Hyster-Yale Materials Handling, Inc.
) have dropped 5% since it reported a 5.4% decline in its
third-quarter 2013 earnings to $1.40 per share on Oct 30. The
year-over-year decline was led by higher income tax expense. The
result also missed the Zacks Consensus Estimate of $1.48.
Revenues in the reported quarter increased 10% year over year to
$643.9 million driven by rise in unit volumes and other revenue.
Higher prices also supported revenue growth, partly offset by
unfavorable foreign currency movements. Revenues, however, fell
short of the Zacks Consensus Estimate of $662 million.
Revenues grew 18% year over year to $448.6 million in the
segment, due to positive effect of unit price increase, rise in
shipments and growth in parts sale. However, sales in the
segment declined 1% to $147 million from $148.6 million in the
year ago quarter. Revenues in the
region were $48.3 million, down from $57.8 million in the
Cost of sales was $532.3 million in the third quarter compared
with $485.6 million a year ago. Gross profit increased 11.6% year
over year to $111.6 million. Gross margin remained flat at 17%
year over year.
Selling, general and administrative expenses increased 12% year
over year to $80 million. Operating profit in the reported
quarter grew 10.6% year over year to $31 million, while operating
margin remained flat at 4.8%.
Worldwide backlog was around 28,400 units as of Sep 30, 2013
compared with 25,600 units as of Sep 30, 2012. In the third
quarter of 2013, worldwide new unit shipments were 21,200 units
compared with 18,000 units in the third quarter of 2012.
Hyster-Yale ended the quarter with cash of $184.7 million and
debt of $121.8 million. Cash flow from operating activities for
the nine-month period ended Sep 30, 2013 increased to $88.8
million from $68.7 million in the prior-year comparable period.
Hyster-Yale expects the global market to grow moderately in the
remainder of 2013 and in 2014, due to increases in the Chinese
market, steady growth in Brazil and continuing recovery in North
American demand. Modest growth in the Asia-Pacific, Middle East
and African markets will also support the growth.
Even though Latin America market is expected to remain weak in
the fourth quarter of 2013, it is expected to recover in 2014.
Hyster-Yale anticipates the demand in Europe to remain weak due
to volatile macroeconomic conditions.
Hyster-Yale anticipates an overall increase in shipments and
parts volumes in all markets in the fourth quarter of 2013 and in
2014. However, material costs are expected to increase
Operating profit for the fourth quarter is estimated to increase
moderately compared to 2012. This is because of an expected
increase in unit volumes, unit prices and improved manufacturing
efficiencies, offset by a shift in mix to lower-margin products
and higher operating expenses. Net income in the fourth quarter
of 2013 is expected to fall in comparison to the prior-year
quarter. The company anticipates an increase in capital
expenditures in 2013, largely due to information technology
improvement in Brazil.
Cleveland, Ohio-based Hyster-Yale, designs, engineers,
manufactures, sells and services a comprehensive line of lift
trucks and aftermarket parts. Hyster-Yale currently carries a
Zacks Rank #3 (Hold).
Key Technology, Inc.
) which belongs to the same industry is expected to announce its
fiscal 2013 and fourth quarter results (ended Sep 30, 2013) on
Nov 14. The Zacks Consensus Estimate for the company currently
stands at 10 cents, reflecting an annual growth of negative
Columbus McKinnon Corporation's
) second quarter earnings for fiscal 2014 (ended Sep 30, 2013)
declined 14% year over year to 36 cents per share. However,
earnings surpassed the Zacks Consensus Estimate of 31 cents.
W.W. Grainger, Inc.
) reported third-quarter 2013 earnings per share of $2.95, up 5%
from adjusted earnings of $2.81 per share in the year-ago
quarter. However, the earnings fell short of the Zacks Consensus
Estimate of $3.08.
COLUMBUS MCKINN (CMCO): Free Stock Analysis
GRAINGER W W (GWW): Free Stock Analysis
HYSTER-YALE MAT (HY): Get Free Report
KEY TECHNOLOGY (KTEC): Free Stock Analysis
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