Hyster-Yale Materials Handling, Inc. (HY) has reported a 31 percent plunge in profit for the quarter ended Jun. 30, 2015. The company has earned $22.70 million, or $1.39 a share in the quarter, compared with $32.90 million, or $1.95 a share for the same period last year. Revenue during the quarter dropped 3.80 percent to $658.70 million from $684.70 million in the previous year period. Gross margin for the quarter expanded 112 basis points over the previous year period to 16.79 percent. Total expenses were 95.86 percent of quarterly revenues, up from 93.03 percent for the same period last year. That has resulted in a contraction of 282 basis points in operating margin to 4.14 percent.
Operating income for the quarter was $27.30 million, compared with $47.70 million in the previous year period.
Operating cash flow remains negative
Hyster-Yale Materials Handling, Inc. has spent $2.80 million cash to meet operating activities during the first half as against cash outgo of $13.60 million in the last year period. The company has spent $9.70 million cash to meet investing activities during the first six months as against cash outgo of $9.40 million in the last year period. It has incurred net capital expenditure of $10.60 million on net basis during the first six months, up 21.84 percent or $1.90 million from year ago period.
Cash flow from financing activities was $5.50 million for the first six months as against cash outgo of $53.60 million in the last year period.
Cash and cash equivalents stood at $99.10 million as on Jun. 30, 2015, up 0.51 percent or $0.50 million from $98.60 million on Jun. 30, 2014.
Working capital declines
Hyster-Yale Materials Handling, Inc. has witnessed a decline in the working capital over the last year. It stood at $323.90 million as at Jun. 30, 2015, down 5.51 percent or $18.90 million from $342.80 million on Jun. 30, 2014. Current ratio was at 1.62 as on Jun. 30, 2015, up from 1.62 on Jun. 30, 2014.
Cash conversion cycle (CCC) has decreased to 51 days for the quarter from 52 days for the last year period. Days sales outstanding went down to 45 days for the quarter compared with 49 days for the same period last year.
Days inventory outstanding was almost stable at 58 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went down to 52 days for the quarter from 54 for the same period last year.
Debt increases substantially
Hyster-Yale Materials Handling, Inc. has witnessed an increase in total debt over the last one year. It stood at $53.70 million as on Jun. 30, 2015, up 28.78 percent or $12 million from $41.70 million on Jun. 30, 2014. Total debt was 4.92 percent of total assets as on Jun. 30, 2015, compared with 3.65 percent on Jun. 30, 2014. Debt to equity ratio was at 0.12 as on Jun. 30, 2015, up from 0.08 as on Jun. 30, 2014. Interest coverage ratio deteriorated to 21 for the quarter from 59.62 for the same period last year.
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