CLEVELAND - Hyster-Yale Materials Handling, Inc. (NYSE: NYSE:HY) disclosed its financial outcomes for the fourth quarter ended December 31, 2023, with earnings falling short of Wall Street expectations.
The company reported adjusted earnings per share (EPS) of $1.43 for the quarter, which was below the analyst consensus estimate of $2.00. However, the revenue was in line with expectations, coming in at $1.03 billion, exactly matching the consensus estimate.
Despite the earnings miss, the company's fourth-quarter consolidated operating profit saw a significant year-over-year (YoY) increase of 146%, reaching $48.7 million. This rise is partly attributed to a $9.6 million equity incentive compensation expense due to the appreciation of the company's stock price during the quarter.
The lift truck segment demonstrated robust performance, with operating profit climbing to $54.2 million and a margin of 5.5%, a considerable improvement from the same period last year.
Hyster-Yale's consolidated net income for the quarter also showed a substantial increase to $25.2 million, up from $7.6 million in the fourth quarter of 2022. For the full year, net income turned around from a 2022 loss of $74.1 million to a profit of $125.9 million.
The lift truck business experienced a revenue growth of approximately 5% compared to the previous year, driven by favorable effects of price increases across all regions and positive currency effects, particularly in the EMEA (Europe, Middle East, and Africa) region. However, consolidated unit shipments declined by 13% YoY, mainly due to product launch and component supply issues in EMEA, combined with lower market demand in certain areas.
In terms of stock performance, Hyster-Yale's shares remained flat following the earnings announcement, indicating a neutral market response to the financial results.
The company's CEO commented on the results, stating, "Our improved performance reflects the dedication and hard work of our global team. We continue to execute our strategic initiatives effectively, despite external headwinds, and we are focused on maintaining this momentum into 2024."
Looking ahead, Hyster-Yale expects its full-year 2024 consolidated net income to be comparable to the 2023 results, with continued strong product margins expected to drive profit growth in the first half of the year. However, the company anticipates that the expiration of tariff exemptions and more competitive pricing in 2024 may temper the second half's results.
Despite these challenges, Hyster-Yale remains committed to reducing leverage and enhancing cash flows through working capital reductions and disciplined operating expense management.
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