Aug 28 | 2021
Component Shortages, Supply Chain Constraints Continue
Hyster-Yale Materials Handling Inc. reported record second-quarter bookings and increased shipments over the year-earlier period, though component availability “severely affected” shipment.
Hyster-Yale reported operating profit of US$5.9 million on US$765.5 million in revenue, down from US$8.7 million operating profit in the second quarter of 2020. The 2021 second quarter operating profit included US$6.3 million from a favorable court ruling in Brazil, but was more than offset by the absence of US$8.3 million of government Covid-related subsidies in the second quarter of 2020.
“The lift truck market continued to grow, but at a more moderate pace in the 2021 second quarter. However, continuing global supply chain and logistics constraints caused significant component shortages, as well as significant material and freight cost inflation,” Hyster-Yale said.
The company placed material and freight cost inflation at US$11 million, with US$5 million of manufacturing variances resulting largely from component shortages and higher operating expenses due to elimination of cost containment actions takin in 2020, with an estimated impact of US$14 million.
Second quarter bookings totaled 46,900 units, up 10.6 percent from the first quarter of 2021, and significantly higher than pandemic-affected bookings of 14,300 in the second quarter of 2020. Shipments increased 12.9 percent.
For the first half of 2021, Hyster-Yale reported consolidated revenue of US$1.5 billion, up from US$1.4 billion in the year-earlier period, and operating profit of US$9 million, compared with US$28.9 million for the first half of 2020.
Hyster-Yale expects the lift truck market to decrease for the remainder of the year, compared with the high level of the first half, as markets began returning toward pre-pandemic levels.
Ohio-based subsidiary Hyster-Yale Group Inc., designs, engineers, manufactures, sells and services a line of lift trucks under the Hyster and Yale brand names.
