HY - Earnings call transcript Q1 2022 | Hyster-Yale Materials Handling, Inc.

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Operator

Good day, and thank you for standing by, and welcome to the Hyster-Yale Quarter 1 2022 Earnings Conference Call. At this time all participants are in a listen-only mode. [Operator Instructions] Please be advised that today's conference is being recorded [Operator Instructions]. I would now like to hand the conference over to your speaker today, Christina Kmetko. Please go ahead.

Christina Kmetko

you. Thank and us everyone, morning. for thanks morning, this joining Good Call. First Welcome XXXX Earnings to our Quarter I and Christina Hyster-Yale. am Kmetko, Relations for at Investor I am responsible

me we our Senior Chairman President and Al on Rajiv Joining Officer. President; call The XXXX Vice call of Yesterday first our Financial Executive results are available evening, XX be Prasad, Today's Schilling, Chief our Officer; XX-Q, Rankin, Ken and webcast Chief today's website. on published webcast. and and are both approximately which website afternoon is filed this recorded and our being for later and quarter our will on available months.

and Rankin, other filings Al with forward-looking call if any some me opening over follow, these statements made cause others, have Al? actual uncertainties all. call, update not forward-looking including that earnings from Chairman matters your to moment, results statements. and to in remarks differ we which our a are the questions, discuss our CEO, and quarterly and expressed results. statements last a We earnings for These to include, forward-looking I'll quarter But SEC. In materially first, in may next to updated the contain statements, obligation be at risks disclaim among conference current turn until night that risks release in the our issued that Our our XX-Q subject those here could answers of These let today. described to remarks. number our

Alfred Rankin

our the are reporting results better-than-expected quarter segments, headwinds various results. earnings Lift outlook. with quarter X particularly operating our in Despite while in the net of results these release, business, fourth we substantially good headwinds impact losses, and last Truck Thanks, morning, discussed Christie, than anticipated and reporting Overall, the quarter's first all better everyone. that and our we reflect

level. fourth tariff of healthy periods the gross by margins quarter we and XXXX, strong quarter record cost evidenced moderate, continue early to and favorable began Nevertheless, had individual quarter during supplier these part the quarter, our experienced production -- levels number exclusions, because very of the quarter. critical certain as gross and sales during the of remains and shortages expected, the Further, reinstatement of affect In Customer a mix of improved a addition, though from our in the demand freight we as our our backlog even significantly low a during and revenues. the first bookings comparable number margins issues material X of reduced to disrupt components shipments.

Lift Our backlog we the supply teams chain need bottlenecks to Business high. to given margins and for in on our suppliers new for to resolved, production, particularly levels, orders. components are closely the Further, work the opportunity obtain pricing increase production, and with is for backlog, record increased continue Truck as

these global in parts in invasion Ukraine supply affecting have Russian on shortages. caused pressure back topics. these of specifics have for second and the outlook quarter half affected for inflation are The further the However, also events the more on additional introduced and and Both recent lockdowns chains. Rajiv COVID-related our availability has of supply provide will year. China chain difficulty Ken of the

financial over for results I'll the Now Christie review call quarter. turn back the to the to Christie?

Christina Kmetko

Thank you, Al.

quarter in than XXX,XXX an backlog with high the fewer to fourth saw although quarter bookings quarter, historically continues be the market the a we X.X% year And over Truck new had Lift the mentioned, result, of we increase in ended the in bookings units. of first high We healthy. prior first historically XXXX, as Al quarter. As first

Lift higher unit Truck to year reported and of the continues in the operating because last million improved partly the strengthen. as unfavorable revenues, Americas million parts an XX% the dollar Nevertheless, pricing increased in despite businesses, $XXX.X to currency revenues higher Bolzoni $XXX.X loss we offset decline in to and manufacturing constraints and by consolidated volumes as Our movements in from was of material due million significant resulting chain $XX.X million, million inefficiencies and $XX.X to profitability compared and EMEA. The inflation prior in shortages year. profit freight cost mainly Americas of totaling with supply due well the operating $X.X as and from logistics the and primarily

million primarily a addition, related of receivables parts against more the a than in losses loss, Bolzoni jurisdictions compared the we These to first and due the a resulted have segment. of in income inventory million net and to expected certain higher net $XX.X offset the and with X expected $X.X of but of and allowances half benefits Russia, Ukraine quarter tax of unit decision at charges impact jurisdictions the we million losses, of and in of quarter as expense recorded result tax on loss in prior income in EMEA in million with the XXXX gain Nuvera, reported second absence made to valuation XXXX. $X.X variances in pricing that consolidated Overall, million $X.X the In and year improved sale volumes. related to of the Russian with favorable $XX record operating the unfavorable conflict, income

mentioned specific results. significantly well segments, but the discussion decline factors the as and expenses $XX.X in quarter, operating Lift million Truck profit decrease most EMEA all with Looking in Americas X operating of geographic I loss business a our from the The compared due in reported JAPIC, gross primarily $XX.X individual profit higher in and segment consolidated our the EMEA. in to prior as at in million of operating of results, an resulted year the

was favorable tariff of EMEA imported affected quarter and not, XX.X% whereas from able While exclusion in for components, material by benefited products. most. price $XXX,XXX offset was U.S. higher year due certain Americas the The segment all operating the Americas EMEA geographic on higher of assets. the affected Truck to were the was and $X.X to mix the fully the was to shift increases were price segments and profit by sales sales delay, with and retroactive volumes, least in Lift These production costs the which improved X million to affected Americas from the increased partially reserves offset priced, of million segment costs primarily the revenues $X.X margin in Chinese improvements, Bolzoni's $X.X and prior quarter. million certain Russian-related adjustments improvements first higher higher increase

increased These improved production margin due the costs sales financial in improvements for prior results lower the engines to $X.X to loss million Finally, million fuel of $XXX,XXX This cell from $X.X the XXXX. and update at Nuvera, revenue the year. were operating to and in completes decreased quarter. from our of

our overview an Now let Rajiv, to projects. turn operations will strategic our who and me provide on

Rajiv Prasad

you, Thank Christie.

the the remain Ukraine first we decline above from market of XXXX, the Lift in As pre-pandemic of of Lift level a quarter to remainder year robust the market XXXX, the higher expect XXXX, fourth high first that indicated, conflict, Al than highs than part appears Truck to of Truck global the historically the global due but Russian, the to in of impact lower still quarter. the In quarter, resulting remained were in have healthy bookings historic levels. prior continue relatively but to

our of year rate year, remainder business Despite compared year to in of As we this chain than the the Lift in we the ongoing during fourth Truck first prior the quarter. outlook, supply experienced of levels component with has quarter the substantial bookings expected to anticipate a result first and last with at increased our because quarter, shortages market the in moderate Lift disruptions, permitted which a part decrease higher production improved availability production. shipment the constrain and of prior continued Truck from in year decrease

the constraints lower in than fewer of quarter delivery fourth XXXX. increase times. XXXX resulted high components certain booking chain of backlog already continued critical than shipments strong historically in with shipments With XXXX further fourth and supply our ongoing level the quarter, extended lead to first quarter of in However,

the with escalate number year in anticipated XXXX, again. of quarter to suppliers but continue shortages could of shortages and the occurred the in first moderation throughout Some are

chain areas production assumed closely is dependent as are improvements on the moderate that chain evolving monitoring we're Our supply which affect year. China, availability, additional parts throughout availability due conflict previous today, Ukraine for production speaking improvement of outlook could and Ukraine-Russia, China. outlook could supply remains the chain largely potential lockdowns supply the parts to in and shortages our X that of Since COVID-related the pace we But affect uncertain. our impact potential in

we now managing Ukraine peaked. costs especially right in signs the backlog, -- in And on in is margin experienced there Our the significant improvement Russia, costs. Prior orders. had our early commodity material quarter, that to were issue new modest on fact, conflict, in most our

to opening aluminum remarks, his numerous fuel, in again. sharply increase and Ukraine once input However, other invasion as mentioned caused Al costs Russia's steel, of

a additional expected material in XXXX previously keep again. freight cost expected, As moderate and trending with significant as not result, components to is freight and inflation commodity and of costs higher cost up possibly than

to team increases in the in first price businesses of quarter to our in implemented XXXX, Our quickly those acted implement of addition XXXX.

in this the the are the reflected orders of the slotted these in full of many price third of all in quarter not increases. and effect -- However, year our second of backlog production for

of anticipated those, going adjustments time logistics production. will add cost of throughout at cost other those over target hand, I'll to to third remainder experienced, and quarter. the material expected discuss the inflation of of to customers level margins experience in be expected higher partly out the -- On to and is the inflation and be offset exclusion future are the margin that in renewal if expected sales the bookings based new see Further, with material pricing backlog, in is and made close backlog and inflation our the second the team tariff XXXX. also any the to the our dealers could ongoing we our on at we've of backlog,

fourth second expected a costs. lower to of to increase compared of higher quarter margins and result, be this booked we the increased to these margin are trucks shipped. over are expect margins the to experience due second and anticipated booked quarter margins in half be first already XXXX, much with the Overall, produced stronger year the expected when with trucks, to in quarter As

approach industry-focused the financial long-term an Lift our strategies briefly on need. its right future resolution demonstration, increasing results be product sales we business earnings discuss sound are initiatives freight up a the on XX-kilowatt work quarters call continue and on capabilities. the bookings in in Truck while and and engines. marketing we believe laid focused transforming of focus business Ken and high for an products, -- At XX-kilowatt strengthening liquidity. ramping quotes me its on operations strategic of its modular, place Overall, level, stabilization which and Ken? in and over once to more now its support turn using to streamlining continues continues to and its our introduction detail we scalable primarily Nuvera and expanding to our out focus continues component sales and primary material of relative release. Bolzoni shortages I'll let by Now, achieve of for and can costs. to update have Americas

Kenneth Schilling

Rajiv. Thanks,

to As continued shortages, continue material logistics, lower production and costs. due faced you've and freight been we heard also and the higher like, are with supply from to substantially which shipment we component Rajiv, and than levels both we've and would Al chain, constraints experience

are increase the cost year component company's continue shipments place issues remainder in mitigate to material production full We affect Significant backlog cost experience to and in actions fundamental over of availability the XXXX, and expected negatively availability significantly over constraints expect the higher constraints given to inflation chain the and shortages, continue component robust Nonetheless, put further no impact the to of to the of are costs occur. expected supply freight to XXXX. year. assuming

manage component rates, to We change. to availability production increase costs continue as to order expect adjust to in work and aggressively prices

quarter we bookings XXXX and expect with backlog has the and particularly for a XXXX, these has larger U.S. net the third profit the third the in enhanced of fourth the result quarters operating of Overall, business volume of in potential current than pricing net expected quarterly reduced of second and EMEA's quarter, first combined improvements As changed a quarter loss remaining losses net operating the the expectation the the additional have a tariff in Lift for favorable factors Russia-Ukraine the to shipment Truck expected second overall the second the on renewal XXXX, factors, moderating substantial in a in of half but quarter. in exclusions, of conflict and increased quarters, prospects of in basis XXXX. and the pattern and not

first expected improvements the fourth quarter of of of is losses and continued product the is improvement over availability. year, dependent to stabilization This than With half Truck’s component months outlook Lift in in profit expected and the the costs, transportation the more second upon offset the X logistics XXXX. and

Although change, China. and/or a the as commodities recent Rajiv of conflict the availability severely in lockdowns and could if ongoing this affected as has components said, the Russia-Ukraine result are of

also the quarter expect modular of strong and over XXXX into price and increase, strategic our operating come mature, costs as business cost-saving continued scalable in Overall, anticipating and of product as and income the programs volumes Lift and line and and in profit and net production families, XXXX. of we XXXX We are generate in term. additional to strategic this fourth XXXX, our continued implementation initiatives introduction as the Truck our over period longer programs -- the

has our Bolzoni in which in we in a of As process Russia, the small closing. operation indicated release, is

compared for As adapting of by lower quarter, profit higher net conflict, the the adjusting than operating and income the expect to expected loss of and actions, and moderately improving realized quarter in profit operating conflict we second operating a the XXXX shortages a quarters and second lower year the in and in in sizable which anticipated material Russia-Ukraine result the to Also, profit inflation to result the than first and net but at operating quarter. XXXX. net with timing XXXX is significantly we but component Bolzoni, Bolzoni's with be to individual previously operations prior expected the given losses income moderate expect than in third fourth caused pricing

On fuel inventory losses in fixed year, lack at lower of pre-tax basis, first than net quarter, XXXX the moderately charges enhanced a as valuations for and larger expected business offsets taken impact business production lower in shelf result given Nuvera quarter impairment of still in of net a XXXX, second shipments consolidated last loss a outlook tax and against a the expect of quarter, third costs. reduced the substantial asset substantial Excluding the the we and loss XXXX. fourth the we the and expect net in Truck income in the Nuvera, quarter a Lift in but losses

upon in had despite be in previously In expected shortages, conflict. quarters costs. However, lower income we and to stabilization last communicated in the the the are reasonable material the the losses to freight the to months. component relative results quarter, first XXXX mainly fourth China Russia-Ukraine expected of due not X recent than lockdowns These expectations offset net X of generated the quarter what is and general, are based of remaining resolution expected

in our capital designed managing production carefully are a protect liquidity. manner to for expenditures, expenses XXXX, operating We and plans

timing expenses We delays program investments. our a in operating including have certain implemented controls cash strict of program strategic of over to outflow, of reduce

investments liquidity will to the capital over in time make business, While expenditures a priority. continue be and these expect we to maintaining

by truck and to the our needed was shortages remaining trucks During build to significantly ship increase added inventory, components components, received levels early constrained causing critical and were certain substantially. inventory of while part XXXX XXXX, to build to and the the ability

they expect to significantly of XX, at $XXX using part $XX.X shortages with We receiving are XX. million to At million cash debt been $XXX.X due on to and components hand of significantly the as inventory for XXXX, December for production. and we of million inventory which cash and on reduce compared of production trucks, build March delayed had $XX.X hand debt critical million has current by needed

reduction to of implemented in program dealer orders, quarter During deposit contributed advanced debt levels. the XXXX, which a the in first we

XX, approximately unused call our Al. revolving XX. of capacity the had credit we I'll facilities December under million at borrowing XXXX, As March with $XXX million back of compared $XXX to turn now

Alfred Rankin

As we in XXXX, managing continuing this remainder we're to of look on to the focus environment. challenging effectively

have quarter, remains emerged of past those in events business challenges, the global the our strong. market While short-term we including that dynamics face over

we products, continue implementing remain and enable strategies. the back We to the will the Further, taking We right of XXXX. we to stronger are highly actions half confident in long-term execute and our to return are margins this in environment. that the year and mid-term have innovative programs us we inflationary in

clear transformative. Our longer strategy the for term and is

Our Truck, fourth XXXX, in explicit quarter as for at key improving availability current Lift projects results Bolzoni component the prospects the objectives challenges. the this with business well significantly Nuvera suggests expected despite as improvement in XXXX businesses substantial support and profit in strategy. Further, Lift Truck near-term the and long-term over

at strong. as rates as adoption improving key results Bolzoni. segments fuel well cell are for End expect also sound We markets market

We a the supply working headwinds. environment, booking current diligently and strong to truck have backlog, we currently a are record lift chain manage

to we performance. continuing invest are long-term build are deliver to innovative We business. stronger believe Once key earnings solid a will and these in strategic projects, our challenges in and sales products us, behind we

We that now turn any will you may have. to questions

Operator

Company. Instructions] line [Operator Ferazani comes of from Steve Sidoti question & from the first Your

Steve Ferazani

Appreciate so the look and very a presentation. simpler. read lot when in things We I can I to complicated. the of you forward much things get a very, providing little color in release notes. are know bit

the try Let some bigger me cover topics. of to

hearing which down XXXX? through expectation you handling see trends, And sequentially how the challenging. with terms now? issue is the extremely is electrical we that is still of particularly are In from sequentially, shortages component improve -- other that Because your I'm parts companies, shipping was

Alfred Rankin

Rajiv?

Rajiv Prasad

Yes.

to increase production. So I think is our plan currently

build highly seen bit of my imagine, -- and truck a component course, in as takes you But We've as I've we've little ship on not remarks component dependent availability. can it easing seen said outage Of availability. a in it. that's component to one fully that

very in of some We've our to, very But a least see be the to stating. low kind very able some we're have we're time being manufacturing changed always what careful of capabilities build lead we're components plants we -- that some volume, So easing. issues. at about

a number we're we improve of and the to actions situation, So taking improvement. some see

talking the more difficult what Ukraine, of difficult course, impact the to the most if X, time -- because Well, like. look make material, supply on to what more X and the And Tier look reason to Russia-Ukraine it our that's and could and understand our out predominantly to the suppliers raw takes are Tier chain, for it's Russia down our X initially. an Tier suppliers really is that is affects at out Of really impact that one ships it of you Tier at moment nail X war. we because, so

one, immediate is issues the second The lockdown in COVID more China.

We have about trucks. our our our of suppliers. concerned taking supply action. monitoring it's is again, for impact important Tier a that. -- And we're also on X and Tier of we chain China that are one, And an most more part and But X

Alfred Rankin

we'd team I'd level just not out dedicated are and by like. working how People we of bottlenecks, their just extremely how It's break large figuring is -- with add indication that, additional chain suppliers a our to people. giving them, to high. the that creative very supply program very of to provide with sources. are with what We're a activity actively this working of an number

to is think are what we we So I find that able found workarounds.

actions last that -- Hong course suppliers it in of concerned and more the capacity, over has happen China the our early at is whatever problems as alleviated. right than We're from up but now look we also moved Shenzhen. That's year where the able in lived. the We newspapers, in thing if late occurred that, will activity the the in in as factors ports. earlier, and be At level lockdowns clogging the through towards is situation this as around there, Shanghai ramp increasing XXXX. that finding, that is Kong, the area the COVID that area the Shenzhen the and you lockdown dependent and Shanghai year on long really but more in know, But there Hong happened area can south help But mentioned. contemplating that That in same has Hong or Shenzhen it It's particularly realistic Kong we're will Kong, managed. the the that far moment, make are be still to largely you take put significant are hope now. short-lived Rajiv

ensure at effectively like activities So that chain it, and availability. time aggressively the really we're supply involved suppliers all we at a the component we working way in appropriate senior our of all levels it and daily management closely what levels management, all basis, get about have with to very thinking working being in including to on to involved deeply would of actively try

Steve Ferazani

really, or you've know indicating don't you If point. if very to at this a because up healthy, but yes, bookings, I to thinking could couple think stronger really sequentially. Is seasonal we that that. looks you also were it it's start some could because ago saying you though there's and a for decline ask do I than months quarters, X been of X still think strong? know aspect Even about I softening, maybe it it have was you're still going is

Alfred Rankin

bookings margins have I are booking we expecting. anything have that's And ensure they're despite to we target on we're And in think that been might strong. the efforts our very than part today. Well, higher yes, that

in much cost the not remainder say occur we're we But that have are bookings impact degree XXXX. aspect than that frankly a that is our to to -- bookings it’s time our look future part own lead we've traditionally wouldn't more finally the to perhaps had internal call will I that -- start levels. want cost and which customer would our than it the meet first lower us of call like, but over will a to to it some help increases the at the forward effectively, the forecast think, us year quite you which and being very more far softening to you is early would we a are and level in out, bring this of is quickly. as certainly will we and and we the our that if that costs cautious at down times, thinking little help about to quarter, if of important think of manage longer lining, more are We expect I forecast produce, silver the fact And know, incurred material levels, shipment Therefore, because looking but be we at requirements backlog.

So our ourselves our of to do lead is regular real significant course, cost production objective having our And and to a balance down, if on in accordingly. down that's the a the on middle then, consistent at go market brought moderate but in way. what out pricing -- area. with level We're times in depending a make going we'll term, costs changes happens basis the very

Rajiv Prasad

think is, what to kind we just the us. thing the said like extended Al backlogs, seeing add and only I'd that's to not are of I

I customers' their you the If position. And our put that's look of in. shipment and competitors think a data, they at in versus similar of changing are expect, behavior orders most the when bookings we timing

So I think of that the as on some at of -- well. a moment going bit that quite

Steve Ferazani

obviously, I more Americas -- tariff gross me helped very in. just strong this there if quarter? surprise It's thinking little digit a Or is Are forward? you particular sustainable now next this be Great. quarter a one lot. the you margins. could anything was reinstatement was Because bit anyway mentioned challenging? Lift more moving double slip Truck And to exclusions the could the And

Alfred Rankin

will think the significant that the best at I second on depends the it's way the we tough be it there that, clear second level way quarter first described be in is in cost And better, increases at think I in degree war. strong place particularly that produced that look and -- in first in putting And going a factors. the see. see them one think backlog good, quarter quarter. to think price between that's responsive likely a to second some And sustained looking we're think very in quarter. that XXXX the are then But fourth that not the mix backlog be the then to increases we in been seeing a still will and perhaps, as there And really fourth that one-time we're pattern. be is second and be shifting them result quarter half, quarters. we some we to the about quarter, that is and we of were a about a to in the that performance at the the pressures even third are second will we as as release. very the to there's that Ukraine-Russia the expecting We half, It that

So it's the a way I complicated story, but it. to about best think think that's

Rajiv Prasad

versus quarter the Yes. plan mean third primary -- that our the second coming inflation I is impact in probably the and quarter really from the related Ukraine-Russia. to

last. talked that piece we we in predicted so when been hadn't -- the that's And obviously

Alfred Rankin

And EMEA, strong that the I will as but you be particularly Americas in either. margins think should don't of in course, assume

Rajiv Prasad

same system also look Yes. Ukraine. if fact really out I prices, taken because the at North capacity -- American mean if that jumping we up at time, steel of in the the we was European at jumped can yes, just prices just looked in straight reflected prices

So side. the there's been impact a global steel on

Steve Ferazani

you. Thank

Operator

comes from of question next the Hutton. EF Your Moore line Chip from

Chip Moore

I of morning. good bookings, Is Hi, target for the of reasonable Thanks taking it the to freight costs. starting I questions. about margins wanted through in to flow you we sort talked specifically, think about should measures. headwinds here? quarter, some on last price, And incremental some think how really that about guess, the Or stick timing, then with my both I to protection of QX? index given think

of going talked think the out I you prepared of bit give in where us about can are also And those to a you customers. maybe -- So sense orders backlog. in a about remarks

give maybe more So some you color us there. can

Alfred Rankin

the do that you time, the it that we COVID can more current of the fourth we be the know except situation a in and and that despite in don't margin the quarter That's we performance at there's the China. quarters I XXXX Russia-Ukraine see to expect the impact lot say in way better. war give will the significantly

that we'd it So release. I the in we way at probably outlined think the earnings it leave level,

Chip Moore

That's fair.

great beat us given detail. I You've it. won't

I quarter. can also, seeing. bookings some during So there maybe what energy over of the partnerships And interesting if announcements They of and particularly ask Nuvera, dynamics pipeline. sort about about they're Europe, had given the curious

Alfred Rankin

Rajiv maybe Sure, take can that?

Rajiv Prasad

take I'll that. Yes,

touched in fuel identified need on Lift we we're I likely including are as segments of that focusing energy think of we -- our focus, these products mean aligned -- the to be going on feel need. most we've terms amount adjacent cells I and Lift strategic both Trucks Trucks they of will that So on-road because where trucks,

segments team so section segments, those together. those on the with really focused putting really -- demonstration customers in connecting focused And and are the in is on

So as are the is is do and benefit system really what big understand for the applicability show the vehicles both our what -- of a OEM the truck. that the well customers can partners enabler demonstration finding we to as

very activities So you've are focusing releases made on that's we team those seen, is kind on -- following. that. intensely of some ventures the And and as we've

of because lot and of with in fuel the in jump now pipeline a of kind oil. Russia, carbon and paid a Certainly, both our in more attention gas cells being Europe. seen have with We there's Europe hydrogen issues kind right fuels to

So improved. that's

the starting think both to fuel again, see well, starting also. in little by America we're already that bit China And India doing in area. some active in as slowdown to China a but pickup we're still cell was now is similar, very a steady. COVID, I And see -- Asia in

progressed -- over last So say, would I those X has the months. are really Europe

same catalyst thing I well. think for a I'm seeing and as was the India war it, the big in

Alfred Rankin

that hand, way think Rajiv outlined. catalyst substantive to I And it's one on the that a the

a of on simply the very and Europe that also There reliant significant gas in they oil that -- psychological probably in it's a can't think sense is term. I especially from any impact. and be imports in middle and level certainly imports, the in Russia

that's more And involve to just It's and so, inevitably that it in to isn't about going have they do about our there's security, and energy, climate. view. sense hydrogen a certain more,

at, And settles the for in that that develop if unleashed it's be So proved forward, conceptual. that's begins cost with areas Europe, follow we're a think particularly of a then, be looking world psychological to to area of war. scale applications it So was will significantly the different than less to and find economies potential quarter ago I we we're what the Russia-Ukraine quickly, world think out, that of other I and volume start environment even we going enhanced. -- environment think one the is Rajiv along, -- And simply implied think technology very can before more the the moving in as and it's

Chip Moore

then assume walk And that. more like me, for can up helpful. you dealer that's deposits us program, but very substantially. customer lastly just revs I deferred picked that through housekeeping, advanced a maybe just about of That's and dynamic

Alfred Rankin

Ken, do comment? you have a

Kenneth Schilling

Yes.

the that I think been the funds had advanced of decreased program. deposit to is the dealer company level in related first under of the quarter, borrowing additional and the we primarily received

end our of quarter availability So to to of able from we're and to the end reduce the improve first debt our the year quarter. last put that to use good

Alfred Rankin

make the forward But availability discussed the quarters, our component company particularly we over as twofold. the that next suppliers focus the mistake in no extensively. X we've next is look One with the is --

are is inventory books. work the to that that that need The to we on receiving build the sure order are other so ones the that components we in make down we the is can accumulated

priority of Obviously, inventory highest of for the to traditional component have The supplies us. caused value supplier a -- the build. shortage So targets that issues over getting It's then shortage -- and absolute inventory. inventory our up. supply as the producible reducing at good goes the time is inventory the very is days on all production inventory hand the

with dual suppliers in -- a that in our regard. there's focus So

Chip Moore

Thank you much. very

Operator

next from from Your Kearney of comes Funds. the question Instructions] line [Operator Gabelli Brett

Brett Kearney

Definitely release blocking part appreciate industry certainly in, all for tackling daily of appreciate these particularly going the the far, in I firefighting details -- in your supply commentary and certainly and senior on through and challenges. Curious... involved the working management on so the

Alfred Rankin

from exactly it's day-to-day is is a doing. firefighting. people it's It see rewarding to what that I of wheel the got number their of company. shoulder the again. that view, We to really very people been, and they're when in fair our needed, tired pretty say can you suppose, putting point Well, And

performed in tiring. in it that described. But So and is we it needed you the way they've just

Brett Kearney

-- are through developments how managing specifically heard that we've steel and is area Curious Western one item? from located Eastern Al, number if industry And of you're piece evolving frames Europe anything of the Certainly. Ukraine. noticing in suppliers a in that others wire in kind of with area, these that doing harnesses on actually in how network are that seeing you the supply around and

Alfred Rankin

Rajiv different. I just to in companies can lot I'd do, that, more a those production be comment their areas locations we be would and on say the exposure different, as of that, by introduction to you patterns than imagine, tend well sourcing their ask tend have but way just to because European

that manufacturing I structure, experiences So different in locations. industry the on going Rajeev? based to their chain their are and have think different own companies supply

Rajiv Prasad

Yes.

think source closely into relied have working that. suppliers relationships still market, whereas -- very, availability, obviously, -- help with were we needed which the quite the some And fabrication I those need predominantly with So steel mean steel. are suppliers you're there's global steel, I they to right. on our very -- but in connections we European Europe have

So the -- see challenges. for We we've working through we're it. worked

on. think bit. a way see to Let's put it it I I’m going our clear, maybe way say, that's we that but overstating

looks terminals, connect availability. have and component the can I over and think shell, it talk have two challenges, but And that talking the other months, Wire on to I a harnesses be out see when we hand, I'm we next still suffered to really three continues components, some visibility have challenge our progress. great made the with We about from about good. level of the and microprocessors, chain short that through those electronic involved And We've not to to with components I into would other buy same -- parts, our supply they're don't that. detail. teams say but in working are work is our suppliers but components We who the heavily are side. closely about supply, in heard also it. used component delving electronic on

Alfred Rankin

to comment the emphasize just I'd just made. that Rajiv like

suppliers' chains We that are to they need. our get components in intervening supply them help actively

not there are ones us deal areas source -- is So for before. to that engaging to certain issues. that team talking certainly these our we're for wire We're constant in things. with for of going harnesses, overworked, be of that But that focus are in all activities normal a try beyond the at about kinds would we were

Brett Kearney

helpful, the the the by and and That's team, the all certainly you very surface. paddling under all appreciate work all

Operator

please questions Presenters, phone. over are There no continue. the

Christina Kmetko

to have would make? that Thank remarks final any you you. you Al, like do

Alfred Rankin

No.

out is timeframe I of situation And that a in tried the to of the We've we're we normally longer situation first earnings of in detail we release. want can We've do this laid we've dynamic little level giving. the some to tried the such understanding comments because, the this expansive bit be think our to that we a possibly our investors give to might that's release. quarter in obviously, as environment and ahead. clear give

we've in and of think so on present our remarks, we much the covered quite changes And have. have about how It we and release. backlog contingent the it I is think of really level that to earnings thoroughly that

like So to close up? Christi, you'd if

Christina Kmetko

this Investor the available. the site a our also replay be we'll online Yes, Relations on of it will transcript later post with call few A available just of We'll close becomes Great. -- morning. reminders. when a

reach any me. you please to If questions, have out

me hope turn the rest day, the the of operator I'll conclude You your call. enjoy number the that's at on it the can phone you reach I back to press to release. and

Operator

starting you replay XXX-XXXX, you. call today's through Eastern at will conference for ID dial-in Thank is the available This X Monday, May XXXXXXX. X, is a number pm. Thank Time. number be Time. There midnight The of It call. and today's run (XXX) conference Eastern at concludes will participating.

disconnect. You may now

Hyster-Yale Materials Handling (HY) 8 May 222022 Q1 Earnings call transcript