SECURITIES AND EXCHANGE COMMISSION


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

Commission file number 000-54799

HYSTER-YALE MATERIALS HANDLING, INC.

(Exact name of registrant as specified in its charter)

Delaware

31-1637659

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

5875 LANDERBROOK DRIVE, SUITE 300

CLEVELAND

(440)

449-9600

44124-4069

(Address of principal executive offices)

(Registrant's telephone number, including area code)

(Zip code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

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 ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files).

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 filer

☑☐

Accelerated filer

☐☑

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth 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. ☐

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

Number of shares of Class A Common Stock outstanding at ~~July 29, 2022: 13,128,439~~April 28, 2023: 13,376,333

Number of shares of Class B Common Stock outstanding at ~~July 29, 2022: 3,792,396~~April 28, 2023: 3,782,296

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 2022		DECEMBER 31 2021			MARCH 31 2023		DECEMBER 31 2022
		(In millions, except share data)					(In millions, except share data)
ASSETS	ASSETS					ASSETS
Current Assets	Current Assets					Current Assets
Cash and cash equivalents	Cash and cash equivalents	$	75.6	$	65.5	Cash and cash equivalents	$	64.6	$	59.0
Accounts receivable, net	Accounts receivable, net	531.2		457.4		Accounts receivable, net	535.9		523.6
Inventories, net	Inventories, net	790.2		781.0		Inventories, net	854.7		799.5
Prepaid expenses and other	Prepaid expenses and other	72.8		46.1		Prepaid expenses and other	88.4		76.6
Total Current Assets	Total Current Assets	1,469.8		1,350.0		Total Current Assets	1,543.6		1,458.7
Property, Plant and Equipment, Net	Property, Plant and Equipment, Net	319.0		330.5		Property, Plant and Equipment, Net	304.2		310.0
Intangible Assets, Net	Intangible Assets, Net	45.8		50.7		Intangible Assets, Net	42.7		42.7
Goodwill	Goodwill	52.1		56.5		Goodwill	52.3		51.3
Deferred Income Taxes	Deferred Income Taxes	5.1		3.7		Deferred Income Taxes	2.6		2.6
Investments in Unconsolidated Affiliates	Investments in Unconsolidated Affiliates	55.5		71.7		Investments in Unconsolidated Affiliates	55.7		59.4
Other Non-current Assets	Other Non-current Assets	105.5		107.0		Other Non-current Assets	98.2		101.5
Total Assets	Total Assets	$	2,052.8	$	1,970.1	Total Assets	$	2,099.3	$	2,026.2
LIABILITIES AND EQUITY	LIABILITIES AND EQUITY					LIABILITIES AND EQUITY
Current Liabilities	Current Liabilities					Current Liabilities
Accounts payable	Accounts payable	$	539.5	$	517.0	Accounts payable	$	607.8	$	585.8
Accounts payable, affiliates	Accounts payable, affiliates	30.0		24.4		Accounts payable, affiliates	19.8		21.6
Revolving credit facilities	Revolving credit facilities	167.6		165.3		Revolving credit facilities	139.5		137.1
Current maturities of long-term debt		132.6		91.5
Short-term debt and current maturities of long-term debt						Short-term debt and current maturities of long-term debt	159.7		148.8
Accrued payroll	Accrued payroll	50.5		57.1		Accrued payroll	43.3		64.4

Deferred revenue	Deferred revenue	163.5		49.7		Deferred revenue	126.8		139.8
Other current liabilities	Other current liabilities	245.7		199.6		Other current liabilities	288.3		245.4
Total Current Liabilities	Total Current Liabilities	1,329.4		1,104.6		Total Current Liabilities	1,385.2		1,342.9
Long-term Debt	Long-term Debt	280.4		261.7		Long-term Debt	261.4		267.0
Self-insurance Liabilities	Self-insurance Liabilities	34.0		33.5		Self-insurance Liabilities	33.8		33.5
Pension Obligations	Pension Obligations	5.5		6.2		Pension Obligations	6.1		6.2
Deferred Income Taxes	Deferred Income Taxes	11.7		12.7		Deferred Income Taxes	13.3		13.4
Other Long-term Liabilities	Other Long-term Liabilities	168.4		168.5		Other Long-term Liabilities	127.2		138.1
Total Liabilities	Total Liabilities	1,829.4		1,587.2		Total Liabilities	1,827.0		1,801.1
Temporary Equity	Temporary Equity					Temporary Equity
Redeemable Noncontrolling Interest	Redeemable Noncontrolling Interest	15.9		—		Redeemable Noncontrolling Interest	14.7		14.2
Stockholders' Equity	Stockholders' Equity					Stockholders' Equity
Common stock:	Common stock:					Common stock:
Class A, par value $0.01 per share, 13,116,880 shares outstanding (2021 - 12,994,106 shares outstanding)		0.1		0.1
Class B, par value $0.01 per share, convertible into Class A on a one-for-one basis, 3,792,497 shares outstanding (2021 - 3,832,794 shares outstanding)		0.1		0.1
Class A, par value $0.01 per share, 13,376,229 shares outstanding (2022 - 13,154,918 shares outstanding)						Class A, par value $0.01 per share, 13,376,229 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, 3,782,400 shares outstanding (2022 - 3,783,597 shares outstanding)						Class B, par value $0.01 per share, convertible into Class A on a one-for-one basis, 3,782,400 shares outstanding (2022 - 3,783,597 shares outstanding)	0.1		0.1
Capital in excess of par value	Capital in excess of par value	291.2		315.1		Capital in excess of par value	303.4		297.7

Treasury stock	Treasury stock	—		(4.5)		Treasury stock	(0.1)		—
Retained earnings	Retained earnings	193.3		248.6		Retained earnings	173.7		152.7
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(285.1)		(202.3)		Accumulated other comprehensive loss	(221.7)		(246.2)
Total Stockholders' Equity	Total Stockholders' Equity	199.6		357.1		Total Stockholders' Equity	255.5		204.4
Noncontrolling Interests	Noncontrolling Interests	7.9		25.8		Noncontrolling Interests	2.1		6.5
Total Equity		207.5		382.9
Total Permanent Equity						Total Permanent Equity	257.6		210.9
Total Liabilities and Equity	Total Liabilities and Equity	$	2,052.8	$	1,970.1	Total Liabilities and Equity	$	2,099.3	$	2,026.2

See notes to unaudited condensed consolidated financial statements.

HYSTER-YALE MATERIALS HANDLING, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

See notes to unaudited condensed consolidated financial statements.

HYSTER-YALE MATERIALS HANDLING, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

See notes to unaudited condensed consolidated financial statements.

HYSTER-YALE MATERIALS HANDLING, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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

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 Equity
(In millions)
Balance, December 31, 2020 $ — $ 0.1 $ 0.1 $ (6.0) $ 312.6 $ 443.2 $ (57.6) $ 12.5 $ (88.0) $ 616.9 $ 34.2 $ 651.1
Stock-based compensation — — — — 3.7 — — — — 3.7 — 3.7
Stock issued under stock compensation plans — — — 0.8 (0.8) — — — — — — —
Net income — — — — — 7.5 — — — 7.5 0.9 8.4
Cash dividends — — — — — (10.7) — — — (10.7) (0.2) (10.9)
Current period other comprehensive loss — — — — — — (12.8) (9.3) — (22.1) — (22.1)
Reclassification adjustment to net income — — — — — — — (2.3) 2.2 (0.1) — (0.1)
Foreign currency translation on noncontrolling interest — — — — — — — — — — (0.1) (0.1)
Balance, June 30, 2021 $ — $ 0.1 $ 0.1 $ (5.2) $ 315.5 $ 440.0 $ (70.4) $ 0.9 $ (85.8) $ 595.2 $ 34.8 $ 630.0
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

~~See notes to unaudited condensed consolidated financial statements.~~

HYSTER-YALE MATERIALS HANDLING, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(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, the Netherlands, Brazil, the Philippines, Italy, Japan and Vietnam.

The Company 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 and 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 attachments and industrial material handling.

The Company 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.

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” 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 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 ~~June 30, 2022~~March 31, 2023 and the results of its operations and changes in equity for the three ~~and six~~ months ended ~~June 30,~~March 31, 2023 and 2022, ~~and 2021,~~ and the results of its cash flows for the ~~six~~three months ended ~~June 30,~~March 31, 2023 and 2022 ~~and 2021~~ 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, ~~2021.~~2022.

The accompanying unaudited condensed consolidated balance sheet at December 31, ~~2021~~2022 has been derived from the audited financial statements at that date but does not include all of the information or notes required by GAAP for complete financial statements.

Note 2—Recently Issued Accounting Standards

In ~~2022,~~2023, the Company did not adopt any recent accounting standard updates ("ASU") which had a material effect on the Company's financial position, results of operations, cash flows or related disclosures.

The following table provides a brief description of ASUs not yet adopted:

Standard

Description

Required Date of Adoption

Effect on the financial statements or other significant matters

ASU 2020-04 and ASU 2022-06, Reference Rate Reform (Topic 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, ~~2022~~2024

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

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 10 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 three ~~and six~~ months ended ~~June 30, 2022~~March 31, 2023 and ~~2021.~~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, 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






















	THREE MONTHS ENDED
	MARCH 31, 2023
	Lift truck business
	Americas		EMEA		JAPIC		Bolzoni		Nuvera		Elims		Total
Dealer sales	$	364.1	$	177.1	$	40.8	$	—	$	—	$	—	$	582.0
Direct customer sales	122.5		2.5		—		—		—		—		125.0
Aftermarket sales	181.8		28.9		7.0		—		—		—		217.7
Other	17.5		6.4		0.1		98.6		1.6		(49.6)		74.6
Total Revenues	$	685.9	$	214.9	$	47.9	$	98.6	$	1.6	$	(49.6)	$	999.3

THREE MONTHS ENDED
JUNE 30, 2021
Lift truck business
Americas EMEA JAPIC Bolzoni Nuvera Elims Total
Dealer sales $ 218.0 $ 140.4 $ 56.6 $ — $ — $ — $ 415.0
Direct customer sales 115.8 1.5 — — — — 117.3
Aftermarket sales 114.3 26.8 8.1 — — — 149.2
Other 31.0 6.4 0.3 84.8 0.3 (38.7) 84.1
Total Revenues $ 479.1 $ 175.1 $ 65.0 $ 84.8 $ 0.3 $ (38.7) $ 765.6
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

SIX MONTHS ENDED
JUNE 30, 2021
Lift truck business
Americas EMEA JAPIC Bolzoni Nuvera Elims Total
Dealer sales $ 438.7 $ 277.2 $ 109.2 $ — $ — $ — $ 825.1
Direct customer sales 218.2 3.4 — — — — 221.6
Aftermarket sales 223.1 53.7 15.9 — — — 292.7
Other 58.8 11.5 0.4 164.3 0.3 (76.9) 158.4
Total Revenues $ 938.8 $ 345.8 $ 125.5 $ 164.3 $ 0.3 $ (76.9) $ 1,497.8


	THREE MONTHS ENDED
	MARCH 31, 2022
	Lift truck business
	Americas		EMEA		JAPIC		Bolzoni		Nuvera		Elims		Total
Dealer sales	$	289.9	$	130.6	$	46.7	$	—	$	—	$	—	$	467.2
Direct customer sales	99.5		6.1		—		—		—		—		105.6
Aftermarket sales	145.1		27.6		4.9		—		—		—		177.6
Other	23.2		5.4		0.1		95.1		0.6		(47.2)		77.2
Total Revenues	$	557.7	$	169.7	$	51.7	$	95.1	$	0.6	$	(47.2)	$	827.6

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. ~~The increase in customer deposits and billings relates mainly to down payments on customer orders.~~


	Deferred Revenue
Balance, December 31, ~~2021~~2022	$	~~76.2~~153.8
Customer deposits and billings	~~128.2~~12.7
Revenue recognized	~~(22.4)~~(26.1)
Foreign currency effect	0.1
Balance, ~~June 30, 2022~~March 31, 2023	$	~~182.1~~140.5

Note 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 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.

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


		THREE MONTHS ENDED				SIX MONTHS ENDED					THREE MONTHS ENDED
		JUNE 30				JUNE 30					MARCH 31
		2022		2021		2022		2021				2023		2022
Revenues from external customers	Revenues from external customers									Revenues from external customers
Americas	Americas	$	596.6	$	479.1	$	1,154.3	$	938.8	Americas		$	685.9	$	557.7
EMEA	EMEA	184.8		175.1		354.5		345.8		EMEA		214.9		169.7
JAPIC	JAPIC	64.9		65.0		116.6		125.5		JAPIC		47.9		51.7
Lift truck business	Lift truck business	846.3		719.2		1,625.4		1,410.1		Lift truck business		948.7		779.1
Bolzoni	Bolzoni	86.4		84.8		181.5		164.3		Bolzoni		98.6		95.1
Nuvera	Nuvera	0.3		0.3		0.9		0.3		Nuvera		1.6		0.6
Eliminations	Eliminations	(37.6)		(38.7)		(84.8)		(76.9)		Eliminations		(49.6)		(47.2)
Total	Total	$	895.4	$	765.6	$	1,723.0	$	1,497.8	Total		$	999.3	$	827.6

Operating profit (loss)	Operating profit (loss)									Operating profit (loss)
Americas	Americas	$	3.1	$	13.6	$	7.5	$	28.2	Americas		$	47.5	$	4.4
EMEA	EMEA	(10.8)		3.7		(22.2)		3.8		EMEA		2.6		(11.4)
JAPIC	JAPIC	(4.0)		(1.9)		(7.7)		(4.4)		JAPIC		(2.3)		(3.7)
Lift truck business	Lift truck business	(11.7)		15.4		(22.4)		27.6		Lift truck business		47.8		(10.7)
Bolzoni	Bolzoni	3.4		(0.4)		5.5		0.4		Bolzoni		4.4		2.1
Nuvera	Nuvera	(7.9)		(9.0)		(16.0)		(18.8)		Nuvera		(9.8)		(8.1)
Eliminations	Eliminations	0.5		(0.1)		(1.1)		(0.2)		Eliminations		0.2		(1.6)
Total	Total	$	(15.7)	$	5.9	$	(34.0)	$	9.0	Total		$	42.6	$	(18.3)

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, 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 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 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.

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


		THREE MONTHS ENDED					SIX MONTHS ENDED							THREE MONTHS ENDED
		JUNE 30					JUNE 30							MARCH 31
		2022			2021		2022			2021					2023			2022
Income (loss) before income taxes	Income (loss) before income taxes	$	(21.8)		$	(0.1)	$	(43.1)		$	8.4		Income (loss) before income taxes		$	35.9		$	(21.3)
Statutory taxes (21%)	Statutory taxes (21%)	$	(4.6)		$	—	$	(9.1)		$	1.8		Statutory taxes (21%)		$	7.5		$	(4.5)
Interim adjustment	Interim adjustment	0.9			0.2		(1.5)			0.5			Interim adjustment		(0.3)			(2.4)
Permanent adjustments:	Permanent adjustments:												Permanent adjustments:

Valuation allowance	Valuation allowance	5.0			0.4		15.9			0.5			Valuation allowance		(0.4)			10.9

Other	Other	0.1			(0.9)		(0.2)			(0.6)			Other		1.7			(0.3)

Discrete items	Discrete items	(4.5)			(2.1)		(5.3)			(2.2)			Discrete items		0.2			(0.8)
Income tax benefit		$	(3.1)		$	(2.4)	$	(0.2)		$	—
Income tax expense													Income tax expense		$	8.7		$	2.9
Reported income tax rate	Reported income tax rate	14.2		%	n.m.		0.5		%	—		%	Reported income tax rate		24.2		%	(13.6)		%
n.m. - not meaningful

The Company's estimated annual effective income tax rate assumes that a significant portion of its net operating loss carryforwards will be utilized in 2023 and the release of the valuation allowance associated with the asset. This will be more

than offset by the capitalization of research and development expenses under current U.S. tax rules for which a valuation allowance will be provided. The net of these items is included in the valuation allowance line in the table above. The Company's reported income tax rate ~~differs~~in the prior year differed from the U.S. federal statutory tax rate primarily as a result of recording additional valuation allowances and an interim adjustment resulting from pretax losses for which no tax benefit was recognized.

~~During the second quarter of 2022 and 2021, the Company recognized discrete tax benefits of $3.8 million and $3.3 million,~~

respectively, related to the expiration of the statute of limitations for uncertain tax positions related to acquisitions for which an offsetting pre-tax indemnity receivable was also recorded. 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. Additionally, the Company has recognized a discrete tax benefit of $0.7 million in the second quarter of 2022 for the release of uncertain tax positions that were recorded when the Company acquired Bolzoni.

During the second quarter of 2021, the Company recognized a discrete tax charge of $1.4 million for the tax impact of the favorable adjustment for social contribution taxes previously imposed on material purchases in Brazil.

Note 6—Reclassifications from OCI

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


OCI Components	OCI Components	Amount Reclassified from OCI								Affected Line Item	OCI Components		Amount Reclassified from OCI					Affected Line Item
		THREE MONTHS ENDED				SIX MONTHS ENDED						THREE MONTHS ENDED
		JUNE 30				JUNE 30						MARCH 31
		2022		2021		2022		2021						2023		2022
Gain (loss) on cash flow hedges:	Gain (loss) on cash flow hedges:										Gain (loss) on cash flow hedges:
Interest rate contracts	Interest rate contracts	$	0.8	$	0.7	$	1.7	$	1.3	Interest expense	Interest rate contracts			$	(1.2)	$	0.9	Interest expense

Foreign exchange contracts	Foreign exchange contracts	(6.4)		1.4		(8.9)		1.5		Cost of sales	Foreign exchange contracts			(9.7)		(2.5)		Cost of sales
Total before tax	Total before tax	(5.6)		2.1		(7.2)		2.8		Income (loss) before income taxes	Total before tax			(10.9)		(1.6)		Income (loss) before income taxes
Tax benefit		(0.1)		(0.4)		(0.2)		(0.5)		Income tax provision (benefit)
Tax (expense) benefit											Tax (expense) benefit			—		(0.1)		Income tax expense
Net of tax	Net of tax	$	(5.7)	$	1.7	$	(7.4)	$	2.3	Net income (loss)	Net of tax			$	(10.9)	$	(1.7)	Net income (loss)
Amortization of defined benefit pension items:	Amortization of defined benefit pension items:										Amortization of defined benefit pension items:
Actuarial loss	Actuarial loss	$	(1.2)	$	(1.4)	$	(2.4)	$	(2.8)	Other, net	Actuarial loss			$	(0.7)	$	(1.2)	Other, net

Total before tax	Total before tax	(1.2)		(1.4)		(2.4)		(2.8)		Income (loss) before income taxes	Total before tax			(0.7)		(1.2)		Income (loss) before income taxes
Tax expense		—		0.3		—		0.6		Income tax provision (benefit)
Tax (expense) benefit											Tax (expense) benefit			0.1		—		Income tax expense
Net of tax	Net of tax	$	(1.2)	$	(1.1)	$	(2.4)	$	(2.2)	Net income (loss)	Net of tax			$	(0.6)	$	(1.2)	Net income (loss)
Total reclassifications for the period	Total reclassifications for the period	$	(6.9)	$	0.6	$	(9.8)	$	0.1		Total reclassifications for the period			$	(11.5)	$	(2.9)

Note 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 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 ~~June 30, 2022,~~March 31, 2023, the fair value and carrying value of revolving credit agreements and long-term debt, excluding finance leases, was ~~$536.0~~$517.1 million and ~~$549.4~~$532.6 million, respectively. At December 31, ~~2021,~~2022, the fair value and carrying value of revolving credit agreements and long-term debt, excluding finance leases, was $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 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 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.

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 the associated variable rate financings are predominately based upon the one-month LIBOR. 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.

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 ~~$1.1~~$0.7 billion at ~~June 30, 2022,~~March 31, 2023, primarily denominated in euros, Japanese yen, U.S. dollars, Chinese renminbi, Mexican pesos, British pounds, Swedish kroner and Australian dollars. The Company held forward foreign currency exchange contracts with total notional amounts of ~~$1.1~~$0.8 billion at December 31, ~~2021,~~2022, primarily denominated in euros, Japanese yen, U.S. dollars, Chinese renminbi, British pounds, Mexican pesos, Swedish kroner and Australian dollars. The fair value of these contracts approximated a net liability of ~~$77.6~~$31.2 million and ~~$26.7~~$43.5 million at ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, respectively.

Forward foreign currency exchange contracts that qualify for hedge accounting are generally used to hedge transactions expected to occur within the next 36 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 ~~June 30, 2022, $42.6~~March 31, 2023, $26.3 million of the amount of net deferred loss included in OCI at ~~June 30, 2022~~March 31, 2023 is expected to be reclassified as expense into the unaudited condensed consolidated 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 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 ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021:~~2022:
Notional Amount Average Fixed Rate
JUNE 30 DECEMBER 31 JUNE 30 DECEMBER 31
2022 2021 2022 2021 Term at June 30, 2022
$ 180.0 $ 180.0 1.68 % 1.68 % Extending to May 2027
$ 21.8 $ 16.0 0.18 % (0.14) % Extending to May 2027


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

The fair value of all interest rate swap agreements was a net asset of ~~$9.9~~$13.4 million and ~~a net liability $3.2~~$16.1 million at ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021,~~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 ~~June 30, 2022, $1.7~~March 31, 2023, $5.9 million of the amount included in OCI as net deferred gain is expected to be reclassified as income in the unaudited condensed consolidated 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						Asset Derivatives					Liability Derivatives
		Balance Sheet Location	JUNE 30 2022		DECEMBER 31 2021		Balance Sheet Location	JUNE 30 2022		DECEMBER 31 2021			Balance Sheet Location	MARCH 31 2023		DECEMBER 31 2022		Balance Sheet Location	MARCH 31 2023		DECEMBER 31 2022
Derivatives designated as hedging instruments	Derivatives designated as hedging instruments											Derivatives designated as hedging instruments
Cash Flow Hedges	Cash Flow Hedges											Cash Flow Hedges
Interest rate swap agreements	Interest rate swap agreements											Interest rate swap agreements
Current	Current	Prepaid expenses and other	$	2.6	$	—	Prepaid expenses and other	$	—	$	—	Current	Prepaid expenses and other	$	5.8	$	5.9	Prepaid expenses and other	$	—	$	—
		Other current liabilities	—		0.3		Other current liabilities	—		2.2
Long-term	Long-term	Other non-current assets	7.3		0.1		Other non-current assets	—		0.1		Long-term	Other non-current assets	7.6		10.2		Other non-current assets	—		—
		Other long-term liabilities	—		0.6		Other long-term liabilities	—		1.9
					—
Foreign currency exchange contracts	Foreign currency exchange contracts											Foreign currency exchange contracts

Current	Current	Other current liabilities	3.0		3.6		Other current liabilities	44.2		17.0		Current	Prepaid expenses and other	0.4		—		Prepaid expenses and other	0.5		—
													Other current liabilities	3.2		2.6		Other current liabilities	26.9		32.1
Long-term	Long-term	Other long-term liabilities	0.8		1.0		Other long-term liabilities	34.0		13.2		Long-term	Other non-current assets	1.0		0.7		Other non-current assets	0.2		0.3
													Other long-term liabilities	1.3		1.0		Other long-term liabilities	10.6		17.3

Total derivatives designated as hedging instruments	Total derivatives designated as hedging instruments		$	13.7	$	5.6		$	78.2	$	34.4	Total derivatives designated as hedging instruments		$	19.3	$	20.4		$	38.2	$	49.7
Derivatives not designated as hedging instruments	Derivatives not designated as hedging instruments											Derivatives not designated as hedging instruments
Cash Flow Hedges	Cash Flow Hedges											Cash Flow Hedges

Foreign currency exchange contracts	Foreign currency exchange contracts											Foreign currency exchange contracts
Current	Current	Prepaid expenses and other	2.6		—		Prepaid expenses and other	0.2		—		Current	Prepaid expenses and other	0.8		—		Prepaid expenses and other	0.4		—
		Other current liabilities	2.6		1.1		Other current liabilities	8.2		2.2			Other current liabilities	2.8		4.9		Other current liabilities	2.1		3.0

Total derivatives not designated as hedging instruments	Total derivatives not designated as hedging instruments		$	5.2	$	1.1		$	8.4	$	2.2	Total derivatives not designated as hedging instruments		$	3.6	$	4.9		$	2.5	$	3.0
Total derivatives	Total derivatives		$	18.9	$	6.7		$	86.6	$	36.6	Total derivatives		$	22.9	$	25.3		$	40.7	$	52.7

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)										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					THREE MONTHS ENDED						THREE MONTHS ENDED
		JUNE 30									JUNE 30										MARCH 31						MARCH 31
Derivatives Designated as Hedging Instruments	Derivatives Designated as Hedging Instruments	2022		2021		2022		2021			2022		2021		2022		2021		Derivatives Designated as Hedging Instruments		2023		2022				2023		2022
Cash Flow Hedges	Cash Flow Hedges																		Cash Flow Hedges
Interest rate swap agreements	Interest rate swap agreements	$	4.9	$	(0.6)	$	15.5	$	0.7	Interest expense	$	0.8	$	0.7	$	1.7	$	1.3	Interest rate swap agreements		$	(3.8)	$	10.6	Interest expense		$	(1.2)	$	0.9
Foreign currency exchange contracts	Foreign currency exchange contracts	(50.9)		7.0		(63.4)		(14.3)		Cost of sales	(6.4)		1.4		(8.9)		1.5		Foreign currency exchange contracts		4.9		(12.5)		Cost of sales		(9.7)		(2.5)
Total	Total	$	(46.0)	$	6.4	$	(47.9)	$	(13.6)		$	(5.6)	$	2.1	$	(7.2)	$	2.8	Total		$	1.1	$	(1.9)			$	(10.9)	$	(1.6)

Derivatives Not Designated as Hedging Instruments	Derivatives Not Designated as Hedging Instruments									Location of Gain or (Loss) Recognized in Income on Derivative	2022		2021		2022		2021		Derivatives Not Designated as Hedging Instruments						Location of Gain or (Loss) Recognized in Income on Derivative		2023		2022
Cash Flow Hedges	Cash Flow Hedges																		Cash Flow Hedges

Foreign currency exchange contracts	Foreign currency exchange contracts									Cost of sales	$	(8.4)	$	(1.9)	$	(18.0)	$	(6.2)	Foreign currency exchange contracts						Cost of sales		$	(0.1)	$	(9.6)
Total	Total										$	(8.4)	$	(1.9)	$	(18.0)	$	(6.2)	Total								$	(0.1)	$	(9.6)

Note 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.

The Company presents the components of net benefit cost, other than service cost, in other (income) expense in the unaudited condensed consolidated statements of operations for its pension plans. Service cost for the Company's pension plan is reported in operating profit. The components of pension (income) expense are set forth below:

Note 9—Inventories

Inventories are summarized as follows:
JUNE 30
2022 DECEMBER 31
2021
Finished goods and service parts $ 325.9 $ 321.6
Work in process 37.2 32.9
Raw materials 521.6 509.9
Total manufactured inventories 884.7 864.4
LIFO reserve (94.5) (83.4)
Total inventory $ 790.2 $ 781.0


	MARCH 31 2023		DECEMBER 31 2022
Finished goods and service parts	$	436.2	$	335.8
Work in process	36.3		36.0
Raw materials	472.9		522.1
Total manufactured inventories	945.4		893.9
LIFO reserve	(90.7)		(94.4)
Total inventory	$	854.7	$	799.5

Inventories are stated at the lower of cost or market for last-in, first-out (“LIFO”) inventory or lower of cost or net realizable value for first-in, first-out (“FIFO”) inventory. At ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021, 48%~~2022, 51% and ~~51%~~52%, respectively, of total inventories were determined using the LIFO 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 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, 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:


	~~2022~~2023
Balance at December 31, ~~2021~~2022	$	~~64.7~~56.7
Current year warranty expense	~~14.5~~7.7
Change in estimate related to pre-existing warranties	~~(3.3)~~(1.2)
Payments made	~~(13.8)~~(6.2)
Foreign currency effect	~~(1.1)~~0.3
Balance at ~~June 30, 2022~~March 31, 2023	$	~~61.0~~57.3

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—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 ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022 were ~~$130.7~~$136.4 million and ~~$106.8~~$133.2 million, respectively. As of ~~June 30, 2022,~~March 31, 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 ~~June 30, 2022~~March 31, 2023 was approximately ~~$194.1~~$191.6 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 ~~June 30, 2022,~~March 31, 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 ~~$21.5~~$29.4 million of recourse or repurchase obligations for these certain eligible dealers are limited to 7.5% of their original loan balance, or ~~$10.9~~$12.8 million as of ~~June 30, 2022.~~March 31, 2023. The ~~$21.5~~$29.4 million is included in the ~~$130.7~~$136.4 million of total amounts subject to recourse or repurchase obligations at ~~June 30, 2022.~~March 31, 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 ~~June 30, 2022,~~March 31, 2023, approximately ~~$108.2~~$120.2 million of the Company's total recourse or repurchase obligations of ~~$130.7~~$136.4 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 ~~June 30, 2022,~~March 31, 2023, loans from WF to HYGFS totaled ~~$1.1~~$1.2 billion. Although the Company’s contractual guarantee was ~~$227.5~~$237.4 million, the loans by WF to HYGFS are secured by HYGFS’ customer receivables, of which the Company guarantees ~~$108.2~~$120.2 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 ~~$208.0~~$216.7 million, which is secured by 20% of HYGFS' customer receivables and other secured assets of ~~$273.6~~$283.2 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 June 30, 2022:~~
HYGFS Total
Total recourse or repurchase obligations $ 108.2 $ 130.7
Less: exposure limited for certain dealers 21.5 21.5
Plus: 7.5% of original loan balance 10.9 10.9
97.6 120.1
Incremental obligation related to guarantee to WF 208.0 208.0
Total exposure related to guarantees $ 305.6 $ 328.1

Note 13—Equity and Debt 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 “Investments in Unconsolidated Affiliates” in the unaudited condensed consolidated balance sheets.

The Company's equity investments in unconsolidated affiliates recorded on the unaudited condensed consolidated balance sheets are as follows:


		June 30, 2022		December 31, 2021			March 31, 2023		December 31, 2022

HYGFS	HYGFS	$	16.0	$	25.2	HYGFS	$	18.7	$	21.8
SN	SN	37.4		43.7		SN	35.1		36.0
Bolzoni	Bolzoni	0.3		0.3		Bolzoni	0.4		0.4

Dividends received from unconsolidated affiliates are summarized below:


		SIX MONTHS ENDED					THREE MONTHS ENDED
		JUNE 30					MARCH 31
		2022		2021			2023		2022

HYGFS	HYGFS	$	14.9	$	5.1	HYGFS	$	5.7	$	10.3
SN	SN	0.7		0.4		SN	—		0.7
		$	15.6	$	5.5		$	5.7	$	11.0

Summarized financial information for HYGFS and SN is as follows:


		THREE MONTHS ENDED				SIX MONTHS ENDED					THREE MONTHS ENDED
		JUNE 30				JUNE 30					MARCH 31
		2022		2021		2022		2021				2023		2022
Revenues	Revenues	$	103.7	$	106.7	$	210.5	$	209.9	Revenues		$	108.0	$	106.8
Gross profit	Gross profit	$	43.1	$	40.3	$	86.5	$	78.1	Gross profit		$	39.4	$	43.4
Income from continuing operations	Income from continuing operations	$	17.1	$	13.9	$	31.1	$	22.1	Income from continuing operations		$	11.7	$	14.0
Net income	Net income	$	17.1	$	13.9	$	31.1	$	22.1	Net income		$	11.7	$	14.0

The Company has a non-U.S. equity investment in a third party valued using a quoted market price in an active market, or Level 1 in the fair value hierarchy. The Company's investment as of ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022 was ~~$1.0~~$0.7 million and ~~$1.7~~$0.5 million, respectively. Any gain or loss on the investment is included on the line "Other, net" in the "Other (income) expense" section of the unaudited condensed consolidated statements of operations as follows:
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
2022 2021 2022 2021
Loss on equity investment $ 0.6 $ 1.1 $ 0.6 $ —


	THREE MONTHS ENDED
	MARCH 31
		2023		2022
Gain on equity investment		$	0.2	$	—

The Company has a debt investment in a third party, OneH2, Inc. The Company's investment was $0.8 million as of ~~June 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, respectively.

~~As of June 30, 2022, the Company maintained a 90% majority interest in Hyster-Yale Maximal Forklift (Zheijang) Co., Ltd. ("Hyster-Yale Maximal").~~

During 2021, the Company signed an Equity Transfer Agreement ("ETA") with Y-C Hongkong Holding Co., Limited (“HK Holding Co”). In June 2022, the Company purchased 15% of the equity interest of Hyster-Yale Maximal from HK Holding Co for an aggregate purchase price of $25.2 million, which will be paid in annual installments of $8.4 million beginning in June 2022 through June 2024. Subsequently, the Company has an option to purchase HK Holding Co's remaining interest in Hyster-Yale Maximal at any time prior to June 8, 2056 for $16.8 million. If this option is exercised, the Company will own 100% of the equity interest of Hyster-Yale Maximal.

In addition, under the provisions of the ETA, HK Holding Co maintains a put option by which the Company could be required to exercise its purchase option. As one of the factors that could trigger the put option is outside of the Company’s control, the remaining 10% purchase option is considered contingently redeemable. Accordingly, the redeemable noncontrolling interest is not considered to be a component of stockholders’ equity and instead is reported as temporary equity in the accompanying unaudited condensed consolidated balance sheet. Because the occurrence of the event that would trigger the put option is not probable of occurring, the Company will continue to attribute the 10% portion of earnings and losses, as well as any dividends declared, to the noncontrolling interest after the closing date of the ETA. As of the closing date of the ETA, the Company recorded the estimated fair value of the purchase option of $16.8 million as redeemable noncontrolling interest.

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 power products, telematics, automation and fleet management services, as well as 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, the Netherlands, Brazil, the Philippines, Italy, Japan and Vietnam.

The Company owns a 90% majority interest in Hyster-Yale Maximal Forklift (Zhejiang) Co., Ltd. ("Hyster-Yale Maximal"). Hyster-Yale Maximal is a Chinese manufacturer of low-intensity and standard lift trucks and specialized material handling equipment. Hyster-Yale Maximal also designs and produces specialized products in the port equipment and rough terrain forklift markets. During 2021, the Company signed an Equity Transfer Agreement with Y-C Hongkong Holding Co., Limited (“HK Holding Co”). In June 2022, the Company purchased 15% of the equity interest of Hyster-Yale Maximal from HK Holding Co for an aggregate purchase price of $25.2 million, which will be paid in annual installments of $8.4 million beginning June 2022 through June 2024. Subsequently, the Company will have an option to purchase HK Holding Co's remaining interest in Hyster-Yale Maximal at any time prior to June 8, 2056 for $16.8 million. If this option is exercised, the Company will own 100% of the equity interest of Hyster-Yale Maximal.

The Company 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.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Please refer to the discussion of Critical Accounting Policies and Estimates as disclosed on pages 15 through 1817 in the Company's Annual Report on Form 10-K for the year ended December 31, ~~2021.~~2022. Critical Accounting Policies and Estimates have not materially changed since December 31, ~~2021.~~2022.

The results of operations for the Company were as follows:


		THREE MONTHS ENDED				Favorable / (Unfavorable)			SIX MONTHS ENDED						Favorable / (Unfavorable)					THREE MONTHS ENDED				Favorable / (Unfavorable)
		JUNE 30						JUNE 30											MARCH 31		Favorable / (Unfavorable)
		2022		2021				% Change			2022			2021				% Change						2023		2022			% Change
Lift truck unit shipments (in thousands)	Lift truck unit shipments (in thousands)																Lift truck unit shipments (in thousands)
Americas	Americas	13.9		13.0		6.9	%		28.5			25.3			12.6	%	Americas					16.1		14.6			10.3	%
EMEA	EMEA	7.8		5.9		32.2	%		14.3			12.4			15.3	%	EMEA					6.8		6.5			4.6	%
JAPIC	JAPIC	3.6		3.8		(5.3)	%		6.4			7.3			(12.3)	%	JAPIC					2.3		2.8			(17.9)	%
		25.3		22.7		11.5	%		49.2			45.0			9.3	%						25.2		23.9			5.4	%
Revenues	Revenues																Revenues
Americas	Americas	$	596.6	$	479.1	24.5	%		$	1,154.3		$	938.8		23.0	%	Americas					$	685.9	$	557.7		23.0	%
EMEA	EMEA	184.8		175.1		5.5	%		354.5			345.8			2.5	%	EMEA					214.9		169.7			26.6	%
JAPIC	JAPIC	64.9		65.0		(0.2)	%		116.6			125.5			(7.1)	%	JAPIC					47.9		51.7			(7.4)	%
Lift truck business	Lift truck business	846.3		719.2		17.7	%		1,625.4			1,410.1			15.3	%	Lift truck business					948.7		779.1			21.8	%
Bolzoni	Bolzoni	86.4		84.8		1.9	%		181.5			164.3			10.5	%	Bolzoni					98.6		95.1			3.7	%
Nuvera	Nuvera	0.3		0.3		—	%		0.9			0.3			200.0	%	Nuvera					1.6		0.6			n.m.
Eliminations	Eliminations	(37.6)		(38.7)		(2.8)	%		(84.8)			(76.9)			10.3	%	Eliminations					(49.6)		(47.2)			5.1	%
		$	895.4	$	765.6	17.0	%		$	1,723.0		$	1,497.8		15.0	%						$	999.3	$	827.6		20.7	%
Gross profit (loss)
Americas		$	66.1	$	70.4	(6.1)	%		$	133.1		$	145.7		(8.6)	%
EMEA		11.3		26.6		(57.5)	%		25.7			50.1			(48.7)	%
JAPIC		3.9		6.2		(37.1)	%		8.4			12.8			(34.4)	%
Lift truck business		81.3		103.2		(21.2)	%		167.2			208.6			(19.8)	%
Bolzoni		18.9		15.8		19.6	%		37.7			32.2			17.1	%
Nuvera		(1.6)		(2.5)		36.0	%		(3.5)			(5.8)			39.7	%
Eliminations		0.5		(0.1)		n.m.			(1.1)			(0.2)			n.m.
		$	99.1	$	116.4	(14.9)	%		$	200.3		$	234.8		(14.7)	%
Selling, general and administrative expenses
Americas		$	63.0	$	56.8	(10.9)	%		$	125.6		$	117.5		(6.9)	%
EMEA		22.1		22.9		3.5	%		47.9			46.3			(3.5)	%
JAPIC		7.9		8.1		2.5	%		16.1			17.2			6.4	%
Lift truck business		93.0		87.8		(5.9)	%		189.6			181.0			(4.8)	%
Bolzoni		15.5		16.2		4.3	%		32.2			31.8			(1.3)	%
Nuvera		6.3		6.5		3.1	%		12.5			13.0			3.8	%

		$	114.8	$	110.5	(3.9)	%		$	234.3		$	225.8		(3.8)	%
Operating profit (loss)
Americas		$	3.1	$	13.6	(77.2)	%		$	7.5		$	28.2		(73.4)	%
EMEA		(10.8)		3.7		n.m.			(22.2)			3.8			n.m.
JAPIC		(4.0)		(1.9)		(110.5)	%		(7.7)			(4.4)			(75.0)	%
Lift truck business		(11.7)		15.4		(176.0)	%		(22.4)			27.6			(181.2)	%
Bolzoni		3.4		(0.4)		950.0	%		5.5			0.4			1,275.0	%
Nuvera		(7.9)		(9.0)		12.2	%		(16.0)			(18.8)			14.9	%
Eliminations		0.5		(0.1)		n.m.			(1.1)			(0.2)			n.m.
		$	(15.7)	$	5.9	n.m.			$	(34.0)		$	9.0		n.m.
Interest expense		$	6.1	$	3.8	(60.5)	%		$	11.2		$	6.6		(69.7)	%
Other income (expense)		$	—	$	2.2	(100.0)	%		$	(2.1)		$	(6.0)		(65.0)	%

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. ~~Unit backlog as~~"Other adjustments" in the first quarter of ~~June 30,~~ 2022 ~~excludes 2,700~~below represents suspended orders for which the Company has no ~~currently~~ defined plans to fulfill. As of ~~June 30, 2022,~~March 31, 2023, unit backlog excludes 2,600 of these orders. As of March 31, 2023, substantially all of the Company's backlog is expected to be sold within the next twelve months.
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
2022 2021 2022 2021
Unit backlog, beginning of period 114.1 60.7 105.3 40.6
Unit shipments (25.3) (22.7) (49.2) (45.0)
Unit bookings 23.2 46.9 55.9 89.3
Unit backlog, end of period 112.0 84.9 112.0 84.9


	THREE MONTHS ENDED
	MARCH 31
		2023	2022
Unit backlog, beginning of period		102.1	105.3
Unit shipments		(25.2)	(23.9)
Unit bookings		22.3	35.9
Other adjustments		—	(3.2)
Unit backlog, end of period		99.2	114.1

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					THREE MONTHS ENDED
		JUNE 30				JUNE 30					MARCH 31
		2022		2021		2022		2021				2023		2022
Bookings, approximate sales value	Bookings, approximate sales value	$	760	$	1,070	$	1,710	$	2,040	Bookings, approximate sales value		$	690	$	950
Backlog, approximate sales value	Backlog, approximate sales value	$	3,530	$	2,070	$	3,530	$	2,070	Backlog, approximate sales value		$	3,690	$	3,170

The following table identifies the components of change in revenues for the ~~second~~first quarter of ~~2022~~2023 compared with the ~~second~~first quarter of ~~2021:~~2022:


		Revenues			Revenues
2021		$	765.6
Increase (decrease) in 2022 from:
							Lift truck
					HY		Americas		EMEA		JAPIC
2022				2022	$	827.6	$	557.7	$	169.7	$	51.7
Increase (decrease) in 2023 from:				Increase (decrease) in 2023 from:
Price	Price	59.9		Price	74.3		45.3		27.7		1.3
Unit volume and product mix	Unit volume and product mix	54.2		Unit volume and product mix	72.6		51.3		27.3		(6.0)
Parts	Parts	19.9		Parts	32.1		27.4		2.8		1.9
Other	Other	12.5		Other	4.8		3.3		1.0		0.5
Foreign currency				Foreign currency	(14.2)		0.9		(13.6)		(1.5)
Bolzoni revenues	Bolzoni revenues	1.6		Bolzoni revenues	3.5		—		—		—

Nuvera revenues				Nuvera revenues	1.0		—		—		—
Eliminations	Eliminations	1.1		Eliminations	(2.4)		—		—		—
Foreign currency		(19.4)
2022		$	895.4
2023				2023	$	999.3	$	685.9	$	214.9	$	47.9

Revenues increased ~~17.0%~~20.7% to ~~$895.4~~$999.3 million in the ~~second~~first quarter of ~~2022~~2023 from ~~$765.6~~$827.6 million in the ~~second~~first quarter of ~~2021.~~2022. The increase in Lift Truck revenues was primarily due to improved pricing ~~mainly in the Americas,~~ and higher unit and parts volumes, mainly in the Americas and EMEA. The improvement in revenue was partially offset by unfavorable currency movements, ~~from the translation of sales into U.S. dollars.~~

~~America's revenues increased~~primarily in ~~the second quarter of 2022 compared with the second quarter of 2021, primarily from improved pricing, higher unit volumes and favorable aftermarket sales, including part sales.~~

EMEA's revenues increased in the second quarter of 2022 compared with the second quarter of 2021 due to improved unit and parts volume and favorable pricing. These improvements were partially offset by unfavorable foreign currency movements of $22.1 million from the translation of sales into U.S. dollars.

~~JAPIC's revenues in the second quarter of 2022 were comparable with the second quarter of 2021, primarily as a result of lower unit and parts volumes, partially offset by improved pricing.~~

Bolzoni's revenues increased in the second quarter of 2022 compared with the second quarter of 2021 mainly due to improved pricing, partially offset by unfavorable foreign currency movements of $5.2 millionEMEA, from the translation of sales into U.S. dollars.

The following table identifies the components of change in operating profit (loss) for the ~~second~~first quarter of ~~2022~~2023 compared with the ~~second~~first quarter of ~~2021:~~2022:


		Operating Profit (Loss)			Operating Profit (Loss)
2021		$	5.9
							Lift truck
					HY		Americas		EMEA		JAPIC
Increase (decrease) in 2022 from:
2022				2022	$	(18.3)	$	4.4	$	(11.4)	$	(3.7)

Increase (decrease) in 2023 from:				Increase (decrease) in 2023 from:
Lift truck gross profit	Lift truck gross profit	(21.3)		Lift truck gross profit	71.5		54.2		12.5		3.0
Lift truck selling, general and administrative expenses	Lift truck selling, general and administrative expenses	(5.2)		Lift truck selling, general and administrative expenses	(11.2)		(11.1)		1.5		(1.6)
Bolzoni operations	Bolzoni operations	3.8		Bolzoni operations	2.3		—		—		—
Nuvera operations	Nuvera operations	1.1		Nuvera operations	(1.7)		—		—		—
2022		$	(15.7)
2023				2023	$	42.6	$	47.5	$	2.6	$	(2.3)

The Company recognized an operating ~~loss~~profit of ~~$15.7~~$42.6 million in the ~~second~~first quarter of ~~2022~~2023 compared with operating profit of $5.9 million in the second quarter of 2021. The change in operating profit (loss) was primarily the result of lower gross profit and unfavorable selling, general and administrative expenses in the lift truck business. The decrease in gross profit was mainly due to significant material and freight cost inflation as well as manufacturing inefficiencies due to supply chain and logistics constraints totaling $85.9 million, primarily in the Americas and EMEA. In addition, unfavorable foreign currency exchange rates and the absence of $6.3 million for social contribution taxes previously imposed on material purchases in Brazil recorded in 2021 contributed to the lower gross profit. These changes more than offset the favorable impact of improved pricing of $59.9 million and higher unit and parts volumes.

The Americas recognized an operating profit of $3.1 million in the second quarter of 2022 compared with operating profit of $13.6 million in the second quarter of 2021 due to an increase in selling, general and administrative expenses and a decrease in gross profit. Selling, general and administrative expenses increased mainly as result of increased employee-related expenses in the second quarter of 2022 compared with the second quarter of 2021, including $4.7 million of incentive compensation. Gross profit declined primarily due to material cost inflation of $43.0 million and higher manufacturing costs of $14.2 million resulting from inefficiencies associated with component shortages. The decrease in gross profit was partly offset by improved pricing of $50.5 million and improved parts and units volume.

~~EMEA recognized~~ an operating loss of ~~$10.8~~$18.3 million in the ~~second~~first quarter of ~~2022 compared with~~2022. The increase in Lift Truck operating profit ~~of $3.7 million in the second quarter of 2021. Gross profit decreased~~was primarily from increases in material and freight costs and higher manufacturing costs resulting from inefficiencies associated with component shortages and unfavorable foreign currency exchange rates. These decreases more than offset the favorable impact of improved pricing and higher unit and parts volumes.

JAPIC's operating loss increased to $4.0 million in the second quarter of 2022 compared with $1.9 million in the second quarter of 2021, primarily due to lower gross profit from an unfavorable mix of sales of lower margin trucks, material cost inflation and unfavorable manufacturing variances. The decrease was partially offset by improved pricing.

~~Bolzoni's operating profit increased to $3.4 million in the second quarter of 2022 from a $0.4 million operating loss in the second quarter of 2021, mainly~~ due to improved gross profit from higher ~~volume~~pricing of $74.3 million, mainly in the Americas and ~~pricing,~~EMEA, a shift in sales to higher margin lift trucks and favorable parts sales compared with the first quarter of 2022. These items were partially offset by material cost ~~inflation~~increase of $20.9 million, higher selling, general and administrative expenses for increased employee-related costs, including incentive compensation, as well as marketing and product development and unfavorable ~~foreign~~ currency ~~exchange rates.~~of $5.2 million.

Nuvera's operating loss decreased to $7.9 million in the second quarter of 2022 compared with $9.0 million in the second quarter of 2021 as result of improved margin from lower production costs in 2022.

The Company recognized a net loss attributable to stockholders of $19.4 million in the second quarter of 2022 compared with net income attributable to stockholders of $1.9 million in the second quarter of 2021. The decrease was primarily the result of the factors affecting operating profit, higher interest expense and lower pension income.

~~The following table identifies the components of change in revenues for the first six months of 2022 compared with the first six months of 2021:~~
Revenues
2021 $ 1,497.8
Increase (decrease) in 2022 from:
Price 103.8
Unit volume and product mix 78.3
Parts 41.8
Other 24.8
Bolzoni revenues 17.2
Nuvera revenues 0.6
Foreign currency (33.4)
Eliminations (7.9)
2022 $ 1,723.0

Revenues increased 15.0% to $1,723.0 million in the first six months of 2022 from $1,497.8 million in the first six months of 2021. The increase was primarily due to improved pricing in the Americas and higher unit and parts volume in the Americas, EMEA and Bolzoni. The improvement in revenue was partially offset by unfavorable currency movements from the translation of sales into U.S. dollars.

America's revenues increased in the first six months of 2022 compared with the first six months of 2021, primarily from improved pricing of lift trucks, higher unit volumes and favorable aftermarket sales, including part sales.

EMEA's revenues increased mainly due to improved unit and parts volume and favorable pricing. These improvements were partially offset by unfavorable foreign currency movements of $35.5 million from the translation of sales into U.S. dollars.

~~JAPIC's revenues decreased primarily as a result of lower unit and part volumes and unfavorable foreign currency movements of $1.8 million, partially offset by improved pricing.~~

Bolzoni's revenues increased mainly due to improved pricing and higher volumes, partially offset by unfavorable foreign currency movements of $8.2 million from the translation of sales into U.S. dollars in the first six months of 2022 compared with the first six months of 2021.

~~The following table identifies the components of change in operating profit for the first six months of 2022 compared with the first six months of 2021:~~
Operating Profit (Loss)
2021 $ 9.0
Increase (decrease) in 2022 from:
Lift truck gross profit (42.3)
Lift truck selling, general and administrative expenses (8.6)
Bolzoni operations 5.1
Nuvera operations 2.8
2022 $ (34.0)

The Company recognized an operating loss of $34.0 million in the first six months of 2022 compared with an operating profit of $9.0 million in the first six months of 2021. The decrease in operating profit was primarily due to lower gross profit in the lift truck business. Gross profit declined mainly due to material cost inflation of $119.3 million, higher manufacturing costs resulting from inefficiencies associated with component shortages, a shift in sales to lower-margin lift trucks and unfavorable foreign currency movements of $16.9 million. The decrease in gross profit was partially offset by favorable pricing of $103.8 million and improved unit and parts volume in the Americas and EMEA.

Operating profit in the Americas decreased to $7.5 million in the first six months of 2022 compared with $28.2 million in the first six months of 2021 as a result of a decrease in gross profit and higher operating expenses. Gross profit declined mainly due to material cost inflation of $83.5 million, higher manufacturing costs resulting from inefficiencies associated with component shortages of $27.8 million, a shift in mix to lower-margin products, unfavorable foreign currency movements of $9.9 million and the absence of $6.3 million for social contribution taxes previously imposed on material purchases in Brazil in the first six months of 2021. The decrease in gross profit was partially offset by favorable pricing of $91.3 million and improved parts and unit volumes. The increase in selling, general and administrative expensesincreased primarily ~~resulted from higher employee-related expenses, including $4.7 million of incentive compensation.~~

EMEA recognized an operating loss of $22.2 million in the first six months of 2022 compared with an operating profit of $3.8 million in the first six months of 2021 mainly as a result of lower gross profit. Gross profit decreased due to material cost inflation of $32.6 million, unfavorable foreign currency movements of $6.4 million and higher manufacturing costs resulting from inefficiencies associated with component shortages. The decrease in gross profit was partially offset by improved unit and parts volumes and improved pricing.

JAPIC's operating loss increased to $7.7 million in the first six months of 2022 from $4.4 million in the first six months of 2021, primarily due to lower gross profit from material cost inflation, manufacturing inefficiencies and a shift in mix to lower-margin products, partially offset by improved pricing.

~~Bolzoni's operating profit increased to $5.5 million in the first six months of 2022 compared with $0.4 million in the first six months of 2021~~ due to improved gross profit from higher pricing of $45.3 million, a shift in sales to higher margin lift trucks and favorable parts sales and manufacturing efficiencies tied to higher production volumes, partially offset by material cost inflation, higher selling, general and administrative expenses and unfavorable currency.

EMEA recognized operating profit of $2.6 million in the first quarter of 2023 compared with an operating loss of $11.4 million in the first quarter of 2022, primarily from improved gross profit from improved pricing of $27.7 million favorable sales mix and lower manufacturing costs, partially offset by material cost inflation and unfavorable ~~foreign currency exchange rates.~~

Nuvera's operating loss improved to $16.0 million in the first six months of 2022 compared with $18.8 million in the first six months of 2021 as result of improved margin from lower production costs in 2022.currency.

The Company recognized ~~a net loss attributable to stockholders of $44.4 million in the first six months of 2022 compared with~~ net income attributable to stockholders of ~~$7.5~~$26.6 million in the first ~~six months~~quarter of ~~2021.~~2023 compared with a net loss of $25.0 million in the first quarter of 2022. The ~~decrease~~improvement was primarily the result of ~~the factors affecting~~higher operating profit, ~~the absence of a $4.6 million gain related to the sale~~partially offset by higher income taxes and interest expense. See Note 5 of the Company's ~~preferred shares~~condensed consolidated financial statements for further discussion of ~~OneH2, Inc. in~~ the ~~first six months of 2021, higher interest expense, lower pension expense and unfavorable mark-to-market adjustments on an equity investment in a third party.~~Company's income tax provision.

The following tables detail the changes in cash flow for the ~~six~~three months ended ~~June 30:~~March 31:


		2022		2021		Change			2023		2022		Change
Operating activities:	Operating activities:							Operating activities:
Net income (loss)	Net income (loss)	$	(42.9)	$	8.4	$	(51.3)	Net income (loss)	$	27.2	$	(24.2)	$	51.4
Depreciation and amortization	Depreciation and amortization	22.1		23.3		(1.2)		Depreciation and amortization	11.2		11.1		0.1
Dividends from unconsolidated affiliates								Dividends from unconsolidated affiliates	5.7		11.0		(5.3)

Dividends from unconsolidated affiliates		15.6		5.5		10.1
Working capital changes	Working capital changes							Working capital changes
Accounts receivable	Accounts receivable	(100.4)		(56.7)		(43.7)		Accounts receivable	(12.7)		(33.0)		20.3
Inventories	Inventories	(32.5)		(172.4)		139.9		Inventories	(48.1)		(41.8)		(6.3)
Accounts payable and other liabilities	Accounts payable and other liabilities	153.9		120.0		33.9		Accounts payable and other liabilities	25.4		154.4		(129.0)
Other current assets	Other current assets	(7.1)		(12.8)		5.7		Other current assets	(7.4)		(11.0)		3.6
Other operating activities	Other operating activities	(8.5)		(16.0)		7.5		Other operating activities	7.7		(7.4)		15.1
Net cash provided by (used for) operating activities		0.2		(100.7)		100.9
Net cash provided by operating activities								Net cash provided by operating activities	9.0		59.1		(50.1)
Investing activities:	Investing activities:							Investing activities:
Expenditures for property, plant and equipment	Expenditures for property, plant and equipment	(15.3)		(18.1)		2.8		Expenditures for property, plant and equipment	(3.3)		(9.7)		6.4
Proceeds from the sale of assets and investment		0.8		18.9		(18.1)
Proceeds from the sale of assets and business								Proceeds from the sale of assets and business	1.5		0.4		1.1
Purchase of noncontrolling interest	Purchase of noncontrolling interest	(8.4)		—		(8.4)		Purchase of noncontrolling interest	(3.2)		—		(3.2)

Net cash provided by (used for) investing activities		(22.9)		0.8		(23.7)
Net cash used for investing activities								Net cash used for investing activities	(5.0)		(9.3)		4.3

Cash flow before financing activities	Cash flow before financing activities	$	(22.7)	$	(99.9)	$	77.2	Cash flow before financing activities	$	4.0	$	49.8	$	(45.8)

Net cash provided by ~~(used for)~~ operating activities changed ~~$100.9~~$50.1 million in the first ~~six~~three months of ~~2022~~2023 compared with the first ~~six~~three months of ~~2021,~~2022, primarily as a result of changes in working capital items ~~and~~partially offset by net ~~income (loss).~~income. The changes in working capital were mainly due to a decrease in customer deposits received related to down payments on orders and a smaller increase in ~~inventory levels and an increase in other liabilities primarily from down payments for customer orders, partially offset by lower payments of~~ accounts payable ~~and higher accounts receivable from increased revenues~~ in the first ~~six~~three months of ~~2022~~2023 compared with the first ~~six~~three months of ~~2021.~~2022.

The change in net cash ~~provided by (used for)~~used for investing activities during the first ~~six~~three months of ~~2022~~2023 compared with the first ~~six~~three months of ~~2021~~2022 was due to lower capital expenditures and the ~~current year's installment~~ purchase of ~~Maximal's~~Bolzoni's noncontrolling interest in ~~2022 and the absence of the proceeds from the sale of preferred shares of OneH2 in 2021.~~2023.


		2022		2021		Change			2023		2022		Change
Financing activities:	Financing activities:							Financing activities:
Net increase of long-term debt and revolving credit agreements		$	44.6	$	56.0	$	(11.4)
Net increase (decrease) of long-term debt and revolving credit agreements								Net increase (decrease) of long-term debt and revolving credit agreements	$	3.2	$	(45.5)	$	48.7
Cash dividends paid	Cash dividends paid	(10.9)		(10.7)		(0.2)		Cash dividends paid	(5.6)		(5.4)		(0.2)
Financing fees paid		—		(7.6)		7.6

Other	Other	(0.2)		(0.2)		—		Other	(0.1)		—		(0.1)
Net cash provided by financing activities		$	33.5	$	37.5	$	(4.0)
Net cash used for financing activities								Net cash used for financing activities	$	(2.5)	$	(50.9)	$	48.4

~~Net~~The change in net cash ~~provided by~~used for financing activities ~~decreased to $33.5 million in the first six months of 2022 compared with $37.5 million in the first six months of 2021. The decrease~~ was primarily due to ~~a lower increase in~~additional borrowings during the first ~~six~~three months of ~~2022~~2023 versus repayments in the first ~~six~~three months of ~~2021, partially offset by the absence~~2022.

Table of ~~financing fees paid in 2021.~~Contents

Financing Activities

The Company has a $300.0 million secured, floating-rate revolving credit facility (the ~~"Facility”~~"Facility") that expires in June 2026. There were $165.7 million of borrowings outstanding under the Facility at June 30, 2022. The availability under the Facility at June 30, 2022 was $130.0 million, which reflects reductions of $4.3 million for letters of credit and other restrictions. As of June 30, 2022, the Facility consisted of a U.S. revolving credit facility of $210.0 million2026 and a ~~non-U.S. revolving credit facility of $90.0 million.~~ $225.0 million term loan (the "Term Loan"), which matures in May 2028.

The Facility can be increased up to $400.0 million over the term of the Facility in minimum increments of $10.0 million, subject to approval by the lenders. The obligations under the Facility are generally secured by a first priority lien on working capital assets of the borrowers and guarantors in the Facility, which includes but is not limited to cash and cash equivalents,

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accounts receivable and inventory, and a second priority lien on the 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 ~~$1.1~~$1.2 billion as of ~~June 30, 2022.~~ March 31, 2023.

Borrowings under the Facility bear interest at a floating rate, which can be a base rate, LIBOR or EURIBOR, as defined in the Facility, plus an applicable margin. The applicable margins are based on the total excess availability, as defined in the Facility, and range from 0.25% to 0.75% for U.S. base rate loans and 1.25% to 1.75% for LIBOR, EURIBOR and non-U.S. base rate loans. The applicable margins, as of June 30, 2022, for U.S. base rate loans and LIBOR loans were 0.50% and 1.50%, respectively. The applicable margin, as of June 30, 2022, for non-U.S. base rate loans and LIBOR loans was 1.50%. The

applicable interest rates for borrowings outstanding under the Facility on June 30, 2022 was 5.25% and 1.50% for the U.S. and foreign base rate loans, respectively. The applicable interest rates for borrowings for the U.S. LIBOR loans ranged from 2.56% to 3.10% at June 30, 2022. The Facility also required the payment of a fee of 0.25% per annum on the unused commitments as of June 30, 2022.

The Facility includes restrictive covenants, which, among other things, limit additional borrowings and investments of the Company subject to certain thresholds, as provided in the Facility. The Facility limits the payment of dividends and other restricted payments the Company may make unless certain total excess availability and/or fixed charge coverage ratio thresholds, each as set forth in the Facility, are satisfied. The Facility also requires the Company to achieve a minimum fixed charge coverage ratio when total excess availability is less than the greater of 10% of the total borrowing base, as defined in the Facility, and $20.0 million. At ~~June 30, 2022,~~March 31, 2023, the Company was in compliance with the covenants in the Facility.

~~The Company also has a $225.0 million term loan (the "Term Loan"), which matures in May 2028.~~ Key terms of the Facility as of March 31, 2023 were as follows:


	FACILITY
U.S. borrowing capacity	$	210.0
Non-U.S. borrowing capacity	90.0
Outstanding	126.9
Availability restrictions	7.8
Availability	$	165.3
Applicable margins, as defined in agreement
U.S. base rate loans	0.25% to 0.75%
LIBOR, EURIBOR and foreign base rate loans	1.25%-1.75%
Applicable margins, for amounts outstanding
U.S. base rate and LIBOR loans	0.50%; 1.50%
Non-U.S. base rate and LIBOR loans	1.50%
Applicable interest rate, for amounts outstanding
U.S. base rate	8.50%
LIBOR	6.20% to 6.31%
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, which commenced September 30, 2021, in an amount equal to $562,500 and the final principal repayment is due in May 2028. The Company may also be required to make mandatory prepayments, in certain circumstances, as provided in the Term Loan. At June 30, 2022, there was $222.8 million of principal outstanding under the Term Loan which has been reduced in the unaudited condensed consolidated balance sheet by $4.4 million for 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, ~~U.S.~~ material real property, fixtures and general intangibles consisting of intellectual property and a second priority lien on ~~U.S.~~ working capital assets of ~~certain~~the borrowers and guarantors of the 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 ~~$770~~$800 million as of ~~June 30, 2022.~~March 31, 2023.

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, as provided in the Term Loan, is 2.50% for base rate loans and 3.50% for Eurodollar loans. In addition, the Term Loan includes a Eurodollar rate floor of 0.50%. The interest rate on the amount outstanding under the Term Loan at June 30, 2022 was 5.17%. 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 dividends and other restricted payments the Company may make ~~up to $50.0 million~~ in any fiscal year, unless the consolidated total net leverage ratio, as defined in the Term Loan, does not exceed 2.50 to 1.00 at the time of the payment. At ~~June 30, 2022,~~March 31, 2023, the Company was in compliance with the covenants in the Term Loan.

Key terms of the Term Loan as of March 31, 2023 were as follows:

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	TERM LOAN
Outstanding	$	221.1
Discounts and unamortized deferred financing fees	3.9
Net amount outstanding	$	217.2
Applicable margins, as defined in agreement
U.S. base rate loans	2.50%
Eurodollar	3.50%
Eurodollar floor	0.50%
Applicable interest rate, for amounts outstanding	8.36%

The Company had other debt outstanding, excluding finance leases, of approximately ~~$165.3~~$188.5 million at ~~June 30, 2022.~~March 31, 2023. In addition to the excess availability under the Facility of ~~$130.0~~$165.3 million, the Company had remaining availability of ~~$26.4~~$20.2 million related to other non-U.S. revolving credit ~~agreements.~~

agreements at March 31, 2023.

The Company believes funds available from cash on hand, 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 June 2026.

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Contractual Obligations, Contingent Liabilities and Commitments

Since December 31, ~~2021,~~2022, there have been no 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 2523 and 2624 in the Company's Annual Report on Form 10-K for the year ended December 31, ~~2021.~~2022.

Capital Expenditures

The following table summarizes actual and planned capital expenditures:


		Six Months Ended June 30, 2022		Planned for Remainder of 2022		Planned 2022 Total		Actual 2021			Three Months Ended March 31, 2023		Planned for Remainder of 2023		Planned 2023 Total		Actual 2022
Lift truck business	Lift truck business	$	11.5	$	12.4	$	23.9	$	30.6	Lift truck business	$	2.3	$	50.4	$	52.7	$	20.3
Bolzoni	Bolzoni	3.0		2.7		5.7		10.4		Bolzoni	0.7		8.9		9.6		5.5
Nuvera	Nuvera	0.8		3.0		3.8		3.3		Nuvera	0.3		3.6		3.9		3.0
		$	15.3	$	18.1	$	33.4	$	44.3		$	3.3	$	62.9	$	66.2	$	28.8

Planned expenditures for the remainder of ~~2022~~2023 are primarily for product development, improvements to information technology infrastructure and improvements at manufacturing locations and manufacturing ~~equipment and improvements to information technology infrastructure.~~equipment. The principal sources of financing for these capital expenditures are expected to be internally generated funds and bank financing.

Capital Structure

The Company's capital structure is presented below:


		JUNE 30 2022			DECEMBER 31 2021			Change				MARCH 31 2023			DECEMBER 31 2022			Change
Cash and cash equivalents	Cash and cash equivalents	$	75.6		$	65.5		$	10.1		Cash and cash equivalents	$	64.6		$	59.0		$	5.6
Other net tangible assets	Other net tangible assets	630.5			728.7			(98.2)			Other net tangible assets	673.3			625.0			48.3
Intangible assets	Intangible assets	45.8			50.7			(4.9)			Intangible assets	42.7			42.7			—
Goodwill	Goodwill	52.1			56.5			(4.4)			Goodwill	52.3			51.3			1.0
Net assets	Net assets	804.0			901.4			(97.4)			Net assets	832.9			778.0			54.9
Total debt	Total debt	(580.6)			(518.5)			(62.1)			Total debt	(560.6)			(552.9)			(7.7)
Total temporary and permanent equity	Total temporary and permanent equity	$	223.4		$	382.9		$	(159.5)		Total temporary and permanent equity	$	272.3		$	225.1		$	47.2
Debt to total capitalization	Debt to total capitalization	72		%	58		%	14		%	Debt to total capitalization	67		%	71		%	(4)		%

~~OUTLOOK AND STRATEGIC PERSPECTIVE~~

~~Consolidated Outlook~~

Given the continued component shortages due to supply chain constraints and the consequent reduction in production plans, significant material and freight cost inflation, and, more recently, the impact of the COVID-19 lockdowns in China and the Russia/Ukraine conflict, as well as continued losses at Nuvera, the Company, on a consolidated basis, expects a larger net loss in the third quarter of 2022 than previously projected, but a return to net income in the fourth quarter of 2022. However, the fourth quarter net income is not expected to offset the losses generated in the first nine months. Generally, results in the second half of 2022 are expected to be lower than anticipated when the 2022 first quarter earnings release was issued, mainly due to adjustments made to the Company's production schedule as a result of continued supply chain constraints. These expectations are based on the anticipated reasonable resolution of component shortages and relative stabilization of material and freight costs.

The Company is managing 2022 capital expenditures, operating expenses and its production plans in a manner designed to protect liquidity. Capital expenditures are expected to be approximately $33 million in 2022. The Company has implemented a program of strict controls over operating expenses to reduce cash outflow, including delays in the timing of certain strategic program investments. While the Company expects over time to make these capital expenditures and investments in the business, maintaining liquidity will continue to be a priority. During 2021 and the first half of 2022, the Company's ability to build and ship trucks was significantly constrained by parts shortages of certain critical components while the remaining components needed to build trucks were received and added to inventory, causing inventory levels to increase substantially. In this context, the Company expects to reduce inventory significantly in the second half of 2022 by using current inventory to

2923

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~~build trucks, for which production has been significantly delayed due to critical parts shortages, and to receive components as they are needed for production.~~PERSPECTIVES AND OUTLOOK

At June 30, 2022, the Company's cash on hand was $75.6 million and debt was $580.6 million compared with cash on hand of $65.1 million and debt of $479.0 million at March 31, 2022, and cash on hand of $65.5 million and debt of $518.5 million at December 31, 2021. As of June 30, 2022, the Company had unused borrowing capacity of approximately $156 million under the Company's revolving credit facilities compared with $218 million at March 31, 2022.Market Commentary

~~Lift Truck Strategic Perspective~~The global economic outlook remains constrained and economic activity appears to be decelerating in many parts of the world. This deceleration is due to several factors, including tight monetary policies, designed to contain inflation, in many countries, continued supply chain disruptions and the likelihood of increased unemployment rates as companies reduce expenses. Despite these challenges, the U.S. economy was more resilient in the 2023 first quarter than anticipated after a fourth quarter that included signs of a steeper potential downturn. The latest publicly available lift truck market data indicates that new unit, fourth-quarter 2022 booking activity decreased in all major geographies, particularly EMEA, compared with high prior-year levels. Internal company estimates suggest that the global lift truck market decline continued in the first quarter of 2023 with all major geographies experiencing booking declines compared with the prior-year quarter. Despite the decreases, market levels appear to be stronger than anticipated.

~~Over the remainder of 2022,~~Looking ahead, the Company expects the global lift truck market to ~~continue~~decline in all regions for the full-year 2023 compared with 2022. By pre-pandemic historical standards, 2023's global market unit volumes are expected to ~~decline~~remain relatively strong in all regions except EMEA.

Several years of extraordinary lift truck market growth led to very significant supplier capacity constraints. A moderate market slowdown could put the lift truck component supply base in a position to meet their supply requirements more efficiently and effectively and allow the Company to work down its extended backlog more quickly.

Operational Perspectives - Lift Truck Business

First-quarter 2023 lift truck bookings decreased significantly from robust prior-year levels due to several factors, including a declining, but still large, global market and a focus on booking orders with strong margins in the ~~historical highs~~context of ~~2021, but remain above pre-pandemic levels. As a result of this~~the Company's extended lead times. First-quarter 2023 bookings increased moderately from fourth-quarter 2022 driven by better-than-expected market conditions and bookings performance in the Americas. Looking forward, 2023 bookings' levels are expected to decrease year-over-year due to the moderating market outlook and the ~~Company accepting only orders with expected sound margins, the Lift Truck business is anticipating a substantial decrease in bookings during the second half of 2022 compared~~Company’s continued focus on balancing higher-margin units with the ~~second half~~need to maintain a full production pipeline for each of ~~2021, particularly~~its product lines across its facilities. Together, the anticipated bookings' decreases and planned production increases should help the Company further reduce its backlog, which has now decreased over 13% from its peak in the ~~Americas.~~first-quarter 2022.

~~During 2021, the Company experienced~~Full-year 2023 production and shipment ~~levels which were substantially lower than its objectives due~~volumes are expected to increase compared with 2022, reducing extended lead times as a result of anticipated reduced bookings and continued supply chain ~~logistics constraints~~improvements. Despite the lower booking rate and ~~component shortages. Some moderation in~~expected production improvements, lead times and backlog levels will likely remain above desired levels for some time. However, this extended backlog should serve as a shock absorber for the ~~number of suppliers with shortages occurred~~business if bookings decline more sharply as 2023 progresses.

The trend toward higher average prices and margins for both unit bookings and backlog continued in the first ~~half~~quarter largely due to enhanced pricing and order selectivity. The Company continues to experience material and labor cost increases, but the rate of ~~2022, but shortages~~increase has slowed substantially. Forward economic indicators suggest inflationary pressures are ~~anticipated to continue throughout 2022,~~abating and possibly continue to escalate in light of the China lockdowns and Russia/Ukraine conflict. As a result, planned production schedules for the second half of 2022 and in 2023 have been reduced from what was expected at the time of last quarter's earnings release. Nevertheless, full-year shipments are currentlycost inflation is expected to ~~increase in 2022 over 2021, despite~~moderate throughout 2023. To offset the ~~normal third quarter plant shutdowns, given the Company's robust backlog and actions put in place to mitigate the impact of the supply chain constraints and shortages, with the expectation~~substantial inflationary pressure that supplies of products or commodities are not constrained further. The Company is hopeful that availability will improve and that consequently production can increase over current 2022 and 2023 production schedules.

As a result of the Russia/Ukraine conflict, material costs continued to increase in the second quarter of 2022. However, recent signs have indicated some relief from additional material and freight cost inflation in the second half of 2022. In light of cost inflationoccurred in 2021 and ~~what is expected over~~ 2022, the Lift Truck business implemented several price increases. As of March 31, 2023, the Company has worked through a high proportion of its lower-priced, lower-margin backlog units booked before these price increases went into effect. In 2023, the Company expects a positive price-to-cost ratio, in part to address ongoing cost increases in ~~2021~~certain areas. The Company will continue to monitor material and labor costs closely, as well as the impact of tariffs, and adjust forward pricing accordingly. As a result of slowing cost inflation and the current higher-priced backlog, the Company believes average unit margins will increase significantly in aggregate in 2023 compared to 2022. That improvement is expected to continue into 2024 as newer bookings, with higher margins, are scheduled for production.

The factors outlined above, as well as the benefits from the Company's maturing strategic initiatives, are expected to lead to a significant revenue increase and a substantial operating profit in 2023. The Lift Truck business first-quarter 2023 operating profit increased more than the Company anticipated. However, second-quarter 2023 Lift Truck operating profit is expected to decrease compared with first-quarter 2023 but significantly exceed fourth-quarter 2022 results. The expected decrease in the second quarter from first-quarter 2023 is due in part to an expected shift in mix toward lower margin sales channels. Second-half 2023 operating profit is expected to be comparable to the first half of ~~2022, but many of~~ the ~~orders in~~year. However, these forecasts are highly sensitive to the ~~backlog slotted for production in the third and fourth quarters do not reflect the full~~ effect of ~~all these price increases. On the other hand, new bookings are being made at close to target margins based on expected future costs at the time~~various factors, particularly those that impact global supply chains and production capabilities.

Table of expected production. Further, the renewal of tariff exclusions is expected to partly offset the anticipated higher material cost inflation in the backlog over the remainder of 2022. Due to the lag between when unit price increases go into effect and when revenue is realized as the units are shipped, as theContents

Strategic Perspectives - Lift Truck segment works through its low-margin backlog in the second half of 2022 and early 2023, margins are expected to improve, specifically in the fourth quarter, when the higher-margin, already-booked trucks are expected to be produced and shipped. In the meantime, the Company expects to continue to work aggressively to manage component availability in order to increase production rates and continue to adjust prices as costs change. As a result of these factors, the Lift Truck business expects a significantly lower operating loss in the second half of the year than in the first half, mainly driven by strong operating profit in the fourth quarter of 2022 in the Americas segment.

From a ~~broader~~broad perspective, the Lift Truck business has three core strategies that are expected to ~~have a transformational impact on~~transform the Company’s competitiveness, market position and economic performance ~~as it emerges from the current period of mismatch of costs and pricing. The first is to~~over time:

•To provide the lowest cost of ownership while ~~enhancing~~improving customer ~~productivity.~~productivity, including for low-intensity applications. The ~~primary focus~~Lift Truck business' capabilities in this area are expected to be enhanced by bringing to market a wide variety of ~~this strategic initiative is the~~vehicle innovations including: new modular and scalable product families, truck electrification projects ~~which are expected~~and technology advancements in product automation, power options, telemetry and operator assist systems;

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

•Be the ~~groundwork~~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 continues to make progress on its high priority projects. The Lift Truck business launched its first modular, scalable lift trucks to the EMEA and Americas markets in 2022. Given the current extended backlog, the production ramp-up for ~~enhanced~~this new product line is occurring gradually. The Company expects to launch these products in the JAPIC market ~~position by providing lower cost of ownership and enhanced productivity for~~in mid-to-late 2023.

In addition to the ~~Company’s customers, including low-intensity applications. Additional to this are~~new modular, scalable product lines, the Lift Truck business also has key projects geared toward electrification of ~~trucks for~~ applications now dominated by ~~internal-combustion~~internal combustion engine trucks, as well as technology advancements in power options, automation product options, ~~and providing~~ telemetry and operator assist systems. The ~~second~~Company delivered its first electrified fuel cell Container Handler to the Port of Los Angeles for testing in late 2022. In the first half of 2023, Lift Truck anticipates delivering an electrified fuel cell Reach Stacker to the Port of Valencia, Spain, and in mid-to-late 2023 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

Building on its first-quarter 2023 performance, over the remainder of 2023 Bolzoni expects component shortages to continue moderating. Increased pricing is expected to offset higher input costs across 2023. As a result, margins are expected to improve year-over-year, leading to a significantly higher 2023 full-year operating profit compared with 2022, in large part due to the strong first-quarter 2023 performance.

Bolzoni's core strategy is to be the leader in the ~~delivery of industry- and customer-focused solutions. The primary focus for~~Attachments business. In this strategic initiative is transforming the Company's sales approach by using an industry-focused approach to meet its customers' needs. The third core strategy is to be the leader in independent distribution. The main focus of this strategic initiative is on enhancing dealer and major account coverage, dealer excellence and ensuring outstanding dealer ownership globally.

As a result of these core strategies, the increased shipment volume potential of the current backlog and expected bookings in the remainder of 2022, enhanced prices and the renewal of tariff exclusions, the Lift Truck business expects to move from the significant operating loss in the first half of 2022 to operating profit in the fourth quarter. However, as a result of manufacturing inefficiencies expected in the third quarter due to the normal seasonal plant shutdowns and reductions in production volumes due to continued supply chain constraints, as well as unfavorable currency effects, the Company expects a significant operating loss at the Lift Truck business in the third quarter that is higher than the operating loss in the prior year third quarter, and an

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increase to a substantial operating profit in the fourth quarter that is lower than was anticipated at the time of the 2022 first quarter earnings release. Over the second half of 2022, the Company is projecting the stabilization of product and transportation costs and continued improvement in component and logistics availability, although this could change if the availability of commodities and/or components continues to be seriously affected by various market forces, including an economic recession, the lockdowns in China and the ongoing Russia/Ukraine conflict. The Company is also anticipating the continued introduction of additional modular and scalable product families and the continued implementation of cost-savings initiatives over this period and in the longer term. Overall, as the Company's strategic programs mature, as costs and prices come in line over 2022 and 2023, and as production volumes increase, the Lift Truck business is expected to have an increase to a substantial operating profit in the fourth quarter of 2022 and in 2023. However, results for the remainder of 2022 and in 2023 are expected to be lower than projected in the 2022 first quarter earnings release due to lower productions levels than previously anticipated.

~~Bolzoni Strategic Perspective~~

As a result of lower sales and inefficiencies expected from the normal third-quarter seasonal plant shutdowns, reduced demand for legacy components for the Lift Truck business and additional material inflation caused by the Russia/Ukraine conflict, Bolzoni expects near break-even results in the third quarter of 2022. Bolzoni expects a return to profitability in the fourth quarter of 2022 as component shortages moderate, efficiencies return and benefits are realized from pricing actions. Bolzoni expects solid operating profit in the second half of 2022 compared with an operating loss in the second half of 2021. However, operating profit in the second half of 2022 is expected to be significantly lower than in the first half of 2022.

context, Bolzoni continues to ~~focus~~concentrate on ~~implementing~~driving its "One Company - 3 Brands" ~~organizational~~ approach ~~to help streamline corporate operations and strengthen its North America and JAPIC commercial operations. Bolzoni is working to increase~~globally, increasing its Americas business byand focusing on strengthening its ability to serve key attachment industries and customers in ~~the North America market through the introduction~~all global markets. As part of ~~a broader range of locally produced attachments with shorter lead times, while continuing~~this approach, Bolzoni also intends to ~~sell cylinders and various other components produced in its Sulligent, Alabama plant. Bolzoni is also increasing~~increase its sales, marketing and product support capabilities ~~both~~ in North America and Europe ~~based on an~~to support its industry-specific ~~approach, with an immediate focus on the paper, beverage, appliance, third-party logistics and automotive industries.~~sales strategy.

~~Nuvera~~Operational and Strategic ~~Perspective~~Perspectives - Nuvera

Nuvera's core strategy is to be a leader in the fuel cell business. Nuvera continues to focus on ~~applying its strategy of~~ placing 45kW and 60kW fuel cell engines in niche, heavy-duty vehicle applications ~~with~~for which battery-only electrification will not provide an adequate solution. As a result, these applications are expected to have significant and nearer-term fuel cell adoption ~~potential. During~~potential, at the ~~remainder~~same time that Nuvera is shifting from a product to solution-selling emphasis. 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, ~~Nuvera expects~~and in multiple European ports, which are expected to ~~continue to focus on ramping up demonstrations, quotes and bookings of these products. In addition,~~begin testing in 2023. Nuvera is also developing a new, larger 125kW fuel cell engine for heavier-duty applications and ~~continues~~plans to launch 360kW and 470kW modular fuel cell-powered generators for stationary applications.

In 2023, Nuvera expects continued focus on ~~applications~~increasing customer product demonstrations and customer bookings. Nuvera is expanding its presence in Europe and China. Shipments in the ~~forklift truck market. Excluding~~first quarter of 2023 were for demonstrations of its 45kW and 60kW fuel cell engines for bus, power supply and port equipment applications. Recurring orders for current customers are booked for the ~~impact~~2023 second and third quarters and are expected to result in higher sales in the latter half of the ~~inventory valuation~~year. Overall, in the context of moderately higher costs, the business is expected to generate a loss in 2023 comparable to 2022 but the increased volume of engine demonstrations should significantly enhance the foundation for future technology adoption and ~~fixed asset impairment charges taken in 2021,~~improved financial returns.

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Consolidated Outlook

The Company is nearing completion of its program to build out the ~~Company expects moderately reduced losses at Nuvera in 2022 as~~lower-priced, lower-margin backlog units held over from prior periods. As a result, ~~of enhanced fuel cell shipments, although losses~~continued margin expansion is expected to lead to substantial operating profit and net income for the 2023 full year, as well as solid progress toward the Company's 7% operating profit margin goals at both the Lift Truck and Bolzoni businesses. These expectations are based on the Company's ability to effectively manage its ongoing component and labor costs, increase its production levels and achieve reasonably stable material and freight costs.

The programs to reduce inventory and to generate cash are expected to show substantial progress in the second half of ~~2022~~2023. The Company is committed to enhancing its cash flows through its ongoing action plans and continued discipline over capital expenditures and operating expenses. Capital expenditures are expected to be ~~higher than in~~approximately $66 million for full-year 2023, with spending more heavily weighted toward the ~~first~~second half of the year. This full-year increase compares to significantly restrained 2022 levels and is necessary to adequately maintain the Company’s facilities and product development programs. Working capital continues to be an area of intense focus for the Company. Inventory levels remain elevated and above pre-pandemic levels as a result of ~~higher operating expenses.~~slow component parts consumption due to prior-period production delays. Efforts to maximize the use of on-hand inventory, coupled with material purchases below expected production rates, are expected to help reduce excess inventory levels throughout the Company in the remaining 2023 quarters. Supply constraints continue to be an issue periodically, but the Company expects continued improvements as 2023 progresses. As a result of these actions, the Company expects a significant increase in cash flow before financing activities for the full-year 2023 compared with 2022.

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) any preventive or protective actions taken by governmental authorities related to the COVID-19 pandemic, and any unfavorable effects of the COVID-19 pandemic on either the Company's or its suppliers plants' capabilities to produce and ship products, (3) delays in manufacturing and

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delivery schedules, ~~(4)~~(3) customer acceptance of pricing, (4) the ability of the Company and its dealers, suppliers and end-users to 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, including any reduction in demand as a result of an economic recession, (6) unfavorable effects of geopolitical and legislative developments on global operations, including without limitation the entry into new trade agreements and the imposition of tariffs and/or economic sanctions, as well as armed conflicts, including the Russia/Ukraine conflict, and their regional effects, (6) the ability of the Company and its dealers, suppliers and end-users to 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, (7) impairment charges or charges due to valuation allowances, (8) reduction in demand for lift trucks, attachments and related aftermarket parts and service on a global basis, including any reduction in demand as a result of an economic recession, (9) 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, ~~(10)~~(8) the effectiveness of the cost reduction programs implemented globally, including the successful implementation of procurement and sourcing initiatives, ~~(11)~~(9) the successful commercialization of Nuvera's technology, ~~(12)~~(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, ~~(13)~~(11) bankruptcy of or loss of major dealers, retail customers or suppliers, ~~(14)~~(12) customer acceptance of, changes in the costs of, or delays in the development of new products, ~~(15)~~(13) introduction of new products by, more favorable product pricing offered by or shorter lead times available through competitors, ~~(16)~~(14) product liability or other litigation, warranty claims or returns of products, ~~and (17)~~(15) changes mandated by federal, state and other regulation, including tax, health, safety or environmental ~~legislation.~~legislation, (16) the 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 infrastructure against service interruptions, data corruption, cyber-based attacks or network breaches.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

See pages 2927 and 3028 and ~~F-24~~F-22 through ~~F-27~~F-25 of the Company's Annual Report on Form 10-K for the year ended December 31, ~~2021~~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, ~~2021.~~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 ~~second~~first quarter of ~~2022,~~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 1 Legal Proceedings

None

Item 1A Risk 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, ~~2021~~2022 in the ~~Section~~section entitled ~~"Risk~~“Risk Factors."”

Item 2 Unregistered Sales of Equity Securities and Use of Proceeds

None

Item 3 Defaults Upon Senior Securities

None

Item 4 Mine Safety Disclosures

Not applicable

Item 5 Other Information

None

Item 6 Exhibits

~~Table of Contents~~

The following exhibits are filed as part of this report:


Exhibit
Number*	Description of Exhibits

10.1**	Hyster-Yale Materials Handling, Inc. and Subsidiaries Director Fee Policy (Amended Effective as of January 1, 2023)
31(i)(1)	Certification of Alfred M. Rankin, Jr. 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. 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 ~~June 30, 2022,~~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.

3327

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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~~May 2, ~~2022~~2023	/s/ ~~Kenneth C. Schilling~~ Jennifer M. Langer
		~~Kenneth C. Schilling~~ Jennifer M. Langer
		~~Senior~~ Vice President, Controller and Chief ~~Financial~~Accounting Officer ~~and Treasurer~~ (principal ~~financial~~accounting officer)

3428


(Mark One)
☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended:	~~June 30, 2022~~March 31, 2023


		Temporary Equity		Permanent Equity																												Temporary Equity		Permanent Equity
														Accumulated Other Comprehensive Income (Loss)																																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 Equity					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)																														(In millions)
Balance, March 31, 2021		$	—	$	0.1	$	0.1	$	(5.5)	$	315.6	$	443.5		$	(82.4)		$	(2.4)		$	(86.9)		$	582.1		$	33.7		$	615.8
Balance, December 31, 2021																																	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	Stock-based compensation	—		—		—		—		0.2		—			—			—			—			0.2			—			0.2			Stock-based compensation	—		—		—		—		1.7		—			—			—			—			1.7			—			1.7
Stock issued under stock compensation plans	Stock issued under stock compensation plans	—		—		—		0.3		(0.3)		—			—			—			—			—			—			—			Stock issued under stock compensation plans	—		—		—		4.5		(4.5)		—			—			—			—			—			—			—

Net loss																																	Net loss	—		—		—		—		—		(25.0)			—			—			—			(25.0)			0.8			(24.2)
Cash dividends																																	Cash dividends	—		—		—		—		—		(5.4)			—			—			—			(5.4)			—			(5.4)
Current period other comprehensive loss																																	Current period other comprehensive loss	—		—		—		—		—		—			(4.6)			(1.8)			—			(6.4)			—			(6.4)
Reclassification adjustment to net loss																																	Reclassification adjustment to net loss	—		—		—		—		—		—			—			1.7			1.2			2.9			—			2.9

Balance, March 31, 2022																																	Balance, March 31, 2022	$	—	$	0.1	$	0.1	$	—	$	312.3	$	218.2		$	(102.3)		$	(32.1)		$	(71.4)		$	324.9		$	26.6		$	351.5

Balance, December 31, 2022																																	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																																	Stock-based compensation	—		—		—		—		4.9		—			—			—			—			4.9			—			4.9

Purchase of treasury stock																																	Purchase of treasury stock	—		—		—		(0.1)		—		—			—			—			—			(0.1)			—			(0.1)
Net income	Net income	—		—		—		—		—		1.9			—			—			—			1.9			0.4			2.3			Net income	0.2		—		—		—		—		26.6			—			—			—			26.6			0.2			26.8
Cash dividends	Cash dividends	—		—		—		—		—		(5.4)			—			—			—			(5.4)			(0.2)			(5.6)			Cash dividends	—		—		—		—		—		(5.6)			—			—			—			(5.6)			—			(5.6)
Accrued dividends																																	Accrued dividends	0.2		—		—		—		—		—			—			—			—			—			—			—
Current period other comprehensive income	Current period other comprehensive income	—		—		—		—		—		—			12.0			5.0			—			17.0			—			17.0			Current period other comprehensive income	—		—		—		—		—		—			11.6			1.4			—			13.0			—			13.0
Reclassification adjustment to net income	Reclassification adjustment to net income	—		—		—		—		—		—			—			(1.7)			1.1			(0.6)			—			(0.6)			Reclassification adjustment to net income	—		—		—		—		—		—			—			10.9			0.6			11.5			—			11.5

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

Foreign currency translation on noncontrolling interest	Foreign currency translation on noncontrolling interest	—		—		—		—		—		—			—			—			—			—			0.9			0.9			Foreign currency translation on noncontrolling interest	0.1		—		—		—		—		—			—			—			—			—			0.1			0.1
Balance, June 30, 2021		$	—	$	0.1	$	0.1	$	(5.2)	$	315.5	$	440.0		$	(70.4)		$	0.9		$	(85.8)		$	595.2		$	34.8		$	630.0

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																																	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


	THREE MONTHS ENDED
	JUNE 30, 2021
	Lift truck business
	Americas		EMEA		JAPIC		Bolzoni		Nuvera		Elims		Total
Dealer sales	$	218.0	$	140.4	$	56.6	$	—	$	—	$	—	$	415.0
Direct customer sales	115.8		1.5		—		—		—		—		117.3
Aftermarket sales	114.3		26.8		8.1		—		—		—		149.2
Other	31.0		6.4		0.3		84.8		0.3		(38.7)		84.1
Total Revenues	$	479.1	$	175.1	$	65.0	$	84.8	$	0.3	$	(38.7)	$	765.6

	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


		Derivative Assets as of June 30, 2022								Derivative Liabilities as of June 30, 2022									Derivative Assets as of March 31, 2023								Derivative Liabilities as of March 31, 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			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	Cash Flow Hedges																	Cash Flow Hedges
Interest rate swap agreements	Interest rate swap agreements	$	9.9	$	—	$	9.9	$	9.9	$	—	$	—	$	—	$	—	Interest rate swap agreements	$	13.4	$	—	$	13.4	$	13.4	$	—	$	—	$	—	$	—
Foreign currency exchange contracts	Foreign currency exchange contracts	2.4		(2.4)		—		—		80.0		(2.4)		77.6		77.6		Foreign currency exchange contracts	1.1		(1.1)		—		—		32.3		(1.1)		31.2		31.2
Total derivatives	Total derivatives	$	12.3	$	(2.4)	$	9.9	$	9.9	$	80.0	$	(2.4)	$	77.6	$	77.6	Total derivatives	$	14.5	$	(1.1)	$	13.4	$	13.4	$	32.3	$	(1.1)	$	31.2	$	31.2

		Derivative Assets as of December 31, 2021								Derivative Liabilities as of December 31, 2021									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			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	Cash Flow Hedges																	Cash Flow Hedges
Interest rate swap agreements	Interest rate swap agreements	$	—	$	—	$	—	$	—	$	3.2	$	—	$	3.2	$	3.2	Interest rate swap agreements	$	16.1	$	—	$	16.1	$	16.1	$	—	$	—	$	—	$	—
Foreign currency exchange contracts	Foreign currency exchange contracts	—		—		—		—		26.7		—		26.7		26.7		Foreign currency exchange contracts	0.4		(0.4)		—		—		43.9		(0.4)		43.5		43.5
Total derivatives	Total derivatives	$	—	$	—	$	—	$	—	$	29.9	$	—	$	29.9	$	29.9	Total derivatives	$	16.5	$	(0.4)	$	16.1	$	16.1	$	43.9	$	(0.4)	$	43.5	$	43.5


	HYGFS		Total
Total recourse or repurchase obligations	$	108.2	$	130.7
Less: exposure limited for certain dealers	21.5		21.5
Plus: 7.5% of original loan balance	10.9		10.9
	97.6		120.1
Incremental obligation related to guarantee to WF	208.0		208.0
Total exposure related to guarantees	$	305.6	$	328.1