Hyster-Yale Narrows Operating Loss as Bookings Accelerate
Lift Truck bookings reached $680 million, the strongest quarterly total in three years.
Hyster-Yale, Inc. (HY), the lift-truck maker, narrowed its operating loss for a second consecutive quarter as revenue turned higher from the start of the year. The second-quarter operating loss fell to $18.4 million from $28.0 million in the first quarter and $37.2 million in the fourth quarter of 2024.
The improvement marked an early turn in shipments after a prolonged decline, though tariffs and a shift toward lower-priced trucks continued to weigh on margins. Consolidated revenue rose 2% sequentially to $812.9 million after falling 14% in the first quarter, but remained 15% below the year-earlier period.
Hyster-Yale reported a net loss of $31.6 million, or $1.76 a share, compared with a loss of $30.5 million, or $1.71 a share, in the prior quarter. An $8.1 million tax expense, including a $3.4 million valuation allowance against Brazilian deferred-tax assets, contributed to the wider loss despite the operating improvement.
Lift Truck revenue rose 2% sequentially to $755.5 million as higher volume and pricing began converting stronger orders into shipments. Revenue remained 16% lower than a year earlier, reflecting reduced volumes and a mix shift toward lighter-duty trucks, partly offset by $17 million of pricing. Bookings climbed 17% from the first quarter and more than doubled from a year earlier, pushing backlog up 12% sequentially to $1.58 billion.
Margins remained constrained. Lift Truck gross margin was about 14.0%, little changed from 14.1% in the first quarter and below roughly 16.2% a year earlier, as $20 million of incremental tariff costs and the product mix outweighed pricing. A $35 million refund of previously paid tariffs benefited the quarter, though unfavorable capitalized material costs and higher gross tariff costs largely offset it.
The Americas Lift Truck business swung to a $3.6 million operating profit from a $1.7 million loss in the first quarter, while losses narrowed in EMEA and JAPIC. Bolzoni also returned to an operating profit, earning $2.0 million as lower freight costs and a favorable mix lifted its gross margin to about 26.9% despite a slight sequential revenue decline.
Hyster-Yale now expects a moderate consolidated operating loss for 2024, with the strongest recovery arriving late in the year as customer delivery schedules and tariff-related sourcing changes delay shipment growth. The company expects gross margins to improve gradually from second-quarter levels and tariff mitigation to cover only part of its tariff expense.
Operating cash flow became a $16.7 million source of cash after a roughly $33 million use in the first quarter, helped by lower inventory and normalized accruals. Inventory declined to $627.5 million, but the reduced production outlook prompted Hyster-Yale to lower its estimate of restructuring savings for 2024.