10q10k10q10k.net

What changed in HYSTER-YALE, INC.'s 10-K — 2023 vs 2024

vs

Paragraph-level year-over-year comparison of HYSTER-YALE, INC.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+274 added−249 removedSource: 10-K (2025-02-25) vs 10-K (2024-02-27)

Top changes in HYSTER-YALE, INC.'s 2024 10-K

274 paragraphs added · 249 removed · 181 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

60 edited+4 added−6 removed53 unchanged
Biggest changeJAPIC includes operations in the Asia and Pacific regions, including China, as well as the equity earnings of SN operations. The Company operates Bolzoni S.p.A. ("Bolzoni"). Bolzoni is a leading worldwide producer and distributor of attachments, forks and lift tables marketed under the Bolzoni ® , Auramo ® and Meyer ® brand names.
Biggest changeBolzoni is a leading worldwide producer and distributor of attachments, forks and lift tables marketed under the Bolzoni ® , Auramo ® and Meyer ® brand names. Bolzoni also produces components for lift truck manufacturers. Bolzoni products are manufactured in the U.S., Italy, China, Germany and Finland.
The Company designs warehouse equipment for the European market in Masate, Italy, adjacent to its manufacturing and assembly facility for warehouse equipment. The Company also has an engineering Concept Center in the United Kingdom to support advanced design activities and an engineering office in India to support its global design activities for its four major engineering centers.
The Company designs warehouse equipment for the European market in Masate, Italy, adjacent to its manufacturing and assembly facility for warehouse equipment. The Company also has an engineering Concept Center in the United Kingdom to support advanced design activities and an engineering office in India to support global design activities for its four major engineering centers.
Each stockholder of SN is entitled to appoint directors representing 50% of the vote of SN’s board of directors. All matters related to policies and programs of operation, manufacturing and sales activities require mutual agreement between the Company and Sumitomo Heavy Industries, Ltd. prior to a vote of SN’s board of directors.
Each SN stockholder is entitled to appoint directors representing 50% of the vote of SN’s board of directors. All matters related to policies and programs of operation, manufacturing and sales activities require mutual agreement between the Company and Sumitomo Heavy Industries, Ltd. prior to a vote of SN’s board of directors.
To effectively manage this program, the Company's energy and emissions management strategy is built upon three pillars: • Efficiency • reduce energy consumption within the Company's operations; and • pursue renewable energy and other low-carbon sources • Engagement • collaborate with suppliers to understand their energy challenges and develop solutions • Innovation • design and deliver products that improve energy efficiency and decrease operating costs The Company has a deep appreciation for energy and energy efficiency.
To effectively manage this program, the Company's energy and emissions management strategy is built upon three pillars: • Efficiency • reduce energy consumption within the Company's operations; and • pursue renewable energy and other low-carbon sources regularly • Engagement • collaborate with suppliers to understand their energy challenges and develop solutions • Innovation • design and deliver products that improve energy efficiency and decrease operating costs The Company has a deep appreciation for energy and energy efficiency.
In the future, the Company's results of operations may be materially adversely affected to the extent the Company is affected by trade disputes with other foreign jurisdictions, and increased tariffs are levied on its goods or the materials the Company purchases. 3 Table of Contents Competition The Company is one of the leaders in the lift truck industry with respect to market share in the Americas and worldwide.
In the future, the Company's results of operations may be materially adversely affected to the extent the Company is affected by trade disputes with other foreign jurisdictions, and increased or new tariffs are levied on its goods or the materials the Company purchases. 3 Table of Contents Competition The Company is one of the leaders in the lift truck industry with respect to market share in the Americas and worldwide.
The employees are distributed among each of the Company's businesses as follows: Lift Truck 7,200 Bolzoni 1,200 Nuvera 200 Certain employees in the Danville, Illinois parts depot operations are unionized. The Danville union contract expires every three years at which time salaries, certain employee policies and a limited number of benefits are negotiated for the following three-year period.
The employees are distributed among each of the Company's businesses as follows: Lift Truck 7,100 Bolzoni 1,200 Nuvera 200 Certain employees in the Danville, Illinois parts depot operations are unionized. The Danville union contract expires every three years at which time salaries, certain employee policies and a limited number of benefits are negotiated for the following three-year period.
While the Company is not currently aware that any material outstanding claims or obligations exist with regard to these sites, the discovery of additional contamination at these or other sites could result in significant cleanup costs that could have a material adverse effect on the Company’s financial conditions and results of operations.
While the Company is not aware that any material outstanding claims or obligations exist with regard to these sites, the discovery of additional contamination at these or other sites could result in significant cleanup costs that could have a material adverse effect on the Company’s financial conditions and results of operations.
The Company’s end-user base is diverse and fragmented, including but not limited to the following industries: light and heavy manufacturers, trucking and automotive, rental, building materials and paper suppliers, lumber, metal products, warehouses, retailers, food and beverage distributors, container handling and U.S. and non-U.S. governmental agencies.
The Company’s end-user base is diverse and fragmented, including but not limited to the following industries: light and heavy manufacturers, trucking and automotive, logistics, rental, building materials and paper suppliers, lumber, metal products, warehouses, retailers, food and beverage distributors, container handling and U.S. and non-U.S. governmental agencies.
Key Suppliers and Raw Materials During 2022 and 2021, the Company experienced significant increases in material costs, primarily from global price increases for industrial metals, including steel, lead and copper and other commodity products, such as rubber, as a result of increased demand and limited supply.
Key Suppliers and Raw Materials During 2022, the Company experienced significant increases in material costs, primarily from global price increases for industrial metals, including steel, lead and copper and other commodity products, such as rubber, as a result of increased demand and limited supply.
In addition, the Company depends on a limited number of suppliers for some of the Company's crucial components, including diesel and gasoline engines, which are supplied by, among others, Power Solutions International, Inc., Yanmar Power Technology Co., LTD. and Kubota Corp., drive-system components, which are supplied by, among others, Dana Corporation, ZF Company and Zapi Inc., and cast-iron counterweights used to counter balance some lift trucks, which are obtained from, among others, Eagle Quest International Ltd. and BTS5 Incorporated.
In addition, the Company depends on a limited number of suppliers for some of its crucial components, including diesel and gasoline engines, which are supplied by, among others, Power Solutions International, Inc., Yanmar Power Technology Co., LTD. and Kubota Corp., drive-system components, which are supplied by, among others, Dana Corporation, ZF Company and Zapi Inc., and cast-iron counterweights used to counter balance some lift trucks, which are obtained from, among others, Eagle Quest International Ltd. and BTS5 Incorporated.
The Company also sells aftermarket parts under the UNISOURCE™ and PREMIER™ brands to Hyster ® and Yale ® dealers for the service of competitor lift trucks.
The Company sells Hyster ® - and Yale ® -branded aftermarket parts to dealers for Hyster ® and Yale ® lift trucks. The Company also sells aftermarket parts under the UNISOURCE™ and PREMIER™ brands to Hyster ® and Yale ® dealers for the service of competitor lift trucks.
The committees provide quarterly updates to key stakeholders within the organization to keep the business engaged with the topic and updated on the steps the Company is taking to decrease its environmental footprint among other priorities. The Company is implementing site-specific energy policies at manufacturing facilities to support local energy management practices.
The committees provide regular updates to key stakeholders within the organization to keep the business engaged with the topic and updated on the steps the Company is taking to decrease its environmental footprint among other priorities. The Company is implementing site-specific energy policies at manufacturing facilities to support local energy management practices.
As a result, raw material reduction and efficiency efforts are a concerted focus across the Company. Reuse: With regards to raw materials and the circular economy, the Company's “Remanufacturing” program covers 12 key components, which enable customers to exchange used parts for remanufactured items.
As a result, raw material reduction and efficiency efforts are a concerted focus across the Company. Reuse: With regard to raw materials and the circular economy, the Company's “Remanufacturing” program covers 12 key components, which enable customers to exchange used parts for remanufactured items.
Although most components are available from numerous sources or in quantities sufficient to meet requirements, the Company has experienced and may continue to experience significant shortages of key components for certain products, which has negatively affected and may in the future negatively affect production levels.
Although most components are available from numerous sources or in quantities sufficient to meet requirements, the Company has experienced, and may continue to experience, significant shortages of key components for certain products. This has negatively affected, and may in the future negatively affect, production levels.
During 2023 the Company experienced declines in some material costs which helped sustain the Company's strong margin position, however ongoing volatility in global markets and the impact on demand and supply may result in unanticipated cost increases for our product.
During 2023 and 2024, the Company experienced declines in some material costs which helped sustain the Company's strong margin position. However, ongoing volatility in global markets and the impact on demand and supply may result in unanticipated cost increases for the Company's product.
The Company's priority on people focuses on five main areas: occupational health and safety, employment, diversity and equal opportunity, training and education and engagement with local communities. Occupational Health & Safety A robust focus on health and safety performance is a fundamental driver of the Company’s achievements.
The Company's priority on people focuses on five main areas: occupational health and safety, employment, inclusion and equal opportunity, training and education and engagement with local communities. Occupational Health & Safety A robust focus on health and safety performance is a fundamental driver of the Company’s achievements.
("Hyster-Yale Maximal"), a Chinese manufacturer of low-intensity and standard lift trucks and specialized material handling equipment. Hyster-Yale Maximal also designs and produces specialized products in the port equipment and rough terrain forklift markets. Lift trucks and component parts are manufactured in the United States, Northern Ireland, China, Mexico, the Netherlands, Brazil, the Philippines, Italy, Japan and Vietnam.
("Hyster-Yale Maximal"), a manufacturer of low-intensity and standard lift trucks and specialized material handling equipment. Hyster-Yale Maximal also designs and produces specialized products in the port equipment and rough terrain forklift markets. Lift trucks and component parts are manufactured in the United States ("U.S."), Northern Ireland, China, the Netherlands, Mexico, the Philippines, Brazil, Japan, Italy and Vietnam.
Through HYG, the Company designs, engineers, manufactures, sells and services a comprehensive line of lift trucks, attachments and aftermarket parts marketed globally, primarily under the Hyster ® and Yale ® brand names, mainly to independent Hyster ® and Yale ® retail dealerships. The Company owns a 90% majority interest in Hyster-Yale Maximal Forklift (Zhejiang) Co., Ltd.
Through HYMH, the Company designs, engineers, manufactures, sells and services a comprehensive line of lift trucks, attachments and aftermarket parts marketed globally, primarily under the Hyster ® and Yale ® brand names, mainly to independent, exclusive Hyster ® and Yale ® retail dealerships. The Company owns a 90% majority interest in Hyster-Yale Maximal Forklift (Zhejiang) Co., Ltd.
Item 1. BUSINESS General Hyster-Yale Materials Handling, Inc. ("Hyster-Yale" or the "Company") and its subsidiaries, including its operating company Hyster-Yale Group, Inc. ("HYG"), is a globally integrated company offering a full line of high-quality, application-tailored lift trucks and solutions aimed at meeting the specific materials handling needs of its customers.
Item 1. BUSINESS General Hyster-Yale, Inc. ("Hyster-Yale" or the "Company") and its subsidiaries, including its operating company, Hyster-Yale Materials Handling, Inc. ("HYMH"), is a globally integrated company offering a full line of high-quality, application-tailored lift trucks and solutions aimed at meeting the specific materials handling needs of its customers.
The Company’s products may also be subject to laws and regulations relating to the protection of the environment, including those governing vehicle exhaust. Regulatory agencies in the United States and Europe have issued or proposed various regulations and directives designed to reduce emissions from spark-ignited engines and diesel engines used in off-road vehicles, such as industrial lift trucks.
The Company’s products may also be subject to laws and regulations relating to the protection of the environment, including those governing vehicle exhaust. Regulatory agencies in the U.S. and Europe have issued or proposed various regulations and directives designed to reduce emissions from spark-ignited engines and diesel engines used in off-road vehicles, such as industrial lift trucks.
As a result, the Company accounts for its ownership in SN using the equity method of accounting. The Company purchases Hyster ® - and Yale ® -branded lift trucks and related component and aftermarket parts from SN for sale outside of Japan under agreed-upon terms.
As a result, the Company accounts for its ownership in SN using the equity method of accounting. The Company purchases Hyster ® - and 4 Table of Contents Yale ® -branded lift trucks and related component and aftermarket parts from SN for sale outside of Japan under agreed-upon terms.
The Company has strived to optimize its use of raw materials and allow valuable resources to remain in circulation. As part of the Company's Supplier Engagement Manual, specific procedures are in place to assess whether its customers are supported and their expectations are met.
The Company strives to optimize its use of raw materials and allow valuable resources to remain in circulation. As part of the Company's Supplier Engagement Manual, specific procedures are in place to assess whether its customers are supported and their expectations are met.
In the United States, Billerica, Massachusetts is the primary location for design, development and testing of fuel-cell stacks and engines. In Europe, the operations at San Donato, Italy are primarily focused on fuel-cell systems integration and testing. Sumitomo-NACCO Joint Venture The Company has a 50% ownership interest in Sumitomo NACCO Forklift Co., Ltd.
In the U.S., Billerica, Massachusetts is the primary location for design, development and testing of fuel-cell stacks and engines. In Europe, operations at San Donato, Italy are primarily focused on fuel-cell systems integration and testing. Sumitomo-NACCO Joint Venture The Company has a 50% ownership interest in Sumitomo NACCO Forklift Co., Ltd.
This program focuses on large customers with centralized purchasing and geographically dispersed operations in multiple dealer territories. This program accounted for 19%, 17% and 20% of new lift truck unit volume in 2023, 2022 and 2021, respectively. The independent dealers support these major customers by providing aftermarket parts and service on a local basis.
This program focuses on large customers with centralized purchasing and geographically dispersed operations across multiple dealer territories. This program accounted for 23%, 19% and 17% of new lift truck unit volume in 2024, 2023 and 2022, respectively. The independent dealers support these major customers by providing aftermarket parts and service on a local basis.
Government and Trade Regulations The Company has been impacted by ongoing trade disputes with China, which led to the imposition of tariffs resulting in higher material costs. In addition, the Company’s business has been affected in the past by trade disputes between the United States and Europe.
Government and Trade Regulations The Company has been impacted by ongoing trade disputes with China, which led to the imposition of tariffs resulting in higher material costs. In addition, the Company’s business has been affected in the past by trade disputes between the U.S. and Europe.
The Company also maintains several Employee Resource Groups ("ERG"), such as the W41 Women’s Network, HYG Veterans Group, Emerging Professionals Network, Green Team and the Young Professionals Network. These groups are employee-led and employee-run which promote diversity by bringing together employees who share similar interests or affinities.
The Company also maintains several Employee Resource Groups ("ERG"), such as the W41 Women’s Network, HYMH Veterans Group, Emerging Professionals Network, Green Team and the Young Professionals Network. These groups are open to all employees and are employee-led and employee-run which promote diversity by bringing together employees who share similar interests or affinities.
The components of the Company's revenues were as follows for the year ended December 31: 2023 2022 2021 Lift trucks 74 % 73 % 73 % Parts 15 % 15 % 15 % Service, rental and other 6 % 7 % 6 % Bolzoni 5 % 5 % 6 % Nuvera less than 1% less than 1% less than 1% Sales of internal combustion engine and electric lift trucks as a percentage of the Company's revenues were as follows for the year ended December 31: 2023 2022 2021 Internal combustion 44 % 43 % 42 % Electric 30 % 30 % 31 % Total lift truck sales 74 % 73 % 73 % Manufacturing and Assembly The Company manufactures components, such as frames, masts and transmissions, and assembles lift trucks in the market of sale whenever practical to minimize freight cost and balance currency mix.
The components of the Company's revenues were as follows for the year ended December 31: 2024 2023 2022 Lift trucks 75 % 74 % 73 % Parts 14 % 15 % 15 % Service, rental and other 7 % 6 % 7 % Bolzoni 4 % 5 % 5 % Nuvera less than 1 % less than 1 % less than 1 % Sales of internal combustion engine and electric lift trucks as a percentage of the Company's revenues were as follows for the year ended December 31: 2024 2023 2022 Internal combustion 45 % 44 % 43 % Electric 30 % 30 % 30 % Total lift truck sales 75 % 74 % 73 % Manufacturing and Assembly The Company manufactures components, such as frames, masts and transmissions, and assembles lift trucks in the market of sale whenever practical to minimize freight cost, serve customers efficiently and balance currency mix.
Independent Dealers The Company’s dealers, located in 123 countries, are generally independently owned and operated.
Independent Dealers The Company’s dealers, located in 115 countries, are generally independently owned and operated.
The three pillar approach drives zero waste to landfill aspirations within the Company's 2026 Aspirations program: • Minimize and reduce landfilled waste at all global facilities • Encourage non-pollution technologies in product research and development 7 Table of Contents • Remanufacturing program to return used parts and replace them with remanufactured parts • Ensure multiple lifecycles of the Company's reusable parts, mitigating the need for raw materials for new parts • Widespread use of returnable packaging across the Company's product lines • Emphasized use of material reduction and recyclability for expendable packaging • Supplier packaging guidelines to promote the use of recyclable materials Environmental Matters The Company’s manufacturing operations are subject to laws and regulations relating to the protection of the environment, including those governing the management and disposal of hazardous substances.
Waste reduction efforts have been further supported by ongoing initiatives and campaigns to increase awareness of recycling capabilities. 7 Table of Contents The three pillar approach drives to achieve zero waste to landfill aspirations as outlined within the Company's 2026 Aspirations program: • Minimize and reduce landfilled waste at all global facilities • Encourage non-pollution technologies in product research and development • Remanufacturing program to return used parts and replace them with remanufactured parts • Ensure multiple lifecycles of the Company's reusable parts, mitigating the need for raw materials for new parts • Widespread use of returnable packaging across the Company's product lines • Emphasized use of material reduction and recyclability for expendable packaging • Supplier packaging guidelines to promote the use of recyclable materials Environmental Matters The Company’s manufacturing operations are subject to laws and regulations relating to the protection of the environment, including those governing the management and disposal of hazardous substances.
To ensure there is internal accountability, oversight and focus in place for managing energy usage reduction, the Company has established divisional waste and energy committees in both the Americas and EMEA. These committees meet monthly to discuss progress and updates on current year energy and waste reduction projects as well as plans for future initiatives.
To provide internal accountability, oversight and focus for managing energy usage reduction, the Company has established divisional waste and energy committees in both the Americas and EMEA. These committees meet regularly to discuss progress and updates on current year energy and waste reduction projects as well as plans for future initiatives.
The Company’s contract with the Danville union expires in June 2024. Generally, employee benefits for Danville union employees are aligned with non-union U.S. employees. All other employees at the Company's facilities in the United States are not represented by unions. In Brazil, all employees are represented by a union.
The Company’s contract with the Danville union expires in June 2027. Generally, employee benefits for Danville union employees are aligned with non-union U.S. employees. All other employees at the Company's facilities in the U.S. are not represented by unions.
This includes conduct that creates a hostile or offensive atmosphere, disrupts work performance or harms employment opportunities. All forms of harassment, including sexual, verbal, physical or visual, are strictly prohibited. The Anti-Harassment and Anti-Discrimination Policy is a key component of the Company's Corporate Compliance Program.
The Company firmly stands against inappropriate behavior or remarks in the workplace. This includes conduct that creates a hostile or offensive atmosphere, disrupts work performance or harms employment opportunities. All forms of harassment, including sexual, verbal, physical or visual, are strictly prohibited. The Anti-Harassment and Anti-Discrimination Policy is a key component of the Company's Corporate Compliance Program.
Dealers receive a commission for the support they provide in connection with these major customer sales and for the preparation and delivery of lift trucks to customer locations. In addition to selling new lift trucks, this global accounts program markets services, including full maintenance leases and fleet management.
Dealers receive an installation fee for the support they provide in connection with these major customer sales and for the preparation and delivery of lift trucks to customer locations. In addition to selling new lift trucks, this direct customer sales program markets services, including full maintenance leases and fleet management.
Consequently, the Company has experienced, and in the future may continue to experience, significant fluctuations in its revenues and net income. Research and Development The Company’s lift truck research and development capability is organized around four major engineering centers that are coordinated on a global basis.
During economic downturns, customers tend to delay new lift truck and parts purchases. Consequently, the Company has experienced, and in the future may continue to experience, significant fluctuations in its revenues and net income. Research and Development The Company’s lift truck research and development capability is organized around four major engineering centers that are coordinated on a global basis.
In each country where the Company operates, the Company reviews the competitive markets to develop comprehensive benefits packages that address health and well-being, such as medical, dental and vision coverages; financial security programs such as retirement and savings plans; paid time off for vacation and holiday time and more. 5 Table of Contents Diversity and Equal Opportunity The Company is dedicated to fostering a respectful and inclusive work environment.
In each country where the Company operates, the Company reviews the competitive markets to develop comprehensive benefits packages that address health and well-being, such as medical, dental and vision 5 Table of Contents coverages; financial security programs such as retirement and savings plans; paid time off for vacation and holiday time and more.
The Company has a contractual relationship with a third-party, multi-brand, aftermarket parts wholesaler in the Americas and EMEA whereby orders from the Company's dealers for parts are fulfilled by the third party who then pays the Company a commission.
The Company has a contractual relationship with a third-party, multi-brand, aftermarket parts wholesaler in the Americas and EMEA whereby orders from the Company's dealers for parts are fulfilled by the third party who then pays the Company a commission. Marketing The Company has a global marketing organization structured to support the geographic divisions.
The Company also contracts with SN for engineering design services on a cost plus basis and charges SN for technology used by SN but developed by the Company. During 2023, SN sold approximately 8,000 lift trucks. 4 Table of Contents Human Capital Resources As of January 31, 2024, the Company had approximately 8,600 employees.
The Company also contracts with SN for engineering design services on a cost plus basis and charges SN for technology used by SN but developed by the Company. During 2024, SN sold approximately 9,200 lift trucks. Human Capital Resources As of January 31, 2025, the Company had approximately 8,500 employees.
In addition, future changes to environmental laws could require the Company to incur significant additional expense or restrict operations. Based on current information, the Company does not expect compliance with environmental requirements to have a material adverse effect on the Company’s financial condition or results of operations.
In addition, future changes to environmental laws could require the Company to incur significant additional expense or restrict operations. Based on information available as of the date of filing this Annual Report on Form 10-K, the Company does not expect compliance with environmental requirements to have a material adverse effect on the Company’s financial condition or results of operations.
The Company’s contracts with the Brazilian unions expire annually at which time salaries and certain benefits are negotiated for the following year. In Mexico, certain employees are unionized. The Company’s contract with the Mexican union expires annually in March, at which time salaries are negotiated for the following year. Benefits in Mexico are negotiated every other year.
In Brazil, all employees are represented by a union for salary and benefits contracts, which are negotiated annually for the following year. In Mexico, certain employees are unionized. The Company’s contract with the Mexican union expires annually in March, at which time salaries are negotiated for the following year. Benefits in Mexico are negotiated every other year.
Backlog The following table outlines the Company's backlog of unfilled orders placed with its manufacturing and assembly operations for new lift trucks: December 31, 2023 September 30, 2023 December 31, 2022 Units (in thousands) 78.4 85.3 102.1 Backlog, approximate sales value (in millions) $ 3,330 $ 3,540 $ 3,730 As of December 31, 2023, the Company expects substantially all of its backlog of unfilled orders placed with its manufacturing and assembly operations for new lift trucks to be sold during the next twelve months.
Backlog The following table outlines the Company's backlog of unfilled orders placed with its manufacturing and assembly operations for new lift trucks for the years ended (in millions): December 31, 2024 September 30, 2024 December 31, 2023 Backlog, approximate sales value $ 1,930 $ 2,300 $ 3,330 As of December 31, 2024, the Company expects substantially all of its backlog of unfilled orders placed with its manufacturing and assembly operations for new lift trucks to be sold during the next twelve months.
The Company operates eleven lift truck manufacturing and assembly facilities worldwide with four plants in the Americas, three in EMEA and four in JAPIC, including joint venture operations.
The Company operates eleven lift truck manufacturing and assembly facilities worldwide with four plants in the Americas, three in EMEA and 1 Table of Contents four in JAPIC, including joint venture operations. In addition, the Company operates six principal Bolzoni manufacturing facilities worldwide.
Fluctuations in the rate of orders for lift trucks, attachments and fuel-cell technology reflect the capital investment decisions of the Company’s customers, which depend to a certain extent on the general level of economic activity in the various industries the lift truck customers serve. During economic downturns, customers tend to delay new lift truck and parts purchases.
Cyclical Nature of Lift Truck Business The Company’s lift truck business historically has been cyclical. Fluctuations in the rate of orders for lift trucks, attachments and fuel-cell technology reflect the capital investment decisions of the Company’s customers, which depend to a certain extent on the general level of economic activity in the various industries the lift truck customers serve.
The Company believes its current labor relations with both union and non-union employees are generally satisfactory. The Company believes the long-term best interests of its stockholders are best served by embracing economic, social, environmental and health and safety objectives throughout its organization, which also contributes benefits to its customers and the communities in which it operates.
The Company believes the long-term best interests of its stockholders are best served by embracing economic, social, environmental and health and safety objectives throughout its organization, which also provides benefits to its customers and the communities in which it operates.
The Company reviews and validates globally reported environmental data and seeks to normalize environmental metrics according to sequence of event hours, allowing better understanding of the efficiency of key performance indicators while accounting for changes in business volume.
The Company strives to efficiently manage operational energy use and mitigate the carbon footprint across global operations. The Company reviews and validates globally reported environmental data and seeks to normalize environmental metrics according to sequence of event hours, allowing better understanding of the efficiency of key performance indicators while accounting for changes in business volume.
The Company has also implemented rules around packaging to assess whether the design and strength of the packaging minimizes cost of materials, labor and shipping. Recycle: The Company's sites prioritize waste minimization first, followed by reuse and recycling. Waste reduction efforts have been further supported by ongoing initiatives and campaigns to increase awareness of recycling capabilities.
The Company has also implemented rules around packaging to assess whether the design and strength of the packaging minimizes cost of materials, labor and shipping. Recycle: The Company's sites prioritize waste reduction first, followed by reuse and recycling.
See Notes 17 and 18 to the Consolidated Financial Statements in this Annual Report on Form 10-K for further discussion.
See Note 17, Guarantees and Note 18, Debt and Equity Investments and Related-Party Transactions , to the Consolidated Financial Statements in this Annual Report on Form 10-K for further discussion.
The aspiration is for every employee and potential employee to be treated with dignity and fairness, free from any discrimination or harassment on the basis of race, color, national origin, religion, age, gender, sexual orientation or disability. The Company firmly stands against inappropriate behavior or remarks in the workplace.
Inclusive and Diverse Work Environment The Company is dedicated to fostering a respectful and inclusive work environment. The aspiration is for every employee and potential employee to be treated with dignity and fairness, free from any discrimination or harassment on the basis of race, color, national origin, religion, age, gender, sexual orientation or disability.
Companies implementing such technology face competitors that integrate more traditional energy technologies into their product lines, as well as competitors that have implemented or are implementing alternatives to traditional energy technologies, such as lithium batteries, fuel additives and other high efficiency or “renewable” technologies. Cyclical Nature of Lift Truck Business The Company’s lift truck business historically has been cyclical.
The use of fuel-cell technology in industrial and commercial applications is a relatively new development. Companies implementing such technology face competitors that integrate more traditional energy technologies into their product lines, as well as competitors that have implemented or are implementing alternatives to traditional energy technologies, such as lithium batteries, fuel additives and other high efficiency or “renewable” technologies.
The Company's aftermarket parts offerings compete with parts manufactured by other lift truck manufacturers, as well as companies that focus solely on the sale of generic parts. The use of fuel-cell technology in industrial and commercial applications is a relatively new development.
The Company's aftermarket parts offerings compete with parts manufactured by other lift truck manufacturers, as well as companies that focus solely on the sale of generic parts. Bolzoni is a leader in the lift truck attachment industry.
Warehouse trucks, which are primarily used in distribution applications, are designed based on regional differences in stacking and storage practices. The Company designs warehouse equipment for sale in the Americas market in Greenville, North Carolina, adjacent to the Americas manufacturing and assembly facility.
The Company’s big truck development center is located in Nijmegen, the Netherlands, adjacent to a dedicated global big truck assembly facility. Warehouse trucks are designed based on regional differences in stacking and storage practices. The Company designs warehouse equipment for sale in the Americas market in Greenville, North Carolina, adjacent to the Americas manufacturing and assembly facility.
The following table summarizes the Company's dealers as of December 31, 2023: Hyster ® Yale ® Dual-Branded Maximal ® Americas 12 22 33 15 EMEA 59 52 16 22 JAPIC 72 10 4 14 143 84 53 51 Global Accounts The Company operates a direct sales program to major customers or global accounts for both Hyster ® and Yale ® .
The following table summarizes the Company's dealers as of December 31, 2024: Hyster ® Yale ® Dual-Branded Maximal ® Americas 9 12 30 16 EMEA 59 42 16 18 JAPIC 71 9 5 42 139 63 51 76 Direct Customer Sales The Company operates a direct sales program to major customers or global accounts for both Hyster ® and Yale ® .
At a minimum, all employees must adhere to the Code of Corporate Conduct, including compliance with applicable environmental, health and safety requirements as well as laws and regulations.
At a minimum, all employees must adhere to the Code of Corporate Conduct, including compliance with applicable environmental, health and safety requirements as well as laws and regulations. 6 Table of Contents The Company's strategy comprises three key tenants: • comply with all applicable environmental and health and safety requirements; • keep all work areas free from environmental health and safety hazards; and • comply with reporting requirements applicable to the Company.
Some of the employment initiatives offered include various training opportunities, an educational assistance program, competitive wage and benefit programs, promotion of diversity and inclusion initiatives, a wellness program and cultivation of an energetic corporate atmosphere.
The Company is committed to investing in initiatives for recruitment and talent development aimed at attracting and retaining a diverse, competent and qualified pool of skilled individuals. Some of the employment initiatives offered include various training opportunities, an educational assistance program, competitive wage and benefit programs, promotion of inclusion initiatives, a wellness program and cultivation of an energetic corporate atmosphere.
In addition, the Company distributes aftermarket parts and services for its lift trucks through its independent dealers.
Distribution Network The Company distributes lift trucks and attachments primarily through two channels: independent dealers and a direct sales program to major customers. In addition, the Company distributes aftermarket parts and services for its lift trucks through its independent dealers.
In Europe, certain employees in the Helsinki, Finland, Salzgitter, Germany, Craigavon, Northern Ireland, Masate, Italy, Piacenza, Italy, San Donato, Italy and Nijmegen, the Netherlands facilities are represented by a union or a works council. All of the European employees are part of works councils or employee forums, which perform a consultative role on business and employment matters.
In Europe, certain employees in the Helsinki, Finland, Salzgitter, Germany, Craigavon, Northern Ireland, Masate, Italy, Piacenza, Italy, San Donato, Italy and Nijmegen, the Netherlands facilities are represented by a union or a works council. The Company believes its current labor relations with both union and non-union employees are generally satisfactory.
The Company offers online technical reference databases specifying the required aftermarket parts to service lift trucks and an aftermarket parts ordering system. The Company sells Hyster ® - and Yale ® -branded aftermarket parts to dealers for Hyster ® and Yale ® lift trucks.
Aftermarket Parts The Company offers a line of aftermarket parts to service its large installed base of lift trucks currently in use in many industries. The Company offers online technical reference databases specifying the required aftermarket parts to service lift trucks and an aftermarket parts ordering system.
The Company owns the Hyster ® , Yale ® , Maximal ® , Bolzoni ® , Auramo ® , Meyer ® and Nuvera ® trademarks and believes these trademarks are material to its business. Distribution Network The Company distributes lift trucks and attachments primarily through two channels: independent dealers and a direct sales program to major customers.
The Company owns the Hyster ® , Yale ® , Maximal ® , Bolzoni Auramo ® , Bolzoni ® , Auramo ® , Meyer ® and Nuvera ® trademarks and believes these trademarks are material to its business.
Nuvera is an alternative-power technology company focused on the design, manufacture and sale of hydrogen fuel cell stacks and engines.
Through the design, production and distribution of a wide range of attachments, Bolzoni has a strong presence in the market niche of lift truck attachments and industrial material handling. Nuvera is an alternative-power technology company focused on the design, manufacture and sale of hydrogen fuel cell stacks and engines.
Hyster-Yale was incorporated as a Delaware corporation in 1999. The Company’s segments for the lift truck business include the following: the Americas, EMEA and JAPIC. Americas includes lift truck operations in the United States, Canada, Mexico, Brazil, Latin America and the corporate headquarters. EMEA includes operations in Europe, the Middle East and Africa.
Americas includes lift truck operations in the U.S., Canada, Mexico, Brazil, Latin America and the corporate headquarters. EMEA includes operations in Europe, the Middle East and Africa. JAPIC includes operations in the Asia and Pacific regions, including China.
These activities include sales and service training, information systems support, product launch coordination, specialized sales material development, help desks, order entry, marketing strategy and field service support. Patents, Trademarks and Licenses The Company relies on a combination of trade secret protection, trademarks, copyrights, and patents to establish and protect the Company's proprietary rights.
The global approach is centered around five key areas: product management and strategy; marketing strategy and activation; sales enablement and training; digital marketing and lead generation; and industry strategy and market insights. Patents, Trademarks and Licenses The Company relies on a combination of trade secret protection, trademarks, copyrights, and patents to establish and protect the Company's proprietary rights.
Removed
Bolzoni also produces components for lift truck manufacturers. Bolzoni products are manufactured in the United States, Italy, China, Germany and Finland. Through the design, production and distribution of a wide range of attachments, Bolzoni has a strong presence in the market niche of lift truck attachments and industrial material handling. The Company operates Nuvera Fuel Cells, LLC ("Nuvera").
Added
Hyster-Yale was incorporated as a Delaware corporation in 1999. On May 31, 2024, the Company changed its corporate name to Hyster-Yale, Inc. and the Company's wholly owned operating subsidiary, Hyster-Yale Group, Inc., changed its corporate name to Hyster-Yale Materials Handling, Inc.
Removed
In addition, the Company operates six principal Bolzoni manufacturing facilities worldwide. 1 Table of Contents Aftermarket Parts The Company offers a line of aftermarket parts to service its large installed base of lift trucks currently in use in the industry.
Added
The Company has five segments, which include three in the lift truck business as discussed below, as well as Bolzoni S.p.A. ("Bolzoni") and Nuvera Fuel Cells, LLC ("Nuvera"). The Company’s lift truck business includes the following three geographic operating segments: the Americas, EMEA and JAPIC.
Removed
Marketing The Company’s marketing organization is structured in three regional divisions: the Americas; EMEA, which includes Europe, the Middle East and Africa; and JAPIC, which includes Japan, Asia, Pacific, India and China. In each region, certain marketing support functions for the Hyster ® and Yale ® brands are carried out by shared-services teams.
Added
There continues to exist significant uncertainty about the future of U.S. trade policy and potential new tariffs, including but not limited to, potential new tariffs on Canada, China and Mexico.
Removed
The Company’s big truck development center is located in Nijmegen, the Netherlands, adjacent to a dedicated global big truck assembly facility. Big trucks are primarily used in handling shipping containers and other specialized heavy lifting applications, including steel, concrete and energy-related industries.
Added
Competition in this industry is based primarily on product quality and performance, price, availability of products, comprehensive product line offerings, innovation, including features, the cost of ownership over the life of the attachment, brand loyalty, and customer service. Bolzoni competes with a few global lift truck attachment manufacturers that operate in all major markets, as well as other niche companies.
Removed
The Company is committed to investing in initiatives for recruitment and talent development aimed at attracting and retaining a diverse, competent and qualified pool of skilled individuals.
Removed
The Company's strategy comprises three key tenants: • comply with all applicable environmental and health and safety requirements; • keep all work areas free from environmental health and safety hazards; and • comply with reporting requirements of the Company and government agencies 6 Table of Contents The Company strives to efficiently manage operational energy use and mitigate the carbon footprint across global operations.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

51 edited+33 added−2 removed44 unchanged
Biggest changeAny unauthorized access to or control of the products or systems or any loss of data could result in litigation with third parties, government enforcement actions, penalties, disruption to product systems, unauthorized release of confidential or otherwise protected information, corruption of data, or remediation costs, which could materially adversely affect the Company’s operating results, financial position, growth opportunities or reputation.
Biggest changeAny unauthorized access to or control of the products or systems or any loss of data could result in litigation including individual claims or consumer class actions, commercial litigation, administrative, civil or criminal investigations or actions, regulatory intervention, government enforcement actions, penalties, sanctions or fines, disruption to operations and product systems, innovation delays, unauthorized release of confidential or otherwise protected information, corruption or alteration of data, payment of ransom, or investigation and remediation costs, which could materially adversely affect the Company’s business strategy, results of operations, financial condition, growth opportunities or reputation. 12 Table of Contents Risks Related to Legal and Regulatory Matters The Company is subject to import and export controls, which could subject the Company to liability or impair the Company's ability to compete in international markets.
Because the Company conducts transactions in various currencies, including euros, Japanese yen, U.S. dollars, Chinese renminbi, British pounds, Swedish kroner, Mexican pesos and Australian dollars, lift truck pricing is subject to the effects of fluctuations in the value of these currencies and fluctuations in the related currency exchange rates.
Because the Company conducts transactions in various currencies, including U.S. dollars, euros, Japanese yen, Chinese renminbi, British pounds, Swedish kroner, Mexican pesos and Australian dollars, lift truck pricing is subject to the effects of fluctuations in the value of these currencies and fluctuations in the related currency exchange rates.
These regulations require the Company and other lift truck manufacturers to incur costs to modify designs and manufacturing processes and to perform additional testing and reporting. The Company is investigating or remediating historical contamination at some current and former sites caused by its operations or those of businesses it acquired.
These regulations can require the Company and other lift truck manufacturers to incur costs to modify designs and manufacturing processes and to perform additional testing and reporting. The Company is investigating or remediating historical contamination at some current and former sites caused by its operations or those of businesses it acquired.
The lift truck business is cyclical. Any downturn in the general economy could result in significant decreases in the Company's revenue and profitability and an inability to sustain or grow the business. The Company's lift truck business historically has been cyclical.
Any downturn in the general economy could result in significant decreases in the Company's revenue and profitability and an inability to sustain or grow the business. The Company's lift truck business historically has been cyclical.
The Company depends on a limited number of suppliers for some of its critical components, including diesel, gasoline and fuel cell engines and cast-iron counterweights used to counterbalance some lift trucks. Some of these critical components are imported and subject to regulation, primarily with respect to customary inspection of such products by the U.S.
The Company depends on a limited number of suppliers for some of its critical components, including diesel, gasoline and fuel cell engines and cast-iron counterweights used in some lift trucks. Some of these critical components are imported and subject to regulation, primarily with respect to customary inspection of such products by the U.S.
Further, the amount of insurance coverage the Company maintains may be inadequate to cover claims or liabilities relating to a cybersecurity attack. Security breaches with respect to the Company’s products could interfere with its business, dealers, and customers, exposing it to liability that would cause its business and reputation to suffer.
Further, the amount of insurance coverage the Company maintains may be inadequate to cover claims or liabilities relating to a cybersecurity incident. Security breaches with respect to the Company’s products could interfere with its business, dealers, and customers, exposing it to liability that would cause its business and reputation to suffer.
Competition in the lift truck industry is based primarily on strength and quality of dealers, brand loyalty, customer service, new lift truck sales prices, availability of products and aftermarket parts, comprehensive product line offerings, product performance, quality and innovation, including features, and the cost of ownership over the life of the lift truck.
Competition in the lift truck industry is based primarily on strength and quality of dealers, brand loyalty, customer service, new lift truck availability and sales prices, availability of aftermarket parts and their prices, comprehensive product line offerings, product performance, quality and innovation, including lift truck features, and the cost of ownership over the life of the lift truck.
Because the Company has employees, property and business operations outside of the United States, it is subject to the laws and the court systems of many jurisdictions. The Company may become subject to claims outside the United States based in non-U.S. jurisdictions for violations of their laws with respect to the Company's non-U.S. operations.
Because the Company has employees, property and business operations outside of the U.S., it is subject to the laws and the court systems of many jurisdictions. The Company may become subject to claims outside the U.S. based in non-U.S. jurisdictions for violations of their laws with respect to the Company's non-U.S. operations.
Any of these technologies may have more established or otherwise more attractive manufacturing, distribution and operating cost features, which could negatively impact customers’ preferences for product lines that incorporate fuel-cell technology and, as a result, diminish the marketability of products incorporating Nuvera technology.
Any of these technologies may have more established or otherwise more attractive manufacturing, distribution and operating cost features, which could 11 Table of Contents negatively impact customers’ preferences for product lines that incorporate fuel-cell technology and, as a result, diminish the marketability of products incorporating Nuvera technology.
Increasing emphasis and changing expectations with respect to environmental, social and governance matters may impose additional costs on the Company or expose the Company to new or additional risks. In addition, changes in the relative values of currencies occur from time to time and could affect the Company's operating results.
Increasing emphasis and changing expectations with respect to environmental, social and governance 8 Table of Contents matters may impose additional costs on the Company or expose the Company to new or additional risks. In addition, changes in the relative values of currencies occur from time to time and could affect the Company's operating results.
Holders of Class B common stock are entitled to cast ten votes per share and, as of December 31, 2023, accounted for the remaining voting power of the Company.
Holders of Class B common stock are entitled to cast ten votes per share and, as of December 31, 2024, accounted for the remaining voting power of the Company.
In addition, the amount of insurance coverage the Company maintains may be inadequate or difficult to obtain in order to cover claims or liabilities relating to a cybersecurity attack.
In addition, the amount of insurance coverage the Company maintains may be inadequate or difficult to obtain in order to cover claims or liabilities relating to a cybersecurity incident.
Through these arrangements, the Company's dealers and certain customers are extended credit for the purchase of lift trucks to be placed in the dealer’s floor plan inventory or the financing of lift trucks that are sold or leased to customers.
Through these arrangements, the Company's dealers and certain customers are extended credit for the purchase of lift trucks to be placed in the dealer’s floor plan inventory or the 14 Table of Contents financing of lift trucks that are sold or leased to customers.
For some of these arrangements, the Company provides recourse or repurchase obligations such that it would become obligated in the event of default by the dealer or customer. Total amounts subject to these types of obligations were $162.4 million and $133.2 million at December 31, 2023 and 2022, respectively.
For some of these arrangements, the Company provides recourse or repurchase obligations such that it would become obligated in the event of default by the dealer or customer. Total amounts subject to these types of obligations were $219.2 million and $162.4 million at December 31, 2024 and 2023, respectively.
The Company has two classes of common stock: Class A common stock and Class B common stock. Holders of Class A common stock are entitled to cast one vote per share and, as of December 31, 2023, accounted for approximately 28 percent of the voting power of the Company.
The Company has two classes of common stock: Class A common stock and Class B common stock. Holders of Class A common stock are entitled to cast one vote per share and, as of December 31, 2024, accounted for approximately 29 percent of the voting power of the Company.
In addition, if future industry demand levels are lower than 9 Table of Contents expected or customers' demands change, the Company may not be successful in implementing its strategic initiatives. If the Company is unable to successfully implement these strategic initiatives, revenues, profitability, growth prospects and market share could be significantly reduced.
In addition, if future industry demand levels are lower than expected or customers' demands change, the Company may not be successful in implementing its strategic initiatives. If the Company is unable to successfully implement these strategic initiatives, revenues, profitability, growth prospects and market share could be significantly reduced. 10 Table of Contents The lift truck business is cyclical.
Because certain members of the Company’s extended founding family could prevent other stockholders from exercising significant influence over significant corporate actions, the Company may be a less attractive takeover target, which could adversely affect the market price of its common stock. Item 1B. UNRESOLVED STAFF COMMENTS None.
Because certain members of the Company’s extended founding family could prevent other stockholders from exercising significant influence over significant corporate actions, the Company may be a less attractive takeover target, which could adversely affect the market price of its common stock.
As of December 31, 2023, certain members of the Company’s extended founding family held approximately 30 percent of the Company’s outstanding Class A common stock and approximately 95 percent of the Company’s outstanding Class B common stock.
As of December 31, 2024, certain members of the Company’s extended founding family held approximately 30 percent of the Company’s outstanding Class A common stock and approximately 96 percent of the Company’s outstanding Class B common stock.
In addition, security breaches, whether in the Company’s systems or those of third parties on which the Company relies, could result in unauthorized access to and disclosure of confidential, personal or sensitive information and loss of intellectual property and pose a risk to the security, confidentiality, availability and integrity of the Company’s data, as well as the data of the Company’s suppliers, customers and employees.
In addition, security breaches, whether in the Company’s systems or those of third-party business partners, could result in unauthorized access to and disclosure of confidential, personal or sensitive information and loss of intellectual property and pose a risk to the security, confidentiality, availability and integrity of the Company’s data, as well as the data of the Company’s suppliers, customers and employees.
Unforeseen difficulties, such as delays in development due to design defects or changes in specifications and insufficient research and development resources or cost overruns, may hinder the Company’s ability to incorporate Nuvera’s technologies into its product lines on an economically favorable basis or at all.
Unforeseen difficulties, such as delays in development due to design defects or changes in specifications and insufficient research and development resources, cost overruns or availability of key components such as hydrogen, may hinder the Company’s ability to incorporate Nuvera’s technologies into its product lines or generate revenues to third-parties on an economically favorable basis or at all.
Fluctuations in the rate of orders for lift trucks, attachments and fuel-cell technology reflect the capital investment decisions of the Company's customers, which depend to a certain extent on the general level of economic activity in the various industries the customers serve. During economic downturns, customers tend to delay new lift truck and parts purchases.
Fluctuations in the rate of orders for lift trucks, attachments and fuel-cell technology reflect the capital investment decisions of the Company's customers, which depend to a certain extent on the general level of economic activity in the various industries the customers serve.
Risks Related to Cybersecurity The Company may be unable to protect its information systems against service interruptions, data corruption, cyber-based attacks or network breaches, which have in the past and could in the future disrupt business operations and could materially adversely affect the Company's operating results, financial position or reputation.
Risks Related to Cybersecurity The Company may be unable to protect its information systems against service interruptions, data corruption, cybersecurity incidents or network breaches, which have in the past and could in the future disrupt business strategy and operations and could materially adversely affect the Company's results of operations, financial condition or reputation.
The Company’s information systems have been and may in the future be susceptible to damage, disruptions or shutdowns due to failures during the process of upgrading or replacing software, databases or components; power outages; hardware failures; user error; insider threats; or cybersecurity threats, including, but not limited to, ransomware, malware, phishing and denial of service attacks, which are increasing in frequency and sophistication.
The Company’s information systems, or those of our third-party business partners, have been and may in the future be susceptible to damage, disruptions or shutdowns due to failures during the process of upgrading or replacing software, databases or components; power outages; hardware failures; user error; insider threats; or cybersecurity threats and cybersecurity incidents, including, but not limited to, ransomware, malware, fraud, phishing or other social engineering attempts and denial of service attacks, which are increasing in frequency and sophistication.
Reports of unauthorized access to the Company's products, systems and 11 Table of Contents data, regardless of their veracity, may result in the perception that the products, systems or data are capable of being hacked, which could harm its brands, prospects and operating results.
Reports of unauthorized access to the Company's products, systems and data, regardless of their veracity, may result in the perception that the products, systems or data are capable of being hacked, which could harm its brands, reputation, prospects, relationships with third parties and operating results.
While various procedures and controls have been and are being utilized to mitigate such risks, there can be no guarantee that the actions and controls the Company implements, or which the Company has caused or will cause third-party service providers to implement, will be sufficient to protect and mitigate associated risks to the Company’s information systems, information or other property.
While the Company is committed to adhering to evolving regulatory cybersecurity requirements, various procedures and controls have been and are being utilized to mitigate such risks, there can be no guarantee that the actions and controls the Company implements, or which the Company has caused or will cause third-party business partners to implement, will be sufficient to protect and mitigate associated risks to the Company’s information systems, information or other property.
Conditions resulting from natural disasters or global health epidemics or pandemics may prevent or delay the Company’s ability to obtain critical components or manufacture and sell the Company’s products. These disruptions could materially affect the Company’s liquidity, operations and revenues and profitability could be significantly reduced. The Company depends on a limited number of suppliers for specific critical components.
Conditions resulting from natural disasters or global health epidemics or pandemics may prevent or delay the Company’s ability to obtain critical components or manufacture and sell the Company’s products. These disruptions could materially affect the Company’s liquidity, operations and revenues and profitability could be significantly reduced.
The Company manufactures products that include raw materials that consist of steel, rubber, copper, lead, castings and counterweights. The Company also purchases parts provided by suppliers that are manufactured from castings and steel or contain lead. The cost of these parts is affected by the same economic conditions that impact the cost of the parts the Company manufactures.
The Company also purchases parts provided by suppliers that are manufactured from castings and steel or contain lead. The cost of these parts is affected by the same economic conditions that impact the cost of the parts the Company manufactures.
Risks Related to Key Personnel and Ownership The Company is dependent on key personnel, and the loss of these key personnel could significantly reduce profitability. The Company is highly dependent on the skills, experience and services of key personnel, and the loss of key personnel could have a material adverse effect on its business, operating results and financial condition.
The Company is highly dependent on the skills, experience and services of key personnel, and the loss of key personnel could have a material adverse effect on its business, operating results and financial condition.
If the normalization of supply chains and inflationary pressures is longer than anticipated, the Company may not be able to generate sufficient cash from operations which, among other things, could negatively impact the Company's debt levels and ability to access its credit facilities, or require the Company to seek additional financing sources, which may not be available on favorable terms or at all.
As a result of supply disruptions, the Company may not be able to generate sufficient cash from operations which, among other things, could negatively impact the Company's debt levels and ability to access its credit facilities, or require the Company to seek additional financing sources, which may not be available on favorable terms or at all.
Consequently, the Company has experienced, and in the future may continue to experience, significant fluctuations in revenues and net income. If there is a downturn in the general economy, or in the industries served by lift truck customers, the Company's revenue and profitability could decrease significantly, and the Company may not be able to sustain or grow the business.
If there is a downturn in the general economy, or in the industries served by lift truck customers, the Company's revenue and profitability could decrease significantly, and the Company may not be able to sustain or grow the business.
Further, existing free trade laws and regulations provide certain beneficial duties and tariffs for qualifying imports and exports, subject to compliance with the applicable classification and other requirements.
Changes in existing free trade laws and regulations or tariffs could materially reduce the Company's profitability. Existing free trade laws and regulations provide certain beneficial duties and tariffs for qualifying imports and exports, subject to compliance with the applicable classification and other requirements.
The cost to manufacture lift trucks and related service parts has been and may continue to be affected by fluctuations in prices for these raw materials. If costs of these raw materials increase, the Company's profitability could be materially reduced.
The cost to manufacture lift trucks and related service parts has been and may continue to be affected by fluctuations in prices for these raw materials. If costs of these raw materials increase, the Company's profitability could be materially reduced. 9 Table of Contents The Company depends on a limited number of suppliers for specific critical components.
If, in the future, the Company’s or a third party’s information systems suffer severe damage, disruption, breach, or shutdown, and business continuity plans do not effectively resolve the issues in a timely manner, then the Company could be subject to litigation with third parties, government enforcement actions, penalties, disruption to operations and product systems, unauthorized release of confidential or otherwise protected information, corruption of data, or remediation costs, which could result in a negative impact on the Company’s operating results, financial condition or reputation.
If, in the future, the Company’s or a third party’s information systems suffer severe damage, disruption, breach, or shutdown, and business continuity plans do not effectively resolve the issues in a timely manner, then the Company could be subject to litigation including individual claims or consumer class actions, commercial litigation, administrative, civil or criminal investigations or actions, regulatory intervention, government enforcement actions, penalties, sanctions or fines, disruption to operations and product systems, communication delays, unauthorized release of confidential or otherwise protected information, corruption or alteration of data, payment of ransom, or investigation and remediation costs, which could result in a negative impact on the Company’s business strategy, results of operations, financial condition or reputation.
Sales of the Company's products are therefore subject to the quality and effectiveness of the dealers, who are not subject to the Company's direct control. As a result, ineffective or poorly performing dealers could result in a significant decrease in revenues and profitability and the Company may not be able to sustain or grow its business.
As a result, ineffective or poorly performing dealers could result in a significant decrease in revenues and profitability and the Company may not be able to sustain or grow its business.
In addition, these laws may be changed or new laws may be enacted in the future, including, for example, with respect to environmental, climate change, health and safety and cybersecurity matters. Non-U.S. litigation is often expensive, time consuming and distracting. As a result, any of these risks could significantly reduce profitability and the Company's ability to operate its businesses effectively.
In addition, these laws may be changed or new laws may be enacted in the future, including, for example, with respect to environmental, climate change, 13 Table of Contents health and safety and cybersecurity matters. Non-U.S. litigation is often expensive, time consuming and distracting.
The Company competes with several global manufacturers that operate in all major markets. These manufacturers may have lower manufacturing costs and greater financial resources than the Company, which may enable them to commit larger amounts of capital in response to changing market conditions. If the Company fails to compete effectively, revenues and profitability could be significantly reduced.
The Company competes with several global manufacturers that operate in all major markets. These manufacturers may have lower manufacturing costs, offer differentiated products at competitive prices, provide better performance and have greater financial resources than the Company, which may enable them to commit larger amounts of capital in response to changing market conditions.
The Company has experienced and may continue to experience significant increases in materials costs, primarily as a result of inflationary pressures and global increases in the costs of industrial metals, including steel, lead and copper and other commodities, such as rubber, as a result of increased demand and limited supply.
The Company has experienced and may continue to experience significant increases in materials costs, primarily as a result of inflationary pressures, increased demand and limited supply. The Company manufactures products that include raw materials that consist of steel, rubber, copper, lead, castings and counterweights.
Changes in laws or policies governing the terms of international trade, and in particular increased trade restrictions, tariffs or taxes on imports from countries where the Company manufactures products could have a material adverse impact on the Company's business and financial results. 8 Table of Contents Part of the strategy to expand worldwide market share is strengthening the Company's non-U.S. distribution network.
Changes in or uncertainty surrounding, laws or policies governing the terms of international trade, and in particular increased trade restrictions, tariffs or taxes on imports from countries where the Company manufactures products could have a material adverse impact on the Company's business and financial results.
Furthermore, the Company's hedging contracts may not fully offset risks from changes in currency exchange rates. The Company relies primarily on its network of independent dealers to sell lift trucks and aftermarket parts and the Company has no direct control over sales by those dealers to customers.
The Company relies primarily on its network of independent dealers to sell lift trucks and aftermarket parts and the Company has no direct control over sales by those dealers to customers.
While the Company is not currently aware that any material outstanding claims or obligations exist with regard to these sites, the discovery of additional contamination at these or other sites could result in significant cleanup costs that could have a material adverse effect on the Company's financial condition and results of operations. 12 Table of Contents In connection with any acquisition the Company has made, it could, under some circumstances, be held financially liable for or suffer other adverse effects due to environmental violations or contamination caused by prior owners of businesses the Company has acquired.
While the Company is not currently aware that any material outstanding claims or obligations exist with regard to these sites, the discovery of additional contamination at these or other sites could result in significant cleanup costs that could have a material adverse effect on the Company's financial condition and results of operations.
If the global capital goods market declines, the cost saving efforts the Company has implemented may not be sufficient to achieve the benefits expected. If the global economy or the capital goods market declines, revenues could decline. If revenues are lower than expected, the programs the Company has implemented may not achieve the benefits expected.
Furthermore, the Company's hedging contracts may not fully offset risks from changes in currency exchange rates. If the global capital goods market declines, the cost saving efforts the Company has implemented may not be sufficient to achieve the benefits expected. If the global economy or the capital goods market declines, the Company's revenues could decline.
The Company's products may also be subject to laws and regulations relating to the protection of the environment, including those governing vehicle exhausts. Regulatory agencies in the United States and Europe have issued or proposed various regulations and directives designed to reduce emissions from spark-ignited engines and diesel engines used in off-road vehicles, such as industrial lift trucks.
Regulatory agencies in the U.S. and other parts of the world have issued or proposed various regulations and directives designed to reduce emissions from spark-ignited engines and diesel engines used in off-road vehicles, such as industrial lift trucks.
Through arrangements with WF and others, dealers and other customers are provided financing for new lift trucks in the United States and in major countries of the world outside of the United States.
Risks Related to Financing The Company is subject to recourse or repurchase obligations with respect to the financing arrangements of some of its customers. Through arrangements with Wells Fargo and others, dealers and other customers are provided financing for new lift trucks in the U.S. and in major countries of the world outside of the United States.
The Company could incur a charge to earnings if reserves prove to be inadequate, which could have a material adverse effect on results of operations and liquidity for the period in which the charge is taken. Other products may be introduced to the market by competitors, making the Nuvera technology less marketable.
The Company could incur a charge to earnings if reserves prove to be inadequate, which could have a material adverse effect on results of operations and liquidity for the period in which the charge is taken. The Company may be unable to fund its operations at competitive rates, on commercially reasonable terms or in sufficient amounts.
The Company's effective income tax rate could be volatile and materially change as a result of changes in tax laws, mix of earnings and other factors.
For example, proposals to reform non-U.S. tax laws or other regulations could significantly impact how multinational corporations do business. The Company's effective income tax rate could be volatile and materially change as a result of changes in tax laws, geographic mix of earnings and other factors.
A part of this strategy also includes decreasing costs by sourcing basic components in lower-cost countries. Implementation of this part of the strategy may increase the impact of the risks to global operations and there can be no assurance that such risks will not have an adverse effect on the Company's revenues, profitability or market share.
Implementation of this part of the strategy may increase the risks and potential impacts to global operations and there can be no assurance that such risks will not have an adverse effect on the Company's revenues, profitability or market share. Economic and political conditions in the U.S. and abroad may lead to significant changes in tax rules and regulations.
The use of fuel-cell technology in industrial and commercial applications is a relatively new development.
Other products may be introduced to the market by competitors, making the Nuvera technology less marketable. The use of fuel-cell technology in industrial and commercial applications is a relatively new development.
If the Company suffers a liquidity shortage, the Company may be forced to reduce production levels, reduce planned capital investments, reduce workforce, decrease or suspend planned dividends, or adopt other measures. The cost of raw materials used by the Company's products has fluctuated and may continue to fluctuate, which could materially reduce the Company's profitability.
If the Company suffers a liquidity shortage, the Company may be forced to reduce production levels, reduce planned capital investments, reduce workforce, decrease or suspend planned dividends or share purchases, or adopt other measures. Failure to compete effectively within the Company's industry could result in a significant decrease in revenues and profitability.
Moreover, the Company may not be aware of all vulnerabilities associated with its information systems. The Company has experienced cyber security threats and vulnerabilities in the Company’s information systems and those of the Company’s third-party providers. Such prior events have not had a material impact on the Company’s financial condition, results of operations or liquidity.
Moreover, the Company may not be aware of all vulnerabilities associated with its information systems. The Company has experienced cybersecurity threats, cybersecurity incidents and vulnerabilities in the Company’s information systems and those of the Company’s third-party business partners.
Furthermore, the Company may be forced to 10 Table of Contents take additional cost saving steps that could result in additional charges that materially adversely affect the ability to compete or implement the Company's current business strategies. The Company is subject to recourse or repurchase obligations with respect to the financing arrangements of some of its customers.
If revenues are lower than expected, the programs the Company has implemented may not achieve the benefits expected. Furthermore, the Company may be forced to take additional cost saving steps that could result in additional charges that materially adversely affect the ability to compete or implement the Company's current business strategies.
Failure to compete effectively within the Company's industry could result in a significant decrease in revenues and profitability. The Company experiences intense competition in the sale of lift trucks and aftermarket parts.
The Company experiences intense competition in the sale of lift trucks and aftermarket parts.
Removed
Economic and political conditions in the United States and abroad may lead to significant changes in tax rules and regulations. For example, proposals to reform non-U.S. tax laws or other regulations could significantly impact how multinational corporations do business.
Added
Part of the strategy to expand worldwide market share is strengthening the Company's non-U.S. distribution network. A part of this strategy also includes decreasing costs by sourcing basic components in lower-cost countries.
Removed
Risks Related to Legal and Regulatory Matters The Company is subject to import and export controls, which could subject the Company to liability or impair the Company's ability to compete in international markets.
Added
In February 2025, the United States announced substantial tariffs on Canada, China and Mexico and restored tariffs on imported steel and aluminum without regard to the location of the seller. There exists substantial uncertainty as to whether all of these tariffs will be fully implemented or sustained.
Added
The Company is monitoring these actions, which could have an adverse impact on the Company's business strategy, market share and operating results. There can be no assurances that these tariffs will not be implemented or increased in the future, with the previously mentioned countries or additional countries with which the Company does business.
Added
The degree to which these changes in U.S. trade policy affect the Company's operating results will be influenced by the specific details of the changes in trade policies, their timing and duration, and the Company's effectiveness in deploying tools and strategies to address these issues.
Added
In addition, retaliatory tariffs imposed by other countries or other potential government actions, could result in further adverse impacts on the Company's business, market share and operating results. The cost of raw materials used by the Company's products has fluctuated and may continue to fluctuate, which could materially reduce the Company's profitability.
Added
If the Company fails to compete effectively, revenues and profitability could be significantly reduced. The Company’s products and services may be affected from time to time by design and manufacturing defects or new technologies that could materially adversely affect the Company’s business and result in harm to the Company’s reputation.
Added
The Company offers complex hardware and software products and services that can be affected by design and manufacturing defects. Sophisticated operating system software and applications, such as those offered by the Company, often have issues that can unexpectedly interfere with the intended operation of hardware or software products and services.
Added
Defects can also exist in components and products the Company purchases from third parties. Component defects could make the Company’s products unsafe and create a risk of property damage and personal injury. In addition, the Company’s service offerings can have quality issues and from time to time experience outages, service slowdowns or errors.
Added
As a result, from time to time the Company’s services have not performed as anticipated and may not meet customer expectations. The introduction of new and complex technologies, such as artificial intelligence features, can also create challenges and compliance and safety risks.
Added
There can be no assurance the Company will be able to detect and fix all issues and defects in the hardware, software and services it offers.
Added
In addition, the Company can be exposed to product liability claims, recalls, product replacements or modifications, write-offs of inventory, property, plant and equipment or intangible assets, and significant warranty and other expenses, including litigation costs and regulatory fines.
Added
Quality problems can adversely affect the experience for users of the Company’s products and services, and result in harm to the Company’s reputation, loss of competitive advantage, poor market acceptance, reduced demand for products and services, delay in product innovations and lost sales.
Added
During economic downturns, customers tend to delay new lift truck and parts purchases or may cancel or postpone orders. Consequently, the Company has experienced, and in the future may continue to experience, significant fluctuations in revenues and net income.
Added
Sales of the Company's products are therefore not subject to the Company's direct control and may depend on the quality and effectiveness of the dealers, including their service repair capabilities.
Added
As of the date of this filing, the Company has not identified any risks from cybersecurity threats, including as a result of previous cybersecurity incidents, that have had or are reasonably likely to have, a material impact on the Company’s business strategy, results of operations or financial condition.
Added
The Company's products may also be subject to laws and regulations relating to the protection of the environment, including those governing vehicle exhausts.
Added
In connection with any acquisition the Company has made, it could, under some circumstances, be held financially liable for or suffer other adverse effects due to environmental violations or contamination caused by prior owners of businesses the Company has acquired.
Added
As a result, any of these risks could significantly reduce profitability and the Company's ability to operate its businesses effectively. Risks Related to Key Personnel and Ownership The Company is dependent on key personnel, and the loss of these key personnel could significantly reduce profitability.
Added
The Company’s stock repurchase program could affect the price of its Class A common stock and increase volatility and may not enhance long-term shareholder value. The Company’s Board of Directors has authorized a stock repurchase program.
Added
The timing and amount of any repurchases under the stock repurchase program are determined at the discretion of the Company's management based on a number of factors.
Added
The stock repurchase program does not require the Company to acquire any specific number of shares and may be modified, suspended, extended or terminated by the Company at any time without prior notice and will expire no later than November 2027. The Company may repurchase shares in the open market, through privately negotiated transactions or otherwise.
Added
Repurchases under the stock repurchase program could affect the price of the Company's Class A common stock.
Added
The existence of a stock repurchase program could cause the price of the Company's Class A common stock to be higher than it would be in the absence of such a program and could potentially reduce the market liquidity for the Company’s Class A common stock.
Added
There can be no assurance that any stock repurchases will enhance shareholder value because the market price of the Company’s Class A common stock may decline below the levels at which the Company repurchased the shares.
Added
Although the stock repurchase program is intended to enhance long-term shareholder value, there is no assurance that it will do so and short-term price fluctuations in the Class A common stock could reduce the program’s effectiveness.
Added
Furthermore, the stock repurchase program does not obligate the Company to repurchase any dollar amount or number of shares of the Company's Class A common stock, and it may be suspended or discontinued at any time, and any suspension or discontinuation could cause the market price of the Company's Class A common stock to decline.
Added
The Company has incurred significant debt obligations that could adversely affect its business and financial condition, including the ability to fully implement its strategy.

… 6 more changes not shown on this page.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

11 edited+3 added−0 removed0 unchanged
Biggest changeItem 1C. CYBERSECURITY The Company’s Board of Directors, directly and through its committees, is responsible for overseeing cybersecurity risks that affect the Company. As such, the Board has delegated oversight of risks related to cybersecurity to the Audit Review Committee of the Board of Directors (the “ARC”). The ARC is charged with reviewing the Company’s cybersecurity risks, controls and procedures.
Biggest changeAs such, the Board has delegated oversight of risks related to cybersecurity to the Audit Review Committee of the Board of Directors (the “ARC”). The ARC is charged with reviewing the Company’s cybersecurity risks, controls and procedures. The ARC reviews the Company’s plans to mitigate cybersecurity risks and the Company’s ability to respond to and remediate cybersecurity incidents.
Members of the Office of the CISO also engage with the Company’s internal audit department to review cybersecurity threats focusing on operational applications and databases through the course of their activities. The Office of the CISO consists of the Director of Cybersecurity, the Chief Information Officer and other information technology and cybersecurity specialists.
Members of the Office of the CISO also engage with the Company’s internal audit department to review cybersecurity threats focusing on operational applications and databases through the course of their activities.
The ARC reviews the Company’s plans to mitigate cybersecurity risks and the Company’s ability to respond to and remediate cybersecurity incidents. The ARC is informed of such risks through regular reviews with management regarding any specific cybersecurity issues that could affect the adequacy of internal controls over financial reporting.
The ARC is informed of such risks through regular reviews with management regarding any specific cybersecurity issues that could affect the adequacy of internal controls over financial reporting.
The Company’s cybersecurity risk management processes are a component of the Company’s overall risk management program. The Company's Cybersecurity Committee (the “CSC”) oversees the establishment and operations of cybersecurity risk management processes and strategies and directs activities to identify and detect cybersecurity threats, protect the Company’s assets and to respond and recover from cybersecurity incidents.
The Company's Office of the CISO chairs the Company’s Cybersecurity Committee (the “CSC”), which oversees the establishment and operations of cybersecurity risk management processes and strategies and directs activities to identify, detect, assess and manage risks from cybersecurity threats, protect the Company’s assets and to respond and recover from cybersecurity incidents.
The CSC works with the Company’s Office of the CISO, which is responsible for the daily direction of cybersecurity risk activities. The Office of the CISO uses various data protection frameworks and conducts vulnerability assessments, cybersecurity monitoring and recovery software, employee, supplier and dealer training programs and monitoring of incidents and threats.
The Office of the CISO uses various data protection frameworks and conducts vulnerability assessments, cybersecurity monitoring and recovery software, employee, supplier and dealer training programs and monitoring of incidents and threats.
The CSC is responsible for coordination with the Company’s internal audit, risk management and/or crisis management teams to review and respond to cybersecurity threats. 13 Table of Contents The CSC is chaired by a member of the Office of the Chief Information Security Officer (“Office of the CISO”) and includes members of senior management from operations, finance and legal.
The CSC is responsible for coordination with the Company’s internal audit, risk management and/or crisis management teams to review and respond to cybersecurity threats. The CSC includes members of senior management 15 Table of Contents from operations, finance and legal. The CSC is expected to meet quarterly.
If, in the future, the Company’s or a third-party provider’s information systems suffer severe damage, disruption, breach, or shutdown, and business continuity plans do not effectively resolve the issues in a timely manner, then the Company could be subject to litigation with third parties, government enforcement actions, penalties, disruption to operations and product systems, unauthorized release of confidential or otherwise protected information, corruption of data or remediation costs, which could materially adversely affect the Company’s operating results, financial position or reputation.
If, in the future, the Company’s or a third party's information systems suffer severe damage, disruption, breach, or shutdown, and business continuity plans do not effectively resolve the issues in a timely manner, then the Company could be subject to litigation including individual claims or consumer class actions, commercial litigation, administrative, civil or criminal investigations or actions, regulatory intervention, government enforcement actions, penalties, sanctions or fines, disruption to operations and product systems, unauthorized release of confidential or otherwise protected information, corruption or alteration of data, payment of ransom, or investigation and remediation costs, which could result in a negative impact on the Company’s business strategy, results of operations, financial condition or reputation.
The Company maintains processes to oversee and identify risks from cybersecurity threats associated with its use of third-party service providers. The Company has experienced cybersecurity threats and vulnerabilities in its information systems and those of third-party providers. Such prior events have not had a material impact on the Company’s financial condition, results of operations or liquidity.
The Company maintains processes to oversee and identify risks from cybersecurity threats associated with its use of third-party service providers. The Company has experienced cybersecurity threats, cybersecurity incidents and vulnerabilities in its information systems and those of third-party business partners.
The CSC is expected to meet quarterly. In coordination with the Office of the CISO, the CSC reviews and reports on the Company’s cybersecurity activities to the ARC on a quarterly basis and to the full Board of Directors on at least an annual basis.
On behalf of the CSC, the Office of the CISO review and reports on the Company’s cybersecurity activities to the ARC on a quarterly basis and to the full Board of Directors on at least an annual basis. In addition, the Company engages third parties to assist in assessing, enhancing, implementing and monitoring the Company's cybersecurity risk-management programs.
The Office of the CISO has extensive experience in information technology including roles in cybersecurity, privacy, software engineering, systems engineering, infrastructure and data center management. In addition, the Company engages third parties to assist in assessing, enhancing, implementing and monitoring the Company's cybersecurity risk-management programs.
The Chief Information Security Officer has extensive experience in information technology including roles in cybersecurity, privacy, software engineering, systems engineering, infrastructure and data center management, and is a Certified Information Security Manager and a Certified Data Privacy Solutions Engineer.
See “Risks Related to Cybersecurity” in “Risk Factors” beginning on page 11 of this Annual Report on Form 10-K.
See "Risks Related to Cybersecurity" in Part I, Item 1A. Risk Factors, in this Annual Report on Form 10-K.
Added
Item 1C. CYBERSECURITY The Company’s cybersecurity risk management processes are a component of the Company’s overall risk management program. The Company’s Board of Directors, directly and through its committees, is responsible for overseeing cybersecurity risks that affect the Company.
Added
The Company’s Office of the Chief Information Security Officer (“Office of the CISO”), which is responsible for the daily direction and management of cybersecurity risk activities, consists of the Chief Information Security Officer, Chief Information and Digital Officer and other information technology and cybersecurity specialists.
Added
As of the date of this filing, the Company has not identified any risks from cybersecurity threats, including as a result of previous cybersecurity incidents, that have had or are reasonably likely to have a material impact on the Company’s business strategy, results of operations or financial condition.

Item 2. Properties

Properties — owned and leased real estate

2 edited+0 added−0 removed0 unchanged
Biggest changePROPERTIES The following table presents the principal assembly, manufacturing, distribution and office facilities that the Company owns or leases: Segment Facility Location Owned/Leased Function(s) Lift Truck Americas Berea, Kentucky Owned Assembly of lift trucks and manufacture of component parts Charlotte, North Carolina Leased Customer experience and training center Cleveland, Ohio Leased Global headquarters Danville, Illinois Owned Americas parts distribution center Fairview, Oregon Owned Counterbalanced development center for design and testing of lift trucks, prototype equipment and component parts Greenville, North Carolina Owned Divisional headquarters and marketing and sales operations for Hyster ® and Yale ® in the Americas; Americas warehouse development center; assembly of lift trucks and manufacture of component parts Itu, Brazil Owned Assembly of lift trucks and parts distribution center Ramos Arizpe, Mexico Owned Assembly of lift trucks and manufacture of component parts EMEA Craigavon, Northern Ireland Owned Manufacture of lift trucks and component parts Frimley, Surrey, UK Leased Divisional headquarters and marketing and sales operations for Hyster ® and Yale ® in EMEA Irvine, Scotland Leased European administrative center Masate, Italy Leased Assembly of lift trucks; European warehouse development center Nijmegen, the Netherlands Owned Big trucks development center; manufacture and assembly of big trucks and component parts; European parts distribution center JAPIC Fuyang, China Owned Manufacture and assembly of lift trucks Pune, India Leased Engineering, supply chain and marketing services Shanghai, China Owned Sale of parts and marketing operations of China Bolzoni Helsinki, Finland Leased Manufacture and distribution of Bolzoni products Hebei, China Owned Manufacture and distribution of Bolzoni products Piacenza, Italy Owned Bolzoni headquarters; manufacture and distribution of Bolzoni products Salzgitter, Germany Owned Manufacture and distribution of Bolzoni products Sulligent, Alabama Owned Manufacture of Bolzoni products and manufacture of component parts for lift trucks Wuxi, China Owned Manufacture and distribution of Bolzoni products Nuvera Billerica, Massachusetts Leased Nuvera research and development laboratory 14 Table of Contents SN’s operations are supported by three facilities.
Biggest changePROPERTIES The following table presents the principal assembly, manufacturing, distribution and office facilities that the Company owns or leases: Segment Facility Location Owned/Leased Function(s) Lift Truck Americas Berea, Kentucky Owned Assembly of lift trucks and manufacture of component parts Charlotte, North Carolina Leased Customer experience and training center Cleveland, Ohio Leased Global headquarters Danville, Illinois Owned Americas parts distribution center Fairview, Oregon Owned Counterbalanced development center for design and testing of lift trucks, prototype equipment and component parts Greenville, North Carolina Owned Divisional headquarters and marketing and sales operations for Hyster ® and Yale ® in the Americas; Americas warehouse development center; assembly of lift trucks and manufacture of component parts Itu, Brazil Owned Assembly and manufacture of lift trucks and parts distribution center Ramos Arizpe, Mexico Owned Assembly of lift trucks and manufacture of component parts EMEA Craigavon, Northern Ireland Owned Manufacture of lift trucks and component parts Frimley, Surrey, UK Leased Divisional headquarters and marketing and sales operations for Hyster ® and Yale ® in EMEA Irvine, Scotland Leased European administrative center Masate, Italy Leased Assembly of lift trucks; European warehouse development center Nijmegen, the Netherlands Owned Big trucks development center; manufacture and assembly of big trucks and component parts; European parts distribution center JAPIC Fuyang, China Owned Manufacture and assembly of lift trucks Pune, India Leased Engineering, supply chain and marketing and administrative services Shanghai, China Owned Sale of parts and marketing operations of China Bolzoni Helsinki, Finland Leased Manufacture and distribution of Bolzoni products Hebei, China Owned Manufacture and distribution of Bolzoni products Piacenza, Italy Owned Bolzoni headquarters; manufacture and distribution of Bolzoni products Salzgitter, Germany Owned Manufacture and distribution of Bolzoni products Sulligent, Alabama Owned Manufacture of Bolzoni products and manufacture of component parts for lift trucks Wuxi, China Owned Manufacture and distribution of Bolzoni products Nuvera Billerica, Massachusetts Leased Nuvera research and development laboratory SN’s operations are supported by three facilities.
SN’s headquarters are located in Obu, Japan at a facility owned by SN. The Obu facility also has assembly and distribution capabilities for lift trucks and parts. In Cavite, the Philippines and Hanoi, Vietnam, SN owns facilities for the manufacture of components for SN and the Company's products.
SN’s headquarters are located in Obu, Japan at a facility owned by SN. The Obu facility also has assembly and distribution capabilities for lift trucks and parts. In Cavite, the Philippines and Hanoi, Vietnam, SN owns facilities for the manufacture of components for SN and the Company's products. 16 Table of Contents

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

1 edited+3 added−1 removed1 unchanged
Biggest changeThe Class B common stock is convertible into Class A common stock on a one-for-one basis. At December 31, 2023, there were approximately 790 Class A common stockholders of record and 840 Class B common stockholders of record.
Biggest changeThe Class B common stock is convertible into Class A common stock on a one-for-one basis. At December 31, 2024, there were approximately 794 Class A common stockholders of record and 836 Class B common stockholders of record.
Removed
Purchases of Equity Securities by the Issuer and Affiliated Purchasers There have been no issuer purchases of equity securities and no publicly announced repurchase program currently exists. Item 6. [RESERVED] 15 Table of Contents
Added
Purchases of Equity Securities by the Issuer and Affiliated Purchasers Issuer Purchases of Equity Securities Period (a) Total Number of Shares Purchased (b) Average Price Paid per Share (1) (c) Total Number of Shares Purchased as Part of the Publicly Announced Program (d) Maximum Number of Shares (or Approximate Dollar Value) that May Yet Be Purchased Under the Program (2) Month #1 (October 1, 2024 - October 31, 2024) — $ — — $ 50,000,000 Month #2 (November 1, 2024 -November 30, 2024) 32,202 $ 55.64 32,202 $ 48,208,152 Month #3 (December 1, 2024 - December 31, 2024) 57,027 $ 54.68 89,229 $ 45,089,883 Total 89,229 $ 55.03 89,229 $ 45,089,883 (1) Average Price Paid per Share excludes commissions.
Added
(2) On November 18, 2024, the Company’s Board of Directors announced the approval of a stock repurchase program, pursuant to which the Company may repurchase up to $50 million or 1.5 million shares, whichever comes first, of the Company’s Class A common stock.
Added
The stock repurchase program may be modified, suspended, extended or terminated by the Company at any time without prior notice and will expire no later than November 2027. Item 6. [RESERVED] 18 Table of Contents

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

1 edited+0 added−0 removed0 unchanged
Biggest changeItem 6. [RESERVED] 15 Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 16 Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 28 Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 29 Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 29
Biggest changeItem 6. [RESERVED] 18 Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 19 Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 30 Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 31 Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 31

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

50 edited+50 added−59 removed33 unchanged
Biggest changeThe Company's past results of operations have not been materially affected by a change in the estimate of product warranties and although there can be no assurances, the Company is not aware of any circumstances that would be reasonably likely to materially change the estimates in the future. 17 Table of Contents CONSOLIDATED FINANCIAL REVIEW The following table identifies the components of change for 2023 compared with 2022 by segment: Revenues Gross Profit Operating Profit (Loss) 2022 $ 3,548.3 $ 433.9 $ (39.1) Increase (decrease) in 2023 Americas 493.9 261.5 186.3 EMEA 116.3 76.0 58.7 JAPIC (48.9) 2.9 (5.0) Lift truck business 561.3 340.4 240.0 Bolzoni 19.6 11.5 9.1 Nuvera 0.9 (1.0) (2.1) Eliminations (11.8) 0.8 0.8 2023 $ 4,118.3 $ 785.6 $ 208.7 FINANCIAL REVIEW The segment and geographic results of operations for the Company were as follows for the year ended December 31: Favorable / (Unfavorable) % Change 2023 2022 2023 vs. 2022 Lift truck unit shipments (in thousands) Americas 67.1 58.4 14.9 % EMEA 25.1 29.2 (14.0) % JAPIC 10.0 13.2 (24.2) % 102.2 100.8 1.4 % Revenues Americas $ 2,899.3 $ 2,405.4 20.5 % EMEA 820.5 704.2 16.5 % JAPIC 201.1 250.0 (19.6) % Lift truck business 3,920.9 3,359.6 16.7 % Bolzoni 375.3 355.7 5.5 % Nuvera 4.3 3.4 26.5 % Eliminations (182.2) (170.4) 6.9 % $ 4,118.3 $ 3,548.3 16.1 % Gross profit (loss) Americas $ 564.9 $ 303.4 86.2 % EMEA 121.0 45.0 168.9 % JAPIC 25.5 22.6 12.8 % Lift truck business 711.4 371.0 91.8 % Bolzoni 82.2 70.7 16.3 % Nuvera (8.2) (7.2) (13.9) % Eliminations 0.2 (0.6) n.m. $ 785.6 $ 433.9 81.1 % 18 Table of Contents Favorable / (Unfavorable) % Change 2023 2022 2023 vs. 2022 Selling, general and administrative expenses Americas $ 331.8 $ 256.6 (29.3) % EMEA 108.9 91.6 (18.9) % JAPIC 41.1 33.2 (23.8) % Lift truck business 481.8 381.4 (26.3) % Bolzoni 66.9 64.5 (3.7) % Nuvera 28.2 27.1 (4.1) % $ 576.9 $ 473.0 (22.0) % Operating profit (loss) Americas $ 233.1 $ 46.8 398.1 % EMEA 12.1 (46.6) n.m.
Biggest changeThe Company's past results of operations have not been materially affected by a change in the estimate of product warranties and although there can be no assurances, the Company is not aware of any circumstances that would be reasonably likely to materially change the estimates in the future. 20 Table of Content s FINANCIAL REVIEW The segment and geographic results of operations for the Company were as follows for the years ended December 31: Favorable / (Unfavorable) For the Years Ended December 31, $ Change % Change 2024 2023 2024 vs. 2023 2024 vs. 2023 Revenues Americas $ 3,222.5 $ 2,899.3 $ 323.2 11.1 % EMEA 707.6 820.5 (112.9) (13.8) % JAPIC 183.7 201.1 (17.4) (8.7) % Lift truck business 4,113.8 3,920.9 192.9 4.9 % Bolzoni 379.1 375.3 3.8 1.0 % Nuvera 1.4 4.3 (2.9) (67.4) % Eliminations (186.1) (182.2) (3.9) 2.1 % $ 4,308.2 $ 4,118.3 $ 189.9 4.6 % Gross profit (loss) Americas $ 695.0 $ 564.9 $ 130.1 23.0 % EMEA 108.1 121.0 (12.9) (10.7) % JAPIC 16.6 25.5 (8.9) (34.9) % Lift truck business 819.7 711.4 108.3 15.2 % Bolzoni 85.4 82.2 3.2 3.9 % Nuvera (9.6) (8.2) (1.4) (17.1) % Eliminations — 0.2 (0.2) n.m. $ 895.5 $ 785.6 $ 109.9 14.0 % Selling, general and administrative expenses Americas $ 370.1 $ 331.8 $ 38.3 (11.5) % EMEA 117.1 108.9 8.2 (7.5) % JAPIC 38.0 41.1 (3.1) 7.5 % Lift truck business 525.2 481.8 43.4 (9.0) % Bolzoni 72.0 66.9 5.1 (7.6) % Nuvera 30.9 28.2 2.7 (9.6) % $ 628.1 $ 576.9 $ 51.2 (8.9) % Restructuring and impairment charges Americas $ 6.8 $ — $ 6.8 n.m.
("HYG"), is a globally integrated company offering a full line of high-quality, application-tailored lift trucks and solutions aimed at meeting the specific materials handling needs of its customers. The Company's solutions include attachments and hydrogen fuel cell power products, telematics, automation and fleet management services, as well as a variety of other power options for its lift trucks.
("HYMH"), is a globally integrated company offering a full line of high-quality, application-tailored lift trucks and solutions aimed at meeting the specific materials handling needs of its customers. The Company's solutions include attachments and hydrogen fuel cell power products, telematics, automation and fleet management services, as well as a variety of other power options for its lift trucks.
Losses anticipated under the terms of the recourse or repurchase obligations were not significant at December 31, 2023 and reserves have been provided for such losses in the consolidated financial statements included elsewhere in this Annual Report on Form 10-K. See also “Related-Party Transactions” below.
Losses anticipated under the terms of the recourse or repurchase obligations were not significant at December 31, 2024 and reserves have been provided for such losses in the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K. See also “Related-Party Transactions” below.
The Facility also requires the Company to achieve a minimum fixed charge coverage ratio when total excess availability is less than the greater of 10% of the total borrowing base, as defined in the Facility, and $20.0 million. At December 31, 2023, the Company was in compliance with the covenants in the Facility.
The Facility also requires the Company to achieve a minimum fixed charge coverage ratio when total excess availability is less than the greater of 10% of the total borrowing base, as defined in the Facility, and $20.0 million. At December 31, 2024, the Company was in compliance with the covenants in the Facility.
Goodwill: Goodwill is tested for impairment annually as of May 1, and is tested for impairment between annual tests if an event occurs or circumstances change that would indicate the carrying amount may be impaired. The Company completed the annual goodwill impairment testing as of May 1, 2023 at the reporting unit level for the related goodwill.
Goodwill: Goodwill is tested for impairment annually as of May 1, and is tested for impairment between annual tests if an event occurs or circumstances change that would indicate the carrying amount may be impaired. The Company completed the annual goodwill impairment testing as of May 1, 2024 at the reporting unit level for the related goodwill.
The approximate book value of assets held as collateral under the Facility was $1.2 billion as of December 31, 2023. The Facility includes restrictive covenants, which, among other things, limit additional borrowings and investments of the Company subject to certain thresholds, as provided in the Facility.
The approximate book value of assets held as collateral under the Facility was $1.2 billion as of December 31, 2024. The Facility includes restrictive covenants, which, among other things, limit additional borrowings and investments of the Company subject to certain thresholds, as provided in the Facility.
The obligations under the Term Loan are generally secured by a first priority lien on the present and future shares of capital stock, U.S. material real property, fixtures and general intangibles consisting of intellectual property and a second priority lien on U.S. working capital assets of the borrowers and guarantors of the Term Loan, which includes, but is not limited to cash and cash equivalents, accounts receivable and inventory.
The obligations under the Term Loan are generally secured by a first priority lien on the present and future shares of capital stock, U.S. material real property, fixtures and general intangibles consisting of intellectual property and a second priority lien on U.S. working capital assets of the borrowers and guarantors of the Term Loan, which includes, but is not limited to cash and 25 Table of Content s cash equivalents, accounts receivable and inventory.
Among the factors that could cause plans, actions and results to differ materially from current expectations are, without limitation: (1) delays in delivery and other supply chain disruptions, or increases in costs as a result of inflation or otherwise, including materials, critical components and transportation costs and shortages, the imposition of tariffs, or the renewal of tariff exclusions, on raw materials or sourced products, and labor, or changes in or unavailability of quality suppliers or transporters, including the impacts of the foregoing risks on the Company's liquidity, (2) delays in manufacturing and delivery schedules, (3) customer acceptance of pricing, (4) the ability of the Company and its dealers, suppliers and end-users to access credit in the current economic environment, or obtain financing at reasonable rates, or at all, as a result of interest rate volatility and current economic and market conditions, including inflation, (5) reduction in demand for lift trucks, attachments and related aftermarket parts and service on a global basis, including any cyclical reduction in demand in the lift truck industry, (6) unfavorable effects of geopolitical and legislative developments on global operations, including without limitation the entry into new trade agreements and the imposition of tariffs and/or economic sanctions, including the Uyghur Forced Labor Prevention Act (the “UFLPA”) which could impact the Company's imports from China, as well as armed conflicts, including the Russia/Ukraine conflict, the Israel and Gaza conflict and/or the conflict in the Red Sea, and their regional effects, (7) exchange rate fluctuations, interest rate volatility and monetary policies and other changes in the regulatory climate in the countries in which the Company operates and/or sells products, (8) the effectiveness of the cost reduction programs implemented globally, including the successful implementation of procurement and sourcing initiatives, (9) the successful commercialization of Nuvera's technology, (10) the political and economic uncertainties in the countries where the Company does business, as well as the effects of any withdrawals from such countries, (11) bankruptcy of or loss of major dealers, retail customers or suppliers, (12) customer acceptance of, changes in the costs of, or delays in the development of new products, (13) introduction of new products by, more favorable product pricing offered by or shorter lead times available through competitors, (14) product liability or other litigation, warranty claims or returns of products, (15) changes mandated by federal, state and other regulation, including tax, health, safety or environmental legislation, (16) the ability to attract, retain, and replace workforce and administrative employees, (17) disruptions resulting from natural disasters, public health crises, political crises or other catastrophic events, and (18) the ability to protect the Company’s information technology infrastructure against service interruptions, data corruption, cyber-based attacks or network breaches.
Among the factors that could cause plans, actions and results to differ materially from current expectations are, without limitation: (1) delays in delivery and other supply chain disruptions, or increases in costs as a result of inflation or otherwise, including materials, critical components and transportation costs and shortages, the imposition of tariffs on raw materials or sourced products, and labor, or changes in or unavailability of quality suppliers or transporters, including the impacts of the foregoing risks on the Company's liquidity, (2) impacts resulting from increased trade barriers and restrictions on international trade, including as a result of previously announced, and potentially new, changes to U.S. trade policy and tariffs as well as retaliatory tariffs imposed by other countries where the Company does business, (3) delays in manufacturing and delivery schedules, (4) reduction in demand for lift trucks, attachments and related aftermarket parts and service on a global basis, including any cyclical reduction in demand in the lift truck industry, (5) customer acceptance of pricing, (6) customer acceptance of, changes in the costs of, or delays in the development of new products, (7) the ability of the Company and its dealers, suppliers and end-users to access credit, or obtain financing at reasonable rates, or at all, as a result of interest rate volatility and current economic and market conditions, including inflation, (8) unfavorable effects of geopolitical and legislative developments on global operations, including without limitation the entry into new trade agreements and the imposition of tariffs and/or economic sanctions, including the Uyghur Forced Labor Prevention Act (the “UFLPA”) which could impact the Company's imports from China, as well as armed conflicts, including the Russia/Ukraine conflict, the Israel and Gaza conflict and/or the conflict in the Red Sea, and their regional effects, (9) exchange rate fluctuations, interest rate volatility and monetary policies and other changes in the regulatory climate in the countries in which the Company operates and/or sells products, (10) the effectiveness of the cost reduction programs implemented globally, including the successful implementation of procurement and sourcing initiatives and restructuring programs, (11) the successful commercialization of Nuvera's technology, (12) political and economic uncertainties in the countries where the Company does business, as well as the effects of any withdrawals from such countries, (13) bankruptcy of or loss of major dealers, retail customers or suppliers, (14) introduction of new products by, more favorable product pricing offered by or shorter lead times available through competitors, (15) product liability or other litigation, warranty claims or returns of products, (16) changes mandated by federal, state and other regulation, including tax, health, safety or environmental legislation, (17) the ability to attract, retain, and replace workforce and administrative employees, (18) disruptions resulting from natural disasters, public health crises, political crises or other catastrophic events, and (19) the ability to protect the Company’s information technology infrastructure against service interruptions, data corruption, cyber-based attacks or network breaches.
See Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's 2022 Annual Report on Form 10-K for discussion of financial condition and results of operations for 2022 compared with 2021.
See Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's 2023 Annual Report on Form 10-K for discussion of financial condition and results of operations for 2023 compared with 2022.
The Company, through HYG, designs, engineers, manufactures, sells and services a comprehensive line of lift trucks, attachments and aftermarket parts marketed globally, primarily under the Hyster ® and Yale ® brand names, mainly to independent Hyster ® and Yale ® retail dealerships.
The Company, through HYMH, designs, engineers, manufactures, sells and services a comprehensive line of lift trucks, attachments and aftermarket parts marketed globally, primarily under the Hyster ® and Yale ® brand names, mainly to independent, exclusive Hyster ® and Yale ® retail dealerships.
The approximate book value of assets held as collateral under the Term Loan was $780 million as of December 31, 2023. In addition, the Term Loan includes restrictive covenants, which, among other things, limit additional borrowings and investments of the Company subject to certain thresholds, as provided in the Term Loan.
The approximate book value of assets held as collateral under the Term Loan was $870 million as of December 31, 2024. In addition, the Term Loan includes restrictive covenants, which, among other things, limit additional borrowings and investments of the Company subject to certain thresholds, as provided in the Term Loan.
The valuation of deferred tax assets requires judgment in assessing the likely future tax consequences of events that have been recognized in the Company's financial statements or tax returns and future profitability. The Company's accounting for deferred tax consequences represents its best estimate of those future events.
The valuation of deferred tax assets requires judgment in assessing the likely future tax consequences of events that have been recognized in the Company's financial statements or tax 19 Table of Content s returns and future profitability. The Company's accounting for deferred tax consequences represents its best estimate of those future events.
Changes in the Company's estimates, due to unanticipated events or otherwise, could have a material effect on its 16 Table of Contents financial condition and results of operations. The Company continually evaluates its deferred tax assets to determine if a valuation allowance is required or no longer needed.
Changes in the Company's estimates, due to unanticipated events or otherwise, could have a material effect on its financial condition and results of operations. In that regard, the Company continually evaluates its deferred tax assets to determine if a valuation allowance is required or no longer needed.
These fees related to amending the Facility and the Term Loan. These fees were deferred and are being amortized as interest expense over the term of the applicable debt agreements. No fees were incurred in 2022. Fees related to the Term Loan are presented as a direct deduction of the corresponding debt.
These fees were deferred and are being amortized as interest expense over the term of the applicable debt agreements. No such fees were incurred in 2024 and 2022. Fees related to the Term Loan are presented as a direct deduction of the corresponding debt.
At December 31, 2023, the Company was in compliance with the covenants in the Term Loan.
At December 31, 2024, the Company was in compliance with the covenants in the Term Loan.
The Company operates Bolzoni S.p.A. ("Bolzoni"). Bolzoni is a leading worldwide producer and distributor of attachments, forks and lift tables marketed under the Bolzoni ® , Auramo ® and Meyer ® brand names. Bolzoni also produces components for lift truck manufacturers. Bolzoni products are manufactured in the United States, Italy, China, Germany and Finland.
Bolzoni is a leading worldwide producer and distributor of attachments, forks and lift tables marketed under the Bolzoni ® , Auramo ® and Meyer ® brand names. Bolzoni also produces components for lift truck manufacturers. Bolzoni products are manufactured in the U.S., Italy, China, Germany and Finland.
The materials handling business historically has been cyclical because the order rate for lift trucks fluctuates depending on the economic activity level in the various industries and countries its customers serve. The Company owns a 90% majority interest in Hyster-Yale Maximal Forklift (Zhejiang) Co., Ltd.
The materials handling business historically has been cyclical because the order rate for lift trucks fluctuates depending on the economic activity level in the various industries and countries its customers serve. The Company owns a 90% majority interest in Hyster-Yale Maximal Forklift (Zhejiang) Co., Ltd. ("Hyster-Yale Maximal"), a manufacturer of low-intensity and standard lift trucks and specialized material handling equipment.
As of December 31, 2023, Bolzoni had $50.6 million of goodwill. Based on the most recent interim impairment test, Bolzoni's fair value of equity exceeded the carrying value by approximately $50 million or 30%. Factors which could result in future impairment charges include, but are not limited to, changes in worldwide economic conditions, changes in competitive conditions and customer preferences.
As of December 31, 2024, Bolzoni had $51.9 million of goodwill. Based on the most recent interim impairment test, Bolzoni's fair value of equity exceeded the carrying value by approximately $100 million or 60%. Factors which could result in future impairment charges include, but are not limited to, changes in worldwide economic conditions, changes in competitive conditions and customer preferences.
Key terms of the Term Loan as of December 31, 2023 were as follows: TERM LOAN Outstanding $ 219.4 Discounts and unamortized deferred financing fees 3.3 Net amount outstanding $ 216.1 Applicable margins, as defined in agreement U.S. base rate loans 2.50% SOFR 3.50% SOFR adjustment, as defined in the agreement 0.11% SOFR floor 0.50% Applicable interest rate, for amounts outstanding 8.97% The Company incurred fees of $0.8 million and $7.6 million in 2023 and 2021, respectively.
Key terms of the Term Loan as of December 31, 2024 were as follows: TERM LOAN Outstanding $ 217.1 Discounts and unamortized deferred financing fees 2.5 Net amount outstanding $ 214.6 Applicable margins, as defined in agreement U.S. base rate loans 2.50% SOFR 3.50% SOFR adjustment, as defined in the agreement 0.11% SOFR floor 0.50% Applicable interest rate, for amounts outstanding 7.97% The Company incurred fees of $0.8 million in 2023 related to amending the Facility and the Term Loan.
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS HYSTER-YALE MATERIALS HANDLING, INC. AND SUBSIDIARIES (Tabular Amounts in Millions, Except Per Share, Percentage Data and as Otherwise Noted) OVERVIEW Hyster-Yale Materials Handling, Inc. ("Hyster-Yale" or the "Company") and its subsidiaries, including its operating company Hyster-Yale Group, Inc.
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS HYSTER-YALE, INC. AND SUBSIDIARIES (Dollars in Millions, Except Per Share Data) OVERVIEW Hyster-Yale, Inc. ("Hyster-Yale" or the "Company") and its subsidiaries, including its operating company, Hyster-Yale Materials Handling, Inc.
If the estimate of the cost to correct product failures were to increase by one percent over 2023 levels, the product warranties reserves would increase and reduce operating profit by approximately $3.2 million.
If the estimate of the cost to correct product failures were to increase by one percent over current estimated levels, the product warranties reserves would increase and reduce operating profit by approximately $0.6 million.
Key terms of the Facility as of December 31, 2023 were as follows: FACILITY U.S. borrowing capacity $ 230.8 Non-U.S. borrowing capacity 90.0 Outstanding 78.1 Availability restrictions 6.7 Availability $ 236.0 22 Table of Contents FILO LOANS LOANS OTHER THAN FILO LOANS Applicable margins, as defined in agreement U.S. base rate loans 2.25% 0.25% to 0.75% SOFR, EURIBOR and non-U.S. base rate loans 3.25% 1.25% to 1.75% SOFR adjustment, as defined in agreement 0.10% 0.10% Applicable margins, for amounts outstanding U.S. base rate loans — 0.50% SOFR loans 3.25% 1.50% Non-U.S. base rate loans — 1.50% Applicable interest rate, for amounts outstanding U.S. base rate — 9.00% SOFR 8.69 % 6.95% Facility fee, per annum on unused commitment — 0.25% The Term Loan requires quarterly principal payments on the last day of each March, June, September and December, which commenced September 30, 2021, in an amount equal to $562,500 and the final principal repayment is due in May 2028.
Key terms of the Facility as of December 31, 2024 were as follows: FACILITY U.S. borrowing capacity $ 210.0 Non-U.S. borrowing capacity 90.0 Outstanding 52.5 Availability restrictions 4.8 Availability $ 242.7 FACILITY Applicable margins, as defined in agreement U.S. base rate loans 0.25% to 0.75% SOFR, EURIBOR and non-U.S. base rate loans 1.25% to 1.75% SOFR adjustment, as defined in agreement 0.10% Applicable margins, for amounts outstanding U.S. base rate loans 0.50% SOFR loans 1.50% Non-U.S. base rate loans 1.50% Applicable interest rate, for amounts outstanding U.S. base rate 8.00% SOFR 6.08% Facility fee, per annum on unused commitment 0.25% The Term Loan requires quarterly principal payments on the last day of each March, June, September and December, which commenced September 30, 2021, in an amount equal to $0.6 million and the final principal repayment is due in May 2028.
("Hyster-Yale Maximal"), a Chinese manufacturer of low-intensity and standard lift trucks and specialized material handling equipment. Hyster-Yale Maximal also designs and produces specialized products in the port equipment and rough terrain forklift markets. Lift trucks and component parts are manufactured in the United States, Northern Ireland, China, Mexico, the Netherlands, Brazil, the Philippines, Italy, Japan and Vietnam.
Hyster-Yale Maximal also designs and produces specialized products in the port equipment and rough terrain forklift markets. Lift trucks and component parts are manufactured and assembled in the United States ("U.S."), Northern Ireland, China, the Netherlands, Mexico, the Philippines, Brazil, Japan, Italy and Vietnam.
Capital Expenditures The following table summarizes actual and planned capital expenditures: Planned 2024 Actual 2023 Actual 2022 Lift truck business $ 75.0 $ 26.8 $ 20.3 Bolzoni 9.1 5.1 5.5 Nuvera 2.9 3.5 3.0 $ 87.0 $ 35.4 $ 28.8 24 Table of Contents Planned expenditures in 2024 are primarily for improvements at manufacturing locations and manufacturing equipment, product development and improvements to information technology infrastructure.
Capital Expenditures The following table summarizes actual and planned capital expenditures: Planned 2025 Actual 2024 Actual 2023 Lift truck business $ 33-65 $ 37.5 $ 26.8 Bolzoni 5-10 6.9 5.1 Nuvera 2-5 3.4 3.5 $ 40-80 $ 47.8 $ 35.4 Planned expenditures in 2025 are primarily for improvements at manufacturing locations and manufacturing equipment, product development and improvements to information technology infrastructure.
The purchase and other obligations are primarily for accounts payable, open purchase orders and accrued payroll and incentive compensation. In addition, the Company has recourse and repurchase obligations with a maximum undiscounted potential liability of $162.4 million at December 31, 2023.
No such event of default has occurred or is anticipated under these agreements. The purchase and other obligations are primarily for accounts payable, open purchase orders and accrued payroll and incentive compensation. In addition, the Company has recourse and repurchase obligations with a maximum undiscounted potential liability of $219.2 million at December 31, 2024.
The effects of foreign currency fluctuations on revenues, operating profit and net income are addressed in the previous discussions of operating results. The Company's use of foreign currency derivative contracts is discussed in Item 7A, "Quantitative and Qualitative Disclosures About Market Risk,” of this Form 10-K.
The Company's use of foreign currency derivative contracts is discussed in Item 7A, "Quantitative and Qualitative Disclosures About Market Risk,” of this Form 10-K.
In addition to the excess availability under the Facility of $236.0 million, the Company had remaining availability of $33.7 million related to other non-U.S. revolving credit agreements. 23 Table of Contents The Company believes funds available from cash on hand, the Facility, other available lines of credit and operating cash flows will provide sufficient liquidity to meet its operating needs and commitments during the next twelve months and until the expiration of the Facility in June 2026.
The Company believes funds available from cash on hand, the Facility, other available lines of credit and operating cash flows will provide sufficient liquidity to meet its operating needs and commitments during the next twelve months and until the expiration of the Facility in June 2026.
The following table identifies the components of change in operating profit (loss) for 2023 compared with 2022: Operating Profit (Loss) Lift truck Total Americas EMEA JAPIC 2022 $ (39.1) $ 46.8 $ (46.6) $ (10.6) Increase (decrease) in 2023 from: Lift truck gross profit and eliminations 341.2 261.5 76.0 2.9 Lift truck selling, general and administrative expenses (100.4) (75.2) (17.3) (7.9) Bolzoni operations 9.1 — — — Nuvera operations (2.1) — — — 2023 $ 208.7 $ 233.1 $ 12.1 $ (15.6) The Company recognized an operating profit of $208.7 million in 2023 compared with an operating loss of $39.1 million in 2022.
The following table identifies the components of change in operating profit (loss) for 2024 compared with 2023: Operating Profit (Loss) Lift truck HY Americas EMEA JAPIC 2023 $ 208.7 $ 233.1 $ 12.1 $ (15.6) Increase (decrease) in 2024 from: Lift truck gross profit and eliminations 108.1 130.1 (12.9) (8.9) Lift truck selling, general and administrative expenses (43.4) (38.3) (8.2) 3.1 Restructuring and impairment charges (17.8) (6.8) (2.4) (8.6) Bolzoni operations (6.2) Nuvera operations (4.6) 2024 $ 244.8 $ 318.1 $ (11.4) $ (30.0) During the year ended December 31, 2024, the Company recognized an operating profit of $244.8 million compared to $208.7 million during 2023 which represents an increase of 17.3%.
LIQUIDITY AND CAPITAL RESOURCES Cash Flows The following tables detail the change in cash flow for the years ended December 31: 2023 2022 Change Operating activities: Net income (loss) $ 128.1 $ (71.6) $ 199.7 Depreciation and amortization 45.1 43.4 1.7 Dividends from unconsolidated affiliates 10.5 15.6 (5.1) Stock-based compensation 29.3 6.4 22.9 Working capital changes: Accounts receivable 26.8 (89.5) 116.3 Inventories (4.3) (39.1) 34.8 Accounts payable and other liabilities (112.5) 173.6 (286.1) Other current assets (8.4) (5.4) (3.0) Other operating activities 36.1 7.2 28.9 Net cash provided by operating activities 150.7 40.6 110.1 Investing activities: Expenditures for property, plant and equipment (35.4) (28.8) (6.6) Proceeds from the sale of assets, businesses and investments 4.1 1.8 2.3 Purchase of noncontrolling interest (3.2) (8.4) 5.2 Net cash used for investing activities (34.5) (35.4) 0.9 Cash flow before financing activities $ 116.2 $ 5.2 $ 111.0 The change in net cash provided by operating activities of $110.1 million in 2023 compared with 2022 was primarily a result of the improved net income (loss) partially offset by changes in working capital items.
LIQUIDITY AND CAPITAL RESOURCES Cash Flows The following tables detail the change in cash flow for the years ended December 31: 2024 2023 Change Operating activities: Net income $ 144.2 $ 128.1 16.1 Depreciation and amortization 47.6 45.1 2.5 Dividends from unconsolidated affiliates 4.4 10.5 (6.1) Stock-based compensation 23.6 29.3 (5.7) Restructuring and impairment charges 22.6 — 22.6 Other operating activities 26.0 36.1 (10.1) Changes in assets and liabilities: Accounts receivable (14.2) 26.8 (41.0) Inventories 35.3 (4.3) 39.6 Accounts payable and other liabilities (121.6) (112.5) (9.1) Other current assets 2.8 (8.4) 11.2 Net cash provided by operating activities 170.7 150.7 20.0 Investing activities: Expenditures for property, plant and equipment (47.8) (35.4) (12.4) Other investing activities 0.2 0.9 (0.7) Net cash used for investing activities (47.6) (34.5) (13.1) Cash flow before financing activities $ 123.1 $ 116.2 $ 6.9 During the year ended December 31, 2024, net cash provided by operating activities increased by $20.0 million compared to 2023 as a result of net cash adjusted for non-cash items, primarily related to restructuring and impairment charges and higher net income.
Contractual Obligations, Contingent Liabilities and Commitments Following is a table summarizing the Company's material cash requirements from contractual obligations as of December 31, 2023: Payments Due by Period Contractual Obligations Total 2024 2025 2026 2027 2028 Thereafter Term Loan $ 219.4 $ 2.3 $ 2.3 $ 2.2 $ 2.2 $ 210.4 $ — Variable interest payments on Term Loan 81.9 20.0 18.6 18.4 17.7 7.2 — Revolving credit agreements 83.3 83.3 — — — — — Variable interest payments on revolving credit agreements 12.7 12.7 — — — — — Other debt 167.3 154.2 9.9 2.5 0.7 — — Variable interest payments on other debt 6.9 6.1 0.7 0.1 — — — Finance lease obligations including principal and interest 27.6 14.8 8.8 2.9 0.9 0.2 — Operating leases 93.6 19.7 15.4 13.6 12.3 9.1 23.5 Purchase and other obligations 796.0 786.1 2.3 3.9 3.7 — — The principal sources of financing for these material contractual obligations are expected to be internally generated funds and bank financing.
Contractual Obligations, Contingent Liabilities and Commitments Following is a table summarizing the Company's material cash requirements from contractual obligations as of December 31, 2024: Payments Due by Period Contractual Obligations Total 2025 2026 2027 2028 2029 Thereafter Term Loan $ 217.1 $ 2.2 $ 2.2 $ 2.3 $ 210.4 $ — $ — Variable interest payments on Term Loan 55.0 17.1 17.0 16.9 4.0 — — Revolving credit agreements 54.2 54.2 — — — — — Variable interest payments on revolving credit agreements 5.7 3.9 1.8 — — — — Other debt 148.5 131.9 16.6 — — — — Variable interest payments on other debt 4.7 4.2 0.4 0.1 — — — Finance lease obligations including principal and interest 25.6 12.9 6.9 3.9 1.7 0.2 — Operating leases 135.2 21.1 19.4 17.5 16.0 11.3 49.9 Purchase and other obligations 759.7 746.2 4.1 5.1 4.3 — — Total contractual cash obligations $ 1,405.7 $ 993.7 $ 68.4 $ 45.8 $ 236.4 $ 11.5 $ 49.9 The principal sources of financing for these material contractual obligations are expected to be internally generated funds and bank financing. 26 Table of Content s An event of default, as defined in the agreements governing the Facility, the Term Loan, other debt agreements, and in operating and capital lease agreements, could cause an acceleration of the payment schedule.
YEAR ENDED NINE MONTHS ENDED YEAR ENDED December 31, 2023 September 30, 2023 December 31, 2022 Bookings, approximate sales value $ 2,430 $ 1,950 $ 3,080 Backlog, approximate sales value $ 3,330 $ 3,540 $ 3,730 19 Table of Contents 2023 Compared with 2022 The following table identifies the components of change in revenues for 2023 compared with 2022: Revenues Lift truck Total Americas EMEA JAPIC 2022 $ 3,548.3 $ 2,405.4 $ 704.2 $ 250.0 Increase (decrease) in 2023 from: Unit price 270.6 163.8 102.8 4.0 Unit volume and product mix 188.9 244.8 (8.4) (47.5) Parts 84.9 80.0 5.1 (0.2) Bolzoni revenues 19.6 — — — Foreign currency 16.3 2.7 18.2 (4.6) Nuvera revenues 0.9 — — — Other 0.6 2.6 (1.4) (0.6) Eliminations (11.8) — — — 2023 $ 4,118.3 $ 2,899.3 $ 820.5 $ 201.1 Revenues increased 16.1% to $4,118.3 million in 2023 from $3,548.3 million in 2022 mainly from improvements at the Lift Truck business.
YEAR ENDED NINE MONTHS ENDED YEAR ENDED December 31, 2024 September 31, 2024 December 31, 2023 Bookings, approximate sales value $ 1,670 $ 1,270 $ 2,430 Backlog, approximate sales value $ 1,930 $ 2,300 $ 3,330 2024 Compared with 2023 The following table identifies the components of change in revenues for 2024 compared with 2023: Revenues Lift truck HY Americas EMEA JAPIC 2023 $ 4,118.3 $ 2,899.3 $ 820.5 $ 201.1 Increase (decrease) in 2024 from: Lift Truck Price 126.9 121.9 5.2 (0.2) Other 78.4 75.1 2.3 0.9 Foreign currency 7.4 (6.3) 13.9 (0.2) Parts (14.6) (4.2) (8.0) (2.4) Unit volume and product mix (5.2) 136.7 (126.3) (15.5) Bolzoni revenues 3.8 Nuvera revenues (2.9) Eliminations (3.9) 2024 $ 4,308.2 $ 3,222.5 $ 707.6 $ 183.7 During the year ended December 31, 2024, revenues increased to $4,308.2 million, or 5%, compared to $4,118.3 million in 2023.
At December 31, 2023, the Company had gross deferred tax assets of $145.9 million which were reduced by valuation allowances of $126.6 million and gross deferred tax liabilities of $29.0 million.
At December 31, 2024, the Company had gross deferred tax assets of $168.7 million which were reduced by valuation allowances of $144.3 million and gross deferred tax liabilities of $26.1 million.
The Company provides for the estimated cost of personal and property damage relating to its products based on a review of historical experience and consideration of any known trends. Reserves are recorded for estimates of the costs for known claims and estimates of the costs of incidents that have occurred but for which a claim has not yet been reported.
The Company provides for the estimated cost of personal and property damage relating to its products based on a review of historical experience and consideration of any known trends.
See Note 6 to the consolidated financial statements in this Annual Report on Form 10-K for further discussion of income taxes.
The increase was driven by higher operating profit of $36.1 million discussed above, lower interest expense partially offset by higher income taxes. See Note 6, Income Taxes, to the Consolidated Financial Statements in this Annual Report on Form 10-K for further discussion.
Capital Structure December 31 2023 2022 Change Cash and cash equivalents $ 78.8 $ 59.0 $ 19.8 Other net tangible assets 729.4 625.0 104.4 Intangible assets 39.3 42.7 (3.4) Goodwill 53.3 51.3 2.0 Net assets 900.8 778.0 122.8 Total debt (494.0) (552.9) 58.9 Total temporary and permanent equity $ 406.8 $ 225.1 $ 181.7 Debt to total capitalization 55 % 71 % (16) % RELATED-PARTY TRANSACTIONS See Note 18 to the consolidated financial statements in this Annual Report on Form 10-K for further discussion of related-party transactions.
Capital Structure December 31 2024 2023 Change Cash and cash equivalents $ 96.6 $ 78.8 $ 17.8 Other net tangible assets 750.5 729.4 21.1 Intangible assets 33.1 39.3 (6.2) Goodwill 54.6 53.3 1.3 Net assets 934.8 900.8 34.0 Total debt (440.7) (494.0) 53.3 Total temporary and permanent equity $ 494.1 $ 406.8 $ 87.3 Debt to total capitalization 47 % 55 % (8) % RELATED-PARTY TRANSACTIONS See Note 18, Debt and Equity Investments and Related-Party Transactions , to the Consolidated Financial Statements in this Annual Report on Form 10-K for further discussion of related-party transactions. 27 Table of Content s PERSPECTIVE AND OUTLOOK Consolidated Strategic Perspective The Company’s strong 2023 and 2024 financial performances were largely due to a strong backlog and strategic actions taken in recent years.
A one percent increase in the estimate of the number of claims or the magnitude of claims would increase the product liability reserve and reduce operating profit by approximately $0.1 million to $0.8 million.
A one percent increase in the estimate of the number of claims or the magnitude of claims would increase the product liability reserve and reduce operating profit by approximately $0.5 million. Although there can be no assurances, the Company is not aware of any circumstances that would be reasonably likely to materially change the estimates in the future.
The Facility can be increased up to $400.0 million over the term of the Facility in minimum increments of $10.0 million, subject to approval by the lenders.
See Note 13, Current and Long-Term Financing , to the Consolidated Financial Statements in this Annual Report on Form 10-K for further discussion. The Facility can be increased up to $400.0 million over the term of the Facility in minimum increments of $10.0 million, subject to approval by the lenders.
The change in net cash used for investing activities during 2023 compared with 2022 is mainly due to higher capital expenditures in 2023, partially offset by the purchase of Bolzoni's noncontrolling interest in 2023 compared with the first installment purchase of the noncontrolling interest of Hyster-Yale Maximal in 2022. 2023 2022 Change Financing Activities: Net increase (decrease) in long-term debt and revolving credit agreements $ (76.0) $ 11.1 $ (87.1) Cash dividends paid (23.6) (21.8) (1.8) Other (0.9) (0.2) (0.7) Net cash used for financing activities $ (100.5) $ (10.9) $ (89.6) 21 Table of Contents The change in net cash used for financing activities was primarily due to debt repayments during 2023 compared with additional borrowings in 2022.
The change in net cash used for investing activities during the year ended December 31, 2024 compared with the same period in 2023 was mainly due to higher capital expenditures in 2024. 2024 2023 Change Financing Activities: Net decrease in long-term debt and revolving credit agreements $ (60.8) $ (76.0) $ 15.2 Cash dividends paid (24.0) (23.6) (0.4) Purchase of treasury stock (14.0) — (14.0) Other (1.3) (0.9) (0.4) Net cash used for financing activities $ (100.1) $ (100.5) $ 0.4 The change in net cash used for financing activities was primarily due to lower debt payments during the year ended December 31, 2024 compared to 2023.
RECENTLY ISSUED ACCOUNTING STANDARDS For information regarding recently issued accounting standards refer to Note 2 to the Consolidated Financial Statements in this Annual Report on Form 10-K. EFFECTS OF FOREIGN CURRENCY The Company operates internationally and enters into transactions denominated in foreign currencies. As a result, the Company is subject to the variability that arises from exchange rate movements.
EFFECTS OF FOREIGN CURRENCY The Company operates internationally and enters into transactions denominated in foreign currencies. As a result, the Company is subject to the variability that arises from exchange rate movements. The effects of foreign currency fluctuations on revenues, operating profit and net income are addressed in the previous discussions of operating results.
The Facility was amended in the second quarter of 2023 for the purpose of, among other items, (i) establishing a new tranche of revolving loans with aggregate commitments of $25.0 million under the Facility and (ii) changing the benchmark interest rate for U.S. dollar-denominated borrowings under the Facility from LIBOR to Term SOFR, each as defined in the Facility.
The Facility previously included a $25.0 million tranche, which terminated on May 1, 2024. The Term Loan was also amended in 2023 for the purpose of changing the benchmark interest rate for borrowings under the Term Loan from LIBOR to Term SOFR, each as defined in the Term Loan.
Financing Activities The Company has a $320.8 million secured, floating-rate revolving credit facility (the "Facility") that expires in June 2026 and a $225.0 million term loan (the "Term Loan"), which matures in May 2028.
Additionally, the Company purchased treasury stock during the year ended December 31, 2024 related to the Company's previously announced stock repurchase program and employee-related incentive stock compensation plans. 24 Table of Content s Financing Activities The Company has a $300.0 million secured, floating-rate revolving credit facility (the "Facility") that expires in June 2026 and a $225.0 million term loan (the "Term Loan"), which matures in May 2028.
Bolzoni's operating profit increased to $15.3 million in 2023 compared with $6.2 million in 2022, primarily due to higher gross profit from improved pricing, lower manufacturing costs and higher volumes. The increase was partially offset by a shift to lower margin products and higher selling, general and administrative expenses, mainly related to higher employee costs, including incentive compensation.
The increase in lift truck operating profit was primarily due to improved gross profit from higher pricing of $126.9 million, mainly in the Americas, partially offset by lower unit volumes and higher freight costs. The increase in gross profit was also partially offset by higher selling, general and administrative expenses related to higher sales and marketing and product development costs.
Although there can be no assurances, the Company is not aware of any circumstances that would be reasonably likely to materially change the estimates in the future. Product warranties : The Company provides for the estimated cost of product warranties at the time revenues are recognized.
Product warranties : The Company provides for the estimated cost of product warranties at the time revenues are recognized.
Operating profit in the Americas increased primarily due to improved gross profit from higher pricing of $163.8 million, lower material costs net of manufacturing inefficiencies, a shift in sales to higher margin lift trucks and increased unit and parts sales.
Operating profit in the Americas increased by $85.0 million, or 36.5%, compared to the same period in 2023, primarily due to improved gross profit from higher pricing of $121.9 million and improved margin from lower dealer and customer incentives.
These items were partially offset by higher selling, general and administrative expenses primarily due to increased employee-related costs, including incentive compensation, as well as higher marketing, product liability and product development costs.
These improvements were partially offset by manufacturing inefficiencies tied to lower production volumes, lower parts sales and higher warranty and freight costs. In addition, operating profit was unfavorably impacted by higher selling, general and administrative expenses related to increased sales and marketing and product development costs.
The Company had other debt outstanding, excluding finance leases, of approximately $172.5 million at December 31, 2023.
The Company had other debt outstanding, excluding finance leases, of approximately $150.2 million at December 31, 2024. In addition to the excess availability under the Facility of $242.7 million, the Company had remaining availability of $47.8 million related to other non-U.S. revolving credit agreements.
EMEA's operating profit improved mainly due to improved gross profit from improved pricing of $102.8 million, partially offset by lower volumes and manufacturing inefficiencies. 20 Table of Contents JAPIC's operating loss increased to $15.6 million in 2023 from $10.6 million in 2022, primarily due to higher selling, general and administrative expenses, partially offset by higher gross profit from a shift in mix to higher-margin products and material cost deflation.
In addition, selling, general and administrative expenses increased primarily from higher sales and marketing costs. The operating loss in 2024 includes restructuring and impairment charges of $2.4 million. JAPIC's operating loss was $30.0 million in 2024 compared to $15.6 million in 2023. The change was primarily due to lower gross profit from material cost inflation and lower unit volume.
Consolidated Strategic Perspective The Company's significantly improved 2023 results are due to the global team's ongoing execution of strategic initiatives and actions to offset external headwinds and improve the business' resiliency over time. These actions include key projects and process improvements to help the Company achieve long-term growth rates above the material handling market's expected growth rates.
Ongoing execution of established strategic initiatives and key projects, as well as the manufacturing footprint improvement measures previously mentioned, should help the Company fulfill these promises and achieve long-term revenue and operating profit growth rates above the material handling market's expected growth rates.
Bolzoni revenues increased in 2023 compared with 2022 mainly from higher volume and price increases, partially offset by an increase in the sale of lower-priced products.
These items were partially offset by lower parts volumes and lower lift truck shipments, which were almost fully offset by a shift in sales mix to higher priced products, mainly in the Americas. During the year ended December 31, 2024, Bolzoni revenues increased compared with 2023 mainly from higher sales volumes and improved pricing.
JAPIC (15.6) (10.6) (47.2) % Lift truck business 229.6 (10.4) n.m. Bolzoni 15.3 6.2 146.8 % Nuvera (36.4) (34.3) (6.1) % Eliminations 0.2 (0.6) n.m. $ 208.7 $ (39.1) n.m. Interest expense 37.3 28.4 (31.3) % Other income (9.6) (5.1) 88.2 % Income (loss) before income taxes 181.0 (62.4) n.m.
JAPIC (30.0) (15.6) (14.4) (92.3) % Lift truck business 276.7 229.6 47.1 20.5 % Bolzoni 9.1 15.3 (6.2) (40.5) % Nuvera (41.0) (36.4) (4.6) (12.6) % Eliminations — 0.2 (0.2) n.m. $ 244.8 $ 208.7 $ 36.1 17.3 % Interest expense 33.8 37.3 (3.5) 9.4 % Other income (8.0) (9.6) 1.6 (16.7) % Income before income taxes 219.0 181.0 38.0 21.0 % Net income attributable to stockholders $ 142.3 $ 125.9 $ 16.4 13.0 % Diluted earnings per share $ 8.04 $ 7.24 $ 0.80 11.0 % Reported income tax rate 34.2 % 29.2 % n.m. - not meaningful The following is the detail of the approximate sales value of the Company's lift truck unit bookings and backlog, reflected in millions of dollars.
Removed
Net income (loss) attributable to stockholders $ 125.9 $ (74.1) n.m. Diluted earnings (loss) per share $ 7.24 $ (4.38) n.m.
Added
On May 31, 2024, the Company changed its corporate name to Hyster-Yale, Inc. and the Company's wholly owned operating subsidiary, Hyster-Yale Group, Inc., changed its corporate name to Hyster-Yale Materials Handling, Inc. The Company operates Bolzoni S.p.A. ("Bolzoni").
Removed
Reported income tax rate 29.2 % (14.7) % n.m. - not meaningful Following is the detail of the Company's unit shipments, bookings and backlog of unfilled orders placed with its manufacturing and assembly operations for new lift trucks, reflected in thousands of units.
Added
When the company concludes it has sufficient evidence to warrant a change in judgement regarding the realizability of its deferred tax assets, the result may have a material impact to the reported income tax expense.
Removed
As of December 31, 2023, substantially all of the Company's backlog is expected to be sold within the next twelve months.
Added
Reserves are recorded for estimates of the costs for known claims and estimates of the costs of incidents that may have occurred but for which a claim has not yet been reported.
Removed
YEAR ENDED NINE MONTHS ENDED YEAR ENDED December 31, 2023 September 30, 2023 December 31, 2022 Unit backlog, beginning of period 102.1 102.1 105.3 Unit shipments (102.2) (78.6) (100.8) Unit bookings 78.5 61.8 97.6 Unit backlog, end of period 78.4 85.3 102.1 The following is the detail of the approximate sales value of the Company's lift truck unit bookings and backlog, reflected in millions of dollars.
Added
EMEA 2.4 — 2.4 n.m. JAPIC 8.6 — 8.6 n.m. Lift truck business 17.8 — 17.8 n.m. Bolzoni 4.3 — 4.3 n.m. Nuvera 0.5 — 0.5 n.m.
Removed
The increase at Lift Truck was primarily due to improved pricing, higher unit and parts volume in the Americas and a shift in sales to higher-priced lift trucks in the Americas and EMEA. The improvement in Lift Truck revenue was partially offset by a decline in unit shipments in JAPIC and EMEA.
Added
Eliminations — — — n.m. $ 22.6 $ — $ 22.6 n.m. 21 Table of Content s Favorable / (Unfavorable) For the Years Ended December 31, $ Change % Change 2024 2023 2024 vs. 2023 2024 vs. 2023 Operating profit (loss) Americas $ 318.1 $ 233.1 $ 85.0 36.5 % EMEA (11.4) 12.1 (23.5) n.m.
Removed
The increase in Lift Truck operating profit was primarily due to improved gross profit from higher pricing of $270.6 million, mainly in the Americas and EMEA, a shift in sales to higher margin lift trucks, lower material costs net of manufacturing inefficiencies, primarily in the Americas, and higher unit and parts sales compared with 2022.
Added
The increase was primarily due to higher lift truck revenues from improved pricing, higher fleet services and other 22 Table of Content s revenue from lower customer and dealer incentive programs in 2024 compared to 2023.
Removed
These improvements were partially offset by higher selling, general and administrative expenses, primarily related to higher employee costs, including incentive compensation, higher marketing and product development to support the Company's strategic initiatives and higher product liability costs.
Added
Nuvera revenues decreased during 2024 compared with 2023 mainly as a result of lower intercompany sales to the lift truck business.
Removed
The Company recognized net income attributable to stockholders of $125.9 million in 2023 compared with a net loss attributable to stockholders of $74.1 million in 2022. The improvement was primarily the result of the factors affecting operating profit (loss), partially offset by higher income taxes and interest expense.
Added
Additionally, the increase in operating profit was partially offset by restructuring and impairment charges of $17.8 million primarily for streamlining the Company's manufacturing footprint by reducing costs and improving operational efficiency. See Note 19, Restructuring and Impairment Charges , to the Consolidated Financial Statements in this Annual Report on Form 10-K for further discussion regarding the restructuring.
Removed
The changes in working capital were mainly due to a decrease in accounts payable in 2023 compared to 2022 and lower customer deposits for down payments on orders.
Added
Operating profit in 2024 was partially offset by restructuring and impairment charges of $6.8 million. EMEA reported an operating loss of $11.4 million in 2024 compared to an operating profit of $12.1 million in 2023, mainly due to manufacturing inefficiencies tied to lower production volumes and higher material and freight costs.
Removed
The Term Loan was also amended in the second quarter of 2023 for the purpose of changing the benchmark interest rate for borrowings under the Term Loan from LIBOR to Term SOFR, each as defined in the Term Loan. See Note 13 to the consolidated financial statements in this Annual Report on Form 10-K for further discussion.
Added
In addition, JAPIC incurred restructuring and impairment charges of $8.6 million. During the year ended December 31, 2024, Bolzoni recognized operating profit of $9.1 million compared to $15.3 million during the same period of 2023.
Removed
The $25.0 million tranche will terminate on May 1, 2024 unless otherwise terminated prior to such date by the Company in accordance with the terms of the Facility. Commencing December 1, 2023, the $25.0 million tranche began to amortize on a monthly basis in the amount of $4.2 million per month. At December 31, 2023, $20.8 million was outstanding.
Added
The decrease is primarily due to restructuring and impairment charges of $4.3 million for the phase out of Bolzoni’s lower-margin legacy component manufacturing and to optimize Bolzoni's manufacturing footprint. In addition, Bolzoni's selling, general and administrative expenses increased, primarily related to higher employee-related costs in 2024 compared with 2023.
Removed
An event of default, as defined in the agreements governing the Facility, the Term Loan, other debt agreements, and in operating and capital lease agreements, could cause an acceleration of the payment schedule. No such event of default has occurred or is anticipated under these agreements.
Added
Nuvera's operating loss was $41.0 million in 2024 compared to $36.4 million in 2023.
Removed
PERSPECTIVE AND OUTLOOK Market Commentary Generally, the 2023 global economy performed better than anticipated. The Company's core lift truck market remains strong and above pre-pandemic levels in most regions.
Added
The change was primarily from an increase in research and development expenses for new product development, and selling, general and administrative expenses primarily related to occupancy expenses and restructuring charges. 23 Table of Content s During the year ended December 31, 2024, the Company recognized net income attributable to stockholders of $142.3 million compared to $125.9 million during 2023.
Removed
Nonetheless, some external market factors, including ongoing geopolitical instability, most recently evidenced by the tensions in the Red Sea, continue to create a significant amount of uncertainty within the global economic outlook. Due to this and abnormally high industry volumes from 2020 to 2022, global market activity declined across 2023, particularly in EMEA.
Added
The favorable net changes in assets and liabilities were mainly due to decreases in inventories and other current assets, partially offset by increases in accounts receivable and decreases in accounts payable and other liabilities during the year ended December 31, 2024 compared to the same period in 2023.
Removed
The latest publicly available lift truck market data indicates that new unit, third-quarter 2023 booking activity decreased globally and in all major geographies except China and India compared with strong 2022 levels. Internal company estimates suggest that fourth-quarter 2023 global lift truck market bookings decreased compared with the prior year.
Added
The decrease in inventory is due mainly to the decrease in the Company's unit backlog as well as lower purchases. The increase in accounts receivable is mainly due to higher sales to customers with longer payment terms during the year ended December 31, 2024 compared with the same period in 2023.

… 79 more changes not shown on this page.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

5 edited+0 added−0 removed6 unchanged
Biggest changeSee also Note 8 to the Consolidated Financial Statements in this Annual Report on Form 10-K. 28 Table of Contents For purposes of risk analysis, the Company uses sensitivity analysis to measure the potential loss in fair value of financial instruments sensitive to changes in interest rates.
Biggest changeSee Note 8, Financial Instruments and Derivative Financial Instruments , to the Consolidated Financial Statements in this Annual Report on Form 10-K. For purposes of risk analysis, the Company uses sensitivity analysis to measure the potential loss in fair value of financial instruments sensitive to changes in interest rates.
A hypothetical 10% decrease in interest rates would cause a decrease in the fair value of interest rate swap agreements and the asset would decrease by approximately $2.9 million. FOREIGN CURRENCY EXCHANGE RATE RISK The Company operates internationally and enters into transactions denominated in foreign currencies.
A hypothetical 10% decrease in interest rates would cause a decrease in the fair value of interest rate swap agreements and the asset would decrease by approximately $1.6 million. FOREIGN CURRENCY EXCHANGE RATE RISK The Company operates internationally and enters into transactions denominated in foreign currencies.
Assuming a hypothetical 10% weakening of the U.S. dollar compared with other foreign currencies at December 31, 2023, the fair value of the liability of foreign currency-sensitive financial instruments, which primarily represent forward foreign currency exchange contracts, would be increased by $19.7 million compared with the fair value at December 31, 2023.
Assuming a hypothetical 10% weakening of the U.S. dollar compared with other foreign currencies at December 31, 2024, the fair value of the liability of foreign currency-sensitive financial instruments, which primarily represent forward foreign currency exchange contracts, would be increased by $17.8 million compared with the fair value at December 31, 2024.
The Company assumes that a loss in fair value is either a decrease to its assets or an increase to its liabilities. The fair value of the Company's interest rate swap agreements was a net asset of $11.9 million at December 31, 2023.
The Company assumes that a loss in fair value is either a decrease to its assets 30 Table of Content s or an increase to its liabilities. The fair value of the Company's interest rate swap agreements was a net asset of $9.9 million at December 31, 2024.
The fair value of these contracts was a net liability of $12.2 million at December 31, 2023. See also Note 8 to the Consolidated Financial Statements in this Annual Report on Form 10-K.
The fair value of these contracts was a net liability of $18.5 million at December 31, 2024. See Note 8, Financial Instruments and Derivative Financial Instruments, to the Consolidated Financial Statements in this Annual Report on Form 10-K.

Other HY 10-K year-over-year comparisons