Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello everyone, and welcome to the Hyster-Yale Fourth Quarter 2022 and Full Year Earnings Conference Call. My name is Bruno and I'll be operating your call today. [Operator Instructions]

I will now hand over to your host, Christina Kmetko. Please go ahead.

Christina Kmetko

you. Thank and us everyone, for thanks morning, today. joining Good quarter year earnings to our full fourth XXXX Welcome call. and Christina I’m Kmetko, Hyster-Yale. and Investor for Relations I'm at responsible

Joining Senior Vice and Chief Rankin, Financial Prasad, me Treasurer. are President, and Executive and President; our Officer; Rajiv on Chairman Minder, Scott Officer call today's Chief Al

and our will fourth Today's and both available on our website. full which evening, later and of results and Yesterday this are webcast XXXX XX available we year is webcast. being our website for recorded call published be months. XX-K, quarter The filed our afternoon on approximately

earnings Our expressed remarks to forward-looking forward-looking several in answers at the the filings here last made in differ that next these update cause risks your subject statements. all. disclaim uncertainties and our questions, to and have that could conference forward-looking among We be not statements that quarterly contain follow, These other SEC. others, release including matters risks we actual and earnings our if today. with until are call, those updated in These include, statements, may issued from our statements which results to to XX-Q obligation materially described night any

of out With the over the turn Rajiv. call way, formalities the I'll to

Rajiv Prasad

Thank the markets. our start I'll operational and provide you, you color Christie, commentary on good by perspective also giving morning, everyone. some and I'll

expect this perspective results into the with to close we've hear, you take and his past trend significant and progress positive Q&A. you'll with strategic will made we in the call Al As financial the will us XXXX. in continue detailed the provide and Scott quarter

and that both the at the give since second first for point like reported consolidated and will to I'd you income minuses, While quarter net level. the profit time XXXX financial operating quarterly quarterly pluses Scott out

the pricing. are improved profits Those the to margins driven we ongoing call largely movement. and higher discipline, Our by from laid product than supply of negative offset out our the fourth quarter shortages unfavorable cost expectations due impact effect efforts currency and volume, more at exceeded higher chain

Our this related start year, their and ability impact significant I'll topic the there. to obtain has necessary been components so production

than Our sequentially XXXX. in America due unit improvements. overall shortages than shipping seeing and quarter modestly the increased These to higher shipments nearly supply are fourth chain rates largest fewer and with the we're previous XX% component increased the less quarters, disruption

While the have America's significant production challenges continuing constraints, moderated Europe.

difficulties as concern. jobs Sourcing skilled certain shortages production large a for in well remain as critical some components labor

utilization in As U.S. a increase result, capacity levels while these labor the we to Europe continue fell rate grew short and of our fourth abate. shipments plan, issues to quarter XXXX production as expect

XXX,XXX production XXXX, our in time the history. the produced annual units shipment more only about in despite disruptions year-over-year, in X,XXX However, we've second exceeding for

XXXX, on to and are momentum. expect shipment fourth ahead, build Looking Full levels. to volumes expected we production year quarter’s exceed XXXX

at These increased Our very is sound volatility. bookings availability are level high component and at and global a due to anticipated supply backlog reduce improvements largely continue levels.

competitive levels. result, unit our decrease lead more lengthy will substantial a and As times that towards believe backlog we

Russia, in to and due where quarter, Americas elevated. the in remained EMEA, inflation occurred significant the JAPIC acute remains rates around cost fourth Ukraine significantly. the In was in ongoing cost have XXXX most in uncertainties pressures supply This part later contrast, inflation conflicts. more and In the slowed

any suggest inflation trends, absent more shocks. XXXX indicators unforeseen economic moderate Forward cost

implemented in over two we've multiple shared inflation. previous the to quarters, we've As last persistent offset years increases price

XXXX. our the expect uplift and combination backlogs XXXX We moderating through inflation are we looking gaining of ahead, cost and margin price into trend to higher ground create and

margin the and to material unit pricing goals. tariffs maintain progress our continue as labor to potential costs from including towards we'll needed adjust long-term closely impact and However, our monitor will

Demand for markets. Now, moderated the I’ll share the remains Lift my strong but around has Truck global globe. on views

external While market quarter quarters the Truck in internal our global data across indicate the that available, market is Lift fourth yet compared declined XXXX. to estimates not all fourth quarter geographic regions

volumes progress global third in data, quarter versus same improved to EMEA. due market the the the Using

the ahead, market Truck decrease remain Looking quarter these should compared XXXX above levels, each recessionary when XXXX. markets Lift broad concerns. we declines, context the in pre-pandemic even expect to to Despite in of

quarter decreased Lift the Truck robust bookings drop. factors fourth year. prior a contributed in the compared to to Several

market global the levels. compared declined to First, record

orders booking because levels. we Second, normal lead to of lastly, beyond focus book and – our continue times with margins, on solid

seasonal Americas. modestly than Sequentially versus EMEA better rebound quarter conditions bookings increased third and the a in due expected in to largely XXXX, of

we Looking on forward with focus booking year slowing trend margins. higher orders due economic to continue our to full combined booking continued with a XXXX, to expect year-over-year lower activity

year we’ll basis. work rates the to As on balance and line decrease booking lead times by a production progresses, our line

well backlog above Although, our averages. XXXX. our decreased historical first increased its and production in rates about bookings by quarter of have lower XX% remains peak It since

improved and and and quantify quarter producing passing oldest increased higher benefit, adding XX% nearly and of to price X% with selectivity led and booking production by last this higher margin differently, backlog noted the shipping units almost increased economics with units the price year-over-year average our unit been we order to a much we’ve lowest each in sales sequentially. have unit Said As quarter, backlog. and average margins rate

of towards in in the produced work of the continue remaining first the backlog are the to we units years to prior through majority be year. XXXX, half margin our lower expected in price As

margins improve and are As a early XXXX unit average XXXX. in expected result, to

As we extended evolve backlog. into further our

part months global the a significant Beyond planning to this for regional baseline recession or process. perspective, XX of including we months economic over our as are XX considering various scenarios potential the next

This recession trucks should higher through XXXX and shock against current provide downturn. XXXX. margin into Our extends of market backlog any a absorber related

worth cancellation this Truck standards, sound customers, our to and demand that analysis order low is need as sustain recession current we value underlying through for proposition new Lift to continue. expect replacement to Helping provide reflecting trend quite of noting by the our part business is our a rate this historical the we

I’ll summarize on supply mitigating comments we from remain by chain our the my saying focused impacts challenges.

when to suppliers closely what’s it’s working are production for obtain needed our teams with needed. Our

As we we should significant XXXX, a prices higher profit margins and backlog unit baked operating production provide across increase believe into improvement. rates our the

order Ongoing the longer will term. over support trend profitability bookings this discipline

shipments As the increase and generation can we process take will drives normal reduce our market on and lead to throughout. focused life back time decline to higher profitability and cash remain and backlog will contract lower our levels. This booking, times expect

turn outlook. I’ll the on the to update provide and Scott call to financial financial Now, you our over results

Scott Minder

Thanks, Rajiv.

expectations. with some a our to start financial high returning we three perspective add quarter, of comments results on profitability the level Rajiv mentioned, businesses. As solid our then consolidated individual add and and ahead I’ll on

quarterly the give increase lift of $XXX business, record. details moment. increased In which or roughly in fourth more X.X% period. million than over some significantly a truck were the due They shipment additional $XXX revenues in year-over-year. our lift a almost XX% truck outpaced growth the a This its XX% growth million quarter, consolidated I’ll to was same

the and Versus Overall, shipments quarter, X% second year remained the flat from its level our in units units. at nearly peak XXX,XXX X% by third increased around down quarter XXXX. nearly almost XX% dropped the bookings backlog ended while XX,XXX

of operating non-cash fourth The roughly for XXXX million quarter at the to in million $XXX reported of in profit loss consolidated a included $XX charge goodwill profitability, XXXX. lift compared fourth about the This related truck Looking million company operating quarter. operating to of impairment the the loss $XX business an Asia.

the We for in loss year. prior income the compared of net $XXX with million reported of a $X.X net million XXXX fourth quarter

to In addition to impairment, loss the deferred valuation million on assets. prior the charge goodwill XXXX net tax year’s establish $XX a allowances included

Now the results detail. in let’s look more at

Our quarter, compared was of of to profit $XX $XX an operating expectations. in prior This of our lift in truck operating the an business fourth million the ahead generated year. which million loss

XXXX. the prices improvement the along inflation favorable Excluding in mentioned XXXX the the units revenues freight parts the in in substantial earlier, to unit due prices charge largely comparison. excess fleet also This material inflation increased I for quarter. help and price, was and booked cost ratio increased for of impairment compensate helps of favorable excess Higher drive to in and our with volumes to

fourth costs costs, increase $XX related quarter foreign million related lift and currency operating improved profit $XX year-over-year manufacturing labor a business’s impacts. by higher unfavorable inefficiencies, of shortage despite The million component in caused truck substantially

prior As booked recent Rajiv a drag of margins. mentioned, despite increases continued as acted production to progress on units more lower margin clearing fourth our products, quarter price on

expect production these the We of significantly units coming reduce to in quarters. lower margin

million reported operating year. an fourth Turning $X $X of a roughly from in profit lower the costs prior material to million and the loss and in increases manufacturing price The movements of versus of loss quarter. related primarily Bolzoni, benefits by a impact unfavorable quarter, sale business. subsidiary more lower business negatively used negative A the $X.X truck from volumes, the our impacted offset also million the than and currency to of lift components on sales the

Nuvera, operating $XX million the to loss a prior inventory reduce values. of to million. year’s loss $X of XXXX’s million fourth the XXXX’s decreased operating $X.X by quarter charge XX% about loss included compared

year year-on-year the the improvement. XXXX increased margin modest Excluding at We year. the charge, the of prior improved and revenues exited high drove quarter profit

improvements to on from are build increased XXXX. heard savings manufacturing and shortages in to the look program what discipline inflation truck part from cost expect These increased Rajiv, efficiencies fewer we we lift ahead, supported price progress rates and as that by increases attachment component As to and and inflation. counter and moderate, leading production sequential shortages shipments. benefits Lower ongoing you’ve our

touch moment, should mature. margins which as strategic in on will Al Our they a enhance programs, further

to substantial operating a result truck a lift significant of business As these and XXXX. a in expects profit generate year-over-year increase in revenues improvements,

while normal We profit quarterly expect fourth its seasonal operating XXXX’s build quarter lift pattern. trucks on to XXXX following

pricing customer we Bolzoni, shortages, component to anticipate XXXX. gains moderation and continued in demand in further increased Moving

result, a compared higher generate XXXX. profit As XXXX to and is improve to operating in margins Bolzoni expected

expect Finally, as by demonstrations offset to sales from to the be product Nuvera up we higher costs. benefits bookings, continues and growth ramp

opportunities with loss XXXX anticipated level. these improved years XXXX’s to roughly returns demonstrations future to lay applications and line a the the result, live foundation come. in a Nuvera for view, testing is be longer-term technology the Taking at in provide expected operating financial and and adoption As

more hand I versus In million before but call of required. a to the big activities Al, the balance $X over nearly That’s sheet generated million results. cover quickly Before of financing a is use we XXXX. $XXX cash improvement, in positive I’ll cash flow XXXX,

As million debt $XX on on the end of of company of $XXX had total million compared to cash of hand of million quarter. debt and $XX This $XXX the total of million. at year-end, hand cash and third

While increase below quarter. million $XXX versus levels borrowing at debt the June XXXX. showed peak were capacity third the with our We $XXX end quarter sequentially the ended end reached million of year available the in a approximately net modest of of

points basis XXX Our the mainly leverage by return versus ratio measured capital debt to to total our profitability. to third by quarter, reduced due

up hand inventory ramps components year already in resulting using reduction a throughout days XXXX, hand, expect on by production end. on As decline we inventory in to significant

particularly production chains. Assumptions underpinning could rates are our to highly supply outlook, global events sensitive impact that

we’re things that we’re the updated we unfolds. However, controlling prepared are things keep XXXX control. outside focused that manage We’ll as can better you on the our to and of

Now I’ll the give turn Al? to his to Al strategic over call perspective.

Al Rankin

operationally As progress financially. making you just heard from Rajiv and we’re Scott, and

reflected Our trucks earnings despite fourth and we bookings robust conditions. which of we solid the improving the to are continue profit softening producing backlog market quality quarter have now for

in gains indicated. from building income will XXXX to fourth of lead quarter’s units. quarter believe Scott last as substantial margin we higher the consolidated this expect year more, We continued on backlog the with operating and forward, profit Looking net building

taken so we’ve more results. fourth to steps They’re producing in our our are date tangible even to in profitability XXXX results quarter The outlook. improve and evident

at inventory cash albeit reduce progressing, generate and Our pace. to a are efforts slower

quarter action and results. We’re date. liquidity future our to progress cash with laser already improve of on made focused the increasing in first We’ve plans ongoing to flows XXXX maintaining adequate

expect improved the half accelerate, the in to these particularly results year. We of second

make intensely very gradually the To the achieve most got of capable of manufacturing the amount consistent maximizing rates while our from units our on-hand how inefficiencies. supply increase. on shortest in we’re our inventory as reducing company time, the people objectives, focused reduce chain to and production working to materials around and use We’ve more levels becomes

efficient We’re collaborating and to and with our and of consistent materials. suppliers minimize flow ensure disruptions

operationally are delivery partners We’re well. with Lift global our at working and it a but customer’s timing challenge, Nuvera progress balance complex teams as It’s closely our Hyster-Yale we’re and their are with dealer order making on Truck needs. focused Bolzoni we to as

The the enhance capital opportunities. particularly working that our reductions, the necessary projected in higher We reasonably the pursue we spending facilities our second in to XXXX discipline cash invest profitable levels, our XXXX adequately maintain long-term and we’ll While expenditures projects capital significantly increases that restrained compared ensure of anticipate over year. half to we maintain flows. are growth

before As a growth invest in XXXX actions, core focused we’ll activities result headwinds, our continue over XXXX. significant in expect a remain to executing of flow the increase we with financing cash time. these strategies will for Despite near-term compared long-term profitable and on

Our The introducing toward focus remain want Lift few primary technology but provide modular continues providing business. key to advancements. new its initiatives each consistent, be is to projects updates as products, scalable strategic for strategic I and as on Truck business and geared well truck electrification a

introduce in needs. The on the in focused using mid-XXXX. by in also initial our transforming our approach we them markets key scalable expect are meeting process Americas, to on initiatives an modular products We’re JAPIC focused introduced to currently continues. customer’s sales industry and being the Progress these

I using Nuvera Angeles. the difficult container electrified to fuel port the is delivered lighter reach cell cell performing in had an After quarter, and Port to cell also Valencia, phase which more that continues half be first The has is XXXX successfully its hydrogen indicated Spain perform first engines Lift this pilot handler of to our of to well. truck powered advanced testing. the of in fuel started Truck developing Last fuel applications in Los for business expected stacker, applications,

container Truck container tractor by first for testing tractor with customer handler, und expected working in These AG and Hafen empty Nuvera in technology, business include to Hamburger The powered vehicles. the are terminal mid-XXXX. delivered terminal Lift fuel Nuvera the two Hyster jointly to Hyster ever be vehicles and cell provide electric The Europe. handling first Logistik to the is

while Truck Beyond and all revenues strengthening they’re and to industries increasing work Lift broad this, Americas to their ability They’re working serve also expand In to attachment in its business, customers the capabilities. marketing, operations. industry sales, enhancing the Bolzoni their with on global continues markets. support key streamlining their conjunction in product and

applications. increasing various XXkW of focus to Nuvera also more applications. demonstrations and continues power and parties bookings heavy Nuvera for or planning XXXkW Nuvera engine testing duty In on a announced duty developing capable They’re operating engines XXXX, demanding up several to with ramping test heavy third XXkW and engines. its were projects in

a XXXkW generator, new and powered XXXkW is products, commercial and power addition Nuvera modular solution launch ready emission zero to two industrial applications. for In cell a a fuel which offer

come a summary, XXXX a year. In we’ve difficult through ended We on high note.

focused particularly and We’re control. factors including we external focused manage on on the then could, controlling the controlling we the structures that cost our things. we to our And We prices. diligently couldn’t things worked

significant profitability return fourth and plan. in our recovery milestone quarter Our represents a to the business

foundation products innovative business. we’ve These have and for our a built customer strong deep We relationships. provide

our by We’re there’s more encouraged but progress, that work ahead. believe

and business in We’re poised XXXX improvements XXXX. work result for significant more of a as

with over place the to achieve continued business structure long-term got key goals we’ve right expect time. strategies in We core financial and on our progress XXXX, strategic our the programs in

to may have. you any questions We’ll now turn

Operator

question Hutton. Chip [Operator Please is EF Chip, from line is first go open. Instructions] ahead. now from Moore your Our

Chip Moore

all that backlog margin well? that the you’ve cadence ask Good Can a of half. think you you maybe improvement around quarter for lower congrats and morning. worked on profits you are there’s as improving the Thanks first the the quarter. follow-up. through taking operating to Wanted the And in progress Europe up last What factoring about speak I your talked to about as for XXXX. of finishing question the got? commentary from this maybe you QX in that each on

Al Rankin

on quarterly the me just cadence. let comment Well,

out, As had quarter. we good fourth you a point

the at can think we see continue. quarter fourth can level – indication I every

and encouraged after quarter course the we’re very quarter first first improvements continuing we over The the see the with of quarters.

our During and of fourth always or of considerable that quarters second the quarter quarter seasonally the but year quarter. some quarters surrounding than significance the also least at is other the recognizing third lower in year

encouraged We it very we’re Europe. moving you’d the So Rajiv. To comment direction. a see on second Maybe of get Europe, right the in with progression.

Rajiv Prasad

Yes, so Europe continues.

constraint issues. remarks, in to chain said continues I some As Europe have supply the my

those. We’re through working

year supply can a volume markets a the volume We of expect through plants increase as way gradual discussed We’ve the with chain. we where That’s feel that to got have in our that’s evolve. – – increase. for we’ve Europe the

both of So gradual terms increase volume. I think in markets in

I bookings years and Al from year again, good think as through margin. mostly think said, half the margins, in a will at where the remarks the our I be first said the in will prior of

expect we North that flow Europe and So America. both to through in in

Al Rankin

I we adjusted them trucks year. margin pretty laggard And Yes, I low see as as we still margin there we in level the had But half. through standard getting quarter. think margins. are first They the said, think, Rajiv fourth good in look the some better

the few the hand, a quite trucks those On were quarter. there fourth in of other

to So just put that perspective. in

that our the to dynamic really with the will able and as progresses, suppliers our much problems supply we’re certainly think suppliers supply in that levels line We more components timely expecting increasing the and constructively on course that over with. a that of basis. to that resolve production a hoping one on another year. is will think moderate the work a I context hand focus And way be is we be their can on pace in year in our

in should year. become have we fourth manufacturing the us the expect part efficient the first allow we in That and that more be quarter to in been of significantly than our operations to

the the and that are we to continuing to that are are what shortage base it’s that moderating. And because with sure for problems. their some doing improving closely in is direction work their think capabilities a I is right we’re to moving because moving our degree own is lot where make excess improving – demand supply environment system things there improving. are suppliers solving need, of So the It’s in

suppliers that through areas of period capability context and of to so extended And potential us for the or through even the in decline to of our backlogs and this gives a we needs our some XXXX. prospects as moderate work economic in growth the more more serve world perhaps look

Chip Moore

helpful. replacement like about, this shock the see historical we you a that, could you And feels low speak again to follow also of a I Thanks. on deeper potential That’s scenario I think rates. backlog it cycle position. very this and about for absorber cancellation you of talked If of sort in recession, think, Al. in And unique mentioned, is very terms what the to just Maybe cycles recession a company? guess maybe

Al Rankin

Well, levels. it’s these had never unique backlog for we us in sense a the that near anywhere have

So, some that global troubles indicated working that as will here. his lining the of in think We through that’s the markets we’ve the turning way remarks be been silver for that our Rajiv Rajiv down, we awful long trucks don't see lot for for suggested there's customers. a deep an because pent-up on forklift of as the part of or and demand enhanced our productivity recession

our our trucks and through than book it least in But plan. backlog, from to don't and we our long-term as back a at the more also of our brings just drop month got think a We meantime, continuing produce see much big to adding in sustainable us deep a levels. the I more we margin downturn that riding anticipated see to is, backlog. chance a we're understand we because good we've of But off. time, at good backlog current global and So downturn each recession that there whatever we're

more expecting, trend the value. thought and product I them, most were the are we So the hope moment, reducing, most that's in going extending expected are that but lines, better of high its XXX% while markets they're continue, performing than generally not further but declines, think it been February on XXXX and what are means at markets into most is the out product we're expected than lines. be. were to and we moderate and we we continuing that backlog than January that we may It's And certainly more firmer they

Chip Moore

then comment I that you If great underway. pilots new much target? and sneak to come getting on would think one you successful Nuvera, great. what That's expand Can that activity I in you more engines that maybe mentioned more larger those broadly? on into around And could Maybe market. see can

Al Rankin

of charge to mean, is we we equipment. That's a Yes, way really cells the we're transition heaviest there partners in These also our some but offering new going that, looking first. on is power incredibly buses. at, larger I working industries that fuel But sure. or type do We're to port both transitioning electrification have are to that battery to electrified that and why another got have think about typically Nuvera are is also lithium-ion some duty trucks. mobile And you vehicle. with you've – their focused think cars which market generation segments the focus from journey. they're static, is seen example those Nuvera other enough generators, the will need of who've good to

So fuel just lithium-ion vehicles. board cell on charger that acts has a as the a batteries with charger and for mobile

that they're think they way to segments So, is new pursue best target appearing the to engaged and are the customers really market. putting out demos found get connected to. that their some have We

monitor we will move demonstrations way to and the as partnerships around forward. announcements So at that to Nuvera Nuvera be is doing making look how is best

to engines, starting the those needs. see and engines more marine some for involved size support the are applications In also we along power of the locomotive. for need terms with of truck larger seeing in that library platforms each they're demand to of applications And

So those the engine that's and in applications. of those XXX developing used we why combination be are kilowatt will

Chip Moore

Appreciate back queue. Thanks. it. it. Got hop I'll in

Operator

Steve, from is go Ferazani next from Our Please Steve line Sidoti. your ahead. now open. question

Steve Ferazani

just remains want might to in your more in did business questions up caller's bit thinking away so how pick a on and everyone. not to The much orders unit. the dollars about right morning of at call. on stickiness remained backlog for revisit of only but the three little think initial given bit to terms how all little of being looking turning terms per of detail last significant, versus the backlog a be flexible further again backlog your starting pretty, Good previous Thanks maybe Trying little you steady. pricing quarters you're a bit I and and the now pretty and of pricing? go

Al Rankin

and think because approach. of we are the been approach I the strict so taking our market market our to because now our is said needs. seen that that given certainly as an again, of pricing before, if market And backlog ability us trucks. deliver and Yes, requirements the we've haven’t accept We've is the share seen this very the XXXX we unusual talking their down customers Al on to and about condition of we’ve margin got

our And we scalable the approach that the right of we of to price, the right our modular And will application kind solution have, to margins. the – get at really support problem, are the solutions you taking we because can that can we as this and application. cost for industry move working truck put customers’ right the towards based them in with solving

So pricing, it’s also the of I we’ve the think the some in on not place. but put just firmness initiatives

the three really years, last Over supporting approach. our it’s

the we yet ones but right and find to that who Now, from, are trying they’re buy not that to we’re them those staying proposition on approach are are the with looking customers and value there bid solution to for pricing terms, we’re and still adapting work for. and the trying not away –

the Fuyang more is in And in more this could our important. and facility and production become is be will where investment China

margin. margin our trucks at right economic right can customers focus is target to target our to have margins, trucks margins the an get, not target put – again, and solution but most the at model at the in at we we we want these we place As

Al Rankin

reinforcement comment. be This backlogs to it’s in need really Fuyang backlog we be from is current point new to which contract, marketplace, the our time as we very, much comes we But as begin our products expect more have our going down. and that duplicative vantage on important the very to almost very fits a indeed, to including anticipate pattern that and need products, broadly coming more competitive, cycle, the the in much a particularly –

two from So that’s result view, particularly a our it way program condition that and our scalable comes very and online the the base of the most first trucks, then including cascade modular recently I other introduced trucks. the of of it’s of some below the pneumatic that the product ton the and outlined, – programs more of standard scalable it fortunate also to are trucks with the and but modular three trucks strategic levels types point into

So it’s fit. good a

We’re encouraged.

Rajiv Prasad

Yes.

very truck about in the the develop the putting That’s want margin. passionate target strategy. our commercial getting and we and market our We’re way the to right application

Al Rankin

think we’re it So it little maintain to a the about we’ll in way we I think moment. that it the is right different do than margins, expect but to good at way doing

Rajiv Prasad

Yes.

Steve Ferazani

when up I about that Is chain sense. one that flow – priority way? about Makes debt. which quarter that. that orders, constraints but the factors, a think Thanks priority this would think isn’t quarter in reducing sense. the expectations XXXX, about indicate reasonable trends should sales ease we but cash think as for and or supply two that Makes to for on detail story, on down working When multiple I grow immediate certainly you think capital to that and I catch healthier trend much as know

Al Rankin

Reducing what?

Rajiv Prasad

Reducing debt.

Steve Ferazani

debt. Reducing

Al Rankin

All right.

Just producing the parts. parts the to already make it crystal on here, our we of which trucks clear proportion for a significant is are focus have

new so find we without of lot in two inventory. missing through those on if bringing can or are can that And a work individual we trucks, additional parts one

we’ve need down on capital working reduces focus debt have already so isn’t down, a that automatically the debt, don’t debt we the the comes in for capital working much order because it as but to And – bringing the we paid finance for. just

number a are here. at that of there be work So going to things

On hand, to receivables the going trend up. one are

the be the at inventory’s payables that of the that levels to the course of going the going up back move for down come more that’s the and are we we payables happening going already other we’ll – one of is through for, to inventory On moment, be paid have of to hand, things described. as to And much move we’ve year. normalized reasons so moving also because the that we

that’s sustain cash allow bring So other business at play. that expect more that’s down same the would the the of any would at and the of us kind than cash uses uses flows dynamic in – And other to debt cash any time. the we in

Rajiv Prasad

operationally, I Scott that there couple have normal types about our the loan, We we last right? revolver, say the we’ve this, mean our of have term long-term. challenge. little we for bit is a over this but which and higher we have revolver maybe which through debt, years more debt, than really gone for been of can use Then that our has two

We that during normal end drawn. in state by want good good draw – of shape the we month, not and back period the much it’s to pretty in state to bring that trough the our month, the

that’s are So get We we second the there mission. sometime, primary year in the what half so working of towards. the we’ll that’s that, think

off we’ve then beyond to planned, over that years. this be have couple held gone which strategic any of due initiatives had And excess we’ve cash of for through the dynamic on last we that that some used we will the

Scott Minder

Rajiv, Scott. this is

capital the throughout beyond fund debt efficiently to the working the By and of to and ensure of outlined, have to to initiatives Rajiv down we I our produce cash balances increasing think uses end it the comes well. pay can year. maintain lower down loans XXXX, covered expect as we growth you’ve factories are debt our as

Steve Ferazani

Bolzoni, Europe. How months for in thing held that Bolzoni? Lift a up Truck, than probably more with think that, eased? agree is need Perfect. say we from much you’ve just you, up Last that – the your business that ago. a has supply replacement to really a as not with does think same do Bolzoni, Europe picks but would better Thanks that on one that noting guessing just we is competitors How improve lot thinking you’d Or from of six were parts? chains that probably I I seen the everyone for replacement that. lot about I’m me,

Rajiv Prasad

shipments good a lead shorter in Lift new of No. rise, truck as because typically times. an And and ratio We’ve lead sum that their Lift sales, about Lift that will Trucks. new it’s involved it’s typically, and our Bolzoni because And attachment a shipment think goes a are new goes as competitor’s on Truck that rise Bolzoni, our to with attachment than for they’re Truck times be because got truck.

So a order Trucks. customers typically they for date weeks attachment. go later eight that Lift Truck, from Lift or than XX and those have Once they’ll order they dealers order back the and delivery solid the

increasingly now Truck So X. X America expect in counterbalance say, trucks, X the with in correlate the to trucks But in would North sales, and attachment very we – I especially do Class to much and and five Lift range. their Class Class X ton two

correlation. be that’d good a So a in

America The starting is expectation. very, and traction well Americas – booking I team the gain Bolzoni to They’re say, other we are doing would thing well. our beyond very very

Al Rankin

the fourth very just well quite entity just underlying the through goodwill quarter, on that that one-time should I particular on at write-off in was small of And the fourth the add of resulted detail acquisition. distribution to really that sale an note some that was in in Bolzoni a quarter. allocated basis you that numbers the went there Scott because time performed

So from way happens it’s the a come acquisition. the and allocated rather to of artificial at that just time the a write-off very was goodwill non-operating

So not the there’s fourth momentum also in the Bolzoni, quarter. but behind future, just in

Steve Ferazani

everyone. responses Appreciate it. the for Thanks

Alfred Rankin

Steve. Thanks,

Scott Minder

you. Thank

Operator

from next Brett, & from Instructions] line Kearney is Brett question Please [Operator Company. Gabelli Our open. now go ahead. is your

Brett Kearney

work taking of demonstrate Hi, and my hard congratulations good progress last on the years. morning. Thanks for the all question couple after

Alfred Rankin

Brett. Thanks,

Brett Kearney

customers that on facing, solving into for program challenges opportunity if the making this productivity base? and behind year. of scalable about for talked Curious Can operator advanced strategic will of that. piece solving the tie are investments kind you’re touch be an us to Hyster’s obviously, modular company seen help telematics increasingly the offerings also We’ve assist kind systems some this think the important on the of of out the you CapEx you your buckets is you And major Al customer of accelerate kind challenges about capital year. – investing momentum initiatives could of

Alfred Rankin

Yes.

ask in that things it It’s taken do certainly from And kinds still in hope things sustainable. do there a the want of is which some baked that year, account. continues expect. move in everything that those to we the like you into Rajiv sure see as and much think we’ve thinking, direction but we to to would we are through But to with indeed, the our described move assuming in to year, own with me progressions those that sustainable the even preface is to be that, early – we we Let we address darn we very me. in

to the to initiatives you’ll in all pieces that out But expand because to is word But best play of continue to that I Rajiv more the half see have going let than to our think sure first of we second ask half, on backdrop going the we’re watch technology the hold it projects. together. think we momentum, the make in to the describe the that equation on me feel against some I start

Rajiv Prasad

up Maybe we would our some and which for buckets got of in cut do year. the to investment, Sure. of in to second number terms we’ll – things – catch into which plants in our of centers, development some do of just capital half which need also a the we’ve do,

to the capability. we footprint trucks. We the have optimizing modular we’re As production for our also of supply launch material, incoming both trucks, want for resiliency but scalable

well plants or done. going we are our as So plants, similar it’s technology we invest product same to then the that And be so very and that trucks in our we will multiple needs strategies to in. commercial produce as –

the loose buckets. are those So

data our is what to productivity there’s to And of the of is desire that therefore doing, terms figure there the really on what and out our operating are see are technology, for required see in trucks, trucks huge truck? of a to one. trucks are In who’s terms understand definitely do – the amount customers, the that what doing, any we their issues difficulties application the we

that is And to so our on telemetry put trucks. to our solution

doing performing. who’s it’s seeing and it happening turnover how customers information our have operators they driving recruit and is truck What’s at a what difficult safety. really on around So, real and operators. of is you time the get high to The next is area

experienced less creating in moving their so operations. their operators application issues towards that’s – and in And they’re

that system truck each slowed our have Ensures of no lot detected ensure that to operator come to truck in trucks a systems detected, it’s a stability around for passing in. they the be the are can so They’re bit have assist support where down really kind can truck of that’s that an the they’re be of triangle, can the keeps they there’s inexperienced become truck to collision, the system its If and operator can operator. down And going – not a be support safest backup, slow other, automatically. the where goods people around operate.

of this So in the systems responsible, are from these operator scene. that still support but system And customers The certainly is seeing huge does operator. system. the of support work the type benefit behind

for trucks. Now, automation availability And comprehensive a the running. have operator is to ultimate automate we program

own developed we our next We over automation are are system, in getting which automated have generation from – are facilities. we or to And those and those we well internally trialing that trucks, our ready now And be call running. XXX IDA. learning developing we’re trucks

start in come to sometime late next those three we’ll or will four XXXX, and the of early them over trucks versions launch out years. XXXX, And

And So around our part part. a the electrification carbon of our large of in course, work putting to critical automation fuel reduce then the strategy. truck already is I’ve a said a these in of is trucks, critical cells footprint

with whether or as a a our and that’s cells difficult transition for So that’s ion understand lithium huge batteries customers. that. such transition advanced it’s We fuel with

to fuel are we current either so their transition to fuel whether customers all or help And system, that’s our the batteries cells. putting lead acid or diesel infrastructure in from LPG, advanced batteries

technology are primary drivers. the those So

in other a talk of on lot we’ll and that the about going there’s future. Now, work

Al Rankin

elaborate bit is driver. Just The of a the point side. automation aspect small times, the truck operating that the Rajiv the backdrop which lift course of many a is made to about expensive of most cost

increased world And put the has backdrop. of so of sophistication that’s core context five that with put automotive the the developed can years, then the particularly computing cost. and vehicle of on that along if management the context today’s over that industry, sort don’t a you the sensors deployed seven low power in together know, and be drives it which the vehicle, by Rajiv, in pushed for in last, of of the then the the I years, And

of automobiles, call manufacturing a in in sophistication a of warehousing bring we’re automation And where that the manage systems or world number sensors a highly very is would that really of used position able the controlled in being environment automobiles the on use effectively. can so software to forward huge environment automated can the environment, that what warehouse real face I being without We inside variables a not are factory. that to a or but have

them approaches and not into as relatively opportunity think product, to that we these be of So, great also sale of to see look in a the very forward, we efficiently be but way they’ll dealers a just easily allows very project that and much packaged we a and sort be are by going installation. our deployed

business is distinctive our in we arm – agree we pretty that, that developed think do think Rajiv we internally our technology you of approach of consequence. I as think So a look And the advantage to competitive exciting has it’s forward. and would

So of up that’s what bit in that for the elaboration. we’re backdrop area, to a little

Brett Kearney

much that’s Rajiv. very helpful. and Excellent. Thanks so No, Al

Al Rankin

You’re welcome.

Christina Kmetko

you. Thank

Okay. of A when a And investor with We’ll later it with reminders. session. available. Q&A a transcript will on the relations morning. few conclude that we’ll our We’ll online becomes this website close final call be also available our replay post

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

hope the your press to the I’ll to me enjoy the at call. turn I Thank you can of now back You number conclude phone on the call rest day. Bruno reach And the release. you.

Operator

during replay available and be seven gentlemen, Please days. a Ladies will concludes call. for you remember, joining. this Thank telephone today’s

lines. Thank your you. disconnect now may You

Hyster-Yale Materials Handling (HY) 28 Feb 232022 Q4 Earnings call transcript