~~Revenues~~volume in the Americas, ~~increased~~improved pricing and a shift in sales to higher-priced lift trucks in the first nine months of 2017 from the first nine months of 2016 primarily as a result of increased unit shipments of higher-priced trucks. Revenues increased primarily from sales of the Company's new Class 5 internal combustion engine standard truckAmericas and increased sales of higher-capacity, 3.5 to 8 ton, Class 5 trucks, as well as Class 1 and Class 2 trucks. In addition, a decrease in deal-specific pricing and an increase in parts sales also contributed to the increase in revenues in the first nine months of 2017 compared with the first nine months of 2016.EMEA.

EMEA's revenues improved in the first nine months of 2017 from the first nine months of 2016 mainly as a result of increased unit shipments primarily related to shipments of the new Class 5 internal combustion engine standard truck and an increase in shipments of Class 1 electric-rider trucks.

The following table identifies the components of change in operating profit for the first ~~nine~~six months of ~~2017~~2023 compared with the first ~~nine~~six months of ~~2016:~~2022:


	Operating Profit (Loss)
			Lift truck
	HY		Americas		EMEA		JAPIC
2022	$	(34.0)	$	7.5	$	(22.2)	$	(7.7)


Increase (decrease) in 2023 from:
Lift truck gross profit	166.8		131.5		28.3		5.6
Lift truck selling, general and administrative expenses	(32.7)		(26.3)		(2.4)		(4.0)
Bolzoni operations	4.4		—		—		—
Nuvera operations	(3.1)		—		—		—
2023	$	101.4	$	112.7	$	3.7	$	(6.1)

Operating Profit
2016 $ 26.5
Increase (decrease) in 2017 from:
Lift truck gross profit 35.6
Bolzoni operations 6.7
Lift truck selling, general and administrative expenses (8.1 )
Nuvera operations (1.1 )
2017 $ 59.6

The Company recognized an operating profit of ~~$59.6~~$101.4 million in the first ~~nine~~six months of ~~2017~~2023 compared with ~~$26.5~~an operating loss of $34.0 million in the first ~~nine~~six months of ~~2016.~~2022. The increase in Lift Truck operating profit was primarily due to ~~higher lift truck~~improved gross profit from higher pricing of $152.2 million, mainly in the Americas and EMEA, and a shift in sales to higher margin lift trucks and higher unit and parts sales compared with the first six months of 2022. These items were partially offset by ~~an increase in~~higher selling, general and administrative expenses. The increase in the lift truck gross profit was primarily due to higher unit shipments and related production efficiencies in addition to improved pricing, partially offset by material cost inflation.expenses for increased employee-related costs, including incentive compensation.

Operating profit in the Americas increased ~~in the first nine months of 2017 compared with the first nine months of 2016~~ primarily ~~as a result of~~due to improved gross profit from higher pricing of $96.6 million, a shift in sales to higher margin lift trucks and increased unit and parts sales, partially offset by higher selling, general and administrative expenses, related to higher employee costs, including incentive compensation.

EMEA's operating profit improved mainly due to ~~higher unit shipments and related production efficiencies in addition to~~ improved ~~pricing. The increase in~~ gross profit ~~was~~from improved pricing of $53.1 million, partially offset by material cost ~~inflation. In addition,~~inflation and manufacturing inefficiencies.

JAPIC's operating loss improved to $6.1 million in the first six months of 2023 from $7.7 million in the first six months of 2022, primarily due to higher gross profit from a shift in mix to higher-margin products and price increases, partially offset by higher selling, general and administrative expenses ~~in the Americas~~for increased employee-related costs and marketing programs.

Bolzoni's operating profit increased to $9.8 million in the first ~~nine~~six months of ~~2017~~2023 compared with $5.5 million in the first ~~nine~~six months of ~~2016 primarily~~2022 due to higher ~~employee-related costs~~gross profit from a shift in mix to higher-margin products and ~~for development and marketing of new products, offset by the absence of $6.1 million of prior period acquisition-related costs.~~

Operating profit in EMEA declined in the first nine months of 2017 compared with the first nine months of 2016 mainly as a result of an increase in selling, general and administrative expenses partially offset by higher ~~gross profit. Gross profit improved primarily from higher unit shipments,~~volume, partially offset by material cost inflation.

~~The~~Nuvera's operating loss ~~in JAPIC~~ increased to $19.0 million in the first ~~nine~~six months of ~~2017~~2023 compared with $16.0 million in the first ~~nine~~six months of ~~2016 mainly as a result of increased~~2022 primarily from higher selling, general and administrative expenses ~~partly offset by improved pricing.~~

Bolzoni's operating profit improved in the first nine months of 2017 from the first nine months of 2016 primarily due to the absence of $2.7 million of one-time purchase accounting adjustments recorded in 2016 and higher gross profit from higher sales in the comparable second and third quarters of 2017 compared with 2016. Gross profit in the first quarter of 2017 was $2.3 million.

~~During the first nine months of 2017, Nuvera's operating loss~~for increased $1.1 million compared with the first nine months of 2016. In the first nine months of 2017, Nuvera had lower product development and production start-up expenses as the Company began transitioning from product development to production of its fuel-cell system in the second half of 2016. This decrease was more than offset by increased marketing, employee-related costs, ~~professional fees~~including incentive compensation, and ~~other general operating expenses.~~product development.

The Company recognized net income attributable to stockholders of ~~$51.0~~$64.9 million in the first ~~nine~~six months of ~~2017~~2023 compared with ~~$30.6~~a net loss of $44.4 million in the first ~~nine~~six months of ~~2016.~~2022. The ~~increase~~improvement was primarily the result of the ~~increase in~~factors affecting operating profit (loss), partially offset by higher income taxes and interest ~~expense in~~expense. See Note 5 of the ~~first nine months~~Company's condensed consolidated financial statements for further discussion of ~~2017 compared with~~ the ~~first nine months~~Company's income tax provision.

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LIQUIDITY AND CAPITAL RESOURCES

Cash Flows

The following tables detail the changes in cash flow for the ~~nine~~six months ended ~~September 30~~:June 30:


	2023		2022		Change
Operating activities:
Net income (loss)	$	66.0	$	(42.9)	$	108.9
Depreciation and amortization	22.5		22.1		0.4
Dividends from unconsolidated affiliates	10.5		15.6		(5.1)


Working capital changes
Accounts receivable	(55.4)		(100.4)		45.0
Inventories	(19.8)		(32.5)		12.7
Accounts payable and other liabilities	10.6		153.9		(143.3)
Other current assets	(7.3)		(7.1)		(0.2)
Other operating activities	17.7		(8.5)		26.2
Net cash provided by operating activities	44.8		0.2		44.6
Investing activities:
Expenditures for property, plant and equipment	(10.6)		(15.3)		4.7
Proceeds from the sale of assets and business	1.9		0.8		1.1
Purchase of noncontrolling interest	(3.2)		(8.4)		5.2

Net cash used for investing activities	(11.9)		(22.9)		11.0

Cash flow before financing activities	$	32.9	$	(22.7)	$	55.6

2017 2016 Change
Operating activities:
Net income $ 51.2
$ 30.2
$ 21.0
Depreciation and amortization 31.7
28.7
3.0
Other (5.5 ) (5.5 ) —
Working capital changes 79.9
(30.5 ) 110.4
Net cash provided by operating activities 157.3
22.9
134.4
Investing activities:
Expenditures for property, plant and equipment (25.1 ) (28.3 ) 3.2
Proceeds from the sale of assets 1.1
9.5
(8.4 )
Investments in equity securities (5.6 ) —
(5.6 )
Business acquisitions, net of cash acquired (1.0 ) (107.7 ) 106.7
Net cash used for investing activities (30.6 )
(126.5 ) 95.9
Cash flow before financing activities $ 126.7
$ (103.6 ) $ 230.3

Net cash provided by operating activities increased ~~$134.4~~$44.6 million in the first ~~nine~~six months of ~~2017~~2023 compared with the first ~~nine~~six months of ~~2016~~2022, primarily as a result of ~~the change~~higher net income and non-cash adjustments for stock compensation and currency translation partially offset by changes in working capital ~~items and the increase in net income.~~items. The ~~change~~changes in working capital ~~was~~were mainly due to a decrease in customer deposits received related to down payments on orders partially offset by a smaller increase in accounts payable in the Americas returning to normalized levels during 2017 following an unplanned systems-related acceleration of supplier payments in December 2016, and lower payments of amounts accrued, primarily in the Americas,receivable in the first ~~nine~~six months of ~~2017~~2023 compared with the first ~~nine~~six months of ~~2016.~~2022.

The change in net cash used for investing activities during the first ~~nine~~six months of ~~2017~~2023 compared with the first ~~nine~~six months of ~~2016 is mainly~~2022 was due to the ~~result~~purchase of ~~the acquisition of Bolzoni~~Bolzoni's noncontrolling interest in ~~the second quarter of 2016.~~

2017 2016 Change
Financing activities:
Net increases of long-term debt and revolving credit agreements $ 82.9
$ 44.1
$ 38.8
Cash dividends paid (14.8 ) (14.3 ) (0.5 )
Financing fees paid (4.8 ) (1.6 ) (3.2 )
Other (0.4 ) (0.2 ) (0.2 )
Net cash provided by financing activities $ 62.9
$ 28.0
$ 34.9

~~Net cash provided by financing activities increased $34.9 million during the first nine months of 2017~~2023 compared with the first ~~nine months~~installment purchase of ~~2016.~~ the noncontrolling interest of Hyster-Yale Maximal Forklift (Zhejiang) Co., Ltd. in 2022 and lower capital expenditures.


	2023		2022		Change
Financing activities:
Net increase (decrease) of long-term debt and revolving credit agreements	$	(15.8)	$	44.6	$	(60.4)
Cash dividends paid	(12.4)		(11.1)		(1.3)

Other	(0.7)		—		(0.7)
Net cash provided by (used for) financing activities	$	(28.9)	$	33.5	$	(62.4)

The ~~increase~~change in net cash used for financing activities was primarily due to repayments of debt in the first ~~nine~~six months of ~~2017 was due to~~2023 compared with additional borrowings ~~under the Term Loan (as defined below), partially offset by repayments of borrowings under the Facility (as defined below)~~ during the first ~~nine~~six months of 2017, primarily due to the unplanned systems-related acceleration of supplier payments in December 2016. The increase in the first nine months of 2016 was due to borrowings under the Facility (as defined below) related to the acquisition of Bolzoni.2022.

Financing Activities

The Company has a ~~$200.0~~$325.0 million secured, floating-rate revolving credit facility (the ~~"Facility”~~"Facility") that expires in ~~April 2022. On~~June 2026 and a $225.0 million term loan (the "Term Loan"), which matures in May ~~30, 2017,~~2028. The Facility was amended in the ~~Company amended~~second quarter of 2023 for the purpose of, among other items, (i) establishing a new tranche of revolving loans with aggregate commitments of $25.0 million under the Facility ~~to, among other things, permit term loans~~ and ~~related liens, reduce~~(ii) changing the ~~availability from $240.0 million and extend the expiration of~~benchmark interest rate for U.S. dollar-denominated borrowings under the Facility from ~~April 2021. There were no~~LIBOR to Term SOFR, each as defined in the Facility. The Term Loan was amended in the second quarter of 2023 for the purpose of changing the benchmark interest rate for borrowings ~~outstanding~~ under the ~~Facility at September 30, 2017. The excess availability under~~Term Loan from LIBOR to Term SOFR,

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each as defined in the ~~Facility at September 30, 2017 was $196.0 million, which reflects reductions~~Facility. See Note 10 of ~~$4.0 million~~the Company's condensed consolidated financial statements for ~~letters of credit and other restrictions. The Facility consists of a U.S. revolving credit facility of $120.0 million and a non-U.S. revolving credit facility of $80.0 million.~~ further discussion.

The Facility can be increased up to ~~$300.0~~$400.0 million over the term of the ~~agreement~~Facility in minimum increments of $10.0 million, subject to ~~certain conditions.~~approval by the lenders. The obligations under the Facility are generally secured by a first priority lien on ~~the~~ working capital assets of the borrowers and guarantors in the Facility, which ~~include~~includes but ~~are~~is not limited to cash and cash equivalents, accounts receivable and inventory, and a second priority lien on the ~~Term Loan Collateral (defined below).~~present and future shares of capital stock, fixtures and general intangibles consisting of intellectual property. The approximate book value of assets held as collateral under the Facility was ~~$1.0~~$1.2 billion as of ~~September~~June 30, ~~2017.~~ 2023.

Borrowings bear interest at a floating rate based on a base rate or LIBOR, as defined in the Facility, plus an applicable margin. The applicable margins, effective September 30, 2017, for U.S. base rate loans and LIBOR loans were 0.25% and 1.25%, respectively. The applicable margin, effective September 30, 2017, for non-U.S. base rate loans and LIBOR loans was 1.25%. The applicable LIBOR interest rates under the Facility on September 30, 2017 were 2.48% and 1.25%, respectively, for the U.S. and non-U.S. facility including the applicable floating rate margin. The Facility also required the payment of a fee of 0.350% per annum on the unused commitment as of September 30, 2017.

The Facility includes restrictive covenants, which, among other things, limit additional borrowings and investments of the Company ~~and its subsidiaries~~ subject to certain thresholds, as ~~defined~~provided in the Facility. The Facility ~~and~~ limits the payment of ~~dividends. If availability for both total~~dividends and ~~U.S. revolving credit facilities on a pro forma basis, is greater than fifteen percent and less than or equal to twenty percent,~~other restricted payments the Company may ~~pay dividends subject to achieving a minimum~~make unless certain total excess availability and/or fixed charge coverage ratio ~~of 1.00 to 1.00,~~thresholds, each as ~~defined~~set forth in the Facility. If the availability is greater than twenty percent for both total and U.S. revolving credit facilities on a pro forma basis, the Company may pay dividends without any minimum fixed charge coverage ratio requirement.Facility, are satisfied. The Facility also requires the Company to achieve a minimum fixed charge coverage ratio ~~in certain circumstances in which~~when total excess availability is less than ~~ten percent~~the greater of 10% of the total ~~commitments under the Facility or excess availability under the U.S. revolving credit facility is less than ten percent of the U.S. revolver commitments,~~borrowing base, as defined in the ~~Facility.~~Facility, and $20.0 million. At ~~September~~June 30, ~~2017,~~2023, the Company was in compliance with the covenants in the Facility.

OnThe new $25.0 million tranche will terminate on May ~~30, 2017,~~1, 2024 unless otherwise terminated prior to such date by the Company ~~entered into an agreement for~~in accordance with the terms of the Facility. Commencing December 1, 2023, the new $25.0 million tranche will amortize on a ~~$200.0~~monthly basis in the amount of $4.2 million ~~term loan (the “Term Loan”), which matures on May~~per month.

Key terms of the Facility as of June 30, ~~2023.~~ 2023 were as follows:


			FACILITY
U.S. borrowing capacity			$	235.0
Non-U.S. borrowing capacity			90.0
Outstanding			127.6
Availability restrictions			7.8
Availability			$	189.6

	FILO LOANS		LOANS OTHER THAN FILO LOANS
Applicable margins, as defined in agreement
U.S. base rate loans	2.25%		0.25% to 0.75%
SOFR, EURIBOR and foreign base rate loans	3.25%		1.25% to 1.75%
SOFR adjustment, as defined in agreement	0.10%		0.10%
Applicable margins, for amounts outstanding
U.S. base rate and SOFR loans	—		0.50%; 1.50%
Non-U.S. base rate and SOFR loans	3.25%		1.50%
Applicable interest rate, for amounts outstanding

SOFR	8.44	%	6.77%
EURIBOR	—		4.40%
Facility fee, per annum on unused commitment	—		0.25%

The Term Loan requires quarterly principal payments on the last day of each March, June, September and December, ~~commencing~~which commenced September 30, ~~2017~~2021, in an amount equal to ~~$2.5 million~~$562,500 and the final principal repayment is due ~~on the~~in May ~~30, 2023.~~2028. The Company may also be required to make mandatory prepayments, in certain circumstances, as provided in the Term Loan. At September 30, 2017, there was $197.5 million of principle outstanding under the Term Loan which has been reduced in the unaudited condensed consolidated balance sheet by $4.3 million of discounts and unamortized deferred financing fees.

The obligations under the Term Loan are generally secured by a first priority lien on the present and future shares of capital stock, material real property, fixtures and general intangibles consisting of intellectual property ~~(collectively, the "Term Loan Collateral")~~ and a second priority lien on ~~the remaining collateral~~working capital assets of the ~~U.S.~~ borrowers inand guarantors of the ~~Facility.~~Facility, which includes, but is not limited to cash and cash equivalents, accounts receivable and inventory. The approximate book value of assets held as collateral under the Term Loan was ~~$690~~$800 million as of ~~September~~June 30, ~~2017.~~2023.

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Borrowings under the Term Loan bear interest at a floating rate, which can be a base rate or Eurodollar rate, as defined in the Term Loan, plus an applicable margin. The applicable margin is based on the consolidated leverage ratio, as provided in the Term Loan, and ranges from 2.75% to 3.00% for U.S. base rate loans and 3.75% to 4.00% for Eurodollar loans. The weighted average interest rate on the amount outstanding under the Term Loan at September 30, 2017 was 5.24%. In addition, the Term Loan includes restrictive covenants, which, among other things, limit additional borrowings and investments of the Company subject to certain thresholds, as provided in the Term Loan. The Term Loan limits the payment of ~~regularly scheduled~~ dividends and other restricted payments ~~to $50.0 million~~the Company may make in any fiscal year, unless the consolidated total net leverage ratio, as defined in the Term Loan, does not exceed ~~1.75~~2.50 to 1.00 at the time of the payment. The Term Loan also contains a provision requiring a premium to be paid in the event of a repricing of the borrowings under the Term Loan, whether by amendment or entry into new loans, within the six month period following entry into the Term Loan. At ~~September~~June 30, ~~2017,~~2023, the Company was in compliance with the covenants in the Term Loan.

~~The Company incurred fees and expenses~~Key terms of $4.8 million in 2017 related to the amendment of the Facility and entry into the Term Loan. These fees were deferred and are being amortized as interest expense over the term of the applicable debt agreements. Fees related to the Term Loan ~~are presented~~ as ~~a direct deduction~~ of ~~the corresponding debt.~~June 30, 2023 were as follows:


	TERM LOAN
Outstanding	$	220.5
Discounts and unamortized deferred financing fees	3.7
Net amount outstanding	$	216.8
Applicable margins, as defined in agreement
U.S. base rate loans	2.50%
SOFR	3.50%
SOFR adjustment, as defined in agreement	0.11%
SOFR floor	0.50%
Applicable interest rate, for amounts outstanding	8.72%

The Company had other debt outstanding, excluding ~~capital~~finance leases, of approximately ~~$79.3~~$170.4 million at ~~September~~June 30, ~~2017.~~2023. In addition to the excess availability under the Facility of $189.6 million, the Company had remaining availability of ~~$46.6~~$25.9 million related to other non-U.S. revolving credit ~~agreements.~~

agreements at June 30, 2023.

The Company believes funds available from cash on hand, ~~Term Loan,~~ the Facility, other available lines of credit and operating cash flows will provide sufficient liquidity to meet its operating needs and commitments during the next twelve months and until the expiration of the Facility in ~~April 2022.~~June 2026.

Contractual Obligations, Contingent Liabilities and Commitments

On May 30, 2017, the Company entered into the Term Loan which matures on May 30, 2023. The Company used the borrowings under the Term Loan to repay borrowings under the Facility and plans to use the remaining proceeds from the Term Loan to fund any future acquisitions and strategic investments and for general corporate purposes. In addition, the Company also entered into an amendment to the Facility during the second quarter of 2017.

~~Following is a table summarizing the Term Loan and the Facility, as amended, as of September 30, 2017:~~

Payments Due by Period
Contractual Obligations Total Year 1 Year 2 Year 3 Year 4 Year 5 After Year 5
Term Loan $ 197.5
$ 10.0
$ 10.0
$ 10.0
$ 10.0
$ 10.0
$ 147.5
Interest payments on Term Loan 51.2
10.1
9.6
9.1
8.6
8.1
5.7
$ 248.7
$ 20.1
$ 19.6
$ 19.1
$ 18.6
$ 18.1
$ 153.2

Since December 31, ~~2016,~~2022, there have been no ~~other~~ significant changes in the total amount of the Company's contractual obligations or commercial commitments, or the timing of cash flows in accordance with those obligations, as reported on pages 2623 and 2724 in the Company's Annual Report on Form 10-K for the year ended December 31, ~~2016.~~2022.

Capital Expenditures

The following table summarizes actual and planned capital expenditures:


	Six Months Ended June 30, 2023		Planned for Remainder of 2023		Planned 2023 Total		Actual 2022
Lift truck business	$	7.5	$	44.1	$	51.6	$	20.3
Bolzoni	2.0		7.4		9.4		5.5
Nuvera	1.1		3.0		4.1		3.0
	$	10.6	$	54.5	$	65.1	$	28.8

Nine Months Ended September 30, 2017 Planned for Remainder of 2017 Planned 2017 Total Actual 2016
Lift truck business $ 19.9
$ 17.7
$ 37.6
$ 36.5
Bolzoni 4.1
2.5
6.6
4.0
Nuvera 1.1
1.3
2.4
2.2
$ 25.1
$ 21.5
$ 46.6
$ 42.7

Planned expenditures for the remainder of ~~2017~~2023 are primarily for product development, improvements to information technology infrastructure and improvements at manufacturing locations and manufacturing equipment. The principal sources of financing for these capital expenditures are expected to be internally generated funds and bank financing.

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Capital Structure

The Company's capital structure is presented below:


	JUNE 30 2023			DECEMBER 31 2022			Change
Cash and cash equivalents	$	65.7		$	59.0		$	6.7
Other net tangible assets	689.3			625.0			64.3
Intangible assets	41.3			42.7			(1.4)
Goodwill	52.2			51.3			0.9
Net assets	848.5			778.0			70.5
Total debt	(542.3)			(552.9)			10.6
Total temporary and permanent equity	$	306.2		$	225.1		$	81.1
Debt to total capitalization	64		%	71		%	(7)		%

PERSPECTIVES AND OUTLOOK

SEPTEMBER 30
2017 DECEMBER 31
2016 Change
Cash and cash equivalents $ 238.2
$ 43.2
$ 195.0
Other net tangible assets 498.5
531.5
(33.0 )
Intangible assets 57.7
56.2
1.5
Goodwill 57.4
50.7
6.7
Net assets 851.8
681.6
170.2
Total debt (294.1 ) (211.2 ) (82.9 )
Total equity $ 557.7
$ 470.4
$ 87.3
Debt to total capitalization 35 % 31 % 4 %

Market Commentary

~~OUTLOOK~~The global economic outlook remains uncertain with continuing moderating activity in certain parts of the world, including EMEA. This weakness is due to tight monetary policies designed to contain inflation and labor market shortages, among other factors. Despite these challenges, the deceleration in the U.S.'s economy and lift truck market has been more moderate than previously predicted.

~~Americas Outlook~~The latest publicly available lift truck market data indicates that new unit, first-quarter 2023 booking activity decreased in all major geographies compared with strong prior-year levels but was still ahead of pre-pandemic volumes. Internal company estimates suggest that the global lift truck market decline accelerated in the second quarter of 2023, with all major geographies experiencing booking declines compared with the prior year.

~~As it was~~Looking ahead, the Company continues to expect a full-year 2023 lift truck market decline in all regions compared with 2022. This decline is anticipated to accelerate in the second half of 2023 compared with the first half in all markets. However, 2023's market unit volumes are projected to remain reasonably strong in most regions compared with pre-pandemic levels.

Consolidated Strategic Perspective

The Company believes the improving 2023 results are due to actions taken since the COVID-19 pandemic began, implementation of key strategies and projects and significant process improvements made over the ~~year,~~past few years, all of which position the Company for substantial longer-term growth. The Company believes its more mature Lift Truck and Bolzoni businesses are the foundation for this improvement, while the Nuvera business has substantial growth ~~in the Americas market in the third quarter of 2017 continued~~prospects that have yet to be ~~stronger than originally anticipated,~~realized.

Operational Perspectives - Lift Truck Business

Second-quarter 2023 lift truck bookings decreased moderately from first-quarter 2023 and ~~that growth is expected~~prior-year levels due to ~~continue in the fourth quarter of 2017. Unit shipments and unit and parts revenues are expected to increase in the fourth quarter of 2017 compared with the fourth quarter of 2016 as~~several factors, including a ~~result of the strong 2017~~healthy, but declining, global market and ~~an increase in sales of higher-priced Class 5 internal combustion engine trucks, Class 1 electric trucks and Class 3 warehouse trucks.~~

~~Fourth-quarter 2017 operating profit in~~a continued focus on booking orders with strong margins. Despite the ~~Americas is expected~~bookings decrease, market share improved compared to ~~increase substantially compared with~~ the ~~fourth quarter of 2016. This anticipated improvement is expected~~prior year. Looking forward, second-half 2023 booking levels are projected to be driven by an increase in sales volumes of higher-priced Class 5 internal combustion engine trucks, including Big Trucks, as well as an expected improvement in product pricing, partially offset by material cost inflation and higher operating expenses.

In 2018, the Company expects the Americas market to continue to grow but at a more moderate rate than in 2017. In this market environment, 2018 revenues and parts sales are expected to increase over 2017 more than the marketcomparable year-over-year due to a steadier-than-expected market and anticipated market share gains. Full-year ~~2018 operating profit is expected~~2023 bookings are forecasted to ~~be comparable to 2017. An increase in sales of higher-priced units, as well as the favorable effect of~~decline compared with full-year 2022.

Production and shipment volumes are anticipated price increases, net of material cost inflation, are expected to be offset by higher operating expenses and an increase in costs associated with the marketing and sale of battery box replacement units along with the start of manufacturing of the 14- and 18-inch BBRs at the Greenville, North Carolina plant in the second half of 2018. These new BBR models are being developed to be used in many high-density warehouse applications.

~~EMEA Outlook~~

~~Markets in EMEA are expected~~ to continue to ~~grow~~increase in ~~the fourth quarter of 2017~~second-half 2023 compared with the prior year ~~period, but at a~~period. The Company expects its extended backlog to continue trending lower toward more ~~moderate rate than~~normal levels over time as planned production rates increase and given bookings expectations. At the end of second-quarter 2023, the backlog of nearly 93,000 units was down 19% from its peak in the ~~fourth quarter~~first-quarter 2022. Lead times and backlog levels will likely remain above desired levels for some time. However, this extended backlog, valued at $3.6 billion, which is almost a full year of ~~2016~~revenue, should serve as a shock absorber for the business if bookings decline more rapidly.

The trend of higher average unit booking and ~~first nine months of 2017. Unit revenues are expected to increase substantially~~backlog prices and margins continued in the ~~fourth~~second quarter largely due to order selectivity and enhanced pricing to offset prior years' inflation. Although certain material and labor cost increases continue, the

Table of ~~2017 primarily as a result~~Contents

rate of increase has slowed substantially, particularly in the ~~overall market conditions,~~Americas. Forward economic indicators suggest inflationary pressures will stabilize throughout the second half of 2023. As of June 30, 2023, the Company has worked through essentially all of its lower-priced, lower-margin backlog units booked before price increases implemented in 2021 and 2022 went into effect. In the second half of 2023, the Company expects to maintain an improved price-to-cost ratio, in part to address projected cost increases in certain categories and geographies. The Company continues to monitor material and labor costs closely, as well as an expected increase in sales of Class 1 electric counterbalanced trucks and Class 2 and 3 electric warehouse trucks. In addition, anticipated benefits from favorable current currency rates are expected to contribute to the ~~revenue increase.~~

~~Operating profit in the fourth quarter of 2017 is expected to be comparable to 2016. The anticipated favorable~~ impact of ~~improvements in unit revenues~~tariffs and ~~related production efficiencies from the higher units, as well as benefits expected from the weakening U.S. dollar are anticipated to be offset by material cost inflation~~competition, and ~~higher operating expenses.~~

~~In 2018, the EMEA markets are expected to grow modestly.~~will adjust forward pricing accordingly. As a result of ~~these market conditions, anticipated market share gains~~stabilizing cost inflation and the favorable effect of anticipated price increases, unit revenues are expected to increase in 2018. Anticipated benefits from favorable current currency rates are also expected to contribute to the revenue increase. Operating profit in the EMEA segment is also expected to increase in 2018 compared with 2017 as a result of benefits expected from currency movements, specifically the weakening U.S. dollar, higher sales volumes and favorable pricing, net of moderating material costs, partially offset by higher operating expenses.

~~JAPIC Outlook~~

For the fourth quarter of 2017, JAPIC is expected to continue to grow, driven primarily by China, but at a more moderate rate than in the prior year and first nine months of 2017. In this market environment, revenues and operating results are expected to improve during the fourth quarter of 2017 compared with the fourth quarter of 2016. This improvement is expected to be driven by increased unit volumes and a shift in mix to higher-margin Class 5 internal combustion engine trucks, including Big Trucks, Class 1 counter-balanced electric trucks and Class 2 warehouse trucks.

In 2018, the JAPIC market is expected to decline modestly, driven by China. However, as a result of the continued implementation of the Company's strategic initiatives, revenues and operating results are expected to improve compared with 2017, with higher employee-related expenses expected to partly offset the improvement in operating results.

~~Overall Lift Truck Outlook~~

The Company remains focused on gaining market share in its Lift Truck business through the continued implementation of its key strategic initiatives of understanding customer needs, providing the lowest cost of ownership over the life-cycle of thehigher-priced truck ~~enhancing its independent distribution, increasing its warehouse market position, increasing the Company's success in~~

~~the Asia markets, increasing its Big Truck market position, strengthening its sales and marketing organization, and leveraging its solutions and technology drivers.~~

~~To meet customer needs,~~production, the Company is developing new products in many segments that are expected to support its market share growth. In April 2017, the Company launched its new ReachStacker Big Truck model dedicated solely to container-handling applications in defined markets. This product has been well-received and is gaining traction. In October 2017, production began on a new 11-ton empty container handler Big Truck with a taller mast for higher stacking capabilities. The Company is also working with a customer to test a 52-ton Big Truck powered by a lithium-ion battery. In EMEA, the Company launched a new Class 3 electric stacker, warehouse truck with a platform for the driver in the 2017 third quarter, and, in early 2018, expects to introduce new Class 3 warehouse products in the Americas and new Class 1 electric counterbalanced trucks in EMEA. In addition to the lithium-ion Big Truck, the Company is testing an 8-9 ton high-performance, lithium-ion counterbalanced truck in EMEA. These new products, as well as those recently launched and the introduction of other new products in the pipeline, including trucks with new Nuvera BBRs, are expected to help increase market share, improve revenues and enhance operating margins.

The global lift truck market has remained strong throughout 2017 and is expected to continue to be strong through the end of the year. With this stronger than expected market, the Company has focused on a carefully paced ramp up in production and achievement of price goals, while maintaining a healthy backlog to manage production efficiencies.

~~Unit shipments and~~believes average unit and parts revenues in the Lift Truck business are expected to increase during the fourth quarter of 2017 compared with the same period in 2016. Lift Truck operating profit is also expected to increase in the fourth quarter of 2017 compared with the fourth quarter of 2016, but net income is expected to be comparable to 2016. The increase in operating profit is primarily driven by higher revenues and anticipated benefits from favorable current currency rates, partly offset by higher operating costs and material cost inflation, net of price increases. Higher interest expense and a higher effective income tax rate are expected to offset the fourth quarter operating profit improvements.

~~The Company anticipates that commodity costs~~margins will continue to increase in the ~~fourth quarter~~second half of ~~2017~~2023 compared with the prior year period. This improvement is anticipated to continue into the beginning of 2024 as newer bookings with higher margins are scheduled for production.

The factors outlined above, as well as the benefits from ~~2016 levels, but will moderate~~the Company's maturing strategic initiatives, are expected to lead to significant increases in ~~2018, although these markets, particularly steel, remain volatile~~revenue and ~~sensitive to changes~~operating profit in second-half 2023 compared with the respective prior year period. Operating profit in the third quarter is expected to decrease from the strong second-quarter results due to normal business seasonality combined with ongoing EMEA production challenges and an anticipated mix shift toward lower margin sales channels. Fourth-quarter 2023 results are expected to increase meaningfully over the third quarter, due in part to anticipated improvements in EMEA and the absence of planned production outages. However, these forecasts are highly sensitive, in particular to the impact of global ~~economy.~~supply chain adjustments and production capabilities.

Strategic Perspectives - Lift Truck

From a broad perspective, the Lift Truck business has three core strategies that are expected to transform the Company’s competitiveness, market position and economic performance over time:

•Provide the lowest cost of ownership while improving customer productivity, including for low-intensity applications. The ~~Company will continue to monitor these closely and adjust pricing accordingly.~~

~~Global markets~~Lift Truck business' capabilities in ~~2018~~this area are expected to be ~~comparable~~enhanced by bringing to ~~2017.~~ market a wide variety of vehicle innovations including: new modular and scalable product families, truck electrification projects and technology advancements in vehicle automation, power options and operator assist systems;

•Be the leader in the delivery of industry- and customer-focused solutions by transforming the Company's sales approach to meet a wide variety of customer needs across a broad set of end markets; and

•Be the leader in independent distribution by focusing on effectively coordinating dealer and major account coverage, enhancing dealer excellence and ensuring outstanding dealer ownership globally.

The Company ~~anticipates that benefits from expected unit and parts revenue increases driven by continued investments~~continues to make progress on its high priority projects. The Lift Truck business launched its heart-of-the-line modular, scalable lift trucks in the Company's strategic initiatives will be partially offset by higher operating expenses and moderating material cost inflation, resulting in a moderate increase in operating profit in 2018 compared with 2017. However, net income in 2018 is expected to decrease modestly from 2017 as a result of higher interest expense and a higher effective income tax rate, as well as the absence of tax benefits recognized in 2017 that are not expected to reoccur.

~~Bolzoni Outlook~~

The majority of Bolzoni's revenues are generated in the EMEA market, primarily Western and Eastern Europe, and, to a lesser degree, in the North America market. As a result of anticipated strong growth in both the EMEA and Americas markets in 2022. Given the current extended backlog, the production ramp-up for this new product line is occurring gradually. The Company plans to launch these models in the JAPIC market in the second half of 2023. These products are expected to help reduce supply chain costs and working capital, and better meet customer needs.

The Lift Truck business has key projects geared toward electrifying trucks used for applications now dominated by internal combustion engine trucks through the ~~continued implementation~~use of ~~sales enhancement programs,~~advancements in electric power options. The Company also has key projects focused on applying technology advancements in automation product options and operator assist systems. The Company delivered its first electrified fuel cell Container Handler to the Port of Los Angeles for testing in late 2022. In second-half 2023, the Company anticipates delivering an electrified fuel cell Reach Stacker to the Port of Valencia, Spain, and delivering a new electrified fuel cell Terminal Tractor and an electrified fuel cell empty Container Handler to a customer in Hamburg, Germany. The Company is also exploring options for other electrification projects within the European Union.

Operational and Strategic Perspectives - Bolzoni ~~expects~~

Bolzoni anticipates a modest decline in revenues in second-half 2023 due to a projected market decline. As a result, second-half 2023 operating profit is expected to moderate from the ~~fourth quarter~~strong first-half performance, but significantly exceed the prior-year second half as a result of ~~2017~~continuing year-over-year margin improvement.

Bolzoni's core strategy is to be the leader in the attachments business. In this context, Bolzoni continues to concentrate on driving its "One Company - 3 Brands" approach globally, increasing its Americas business and focusing on strengthening its ability to serve key attachment industries and customers in all global markets. As part of this approach, Bolzoni also intends to increase its sales, marketing and product capabilities in North America and Europe to support its industry-specific sales strategy.

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Operational and Strategic Perspectives - Nuvera

Nuvera's core strategy is to be a leader in the fuel cell business. Nuvera continues to focus on placing 45kW and 60kW fuel cell engines in heavy-duty vehicle applications for which battery-only electrification does not provide an adequate solution. As a result, these applications are expected to have significant and nearer-term fuel cell adoption potential. Nuvera has announced several projects with various third parties to test Nuvera® engines in targeted applications, including the Port of Los Angeles, which began testing in late 2022, in multiple European ports, which are projected to begin testing in the second half of 2023, in bus applications in China and India and in marine applications in the Netherlands. Nuvera is also developing a new, larger 125kW fuel cell engine for heavier-duty applications and plans to launch modular fuel cell-powered generators for stationary and mobile applications.

In the second half of 2023, Nuvera plans to continue to focus on increasing customer product demonstrations and customer bookings. Nuvera is expanding its presence in Europe and China. Recurring orders from current customers are booked for the period and are expected to result in higher sales compared with the ~~prior year fourth quarter.~~

~~In addition to the anticipated increase in revenues and the expected operating leverage resulting from the sales growth, the implementation~~second half of ~~several key strategic programs are expected~~2022. The business expects to generate ~~substantial growth in Bolzoni's operating profit and net income~~a lower loss in the ~~fourth quarter~~second half of ~~2017~~2023 compared with the ~~prior year.~~second half of 2022 and first half of 2023 largely due to anticipated higher shipments moderated by increased development and other costs. The increased volume of engine demonstrations should significantly enhance the foundation for future fuel cell engine technology adoption and improved financial returns.

~~Continued improvements in revenues,~~Consolidated Outlook

At the consolidated level, second-half 2023 operating profit and net income are expected ~~in 2018 compared with 2017.~~

~~Nuvera Outlook~~

~~Progress continues~~ to be ~~made~~significantly higher than second-half 2022. Full-year 2023 margin expansion, led by strong first-half improvements, is expected to generate substantial operating profit and net income for the 2023 full year. This should drive solid progress toward the Company's 7% operating profit margin and greater than 20% return on the organizational realignment designed to enhance the overall strategic positioning and operational effectiveness of the fuel cell business, with Nuvera focused on fuel cell stacks, engines and associated components andcapital employed goals at both the Lift Truck ~~business focused~~and Bolzoni businesses. These expectations are based on ~~battery box replacements~~the Company's ability to effectively manage its ongoing component and ~~integrated engine solutions. As mentioned above, the transition of the design, sales, marketing~~labor costs and ~~product support responsibilities for the BBRs from Nuvera~~increase its production levels.

The programs to ~~the Lift Truck business has been completed. However, the manufacturing of the current range of BBRs remains at Nuvera's Billerica facility at the present time.~~

~~Due to the relatively high cost position~~reduce inventory and ~~limited product range of currently available BBRs, the Company is taking a measured approach to developing its customer base by building relationships with customers that~~generate cash are willing to pay a premium for the high power density of the Nuvera BBR solution and the product support now offered through the Lift Truck business. During the 2017 third quarter, a number of additional units were built for further testing and development applications by the Lift Truck business, and sales of BBRs are increasing, with production slots filled through the end of the year. Nuvera expects a ramp-up of shipments during the fourth quarter from third quarter levels, with shipments expected to continue to increase in the first quarter of 2018. As the supply chain matures and volumes increase, costs for BBR components are expected to decrease, and as new, cost-reduced BBR models are introduced, including new 14- and 18-inch BBRs, the target customer portfolio is anticipated to ~~expand. By~~show substantial progress in the second half of ~~2018, production of the new 14-~~2023. The Company is committed to reducing its leverage and 18-inch BBRs is expected to begin at the Lift Truck business' manufacturing plant in Greenville, North Carolina, with a steady ramp up in demand anticipated. In addition, BBR manufacturing at Nuvera's Billerica facility isenhancing its cash flows through ongoing action plans and continued discipline over capital expenditures and operating expenses. Capital expenditures are expected to be ~~phased out and transferred~~approximately $65 million for full-year 2023, with spending more heavily weighted to the ~~Lift Truck business by the end of 2018.~~

With the phase out of battery box replacement production in Billerica, Nuvera will focus on the design, manufacture and sales and marketing of fuel cell stacks and engines. In addition to growing demand for engines for BBRs, Nuvera is seeing significant interest for its stacks and fuel cell engines for applications outsidesecond half of the ~~BBR market~~year. This full-year increase compares to significantly restrained 2022 levels. Higher expenditures are necessary to adequately maintain the Company’s facilities and ~~believes this can~~product development programs. Working capital control continues to be ~~a significant~~an area of intense focus for the Company. Inventory levels remain elevated and ~~profitable growth opportunity.~~

~~During~~above pre-pandemic levels but are decreasing. Efforts to maximize the ~~third quarter, the Company's fuel cell engines and BBRs reached a sufficient level~~use of ~~maturity that~~on-hand inventory are expected to help reduce excess inventory levels throughout the Company ~~could perform a detailed review~~in the 2023 second half. Supply constraints continue to be an issue periodically, while labor constraints are increasing, causing certain production and inventory usage challenges. However, the Company anticipates continued inventory improvements over the remainder of the most likely forward financial projection for the Nuvera business, taking into account the status and timing of engineering projects currently underway to cost reduce current products (stacks, engines and BBRs), the timing of the introduction of new products, the projected trajectory of sales by product type, including development activities and sales of fuel cell stacks and engines for application outside of the BBR market, and the level of operating expenses required at full commercialization.year. As a result of ~~this exercise and based on the Company's revised business model,~~these actions, the Company ~~believes it has better visibility of~~expects a significant increase in cash flow before financing activities for the ~~future costs and actions required~~full-year 2023 compared with 2022. Efforts to ~~reach profitable commercialization. The Company's current target is~~make further progress are expected to ~~achieve break-even~~continue in a late 2019 period, although this target could be achieved earlier or later depending on sales volumes for fuel cell powered lift trucks, as well as sales in other markets. The expected path is for moderating losses over the next two years.2024.

EFFECTS OF FOREIGN CURRENCY

The Company operates internationally and enters into transactions denominated in foreign currencies. As a result, the Company is subject to the variability that arises from exchange rate movements. The effects of foreign currency fluctuations on revenues, operating profit and net income (loss) are addressed in the previous discussions of operating results. See also Item 3, "Quantitative and Qualitative Disclosures About Market Risk,” in Part I of this Quarterly Report on Form 10-Q.

FORWARD-LOOKING STATEMENTS

The statements contained in this Form 10-Q 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) delays in delivery and other supply chain disruptions, or increases in costs as a result of inflation or otherwise, including materials and transportation costs and shortages, the imposition of tariffs, or the renewal of tariff exclusions, on raw materials or sourced products, and labor, or changes in or unavailability of quality suppliers or transporters, including the impacts of the foregoing risks on the Company's liquidity, (2) delays in manufacturing and delivery schedules, (3) customer acceptance of pricing, (4) the ability of the Company and its dealers, suppliers and end-users to

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access credit in the current economic environment, or obtain financing at reasonable rates, or at all, as a result of interest rate volatility and current economic and market conditions, including inflation, (5) reduction in demand for lift trucks, attachments 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,~~including any reduction in demand as a result of ~~current~~an economic recession, (6) unfavorable effects of geopolitical and ~~market conditions, (3)~~legislative developments on global operations, including without limitation the ~~political~~entry into new trade agreements and the imposition of tariffs and/or economic ~~uncertainties in~~sanctions, as well as armed conflicts, including the ~~countries where the Company does business, (4) customer acceptance of pricing, (5) delays in delivery or increases in costs, including transportation costs, of raw materials or sourced products~~Russia/Ukraine conflict, and ~~labor or changes in or unavailability of quality suppliers, (6)~~their regional effects, (7) exchange rate fluctuations, interest rate volatility and monetary policies and other changes in the regulatory climate in the countries in which the Company operates and/or sells products, ~~(7) delays in manufacturing and delivery schedules,~~ (8) bankruptcy of or loss of major dealers, retail customers or suppliers, (9) customer acceptance of, changes in the costs of, or delays in the development of new products, (10) introduction of new products by, or more favorable product pricing offered by, competitors, (11) product liability or other litigation, warranty claims or returns of products, (12) the effectiveness of the cost reduction programs implemented globally, including the successful implementation of procurement and sourcing initiatives, (9) the successful commercialization of Nuvera's technology, (10) the political and economic uncertainties in the countries where the Company does business, as well as the effects of any withdrawals from such countries, (11) bankruptcy of or loss of major dealers, retail customers or suppliers, (12) customer acceptance of, changes in the costs of, or delays in the development of new products, (13) introduction of new products by, more favorable product pricing offered by or shorter lead times available through competitors, (14) product liability or other litigation, warranty claims or returns of products, (15) changes mandated by federal, state and other regulation, including tax, health, safety or environmental legislation, ~~(14)~~(16) the ~~successful commercialization of Nuvera's~~ability to attract, retain, and replace workforce and administrative employees, (17) disruptions resulting from natural disasters, public health crises, political crises or other catastrophic events, and (18) the ability to protect the

Company’s information technology and (15) unfavorable effects of geopolitical and legislative developments on global operations, including without limitation, the United Kingdom's exit from the European Union, the entry into new trade agreements and the imposition of tariffs.infrastructure against service interruptions, data corruption,

cyber-based attacks or network breaches.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

See pages ~~32, 33~~27 and ~~F-24~~28 and F-22 through ~~F-27~~F-25 of the Company's Annual Report on Form 10-K for the year ended December 31, ~~2016~~2022 for a discussion of the Company's derivative hedging policies and use of financial instruments. There have been no material changes in the Company's market risk exposures since December 31, ~~2016~~.2022.

Item 4. Controls and Procedures

Evaluation of disclosure controls and procedures: An evaluation was carried out under the supervision and with the participation of the Company's management, including the principal executive officer and the principal financial officer, of the effectiveness of the Company's disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, these officers have concluded that the Company's disclosure controls and procedures were effective as of the end of the period covered by this report.

Changes in internal control over financial reporting: During the ~~third~~second quarter of ~~2017,~~2023, there were no changes in the Company's internal control over financial reporting that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II

OTHER INFORMATION

Item 1Legal Proceedings

None

Item 1ARisk Factors

There have been no material changes from the risk factors previously disclosed in the ~~Company's~~Company’s Annual Report on Form 10-K for the fiscal year ended December 31, ~~2016~~2022 in the ~~Section~~section entitled ~~"Risk~~“Risk Factors."”

Item 2Unregistered Sales of Equity Securities and Use of Proceeds

None

Item 3Defaults Upon Senior Securities

None

Item 4Mine Safety Disclosures

Not applicable

Item 5Other Information

None of the Company’s directors or officers (as defined in Rule 16a-1(f) promulgated under the Securities Exchange Act of 1934) adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement (as each term is defined in Item 408 of Regulation S-K) during the Company’s fiscal quarter ended June 30, 2023.

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Item 6Exhibits

The following exhibits are filed as part of this report:


Exhibit
Number*						Description of Exhibits

~~Exhibit~~10.1						First Amendment to Second Amended and Restated Loan, Security and Guaranty Agreement, dated as of May 25, 2023, among Hyster-Yale Materials Handling, Inc., Bolzoni Auramo, Inc. and Hyster-Yale Group, Inc., as U.S. Borrowers, Hyster-Yale Nederland B.V., as the Dutch Borrower, and Hyster-Yale UK Limited, as the UK Borrower, certain Persons party thereto from time to time as Guarantors, certain financial institutions, as Lenders, and Bank of America, N.A., as Administrative Agent and Security Trustee
Number*10.2						~~Description~~ Conforming Changes Amendment, dated as of ~~Exhibits~~June 23, 2023, by Bank of America, N.A., as administrative agent
10.3**						Non-Employee Directors' Equity Compensation Plan (Amended and Restated Effective May 9, 2023) (incorporated herein by reference to Appendix A to the Company's Definitive Proxy Statement on Schedule 14A (Commission File No. 000-54799), filed March 29, 2023)
31(i)(1)						Certification of ~~Alfred M. Rankin, Jr.~~Rajiv K. Prasad. pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act
31(i)(2)						Certification of ~~Kenneth C. Schilling~~Scott A. Minder pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act
32						Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed and dated by ~~Alfred M. Rankin, Jr.~~Rajiv K. Prasad and ~~Kenneth C. Schilling~~Scott A. Minder
101.INS						Inline XBRL Instance Document - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH						Inline XBRL Taxonomy Extension Schema Document
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document
104						The cover page from this Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, formatted in Inline XBRL and contained in Exhibit 101
* Numbered in accordance with Item 601 of Regulation S-K.
** Management contract or compensation plan or arrangement required to be filed as an exhibit pursuant to Item 6 of this Quarterly
Report on Form 10-Q.

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


			Hyster-Yale Materials Handling, Inc.

Date:		August 1, 2023	~~Hyster-Yale Materials Handling, Inc.~~/s/ Jennifer M. Langer
			Jennifer M. Langer
~~Date:~~		~~November 3, 2017~~	~~/s/ Kenneth C. Schilling~~ Vice President, Controller and Chief Accounting Officer (principal accounting officer)
			~~Kenneth C. Schilling~~
	~~Senior Vice President and Chief Financial Officer (principal financial and accounting officer)~~



(Mark One)
þ☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ~~ended September~~ended:	June 30, ~~2017~~2023



o☐						TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
						For the transition period from to



	SEPTEMBER 30 2017			DECEMBER 31 2016
	(In millions, except share data)
ASSETS
Current Assets
Cash and cash equivalents	$	238.2		$	43.2
Accounts receivable, net	403.0			375.3
Inventories, net	419.9			352.2
Prepaid expenses and other	41.6			39.3
Total Current Assets	1,102.7			810.0
Property, Plant and Equipment, Net	256.6			255.1
Intangible Assets, Net	57.7			56.2
Goodwill	57.4			50.7
Deferred Income Taxes	35.1			43.9
Investment in Unconsolidated Affiliates	59.0			45.9
Other Non-current Assets	38.2			25.3
Total Assets	$	1,606.7		$	1,287.1
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable	$	384.3		$	242.4
Accounts payable, affiliates	16.1			16.5
Revolving credit facilities	4.9			79.0
Current maturities of long-term debt	65.0			50.0
Accrued payroll	44.2			43.7
Accrued warranty obligations	28.9			27.8
Other current liabilities	128.2			117.1
Total Current Liabilities	671.6			576.5
Long-term Debt	224.2			82.2
Self-insurance Liabilities	30.8			19.7
Pension Obligations	24.5			37.2
Deferred Income Taxes	12.6			11.4
Other Long-term Liabilities	85.3			89.7
Total Liabilities	1,049.0			816.7
Stockholders' Equity
Common stock:
Class A, par value $0.01 per share, 12,548,549 shares outstanding (2016 - 12,466,463 shares outstanding)	0.1			0.1
Class B, par value $0.01 per share, convertible into Class A on a one-for-one basis, 3,909,765 shares outstanding (2016 - 3,924,291 shares outstanding)	0.1			0.1
Capital in excess of par value	320.1			319.6
Treasury stock	(31.8		)	(36.9		)
Retained earnings	396.5			360.3
Accumulated other comprehensive loss	(134.6		)	(179.4		)
Total Stockholders' Equity	550.4			463.8
Noncontrolling Interests	7.3			6.6
Total Equity	557.7			470.4
Total Liabilities and Equity	$	1,606.7		$	1,287.1



Details about OCI Components	Amount Reclassified from OCI												Affected Line Item in the Statement Where Net Income Is Presented
	THREE MONTHS ENDED						NINE MONTHS ENDED
	SEPTEMBER 30						SEPTEMBER 30
	2017			2016			2017			2016
Gain (loss) on cash flow hedges:
Foreign exchange contracts	$	(0.5	)	$	(0.9	)	$	(2.0	)	$	(1.8	)	Cost of sales
Total before tax	(0.5		)	(0.9		)	(2.0		)	(1.8		)	Income before income taxes
Tax benefit	(0.1		)	0.5			0.7			1.6			Income tax provision (benefit)
Net of tax	$	(0.6	)	$	(0.4	)	$	(1.3	)	$	(0.2	)	Net income
Amortization of defined benefit pension items:
Actuarial loss	$	(1.1	)	$	(0.7	)	$	(3.3	)	$	(2.3	)	(a)
Prior service credit	—			—			0.2			0.2			(a)
Total before tax	(1.1		)	(0.7		)	(3.1		)	(2.1		)	Income before income taxes
Tax benefit	0.4			0.2			1.0			0.6			Income tax provision (benefit)
Net of tax	$	(0.7	)	$	(0.5	)	$	(2.1	)	$	(1.5	)	Net income
Total reclassifications for the period	$	(1.3	)	$	(0.9	)	$	(3.4	)	$	(1.7	)



	Derivative Assets as of September 30, 2017									Derivative Liabilities as of September 30, 2017
	Gross Amounts of Recognized Assets		Gross Amounts Offset			Net Amounts Presented		Net Amount		Gross Amounts of Recognized Liabilities		Gross Amounts Offset			Net Amounts Presented		Net Amount
Cash Flow Hedges
Interest rate swap agreements	$	0.1	$	(0.1	)	$	—	$	—	$	0.8	$	(0.1	)	$	0.7	$	0.7
Foreign currency exchange contracts	5.4		(5.4		)	—		—		12.7		(5.4		)	7.3		7.3
Total derivatives	$	5.5	$	(5.5	)	$	—	$	—	$	13.5	$	(5.5	)	$	8.0	$	8.0

	Derivative Assets as of December 31, 2016									Derivative Liabilities as of December 31, 2016
	Gross Amounts of Recognized Assets		Gross Amounts Offset			Net Amounts Presented		Net Amount		Gross Amounts of Recognized Liabilities		Gross Amounts Offset			Net Amounts Presented		Net Amount
Cash Flow Hedges
Interest rate swap agreements	$	0.2	$	(0.2	)	$	—	$	—	$	0.5	$	(0.2	)	$	0.3	$	0.3
Foreign currency exchange contracts	—		—			—		—		22.7		—			22.7		22.7
Total derivatives	$	0.2	$	(0.2	)	$	—	$	—	$	23.2	$	(0.2	)	$	23.0	$	23.0



	2017
Balance at January 1	$	52.3
Current year warranty expense	25.3
Change in estimate related to pre-existing warranties	(4.9		)
Payments made	(19.7		)
Foreign currency effect	1.7
Balance at September 30	$	54.7



	HYGFS		Total
Total recourse or repurchase obligations	$	128.5	$	151.0
Less: exposure limited for certain dealers	32.1		32.1
Plus: 7.5% of original loan balance	7.3		7.3
	103.7		126.2
Incremental obligation related to guarantee to WF	170.1		170.1
Total exposure related to guarantees	$	273.8	$	296.3



	Operating Profit
2016	$	5.4
Increase (decrease) in 2017 from:
Lift truck gross profit	12.6
Bolzoni operations	4.6
Nuvera operations	4.5
Lift truck selling, general and administrative expenses	(9.2		)
2017	$	17.9



	Operating Profit
2016	$	26.5
Increase (decrease) in 2017 from:
Lift truck gross profit	35.6
Bolzoni operations	6.7
Lift truck selling, general and administrative expenses	(8.1		)
Nuvera operations	(1.1		)
2017	$	59.6



	Payments Due by Period
Contractual Obligations	Total		Year 1		Year 2		Year 3		Year 4		Year 5		After Year 5
Term Loan	$	197.5	$	10.0	$	10.0	$	10.0	$	10.0	$	10.0	$	147.5
Interest payments on Term Loan	51.2		10.1		9.6		9.1		8.6		8.1		5.7
	$	248.7	$	20.1	$	19.6	$	19.1	$	18.6	$	18.1	$	153.2



	Nine Months Ended September 30, 2017		Planned for Remainder of 2017		Planned 2017 Total		Actual 2016
Lift truck business	$	19.9	$	17.7	$	37.6	$	36.5
Bolzoni	4.1		2.5		6.6		4.0
Nuvera	1.1		1.3		2.4		2.2
	$	25.1	$	21.5	$	46.6	$	42.7