Hyster-Yale Materials Handling, Inc. (NYSE:HY) Q3 2023 Earnings Call Transcript
Hyster-Yale Materials Handling, Inc. (NYSE:HY) Q3 2023 Earnings Call Transcript November 1, 2023
Operator: Good morning. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the Hyster-Yale Materials Handling Third Quarter 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you. Christina Kmetko, Investor Relations, you may begin your conference.
Christina Kmetko: Thank you. Good morning, everyone, and thank you for joining us for Hyster-Yale's 2023 third quarter earnings call. I'm Christina Kmetko, and I'm responsible for Investor Relations. Yesterday evening, we published our third quarter 2023 results and filed our 10-Q, both of which are available on our website. We are recording this webcast. The webcast will be on our website later this afternoon and available for approximately 12-months. I'd like to remind you that our comments today, including answers to any questions, will include statements related to expected future results of the company and are, therefore, forward-looking statements. Our actual results may differ materially from our forward-looking statements due to a wide range of risks and uncertainties that are described in our earnings release, 10-Q and other SEC filings.
We may not update these forward-looking statements until our next quarterly earnings conference call. With me today are Al Rankin, Executive Chairman; Rajiv Prasad, President and Chief Executive Officer; and Scott Minder, our Senior Vice President, Chief Financial Officer and Treasurer. With the formalities out of the way, I'll turn the call over to Rajiv to give his perspective on our strong third quarter results in the global Lift Truck markets.
Rajiv Prasad: Thanks, Christie, and good morning, everyone. I'm pleased to report that Hyster-Yale had another strong quarter with significant year-over-year revenue and earnings growth. We're continuing to gain momentum as supply chains improve, and we are benefiting from actions we have taken over the past several years to drive growth and sustainable profitability. In the third quarter, consolidated revenues grew by 19% or $161 million to just over $1 billion. Our operating profit improved by almost $84 million from a prior year loss. These results exceeded our expectations for several reasons. First, product margins expanded faster due largely to lower-than-anticipated material costs. Second, we sold more higher-margin aftermarket parts, and we had lower operating expenses than forecasted.
On a global basis, our third quarter shipment increased by 5% over prior year. This was driven by a 23% increase in the Americas, where regional supply chains have significantly improved. Shipments declined in EMEA as production rates were hampered by new product launch issues and a handful of critical component shortages, particularly at our Nijmegen big truck facility. Shipments were lower in JAPIC as a portion of their product coming from EMEA were negatively impacted by production challenges. We continue to experience skilled labor shortages in many of our factories. This contributed to planned production and shipment rate constraints in the quarter. In the fourth quarter of 2023, we are planning to increase production rates and expect Americas shipment to increase moderately.
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