HY - Earnings call transcript Q2 2019 | Hyster-Yale Materials Handling, Inc.

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Operator

Good morning. My name is Marcella, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Hyster-Yale's Second Quarter 2019 Earnings Conference Call. [Operator Instructions]. Thank you.

begin may you Kmetko, your conference. Christina

Christina Kmetko

Good second quarter you. responsible Investor morning, Kmetko everyone XXXX our for Hyster-Yale. at to welcome Relations earnings I'm and and Thank call. Christina I'm

Officer. of Al on me President Executive and Colin Officer Chief today's President President are of and Financial Hyster-Yale Joining our Rankin, Hyster-Yale Senior Handling; Materials Vice Group; call and Chairman, Chief and Executive Wilson, Officer Ken Chief Schilling,

of the Yesterday published Copies filed XXXX our available quarter are second and release evening, results earnings on we our website. XX-Q in XX-Q. our

certain to today's anyone today call, webcast either call conference not in statements For statements. website available would and is from session. that subject able could number remind differ who following the on may a forward-looking actual like the XX remarks be archived These statements those uncertainties to question-and-answer to later in materially of this participants listen of results that approximately to our afternoon here and I to prepared for entire risks this cause version or this during our an expressed months. will forward-looking also contain are made

until looking call We to obligation update be these quarterly if next which disclaim may not forward updated at all. any our conference statements

these Additional earnings call this are information set release are was Also website. available regarding our in amounts these non-GAAP on included release discussed during and considered of risks forth and reconciliations XX-Q. in amounts and our uncertainties our The certain in earnings our non-GAAP.

our in Each year's and quarter $XXX.X On the then million, XX% discuss me I highlights three our a revenues first of last will million to almost details. second from let $XXX.X activities. into quarter. and increased up of price because Hyster-Yale lift parts acquisition and discuss second core our Now Group, product volumes, businesses consolidated basis, XXXX results get June also to million mix a Maximal the $XXX.X in business contributed improvement. our Hyster-Yale to this increase increases. increased realizing of unit XX.X% to with increase truck The revenues the contributed in and

we for million owned quarter quarter. benefit Maximal second the last revenues, month. $XX.X increased year's of quarter year of 'XX, have In second This had the which a over full of we only Maximal's one

consolidated increased million Hyster-Yale also and operating from share primary million last increased our significantly profit also $X.XX and consolidated Group's operating year. per Our in $XX.X XX% $X.XX contributed to in the or Nuvera profit both million $XX.X profit driver net million substantial from last was the loss the to per at to consolidated consolidated operating lower or year share $XX.X A income increase income. operating improvement operating profit of net increase. $X.X

of unfavorable results However, both planned, associated North with America the the currency. primarily cost of were restructuring operations lower than and earnings because

continued second to the that Hyster-Yale EMEA. million trucks, lift in primarily Americas even quarter at shipments $XX.X specifically fact X,XXX quarter year this prior Maximal the to higher increased Looking Despite Shipments shipments and after profit number contributed Group's Americas because soften market million truck abated. the last parts year, for in operating excluding improvements. lift to quarter, big in over trucks $XX.X Hyster-Yale profits and quarter the supplier second both during a business, global factors shortages of the and higher-priced increased XXXX from truck in of in the A the of up first extent as unit of increased lesser big the second including EMEA, units to non-comparable of bookings units. XXXX

net the as increases, able a were bookings resulting imported in The an well China. On the continuing experienced from tariffs of in efficiencies this includes from first for freight were million as delivery EMEA out suppliers. XXXX favorable hand, with supplier of big were of a inflation material cost XXXX refunds of the for of to the the by price offset adjustment decreased constraints trucks adjustment tariff more sales as and lower to backlog trucks compared quarter, higher-priced priced and backlog the $X.X We retroactive second we exclusion and per incurred units. other from million average higher manufacturing in prior $X.X realize Americas certain shipped quarter. bookings for from from and import the manufacturing associated of key components price on Improvements in costs resulting abating with increase component quarter unit than and benefits inefficiencies disruptions tariffs

primarily higher initiatives, operating profit. partly in costs offset Hyster-Yale increase the strategic product to operating development higher from expenses addition, In support our Group's

net due of second in year's Moving and for income its mentioned restructuring of million operations and quarter. North with $XX.X currency as reported decreased million with $X.X million Bolzoni translation million associated to income compared year, segment. Bolzoni's of revenues last primarily to of $X.X of last and the XXXX, I costs million million, $X.X revenues $XX second unfavorable profit to Bolzoni net down quarter of operating the $X.X our previously. America from

the quarter in received reported from our $X.X million reduction the from mainly million revenues operating million were in loss second loss Nuvera last revenues Finally, product operating because in the in $XXX,XXX year and quarter. with quarter of improvement development year. second segment, Nuvera of $X.X decreased third-parties. prior in Both compared Nuvera second $X.X funding

position these the projects our are X strategic believe we to performance and Looking on we years. a the focus impact three on transformational have economic X forward, will competitiveness, continue to initiatives we next execute undertaking to initiatives, over which many market and our

updates last at require did the and from outlook, investment. total, said our thoughts significant XXXX. but in discussed to change capital and expense In have I few year-end, to what expenditure projects upfront not we have many we longer-term required a continue Our quarter

years, levels next remain X we -- believe or continue generate these investments further expect the realized XXXX from to XXXX in has the started is over to returns and the be several remainder years. generally We to expected at XXXX of investments increased and made next to be the in and increase but below then the for

update Before updates some affect projects on more our to and expected I an let how me immediate outlook, provide on XXXX. those specific, are provide

quarter, lift were the of During a X launched certain new second trucks in markets. Class cost range lower

New model the lift expects anticipated X BBRs next X, walkie X of first are Class stacker fuel lower-cost introduced of X be cell during and introduce Class XXXX. global years over quarter year. half products Group with second new and in introduction the first the for the X fork trucks of expected Hyster-Yale the to this to

area. of to first production during Homewood, quarter, Homewood with charge a Illinois half manufacturing are center be still substantially facility out Bolzoni In these its and shift XXXX. at As is certain operations other previously maintaining plan completed discussed phased associated Bolzoni the Bolzoni plans. current Payments and first the of distribution Sulligent. XXXX, a to related made restructuring restructuring in expected the recorded to the this

Bolzoni charges to further of of in will of half second related and addition first $X.X during the during quarter, $X.X $X.X recorded XXXX million charges incurred to quarter the the incur costs. restructuring million million In charge approximately it for the additional second of restructuring $XXX,XXX anticipate

the expected of X planned development the of assembly cell this BBRs as to mid-XXXX. for end expected is to the is Nuvera expects unplanned of target the a X responsibility help Group quarters X X complete, BBR engines to overall to the Class allow because transfer occur cost second Class has engines on and bring in in result robotic of for non-fuel which expected fuel Hyster-Yale engine Class Nuvera's The during first product Once validation, adjusted. focus this of key the X online is entirely components stacks customer structure. cell have Nuvera the by in delayed The of XXXX. third XXXX, lower by is assembly lines XXXX. Nuvera's fuel and quarterly and been the a been early transfer customer-driven stack of cell Shipments will need to additional China breakeven to of

have continued the the is of to our working in with first the expected Turning that summary, quarter. the we include abate to issues, some the investment programs, XXXX in overall quarter comparison suppliers but improve until in Efforts expected now quarter there quarter existing the of year, of shortages significantly not in resolved saw are taken fully all XXXX. United to expected the fourth of similar X fourth what the In to half of third States cases which and is to the outlook. supplier quarters truck finding you most XXXX significant to in are reflect fourth some from first big have while suppliers to and succeeded, the critical key be still suppliers additional

first the the mature in notice additional result continue of the and of goods. tariff to still requests year and its to we XXXX duties, counterweights our were addition Augmenting exclusion after cost half certain effective for to extend plans components July year established recovering fork of notice the plans the witnessed to subjected Chinese certain to notice U.S. year. are and posted XXXX. unprecedented announcing listed put that applied X, in retroactively to in tariffs. and exclusions, April on In import components the are the inflation grant place determination of one including Trade the The date began to April for on while trucks, to forks mature duties and Representative expected last the find offsets lift exclusions XX, for exclusions the China XXXX year were driven, material in during Certain we from suppliers or as margins the other a remainder in

of recoverable XXXX. the duties XX, second for through recorded quarter we X, July June period XXXX the During

later unfavorable April our has able in XXXX, It from tariff the than been announced anticipated In effect additional year are to to greater announced in suppliers. to Chinese on certain impacts favorable expected tariffs we the be record exclusions expect the the certain recovered of additional May. in goods. of We costs new determination of our tariffs receive were recoveries that imposed May when be the

less lift some will mature. certain targeted In agreements addition, our to and accounts contains pricing at which improvement truck margins current take for efforts target gain backlog to than margin deal-specific time

We continue reduce have in an to the will the first year expect these on impact of the half. second and in agreements half results profitability

inflation in over tariffs the of the and expected remainder Chinese tariffs the from are as deals to place. this majority be heavily quarter exemption However, fully cost material components, by of the margins remain fourth year recover the continue certain of well XXXX by as of on discounted the XXXX to enhanced although

In considerably of Hyster-Yale improve we expect context, this over operating to XXXX. Group XXXX profit

and XXXX moderately this in the over than fourth first improve results of significant XXXX, increases expect principally the quarter. the lower expected results first second half of XXXX, While results of the significantly half remainder we to Beginning improved XXXX. the in the through were of in are half first year half year, further with in this both

to is reasonable a assuming objective in conditions this period, continue. X% operating margin achieve Our market

We in expect years to operations, are expected the decrease operating of but X% Bolzoni's achieving with results XXXX, primarily in Americas the profit of to a following target improve results its due a to restructuring margin.

results and are during expected we second costs to be year operating improved this the half expense. a profit is the improve investments being XXXX will of loss X businesses, partially these of reached by the course to operating over offset Nuvera's with each At to undertaken moderately increased the Breakeven a that of in to expected half of pricing, higher of lower decreased of to volumes, the expected lead XXXX. second show than operating higher half XXXX. now level second product expect

XXXX we with operating XXXX coming result, consolidated overall significantly in quarter. the expect over profit to a the As improvement fourth increase

EMEA which course, in the half reflect particularly of first to of year. market profitability levels, Americas softening in demand and will lesser level a extent the shows this absolute substantial Of the actual the

levels. still at XXXX, of Our are in but markets believe we market moderating We at could downturn, of is and Therefore truck strong, high a limited are the to forecasting lift currently the be duration. which moderate be beginning historically levels. market projected

We Brexit prospects. business in harm that significantly to a resolution to our does not forecast a also continue way

Before a for balance few sheet I call open to up questions, I and the cash wanted flow discuss items.

$XX.X million of Our million cash the at end June XX was $XX.X position with compared XXXX. at

working with was supplier capital. associated initiatives and million cash flow debt Our $XXX.X our expenditures XX. are our the balance The making December have up from million, constraints we strategic affected at our $XXX.X and

a As $XX a cash exclude of expect XXXX financing Maximal, was Hyster-Yale year we full result XXXX of significantly compared of these acquisition which million our to before activities consolidated factors, the flow impact with decrease cash after the year last you outlay.

of higher year As first decrease of receivable well expenditures. was half working the higher particularly during this increased capital primarily as as the mentioned, because capital, accounts

expected working expected inventory supplier from offset the in to higher capital prepared half resolved. improvement the needs the remarks. This as is not capital is concludes issues However, my second significantly That improve half working of the fully first are the to year.

I questions. will your for now open up the call

Operator

Instructions]. [Operator

Your line Joe first Sidoti of question comes from Company. from Mondillo the &

Joseph Mondillo

to down cost the a half situation a going being last wanted so specifically, the with back to since of do increases and were hit to second of we price ago? sort curious, first of compared much? forward, sort of of down at coming tailwind benefit I to sort started and steel inflection just I understand I when prices of I'm you year wanted we year steel see they ask an improve, about that starting to actually that sort And but actually prices when normal implementing ask what's point where then price a and

Colin Wilson

This mean, I steel mean, in tailwind our sorry is we a are Colin. XXXX. results on yes, seeing prices headwind, so of a bit I little a that's falling,

pricing, think I of goes, done very job channel. our improving National pricing Account a in we've particularly as far As good

will have more done not length when, lead the were that's lead out of pushed we've issues. because and [indiscernible] of there the supplier system, deals the the We time priced low that time because out

but not of to the as -- we them be expecting, able as quarter, come the just us but quick we're time to quarter. ship So out to by still quite expect fourth behind fourth of we all those were

look be think us is So XXXX and for I that the through the low steel, current at I if think positive pricing we're a holds with will be large the going supply pushing tailwind should into XXXX. prospect and as very that at low situation single-digit we it that us we deals did a again,

Unidentified Company Representative

a add the benefit of freight do is amount but for tariffs I that material improvement received cost Yes, moderate run -- the somewhat some just offsets saw we headwind deflation. that that would cost we've in on we moderate very a rate, and have that

Colin Wilson

with was time, and prices. spike just XPL that is our surrounding shortage rates was vehicles, some regulations of the shift of there one as carrier which it in a do Some in on of caused higher the to and the trucks

headwind at continue, look not that sure is long but how will are We certainly, we that a as XXXX.

Joseph Mondillo

Okay.

to rate your XXXX you return run you remarks think return to in entering Are margins become the continue pre-XXXX the that a through going be So XXXX to or through improve at hopefully like bigger the that on stated that or are say margins, referring tailwind with I levels? continue a comment those but you year of a of price cost tailwind you on going supply this to maybe to and a to levels. margins sort mentioned, your this continue to year. know margins the chain fact constraints sort will Addressing will year finish XXXX those prepared

Unidentified Company Representative

a US are We've trend. not cost, look-forward I trend it's I have the were seeing comment. improve. in we of comments declining declining do and we got huge, sort mean but our in particularly a the margins think

if I to say sort want rate be get back when would the think we time XXXX. to fully, of in I normal it you will run

Joseph Mondillo

specifically backlog, very the could in understand picture, I what value I X the demand then sort to low Okay. doesn't tell X backlog related Class order and trends. And that per you're necessarily but full of be strong more to sort unit the ask on seeing of but about the you end. declining, wanted seeing the

over order what Class X curious sort trends you've seeing months? specifically been of your several last to in see X or the I'm So

Colin Wilson

mean healthy. been I fairly said there As has pullback. a I

talking American last half the year. are market. but a double bit first year, North You about sort we the North into a was digits that think what happened of American overall to market was of down the just little reaction of in

Class concerned, our as X it's up As demand far well. X holding is and

slightly we lead than our of times would on We longer trucks. like have some

X of with normal Class Class and and of our have on our back X Some bulk the sort but of electrics lead on to the particularly of some the that trucks do to issues, supplier range. times

months wouldn't in sort terms returning being per we of, of in first see see next back. sort or adjustment of ongoing we're period but so being X So type better of in the half than at of ourselves after is it we pull lift We demand was I of in the normal, period say to of probably deep sort market right but any the a the what certainly of happened year. don't bit that of little XXXX, now overheating in a look

Unidentified Company Representative

I coming as balance is ways programs counter next other or investor significantly lot you see together got we've business the think are that perspective, of that ICE thing in the I'd affect over and a years, electric. the add X from X that both the

to And what market level what so very backlog limits have of we the situation expect within healthy the is, get regardless a sales. -- to of continue sort of -- a high and

important you an look book. to have bit that's expect to a as that on out the perspective we So volumes

Joseph Mondillo

a follow sort just of So up.

smaller, of are of a of that backlog And seeing on it's growth? unit still Looking X, -- still of type that's the strong behind story really -- Class lower that demand low Is value class per the you pretty sort just really case X lower modest in seeing sort where unit? holding the and or value you're you're sort up, single-digit products. stronger at stronger seeing still per backlog point, margin or declining, type the

Colin Wilson

hand, one Nijmegen. been supply resolved, back were on because in Nijmegen of big we're the we normal a and extremes. situation trucks basically mean, to in got You've couple has more I shipping

we of than more the prior is trucks So pretty in out had healthy. big order the on shipping we've trucks big quarters, intake backlog but still been

we normalized. of of... then sort that's And a So got a -- lot you've did

Unidentified Company Representative

situation terrible, -- times was had a because lot do and to properly we really of with we've difficulties at the gotten be expected trucks now But Colin backlog Difficulty] through Nijmegen able earlier said of very that [Technical that. as customers constraints. We supplier to it. delivered were

of has our flow and don't reaching I at cannot with where through bookings. times do our we hopefully any that We were now probably we're of our -- because lead consider the a our point -- really with irritated of but period the but point. that and were length with lose backlog people So to promise orders dates, much this

Colin Wilson

Then we the more. is and initiatives product The so in lower run some other programs actually X and value booked a thing quarter. plus the second we lot

of part gone trucks the that's the So been backlog, and little of number number shift you that I no out the business into of flow of come say that steady mix trucks then big is of and sort have significant have look but change. the of at if would middle, backlog

Joseph Mondillo

to I'm you're facility doing you much with over not to hoping top Maximal been -- your pretty all we these go your maybe that associated of I over the it investments may there, case, of cost point things or costs more margins that going anything anything really? up which are with more and the those that more operations actually there feel ends see to that have projects to maybe inefficiencies there once to of need so seems while end or couple actually so the even the spending through forward, or but specifically good, you're with sort you're but maybe wanted you've just and sort structure inefficiencies obviously because and Is that the we related you being there cost everything you're making whereas where years finally projects that like related line, that you're projects of benefit going because not a going switch getting sort the or even -- with point. the to get the XXXX and early are all invest of not last where over to what any of incremental these on that these away just and going on, by wondering, to the doing. beyond

Colin Wilson

that of I'd programs, of way, call a direct the the different characterize assist think very types focus a that, that dealers Certain better were and customers volume size. our with our some able particularly for force, programs. to expanded just But tailored those than to have more so with they are needs our direct below with inclined customers to be would successful big we've sales -- national I got industries solutions them share them the larger time they us are serving position of are in accounts of a be and driven I greatly in our to those increase on our over is help designed and before. what sales that are specific larger with efforts market marketing customers

Then are new hand, there products. on other the

some programs repositioning part have are well of business significant that those. Some coming, mentioned, in term, of and expect in near in we on rider significant a in also on those X warehouse counterbalanced middle are to that line. very of reduction the the and coming the the think and the a I we both introductions And cost that carry beginning marketplace. Reach XXXX, to We've product then position them them as product Truck end -- a the our near are major have particularly impact business our as with

also in of XXXX in as position, but So improved you only having position. into put margin a they not XXXX improved on total an us move should position and market

a factor about this in that in So perspective. a a in we've to investor further is we little the immediately, not our as it talking bit period transformational comes but out later that little look be going period, certainly been

Joseph Mondillo

to And I I'll switch Nuvera. guess

of if the what provide customer-driven guess the provide color wondering you sort in that Could could breakeven have any the just expectation a this, color regarding call any that regarding your more validation, you I Just exactly product means? exactly, more why press your you reason point. you of if essentially release

Colin Wilson

of the in the failed installed and in where was fuel apparently cells it's we that number context do, plays proving so entire our Well, of we're immediate better opportunity the total the there, package of cells. the and is competitors reliable. in which And has strengths, to very well. quite hand, and fuel marketplace positioned what concern of our competitors the think China, is view, apparently to in those buses industry large we engine And most that it's point in we more fuel about out happened one think and its durability cells frustrating significant of government recalibrated other ways that for the from other reliability those fuel market cell because a generating have requirement more a delay, our on solution a reliable many

this that's kind pluses we within combination but control not have it's just our anything and a it as to event-driven certainly at understand So with, of it. is of deal minuses, it's that we it's specifically but point, something

Joseph Mondillo

Any a… idea at do this or you it's just XXX full a point whether going to think do they're

Unidentified Company Representative

got it's specific units, to with very of a go and the program It's test number a buses test to the just set go XX,XXX kilometers. they've buses bit of a to for

it think is, I reliability. and demonstrate

that's where the possible, as you going the upon number. customer as tests, be to our to reliability to period, instead can we of of to demonstrating with that? move and with fast anything We're a still those add be under So completion during working smaller that position, forward to want we in discussion. do Colin, a are shipping try

Colin Wilson

the I mean, have through on volume, we after the we validation. commitments go product

the that initial there really demand we're volume about So but volumes the we be expect the real we know and to significantly into have we higher. built talking volumes is forecast,

Unidentified Company Representative

important And an that's point.

to forward into our cautious the over said have built that being we're build they're is and period forecasts very up in proven significant those our because behind of we have aren't to make factored debt finding that We in to that very and be it's demand, time. there dealt forecasts sure lined extended this additional around a there that, that's Having and way business volume issues already field be of are with. narrower this looking are requirements important, to that

And far evidence of see we happening. that so the

our envelopes battery sort prongs in systems at new box the remind with through in business, addition Hyster-Yale they're box has lift also and fork Christie Let replacement we're truck Europe me been for as of cell applications to replacement Group we the and fuel outlined moment One possibly you that in in in three for, battery is developing America, activity. Asia. that believe mainly which our but in particularly

and sort van into some business business duty bus lower in is as So there those which in we delivery that's further business at fork somewhere also buses testing will heavy duty then probably And business. well of the both bus same they go automotive specific under the those have side we fork fork lift between the trucks. and engines and use is the And the truck basically there in And a levels. down business, California is are programs, trucks heavier heavy-duty and large in engine, the our our lift lift particularly engine this vehicle track so of of business. the is models there expansion as an the the in

engines, then in finally, down track tend have fuel China. in side, for the duty and we applications in behind the applications the contractual arrangements truck with further with develop X up think cells to need the fork commitments coming the cell with and maturity fuel heavier it automotive applications these market in and running side of lift market we the to contractual in but segments about and really So it for

different of that we're point. fuel sequence working So at a it's and cells engine engines for fuel cell on those this capabilities

Colin Wilson

outside we also on China. working However, are opportunities

not China. it's So all

Joseph Mondillo

demand about that have at But I than more you're update be up because quarter follow you XXXX. I but excited shot introduced first more one if product that fairly question more color ago, any maybe that? of with this talked guys that with things, terms is provide the you of box any replacements. of generation. I it. I hearing better drive a to ask provide see just now, on mentioned development? how of the a in being or a of else I'll it second first regarding if since while that Any just there the it's other year think battery to -- a I'm in wanted supposed it's on wants the can guess little color product side maybe cost that to and you you is can sort for other that better but wondering anyone know generation going

Unidentified Company Representative

a me couple a really Let more to engines cell XXXX. and capability, and the XXXX. elements. a revise of the out make energy piece referring battery we One think that of uses is battery and fuel on the in of Group, box comments bit first ones cell the next were supplying box into like the Then of density have we coming box side replacements replacement. The to engines. Nuvera replacement, have to, using that over add. is comes are and the current is you engine, efficiency months and which that has little Colin generation better specifically box battery cell fuel it, cell engine battery are later to fuel In Hyster-Yale about would X the which the which replacement maybe fuel second kind is which building few

want your add Colin? So Do answers there you to anything to really are two questions.

Colin Wilson

of will producing first than, of BBRs the first other be starting the just we in generation next quarter. the No,

additional that then of for that the running started customer years. customers. quarter start over orders are that next build BBRs [indiscernible] our stream We and one The the one highest for be year. will will the first BBI new couple we generation and is But on with starting brought have manufacturer we're in of to the previous now, which the BBR volume next up current that in next-generation Greenville July. the in

Operator

Instructions]. [Operator

Unidentified Company Representative

what that horizon this perspective and focuses I'd close year is investor plus I you don't terms we some major think there if lays deviations it think feel outlining our this business for -- -- by sequencing. think perspective is questions, that no for Generally, we couple set had more and been in of we've are read We've encourage quarters to a that for of transformational timing the now programs investor we've the out critical it our on no business. called in programs, detail. from track. time we X our We just on of saying in

the about of heard timing slippage You've in Nuvera. the

our are efficient line to in counterbalance -- adjust new We online and counterbalanced the bring possible. smaller way of trucks working most

that few had perspective over that the will we the appropriate are anticipated years. will be in seem investor in and a we next models and that pretty the hope timing any future that XXXX. to guide there And adjustments brought the going part minor the are of are to Company so our quarters of make the are good appropriate as of much the programs beginning market in the so in part But we -- some being that adjustments after mid speaking, the feel mid of generally is prospects of there

have this I Christie? point. Anybody Ken, else all have Collin, anything That's at

Operator

comes next Joe from Mondillo. Your question

Joseph Mondillo

get in. exclude you think couple restructuring, is mind. I specifically still I a guess going had you performance When the this if would their just it will year to year-over-year, I don't Bolzoni. be I wasn't if was I going you that be on to ask, do of say other down to that down year-over-year? wanted sure, if questions you

Unidentified Company Representative

still, again of And to bulk business it and in has mean Bolzoni in softened market, looks second quarter. I looks Bolzoni's European at the when market. particularly market the is Europe counterbalance this

downturn to it's deep, Now we're long the at but was up certainly the last and levels protracted come be year. that expecting not

Sulligent. has share business it, the up out then measure the mean, [indiscernible] the in in but can as performance transfer a XXXX, very Homewood and we're we Bolzoni producing at is best you we In are market so they the from look picking that as And get is seen Once broadly I Sulligent US, bullish. And of of headwind. attachments complete.

European investment initiatives US markets. that's America Asia and we we demand We've big through then standard in increasing and with market an out to our . the South results again, business global and be increasing expect in short-term type testament the is so in driver XXXX got economies. the increasing the of coming of softening Bolzoni have are used been into We the XXXX But level of in the to for China,

and other But good you it functional X as results, the as up in the were in months. of on is, currency they don't The terms, if euros. in results results actually up their factor means and the look the of are translation dollar strength euro look first they quarter their of course, means, their dollar the

Colin Wilson

end a exclude and you a territory fairly Company. good in that's euro-centric you restructuring the up If costs, positive

more their is really representative of that results. So

Unidentified Company Representative

the But leave their in pessimistic of remaining year. revenues about to I of portion the don't want view

I slipping of they're that -- special levels. in -- had saw are to year headwinds be expected that to some continue. incurred U.S. impacts we little are think last be a are currency they've don't bit be we main these off better. can them currency we kinds The expect those levels to going rate costs would are currency the that see being the The and levels here and at headwinds that

lot I'd currency in healthy the bring got softening, it do does a there will backlog that run to and has we've with some the and So is it with but a back volume rate. say good more the than then

pleased term, that up the to the expect overcome going line drivers Bolzoni in in bottom the business. So business, I we're still currency not and mean we're the underlying going to very to we but are healthy pretty with issues forward. the the be short we look is but headwind spike as it's in biggest

Joseph Mondillo

are much of from all of in or costs going to what with? is pretty is in July second one-time year, So are those month are related hit the Sulligent costs the half those complete, restructuring if that additional Homewood or associated the the to transition the to what additional --

Unidentified Company Representative

is to in those cost transition Well, and complete, the mean, costs people said we're that transfer. Homewood the still of we when about area about. some talking got that I'm I are additional of the talking deal the so with the substantially we've need I facility it and what [indiscernible]

Colin Wilson

performed means going they Bolzoni but on That equally the the quite had we've to the there a there hand, from fork that been And certain toward are in lift the one away Sulligent being obviously in relates components facility that activities change on a of a is got that doing. truck the bit components that is the cost activities, part Hyster-Yale workforce At the components what time, involved the but the those in to in tools readjustment the reduction and same necessary on can of Sulligent. of for components create plan our we're Group. that strategy getting machine the some was of do

that current year and through going rest we the year. of next So all time to of begin this is the as on work will at moderate and

In terms associated are with... extra that being of costs prospective

Unidentified Company Representative

that related specifically restructuring X well. the this And activity from the area, the number Joe from perspective their would to as system and conforming cost IT with because bigger of to with an restructuring, systems disclose of regard that's the to one just have we Illinois facilities restructuring accounting going to set is Sulligent in be, do but work costs IT part

Joseph Mondillo

for you're the related market, and of target that I Europe, the XX% press -- stated lift groups. been about you've also underperformed guess focusing I and but area I they're terms out program at all share. that bit, and little called point regarding this on market your and an is wanted but to US in industry an sales truck I guess, sales you -- you've the release to has this think marketing is this This in been of on a of ask trying place sort you've positioning, to area where marketing

opportunity. So it seems a big like pretty

teams place? color what think or that do transpire X? does that the -- gains, regarding? year over Any that Now place, marketing guess are now in market share and How you sales the about in I next the they're all

Unidentified Company Representative

important on because place, one. account, overnight. step it's are in point, by Yes, you it the account, the But and win feel one happen then that's business hand we an account, capabilities by doesn't

that We've on position have types And and of our You to you those many ideas have take solution there base customer many people disciplined improve accounts. accounts of And accounts of better how for where to the years, have customers. to than these embedded been productivity we identified solution. competitors a persuade but in have the competitors' our our we have many, your cost are that the a program.

overnight. the quarter-by-quarter, of we a and impact have those We program expect and -- it going on momentum, over calling efforts but of year-by-year time, isn't happen a gain accounts those to disciplined to

ground, that feel updates, our eventual of programs comment pretty that is out The we're fair in are as as carrying it our of that last business. who to recently their ability people clear the share no was these there get to operating make on a that some I'd this most important week roadblocks

you've place should very point underway. that we think That's So that but a of all and have got in you your don't process, not those snap are the optimistic it's immediately. anyone capabilities buy view, I going customers to fingers, that think now the

Colin Wilson

really putting business new lot opportunities to as allow of getting them is real getting out. beyond. demo XXXX We're opportunities. customers are good the quoting We're like and our selling number small also we We will of believe flywheel and definitely a teams. that the happen this getting activity I units getting us to flywheel for of really of in test sales We're winning a some it's momentum, but units mean opportunities of moving. payoff in. some We're

Joseph Mondillo

'XX, I get I just investing one are to of to then the scalable has address modular set clear of production have and a sort parts you'll of a what complete sort I business program And 'XX. you're on know sort the to period time for a going XXXX of wanted and part percentage been more then the the that of of wanted timeline in. be business, but this of -- other

that could on in place? the So me of timeline through all expectations getting you just sort walk of

Colin Wilson

as will take years. So And place starting a of heart the it in in subsequent you program of series. the say real first far be part XXXX. will probably as X that complete line, the the other over Then migrates to as then

I take to So going the see be across than the complete of the horizon. the rule frame our the but modular little applying. than perspective. the than put and longer think take current volume they that, it as but I far investor longer. approach part what and put -- ultimately longer up not range. across It's scalable say we substantially it a Maybe we time would a of in the you within applying terms will longer But much planning large be very have wouldn't range, [indiscernible] our completed, it's -- will bit as they -- in that right the not

Joseph Mondillo

do of what be XX-XX, -- I your units about in for you you have to what that? think will like want complete about that XX:XX if that profits? point talk the if guess At that timing XX% you your So time, produce XX% of

Unidentified Company Representative

begins the the the smaller first counterbalance something as about half at it's trucks, got through, part line, this order in the certainly And it, the second you The our product of I all And out on by the end and but time. of wave and first business XXXX that concentrate sort -- begins, in and globally. think about of that's thinking on the then would you've well. if XX% as carries of XXXX XXXX of mid and of half and

smaller and in number probably don't trucks, off side what that. top of head, that like that, XX% I really know counterbalanced the my it's is the Colin, I It's but exactly the of think, something

the capabilities certainly the of of the of fully the business, portion middle substantial competing the the -- that's and way with a we increasingly end XXXX. about by XXXX. think talking about beginning around But be you're out so these And to should world probably at it. where part And -- beginning best

and us. XX% So XX% in you it's the business for to of partly got business

the in of we very So position base. gaining us terms customer where position in and areas of a important role large keeping in know leadership it's very a

is in XXXX, that very that in they about you significantly think the just solutions of marketplace their product but delivering add if add to or on gaining capabilities, to the be the communicate momentum it question Going back the mid coverage, industry over improved part your think of the not important beginning capabilities even will saying a the increasingly ability be earlier in customers, of these and as knowledge direct period force the to strategies of we effect as comment the we to better industries than that goes kind you well, without sales of have what this I today. should solutions with portion

Christina Kmetko

you very you free call. So or please follow-up me much not to had asking get everyone thank your question questions. did did not have give you feel for to you a we If -- a

good You can day. on earnings the reach me a release. Thanks is which my number, and have available

Operator

concludes today's This conference call.

You may now disconnect.

Hyster-Yale Materials Handling (HY) 4 Aug 192019 Q2 Earnings call transcript