2013 Annual Report
Hyster-Yale Materials Handling
Poised For Growth
Hyster-Yale maintains leading market share
positions in the Americas and worldwide
CONTENTS
About the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Selected Financial and Operating Data . . . . . . . . . . . . . . . . . . . . . . . . 2
Letter to Stockholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Form 10-K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Directors and Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
Corporate Information . . . . . . . . . . . . . . . . . . . . . . . Inside Back Cover
Cover:
Top Left: The Yale® MPE080VG is a new heavy-duty end-rider warehouse truck for the Americas market with an 8,000 pound capacity. Top Right: The newly upgraded
Yale® NR045EB Reach truck for the Americas market, shown moving pallets in a warehouse environment, has a capacity of 4,500 pounds and has been designed to
effectively meet the demands of high-density distribution environments. Bottom: The Hyster® H280HD2 has a 28,000 pound lifting capacity and a new low emission,
Tier 4-compliant engine which has been proven to reduce fuel costs and ultimately decrease the cost of ownership to the customer.
ABOUT THE COMPANY
Hyster-Yale and its subsidiaries, including its
operating subsidiary NACCO Materials Handling
Group, Inc., is a leading global designer, engineer,
manufacturer, seller and servicer of a comprehensive
line of electric, warehousing and internal combustion
engine lift trucks and aftermarket parts marketed
globally primarily under the Hyster® and Yale® brand
names, mainly to independent Hyster® and Yale®
retail dealerships. Lift trucks and component parts
are manufactured in the United States, Northern
Ireland, Mexico, the Netherlands, Italy, the Philippines,
Vietnam, Japan, Brazil and China.
The Company’s economic engine is driven by
unit volume, and its worldwide distribution strength
drives these volumes and related market share. The
Company’s growing global share has resulted in an
estimated installed population base of approximately
815,000 lift trucks in operation at the end of 2013 in
more than 700 industries worldwide, which generates
profitable parts and service revenue.
The Company is poised for profitable growth by
gaining market share as well as improving margins
on lift truck units, especially in the internal combustion
engine trucks. The Company plans to accomplish
these objectives by implementing five key strategic
initiatives:
• Understanding Customer Needs
• Offering Customers the Lowest Cost of Ownership
• Enhancing Independent Distribution
• Improving the Company’s Warehouse Position
• Focusing on Succeeding in Asia,
And three supporting programs:
• Enhancing the Big Truck Segment
• Strengthening the Marketing and Sales
Organization
1
EBITDA*
(in millions)
Total Revenues
(in billions)
$3.0
$164.8
$146.8
$144.0
$2.7
$2.5
$2.5
$82.3
$2.0
$1.8
$1.5
$1.0
$0
$5.6
09
10
11
12
13
$180
$150
$120
$90
$60
$30
$0
09
10
11
12
13
• Expanding Brazil Production Capacity
Mission Statement: To be a leading globally integrated designer, manufacturer and marketer of
a complete range of high quality, application-tailored lift trucks, offering the lowest cost of ownership,
outstanding parts and service support and the best overall value.
* See page 3 for the calculation of EBITDA and the discussion of non-GAAP items and the related reconciliations to U.S. GAAP measures.
SELECTED FINANCIAL AND OPERATING DATA
Year Ended December 31
2013 2012(1) 2011(1) 2010(1) 2009(1)
(In millions, except per share data)
Operating Statement Data :
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating profit (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net (income) loss attributable
to noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . .
Net income (loss) attributable to stockholders . . . . . .
Basic earnings (loss) per share
attributable to stockholders(1) . . . . . . . . . . . . . . . . . . . .
Diluted earnings (loss) per share
attributable to stockholders(1) . . . . . . . . . . . . . . . . . . . .
$ 2,666.3
$ 134.3
$ 110.2
$ 2,469.1
$ 111.7
$ 98.1
$ 2,540.8
$ 110.0
$ 82.6
$ 1,801.9
$ 46.1
$ 32.3
$ 1,475.2
$ (31.2)
$ (43.2)
$ (0.2)
$ 110.0
$ (0.1)
$ 98.0
$ —
$ 82.6
$ 0.1
$ 32.4
$ 0.1
$ (43.1)
$ 6.58
$ 5.84
$ 4.93
$ 1.95
$ (2.60)
$ 6.54
$ 5.83
$ 4.91
$ 1.94
$ (2.60)
Balance Sheet Data December 31:
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 175.7
$ 1,161.3
$ 6.7
$ 449.8
$ 151.3
$ 1,064.4
$ 106.9
$ 341.3
$ 184.9
$ 1,117.0
$ 54.6
$ 296.3
$ 169.5
$ 1,041.2
$ 215.5
$ 230.7
$ 163.2
$ 914.1
$ 229.2
$ 207.1
2
Cash Flow Data:
Provided by operating activities . . . . . . . . . . . . . . . . . . . .
Provided by (used for) investing activities . . . . . . . . . . .
Cash flow before financing activities(2)
$ 152.9
$ (26.1)
$ 126.8
$ 128.7
$ (19.5)
$ 109.2
$ 54.6
$ (15.9)
$ 38.7
$ 47.5
$ (8.5)
$ 39.0
$ 115.9
5.8
$ 121.7
Used for financing activities . . . . . . . . . . . . . . . . . . . . . . .
$ (104.4)
$ (144.4)
$ (19.5)
$ (24.4)
$ (18.3)
Other Data:
Cash dividend paid pre-spin to
NACCO Industries, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . .
$ —
$ 5.0
$ 10.0
$ 5.0
$ —
Per share data:
Cash dividends(3)(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Market value at December 31(3) . . . . . . . . . . . . . . . . . . . . .
Stockholders’ equity at December 31(3) . . . . . . . . . . . . . .
Actual shares outstanding at December 31(3) . . . . . . . .
Basic weighted average shares outstanding(1) . . . . . . .
Diluted weighted average shares outstanding(1) . . . . . .
Total employees at December 31(5) . . . . . . . . . . . . . . . . . .
$ 1.00
$ 93.16
$ 26.91
16.714
16.725
16.808
5,100
$ 2.25
$ 48.80
$ 20.40
16.732
16.768
16.800
4,900
16.767
16.815
4,800
16.657
16.688
4,400
16.579
16.579
4,200
(1) As a result of Hyster-Yale’s spin-off from NACCO Industries, Inc. and the distribution of one share of Class A common stock and one share of Class B common stock for
each share of NACCO Industries, Inc. Class A common stock and NACCO Industries, Inc. Class B common stock on September 28, 2012, the earnings per share amounts
and the weighted average shares outstanding for the Company have been calculated based upon doubling the relative historical basic and diluted weighted average
shares outstanding of NACCO Industries, Inc.
(2) Cash flow before financing activities is equal to net cash provided by (used for) operating activities less net cash provided by (used for) investing activities.
(3) This information is only included for periods subsequent to the spin-off from NACCO Industries, Inc.
(4) Includes an extraordinary dividend of $2.00 per share and a regular quarterly dividend of $0.25 per share paid to stockholders of the Company during the fourth
quarter of 2012.
(5) Excludes temporary employees.
Year Ended December 31
2013 2012 2011 2010 2009
(In millions)
Calculation of EBITDA(6)
Net income (loss) attributable to stockholders . . . . . . .
Noncontrolling interest income (loss) . . . . . . . . . . . . . . .
Income tax provision (benefit) . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation and amortization expense . . . . . . . . . . . . . .
EBITDA(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 32.4
(0.1)
1.8
16.6
(2.3)
33.9
$ 82.3
$ 98.0
0.1
7.0
12.4
(1.5)
28.0
$ 144.0
$ 82.6
—
18.9
15.8
(1.8)
31.3
$ 146.8
$ 110.0
0.2
17.2
9.0
(1.8)
30.2
$ 164.8
$ (43.1)
(0.1)
(3.6)
19.0
(2.8)
36.2
$ 5.6
(6) EBITDA in this Annual Report is provided solely as a supplemental disclosure with respect to operating results. EBITDA does not represent net income, as defined by U.S.
GAAP, and should not be considered as a substitute for net income or net loss, or as an indicator of operating performance. The Company defines EBITDA as income before
income taxes and non-controlling interest income (loss) plus net interest expense and depreciation and amortization expense. EBITDA is not a measurement under U.S. GAAP
and is not necessarily comparable with similarly titled measures of other companies.
Calculation of Return on Capital Employed:(7)
Average stockholders’ equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average capital employed, net of cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income attributable to stockholders, as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plus: Interest expense, net, as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Income taxes on interest expense net, at 38%*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on capital employed = actual net income before interest
expense, net, after tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on capital employed percentage(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on equity percentage(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
$
$
$
(In millions, except percentage data)
2013*
2012**
3
$
$
$
$
389.7
121.4
(161.1)
350.0
110.0
7.2
(2.7)
114.5
32.7%
28.2%
333.3
175.9
(165.2)
344.0
98.0
10.9
(4.1)
104.8
30.5%
29.4%
(7) Return on capital employed is provided solely as a supplemental disclosure with respect to income generation because management believes it provides useful information with
respect to earnings in a form that is comparable to the Company’s cost of capital employed, which includes both equity and debt securities, net of cash.
(8) Return on equity is defined as net income divided by average stockholders’ equity.
***2013 Average stockholders’ equity, debt and cash are calculated using 12/31/12 and each of 2013’s quarter ends.
***2012 Average stockholders’ equity, debt and cash are calculated using 12/31/11 and each of 2012’s quarter ends.
***Tax rate of 38% represents the Company’s target U.S. marginal tax rate compared with the effective income tax rate of 13.5% and 6.7%, in 2013
and 2012, respectively.
4
TO OUR STOCKHOLDERS
With our first full year as an independent public
company behind us, we are delighted to provide our
stockholders with an update on our 2013 activities and
progress toward our sales growth and profit objectives.
2013 Financial Results
Global lift truck markets have grown at varying
paces since the lift truck market reached the trough of
the previous market cycle in 2008 and 2009. Market
growth paused in 2011 and 2012, but as the Company
anticipated, returned at an overall moderate rate of
growth in 2013. The Americas and Asia-Pacific regions
both grew at a rate of 10 percent, while the Europe,
Middle East and Africa region grew only 2 percent –
with overall growth in the region affected by the
decline in the Western European markets.
We have been positioning the Company for share
growth since before the Great Recession. Over the
last decade, the business was restructured to create
a more efficient and lean organization. The Company
developed new products and programs focused on
customers’ needs in order to increase unit and parts
volumes and improve margins. Over this period, the
Company substantially upgraded its comprehensive
global product line and introduced new models not
previously in the line, including a new utility truck
brand, UTILEV®. The Company’s rationalized global
manufacturing footprint enables it to assemble lift
trucks largely in the market of sale. As a result of a
modern lean manufacturing system designed to
provide flexible and efficient manufacturing with
enhanced throughput capabilities, the Company now
has the capacity to increase production volumes by up
to 35 percent from current levels, even after several
plant closures. The Company has also re-engineered
its products to utilize common components across
multiple lift truck classes to reduce costs and product
Hyster’s recently introduced Jumbo truck, the Hyster® 360-48HD truck, has
a lifting capacity up to 36,000 pounds at a 48" load center, and is shown in a
tough steel pipe handling application.
5
Charles Pascarelli, the Company’s new Vice President of Sales and Marketing for the Americas, speaks to a group of 140 people, including employees and Americas
dealers, at a dealer summit in Crotonville, NY during 2013 to launch the Company’s Americas warehouse initiative. This is just one example of the Company’s
commitment to enhancing its independent distribution.
6
complexity, improve product quality, capture procure-
ment cost savings, increase manufacturing efficiency
and allow for faster design upgrades. In addition, supply
chain management has been centralized to leverage
best practices and gain economies of scale and certain
components have been outsourced, often to suppliers
in low-cost countries. Further, improvements in
product development, engineering, manufacturing
and the quality of sourced components have led to
enhanced customer satisfaction and significantly
reduced warranty costs. Finally, the Company has
strengthened its independent dealer network by
enhancing service offerings, increasing the number
of dual brand dealers, converting strong competitor
dealers and strengthening existing dealers. As a result
of these many changes to the specific business areas,
which are all currently performing soundly with a
focus on continuous improvement, the Company has
been able to deliver strong operating results in each
of the past few years, particularly in 2013.
Hyster-Yale’s success in developing innovative
products and continued global market expansion
led the Company to an 11 percent increase in unit
shipments in 2013, driven by growth in virtually
From left to right: The Yale® GP050LX internal combustion engine, standard pneumatic tire lift truck has a lifting capacity of 5,000 pounds and is targeted at
medium-duty applications. The Yale® MS12X 1.25 ton capacity European platform stacker is used in low-level warehouse applications. One of Hyster’s premium
trucks, the S50FT Fortis® internal combustion engine cushion tire lift truck, has a lifting capacity of up to 5,000 pounds. The Hyster® L.O5.0T Tow tractor, a global
product just recently introduced in the European market, is used in a wide variety of applications and has a towing capacity of up to 5 tons.
all markets but especially in the Americas, while
maintaining a strong and growing backlog through-
out the year. This increase in unit shipments, higher
parts volume and favorable pricing, primarily in the
Americas, more than offset the effect of the weakness
of the Brazilian real to the U.S. dollar, resulting in an
increase in revenues from $2.5 billion in 2012 to $2.7
expenses resulting from an increase in employee-
related costs and additional costs to support the
Company’s strategic initiatives. Overall, the Company’s
operating profit margin has risen from 2.1 percent at the
prior market cycle peak in 2007 to 4.5 percent in 2012
and 5.0 percent in 2013, which the Company believes
is roughly the mid-point of this current market cycle.
Development of innovative products and continued global
market expansion led to an 11% increase in unit shipments
billion in 2013. The Company also experienced a shift
in sales mix to lower-priced products, principally in the
Americas, largely as a result of an increased focus on
improving sales and market share in the warehouse
segment of the lift truck market.
Net income(1) increased to $110.0 million in 2013
from $98.0 million in 2012, which included benefits from
releases of tax valuation reserves of $12.8 million in
2013 and $10.7 million in 2012. The operational changes
over the past decade, along with the market growth
and share gains in 2013, as well as improvements in
gross profit from lower material costs and production
efficiencies achieved on higher unit volumes, resulted
in the Company generating a 20 percent improvement
in operating profit on revenue growth of 8 percent.
These results were achieved despite higher operating
In 2013, the Company generated cash flow before
financing of $126.8 million, a substantial increase over
the $109.2 million generated in 2012, and continued
strong EBITDA(2) and return on capital employed(2)
of $164.8 million and 32.7 percent, respectively. The
Company’s cash position was $175.7 million as of
December 31, 2013, up from $151.3 million in 2012,
which included the repayment of the remaining
$86.9 million of the Company’s existing term loan in
2013. Debt as of December 31, 2013 was $69.5 million.
In December 2013, the Company entered into a new
revolving credit agreement. As a result of these
activities, the Company has a capital structure with a
net cash position and efficient working capital levels,
both of which provide stability in variable market
conditions and flexibility for growth.
(1) For purposes of this annual report, discussions about net income refer to net income attributable to stockholders.
(2) See page 3 for the calculations of EBITDA and return on capital employed and the discussion of non-GAAP items and the related reconciliations to U.S. GAAP measures.
7
7
8
Outlook for 2014
While the accomplishments of 2013 were satisfying,
the Company is poised for further growth in excess of
the market rate in 2014. Hyster-Yale has an economic
engine driven by unit volume. The Company’s world-
wide distribution strength drives market share and unit
volume. Increased volumes generate greater economies
of scale, resulting in more favorable operating margin
leverage in all areas of the business, and result in a
larger installed lift truck population base, which is
currently 815,000 units at the end of 2013. This large
installed base generates a larger, profitable parts
business, which improves operating profit margins. To
drive our economic engine, the Company continually
seeks to expand market share by enhancing its product
offerings and its territory-exclusive dealer network in
individual markets and by strengthening its sales and
marketing activities.
For the year ended December 31, 2013, the
Company’s operating profit margin was 5.0 percent,
higher than in 2012 but still lower than the target
operating profit margin of 7 percent at the mid-point
of the market cycle. The Company believes this
gap between actual and target operating profit
margin can be closed through two main drivers.
The first and far more important driver for improving
operating margins and closing the gap to target
levels is increasing unit volumes through market
growth and improved share. With increased volumes,
the Company expects to leverage its capacity to gain
economies of scale in all areas of the business but
particularly in manufacturing efficiencies and operating
expenses. In 2013, the market grew moderately and,
excluding China, the Company gained market share
in all major global regions. In China, the Company’s
share of the foreign brand market, the portion of that
market segment where the Company is effectively
competing, also increased. To achieve its long-term
profitability objectives, the Company is focused on
building on this momentum by continuing to grow
One of Yale’s electric counterbalanced lift trucks, the Yale® ERP100-VM
four-wheel pneumatic tire lift truck series, with a lifting capacity of up to
10,000 pounds, was launched in mid-2013.
faster than the overall forklift truck market through
market share increases.
The second driver is margin enhancement,
mainly in lower capacity internal combustion engine
(“ICE”) lift trucks. The key to the margin enhancement
initiative is to fully meet the needs of each of the
three ICE segments: premium, standard and utility.
Previously, the Company had a reputation for offering
only premium products. Over the past two years, the
Company has added standard and utility products to
round out its premium product line to create a com-
prehensive product line for the ICE market segments.
Having the right product at the right price for each
application will permit the Company to focus on
creating and pricing products which meet the needs
of these individual market segments.
The global market for forklift trucks is expected
to grow slightly in all major global regions in 2014
compared with 2013. As a result of this market growth,
combined with expected increases in market share
and a strong ending backlog in 2013, the Company
anticipates an overall increase in unit shipments and
parts volumes in 2014 compared with 2013. The
majority of this increase is expected to come from the
Americas, with smaller increases in the Asia-Pacific
and European shipments.
At right: Hyster’s recently launched electric counterbalanced four-wheel pneumatic tire lift truck, the Hyster® J100XN, with a lifting capacity of up to 10,000
pounds, stacks drywall in a construction warehouse.
10
The Company expects material costs in 2014 to
increase slightly compared with 2013, particularly during
the second half of the year. Although commodity costs
appear to have stabilized, these markets, particularly
steel, remain volatile and sensitive to changes in the
global economy. The Company will continue to monitor
economic conditions, currency movements and the
resulting effects on costs and pricing, and will take
appropriate pricing actions if necessary but in a manner
that does not erode its competitive position.
taken in 2013, net income in 2014 is expected to
improve moderately compared with 2013. The effect
of improved operating profit, as well as lower interest
expense from lower debt outstanding and lower
interest rates under its new revolving credit agree-
ment, are expected to be partially offset by a higher
expected effective income tax rate. The higher effective
income tax rate in 2014 is expected to result primarily
from the effect of higher U.S. state, United Kingdom
and Australian income taxes as a result of the 2012
Hyster-Yale is focused on executing five strategic
initiatives to achieve its operating profit margin target
While sales are expected to increase moderately
in 2014 compared with 2013, the Company expects to
generate an increase in operating profit, excluding the
anticipated gain on the sale of the Company’s current
Brazil plant, in excess of the rate of sales increase,
with a decrease in the first half of 2014 compared
with 2013 that is expected to be more than offset by
improvements in the second half of 2014 compared
with 2013. The favorable effect of anticipated increased
unit volumes resulting from the Company’s strategic
initiatives, increased parts volumes and product
enhancements are all expected to contribute to this
improvement. In addition, a lower estimate for equity
incentive compensation that is in part driven by changes
in the market price of the Company’s stock, which
increased 91 percent during 2013, is also expected to
contribute to the improved operating profit. These
favorable items are expected to be partially offset by
the full-year impact of marketing and employee costs
associated with the strategic initiatives that were put
in place over the course of 2013 and by unfavorable
foreign currency movements in the Americas and
Asia-Pacific. After excluding the gain from the sale
of the Company’s Brazil plant in 2014 and after
excluding a $12.8 million valuation allowance release
and 2013 valuation allowance releases, combined with
an anticipated increase in income in the Americas
operations, which have a higher tax rate.
Full-year 2014 operating profit results, excluding
the anticipated gain on sale of the Brazil plant, are
expected to improve in the Americas segment, which
includes the North America, Latin America and Brazil
markets, with anticipated increases in unit and parts
margins partially offset by an expected strong euro
and slight material cost increases. Operating profit in
the Europe segment, which includes the Middle East
and Africa markets, is expected to increase in 2014
compared with 2013 due to volume increases and the
anticipated benefits of the current strength of the euro,
but these improvements are expected to be partially
offset by the full-year effect of increased marketing
and employee costs implemented during 2013. Asia-
Pacific results for 2014 are expected to be lower largely
due to the weakness of the Australian dollar despite
the favorable effect of increased volume.
Cash flow before financing activities for 2014
is expected to decrease from 2013 primarily due to
an increase in capital expenditures, largely driven by
the construction of a new plant in Brazil. These capital
expenditures will be partially offset by the final cash
payment, which is expected to be received in mid-
2014 when the sale of the current facility is expected
to be finalized.
Long-term Strategic Initiatives
The Company’s vision is to continue to be a
leading globally integrated designer, manufacturer
and marketer of a complete range of high-quality,
application-tailored lift trucks, offering the lowest
cost of ownership, outstanding parts and service
support and the best overall value. We believe we are
currently at the mid-point of the current market cycle.
As markets continue to grow with further economic
recovery, the Company expects to share in this growth.
However, to achieve a 7 percent operating profit
margin in three to five years, which the Company has
set as its target, Hyster-Yale must gain market share
to achieve the volume and generate the economies
of scale that will allow it to reach that target. To
achieve this vision and its long-term financial target,
the Company is focused on executing five key strategic
initiatives: (1) understanding customer needs at the
product and aftermarket levels in order to create
and provide a full range of differentiated product
and service solutions for specific industry applica-
tions, (2) offering the lowest cost of ownership by
utilizing the Company’s understanding of customers’
major cost drivers and developing solutions that
consistently lower the total cost of ownership and
create a differentiated competitive position, (3)
enhancing independent distribution by implementing
programs aimed at broadening account coverage of
the market, expanding the Company’s dual-brand
ownership strategy, and ensuring dealer excellence in
all areas of the world, (4) improving the Company’s
warehouse market position through enhancing dealer
and customer support, adding products, increasing
incentives, and implementing programs to increase
focus on key customers, and (5) expanding in Asian
markets by offering products aimed at the needs of
The newly introduced European Yale® MR20 Reach truck has a lifting capacity
of 2 tons and can stack a 1.0 ton load to a height of 12.5 meters.
these markets, enhancing distribution excellence and
focusing on strategic alliances with local partners in
China, India and Japan. These key strategic initiatives, in
combination with three supporting programs focused
on enhancing the Company’s Big Truck segment,
strengthening its sales and marketing organization and
enhancing Brazil production capabilities, are expected
to help the Company gain sufficient market share to
generate the volume necessary to achieve operating
profit margins in the range of 7 percent at the peak
of this market cycle, which is expected to be between
2017 and 2018.
The Company’s product pipeline is expected to
provide a continuous stream of new product innova-
tions and product introductions over the next several
years that are anticipated to meet customer needs in
virtually all major market segments at a low total cost
of ownership to its customers. The products are also
expected to enhance the Company’s competitiveness
and market share position. To meet the specific
application needs of its customers, the Company is
focusing on developing utility, standard and premium
products – utility trucks for low-intensity needs,
especially in developing markets, standard trucks for
medium-intensity applications in both the developed
and developing markets and the Company’s traditional
premium Fortis®, Fortens® and Veracitor® trucks for
high-intensity needs in developed markets. To this
end, development programs are under way for its
electric-rider, warehouse, ICE and Big Truck product
lines. During 2013, the Company completed its newly
designed electric-rider lift truck product line by
launching the 4- to 5-ton cushion tire electric-rider
truck in the Americas in the first quarter of 2013. In
addition, in October 2013, the Company introduced
a new Reach Truck, predominantly for the European
warehouse market. This product entered production
in January 2014. The Company also introduced two
new Big Truck models in the fourth quarter of 2013 to
better serve specialized Big Truck market segments.
The Company is also in the process of launching a
new mast for the 2- to 3-ton electric and ICE counter-
balanced trucks. The changes to the mast are focused
on improving visibility, performance and robustness
on these trucks, which in turn is expected to lead to
lower total cost of operations.
In 2014, the Company is instituting a new model
year update program for annual improvements of key
From left to right: The Hyster® H36-48XM Tire-handler, with a lifting capacity of up to 36,000 pounds, performs a tough application at an Australian mine site. The
Hyster Shanghai manufacturing facility in China. The new UTILEV® UT15PTE three-wheel electric truck has a lifting capacity of 3,000 pounds and is designed to meet
the needs of utility users. The Hyster® 45-27CH Reach Stacker has a lifting capacity up to 45 tons. This product is produced at Nijmegen, The Netherlands, and in India
through a partnership with Tractors India Limited.
12
performance and capability features of each of its
existing lift truck model platforms. This new program is
expected to keep these platforms soundly positioned
in the market over time. The first model year updates
are expected to occur in April 2014 on the 1- to 3-ton
and 4- to 9-ton ICE counterbalanced lift trucks. The
1- to 3-ton platform will receive a new premium spark
ignited engine with improved robustness and durability,
needs of lower-intensity users. This UTILEV®-branded
utility lift truck was gradually introduced into global
markets during 2012. During the third quarter of 2013,
the Company expanded the UTILEV®-branded series
of lift trucks by introducing a 1- to 3-ton ICE cushion
tire truck in North America and a 3-wheel electric
rider truck globally. The UTILEV®-branded series of lift
trucks is expected to continue to gain market position
New and upgraded products are expected to increase
market share, improve revenues & enhance operating margins
which is expected to lower the customer’s total cost of
ownership through improved fuel economy and service
intervals. The 4- to 9-ton platform will have features
optimized to handle the increasingly demanding needs
of key industry segments. Further, new platforms are
expected to be developed and launched over the next
few years based on longer-term segment needs or
technological change opportunities.
In mid-2011, the Company introduced into certain
Latin American markets a UTILEV®–branded 1- to
3.5-ton ICE pneumatic tire lift truck model to meet the
in 2014. The Company also offers one model of the
standard ICE lift truck for medium-duty applications
in both pneumatic and cushion tires for both Hyster®
and Yale®. The Company expects to launch additional
trucks in the standard ICE model series in future years.
All of these new and upgraded products are
expected to help increase market share, to improve
revenues and to enhance operating margins. In addi-
tion, stricter diesel emission regulations for new trucks
began to go into effect in 2011 and will be fully in
effect by 2015 in certain global markets. The Company
13
has launched and expects to continue to launch lift
truck series over this period that will meet these new
emission requirements.
The Company is developing and selling its new
products in a manner that focuses on understanding
its customers’ major cost drivers and developing
solutions that consistently lower total cost of owner-
ship. The Company is focused on providing tailored
solutions for its major customers through industry
“application guides.” Guides have been completed for
the trucking, grocery and steel industries and others
are expected to be developed in 2014 and future years.
The Company is also focused on keeping the life cycle
cost of operating its trucks as low as possible. The
Company has been successful in reducing fuel con-
sumption, a significant direct cost for its customers,
on certain truck models by up to 15 percent. The
Company is also introducing telemetry capabilities
in its lift trucks to deliver additional information and
value to its customers, allowing the customer to
monitor the use of trucks to ensure they are being
operated properly and serviced in a timely manner to
keep maintenance costs to a minimum. Finally, as the
quality of the Company’s trucks has improved, repair
costs have decreased. To quantify all of this, Hyster-
Yale has created service cost calculators for its sales
personnel so they can determine the benefits the
customer is expected to receive over the life of the
lift truck and obtain attractive lease rates for its
customers through an improved understanding of
applications and operating costs.
The Company continues to strengthen its exclusive,
independent distribution network by implementing
programs to enhance dealer excellence, adding strong
independent dealers, encouraging more dual brand
representation by dealers, where appropriate, and
replacing underperforming dealerships. In 2012, the
Company initiated a program aimed at strengthening
dealers and broadening account coverage of the
At Top: The Yale® MR20 moving-mast Reach truck, introduced to accelerate
penetration of the European warehouse market, moves goods in a European
distribution facility. At Bottom: The Yale® OS030BF Order Selector lift truck
has been designed for comfort and productivity in a high-intensity warehouse
environment and can reach heights of up to 300".
market by helping dealers identify accounts. This
program helped generate new account coverage in
2013. Also in 2013, the company appointed 13 new dual-
brand dealers and converted 11 competitor dealers.
In 2013, 27 percent of the Company’s revenues
were in electric lift trucks compared with 26 percent in
2012. As part of the Company’s efforts to penetrate the
growing warehouse equipment market more deeply
and increase volumes in electric lift trucks, which
dominate this market, the Company has been focusing
on upgrading its warehouse product range, helping its
dealers strengthen specialized capabilities for serving
emission leadership by achieving breakthrough
improvements in fuel efficiency with these new engines.
Overall, the Company’s Big Truck business has signifi-
cant growth potential. The Company is highlighting
its Big Truck global capabilities to customers who
need global coverage and its specialized application
sales capabilities.
The Company is also strengthening its capabilities
by aligning its sales and marketing organization in each
region around the specific needs of counterbalanced
trucks, warehouse trucks and Big Trucks and around
serving its dealers more effectively, all with a higher
Focused on upgrading warehouse products to further
penetrate the growing warehouse equipment market
this segment and increasing coverage through direct
sales to major accounts. In 2013, the Company intro-
duced a new Reach Truck in the European market
and made substantial upgrades to its North American
warehouse products. Also during 2013, the Company
held a dealer summit in North Carolina for its Americas
dealers at which it trained approximately 800 dealer
personnel on warehouse products.
Finally, the Company is focused on expanding in
the growing Asia-Pacific markets. In 2013, the Company
opened a new office in Malaysia to spearhead sales
efforts in the Asia region. In addition, the Company
has added more sales resources and new dealers in the
region and is leveraging the new standard and utility
products, which are more suited to this market, to
improve share and margins. Also, the Company is
continuing to focus on strategic alliances with local
partners in key Asian markets.
In addition to its five key strategic initiatives, the
Company has three supporting programs that are
expected to help it improve market share. Within Big
Trucks, Hyster-Yale has already gained Tier 4 engine
emphasis on accountability. In 2013, the Company
added talent to enhance its capabilities in this refo-
cused organizational structure. Finally, the Company
is improving its production capabilities in Brazil by
building a new manufacturing facility that will be more
efficient and provide the ability to expand local product
line production and serve countries outside Brazil.
The Company anticipates achieving increased
volumes through these strategies and by competing
on quality and solving customer needs, all with the
objective of reaching its 7 percent operating profit
margin goal at the peak of this market cycle. If the
programs continue to be executed well, the Company
is expected to reach 7 percent operating profit margin
at the next mid-cycle and somewhat higher at the
next market cycle peak.
Looking forward
Hyster-Yale’s strategic initiatives are only the first
step in its value creation strategy, which has three
steps: (1) increase unit volume and market share over
the next three to five years through the execution of
15
16
its five key strategic initiatives and three supporting
programs to achieve the Company’s financial targets,
(2) gain significant aftermarket parts business over the
longer term as a result of the continued increase in the
Company’s installed lift truck population base and (3)
achieve market recognition in the short term through
continued dialogue with the investor community
regarding the Company’s operations and strategy.
With the momentum of solid 2013 performance,
the Company is poised to grow in 2014 and through
the rest of this market cycle by focusing on increasing
market share in order to reach its long-term financial
goals.
Hyster-Yale’s Class A common stock closed at
$93.16 on December 31, 2013, a 91 percent increase
over the closing price on December 31, 2012. We are
very pleased with the reception we received in our first
year as a focused investment option in the materials
handling equipment industry. We continue to believe
that the execution of our value creation strategy,
combined with a strong balance sheet, financial flexi-
bility, an expected continued strong cash position and
excellent returns on capital employed, make Hyster-
Yale a compelling long-term investment opportunity.
The Company has maintained a quarterly dividend
of $0.25 per share in 2013 and will continue to evaluate
its dividend level in 2014. In addition to the regular
dividend, the Company continues to execute the stock
repurchase program approved by the Board of Directors
in December 2012, which permits the repurchase of
up to $50 million of the Company’s outstanding Class
A common stock. Since its inception, Hyster-Yale
has purchased approximately 103,600 shares for an
aggregate purchase price of $5.2 million, including
$3.0 million purchased during 2013. Overall, the
Company expects continued strong cash generation
in 2014 and beyond. The Company will first focus on
utilizing its cash to support its strategic initiatives and
then, as appropriate, return capital to its stockholders
through dividends and the stock repurchase program.
In due course, should further cash be available, the
Company will then look for opportunities to take
advantage of Hyster-Yale’s skills and capabilities and
provide sound financial returns.
We have great confidence in the ability of our
management team to achieve the Company’s market
share and financial objectives in the years ahead as our
many experienced and highly motivated professionals
build on the Company’s strong 2013 financial results.
k
We would like to welcome F. Joseph Loughrey,
retired Vice Chairman of Cummins, Inc., an engine
manufacturing company, and John M. Stropki, retired
Executive Chairman of Lincoln Electric Holdings, Inc., a
welding products company, to our Board of Directors.
Both are experienced executives with substantial
knowledge of the capital goods industry. We are
privileged to have them as Directors.
Finally, we would like to take this opportunity
to thank all of the Company’s customers, dealers
and suppliers and all of the Hyster-Yale stockholders
for their continued support, and to thank all of our
employees for their hard work and commitment to
achieving our long-term goals. We have a strong group
of employees, strong brands and a strategic plan we
are excited about executing. Although we are still a
new public company, we are a decades-old business
with decades-old brands that have earned the trust
of our customers who depend upon the performance
of our products every day. We look forward to building
successfully on this legacy for many years to come.
Alfred M. Rankin, Jr.
Chairman, President and Chief Executive Officer,
Hyster-Yale Materials Handling Inc., and Chairman,
NACCO Materials Handling Group, Inc.
Michael P. Brogan
Vice Chairman and Chief Executive Officer,
NACCO Materials Handling Group, Inc.
DIRECTORS AND OFFICERS
Officers of NACCO Materials Handling Group, Inc.
Alfred M. Rankin, Jr.
Chairman
Michael P. Brogan
Vice Chairman and Chief Executive Officer
Colin Wilson
President and Chief Operating Officer, and President, Americas
Charles A. Bittenbender
Vice President, General Counsel and Secretary
Gregory J. Breier
Vice President, Tax
Brian K. Frentzko
Vice President, Treasurer
Jennifer M. Langer
Vice President, Controller
Lauren E. Miller
Senior Vice President, Marketing and Consulting
Ralf A. Mock
Managing Director, Europe, Middle East and Africa
Charles F. Pascarelli
President, NMHG Sales and Marketing, Americas
Rajiv K. Prasad
Vice President, Global Product Development and Manufacturing
Victoria L. Rickey
Vice President, Asia-Pacific
Michael E. Rosberg
Vice President, Global Supply Chain
Kenneth C. Schilling
Vice President and Chief Financial Officer
Gopichand Somayajula
Vice President, Global Product Development
Suzanne S. Taylor
Vice President, Deputy General Counsel
and Assistant Secretary
Raymond C. Ulmer
Vice President, Finance, Americas
Directors and Officers
of Hyster-Yale Materials Handling, Inc.
Directors:
J.C. Butler, Jr.
Senior Vice President, Finance, Treasurer and
Chief Administrative Officer, NACCO Industries, Inc.
Carolyn Corvi
Retired Vice President and General Manager –
Airplane Programs of The Boeing Company
John P. Jumper
Chairman of the Board and Chief Executive Officer of
Leidos Holdings, Inc.
Retired Chief of Staff, United States Air Force
Dennis W. LaBarre
Of Counsel, Jones Day
F. Joseph Loughrey
Retired Vice Chairman, Cummins, Inc.
Alfred M. Rankin, Jr.
Chairman, President and Chief Executive Officer of
Hyster-Yale Materials Handling, Inc.
Chairman of NACCO Materials Handling Group, Inc.
Chairman, President and Chief Executive Officer of
NACCO Industries, Inc.
Claiborne R. Rankin
Manager of NCAF Management, LLC, the managing member
of North Coast Angel Fund, LLC
Michael E. Shannon
President of MEShannon & Associates, Inc.
Retired Chairman, Chief Financial
and Administrative Officer of Ecolab, Inc.
John M. Stropki
Retired Executive Chairman of Lincoln Electric Holdings, Inc.
Britton T. Taplin
Self-employed (personal investments)
Eugene Wong
Professor Emeritus
of the University of California at Berkeley
Officers:
Alfred M. Rankin, Jr.
Chairman, President and Chief Executive Officer
Michael P. Brogan
Vice Chairman and Chief Executive Officer,
NACCO Materials Handling Group, Inc.
Charles A. Bittenbender
Vice President, General Counsel and Secretary
Brian K. Frentzko
Vice President, Treasurer
Jennifer M. Langer
Vice President, Controller
Lauren E. Miller
Senior Vice President, Marketing and Consulting
Kenneth C. Schilling
Vice President and Chief Financial Officer
Suzanne S. Taylor
Vice President, Deputy General Counsel
and Assistant Secretary
CORPORATE DATA
Annual Meeting
The Annual Meeting of Stockholders of Hyster-Yale
Materials Handling, Inc. will be held on May 7, 2014, at 9:00 a.m.
at the corporate office located at: 5875 Landerbrook Drive,
Cleveland, Ohio 44124
Form 10-K
Additional copies of the Company’s Form 10-K filed with the
Securities and Exchange Commission are available free of
charge through Hyster-Yale’s website (www.hyster-yale.com)
or by request to:
Investor Relations
Hyster-Yale Materials Handling, Inc.
5875 Landerbrook Drive, Suite 300
Cleveland, Ohio 44124
(440) 229-5168
C
Stock Transfer Agent and Registrar
Stockholder Correspondence:
Computershare
P.O. Box 30170
College Station, TX 77842-3170
Overnight Correspondence:
Computershare
211 Quality Circle, Suite 210
College Station, TX 77845
(877) 373-6374 (U.S., Canada and Puerto Rico)
(781) 575-2879 (International)
Legal Counsel
Jones Day
North Point
901 Lakeside Avenue
Cleveland, Ohio 44114
Independent Registered Public
Accounting Firm
Ernst & Young LLP
950 Main Avenue, Suite 1800
Cleveland, Ohio 44113
Stock Exchange Listing
The New York Stock Exchange
Symbol: HY
Investor Relations Contact
Investor questions may be addressed to:
Investor Relations
Hyster-Yale Materials Handling, Inc.
5875 Landerbrook Drive, Suite 300
Cleveland, Ohio 44124
(440) 229-5168
E-mail: ir@hyster-yale.com
Hyster-Yale Materials Handling, Inc. Website
Additional information on Hyster-Yale
may be found at the corporate website,
www.hyster-yale.com. The Company
considers this website to be one of the
primary sources of information for investors
and other interested parties.
Hyster Global:
www.hyster.com
Yale Global:
www.yale.com
Environmental Benefits
This Annual Report on Form 10(cid:27)K is printed using post(cid:27)consumer waste recycled paper and vegetable(cid:27)based inks.
By using this environmental paper, Hyster(cid:27)Yale Materials Handling, Inc. saved the following resources:
27 trees pre(cid:27)
served for the
future
79 lbs. water(cid:27)
borne waste
not created
11,566 gal.
wastewater
flow saved
1,280 lbs.
solid waste
not generated
2,520 lbs. net
greenhouse
gases prevented
19,286,500
BTUs energy
not consumed
The FSC Trademark identifies wood fibers coming from forests which have been certified in accordance with the rules of the Forest Stewardship Council.
5875 Landerbrook Drive, Suite 300
Cleveland, Ohio 44124
www.hyster-yale.com
An Equal Opportunity Employer