NEW YORK - Shares of Hyster-Yale Materials Handling (NYSE:HY) dropped 6.67% after the lift truck manufacturer reported third quarter earnings that fell short of analyst expectations.
Hyster-Yale posted adjusted earnings per share of $0.97, missing the consensus estimate of $1.97. Revenue came in at $1.02 billion, slightly below the $1.04 billion analysts were expecting.
The company said revenues increased 2% YoY to $1.02 billion, driven by higher consolidated average sales prices and a favorable sales mix shift. However, overall sales volumes declined as increases in the Americas were more than offset by a decline in EMEA.
Operating profit fell 44% YoY to $33.1 million, which the company attributed to lower sales margins on parts and services, higher freight costs, and increased operating expenses to support new product launches.
"Our Q3 results reflect ongoing solid execution in a seasonally lower quarter," said CEO Alfred Rankin Jr. "While we saw continued year-over-year revenue growth led by our Americas Lift Truck and Bolzoni segments, operating profit was below the exceptionally strong Q3 2023 results."
Looking ahead, Hyster-Yale expects Q4 consolidated revenues and operating profit to be roughly comparable year-over-year. For 2025, the company anticipates revenues may be lower than 2024 levels, with operating profit and net income declining significantly compared to 2024.
The company generated $70 million in operating cash flow during Q3 and reduced its debt-to-total capital ratio to 46% from 51% at the end of Q2.
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