What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2021-11-02 compared with 2021-08-03 · 173 added, 196 removed, 188 unchanged (66% of the section changed)

23 unchanged sentences

In addition, the Company adjusted production levels in 2020 at its manufacturing plants to align more closely with the reduced levels of demand, and worked closely with suppliers to help ensure current needs were met while also promoting continuity as the market improved.

However, despite these efforts, during the second quarter and first six months of 2021, the Company experienced further pandemic-related and other global supply chain constraints, component shortages, shipping container availability constraints and higher freight costs, as well as significant material cost inflation resulting from the accelerated pace of the market recovery, all of which have negatively impacted the Company.

However, despite these efforts, during the third quarter and first nine months of 2021, the Company experienced further pandemic-related and other global supply chain constraints, component shortages, shipping container availability constraints and higher freight costs, as well as significant material cost inflation resulting from the accelerated pace of the market recovery, all of which have negatively impacted the Company.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

4 unchanged sentences

The results of operations for the Company were as follows:

THREE MONTHS ENDED Favorable / (Unfavorable) SIX MONTHS ENDED Favorable / (Unfavorable)

JUNE 30 JUNE 30

THREE MONTHS ENDED Favorable / (Unfavorable) NINE MONTHS ENDED Favorable / (Unfavorable)

SEPTEMBER 30 SEPTEMBER 30

2021 2020 % Change 2021 2020 % Change

40 unchanged sentences

(0.7) (0.9) n.m.

$ (54.3) $ 7.3 n.m.

$ (45.3) $ 36.2 (225.1) %

1 unchanged sentence

Other (income) expense $ (2.1) $ (2.2) (4.5) % $ (8.1) $ (2.3) n.m.

THREE MONTHS ENDED Favorable / (Unfavorable) SIX MONTHS ENDED Favorable / (Unfavorable)

JUNE 30 JUNE 30

THREE MONTHS ENDED Favorable / (Unfavorable) NINE MONTHS ENDED Favorable / (Unfavorable)

SEPTEMBER 30 SEPTEMBER 30

2021 2020 % Change 2021 2020 % Change

Net income (loss) attributable to stockholders

Americas $ 5.0 $ 13.5 (63.0) % $ 14.5 $ 41.3 (64.9) %

EMEA 3.9 (1.5) n.m.

Americas $ (31.8) $ 10.7 n.m.

$ (17.3) $ 52.0 (133.3) %

EMEA 0.1 3.7 n.m.

4.9 (0.9) n.m.

JAPIC (3.1) (2.8) (10.7) % (4.9) (8.5) 42.4 %

Lift truck business 9.3 10.9 (14.7) % 17.5 31.0 (43.5) %

Bolzoni (0.6) (0.6) — % — 2.1 (100.0) %

Nuvera (6.6) (5.8) (13.8) % (10.4) (12.5) 16.8 %

Lift truck business (34.8) 11.6 n.m.

(17.3) 42.6 (140.6) %

Bolzoni 2.2 0.1 n.m.

Nuvera (38.1) (6.1) n.m.

(48.5) (18.6) (160.8) %

Eliminations (6.5) (0.5) n.m.

(6.1) (2.2) n.m.

$ 1.9 $ 3.6 (47.2) % $ 7.5 $ 18.9 (60.3) %

Diluted earnings per share $ 0.11 $ 0.21 (47.6) % $ 0.45 $ 1.13 (60.2) %

Reported income tax rate n.m.

$ (77.2) $ 5.1 n.m $ (69.7) $ 24.0 n.m.

Diluted earnings per share $ (4.59) $ 0.30 n.m.

$ (4.15) $ 1.43 n.m.

Reported income tax rate (36.4) % 10.9 % (42.8) % 9.0 %

- 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.

As of June 30, 2021, substantially all of the Company's backlog is expected to be sold within the next twelve months.

THREE MONTHS ENDED SIX MONTHS ENDED

JUNE 30 JUNE 30

As of September 30, 2021, substantially all of the Company's backlog is expected to be sold within the next twelve months.

THREE MONTHS ENDED NINE MONTHS ENDED

SEPTEMBER 30 SEPTEMBER 30

2021 2020 2021 2020

5 unchanged sentences

The dollar value of bookings and backlog is calculated using the current unit bookings and backlog and the forecasted average sales price per unit.

THREE MONTHS ENDED SIX MONTHS ENDED

JUNE 30 JUNE 30

THREE MONTHS ENDED NINE MONTHS ENDED

SEPTEMBER 30 SEPTEMBER 30

2021 2020 2021 2020

1 unchanged sentence

Backlog, approximate sales value $ 2,450 $ 910 $ 2,450 $ 910

Second Quarter of 2021 Compared with Second Quarter of 2020

The following table identifies the components of change in revenues for the second quarter of 2021 compared with the second quarter of 2020:

Third Quarter of 2021 Compared with Third Quarter of 2020

The following table identifies the components of change in revenues for the third quarter of 2021 compared with the third quarter of 2020:

Increase (decrease) in 2021 from:

4 unchanged sentences

Nuvera revenues (0.5)

Revenues increased 17.0% to $765.6 million in the second quarter of 2021 from $654.4 million in the second quarter of 2020.

The increase was primarily due to higher unit and parts volume in the lift truck business and Bolzoni, in addition to favorable currency movements from the translation of sales into U.S.

Customer demand increased in the second quarter of 2021, resulting in higher unit shipments, mainly in EMEA and JAPIC, as well as higher parts sales in the lift truck business.

Revenues in the Americas increased in the second quarter of 2021 compared with the second quarter of 2020, primarily from favorable parts sales driven by an increase in customer demand and dealers ordering safety stock due to supply chain constraints, as well as an increase in fleet management services and the favorable effect of price increases put in place to mitigate the impact of material cost inflation.

Revenues increased 14.7% to $748.2 million in the third quarter of 2021 from $652.4 million in the third quarter of 2020.

The increase was primarily due to higher unit and parts volume in the lift truck business and Bolzoni, in addition to improved fleet services revenue, pricing and favorable currency movements from the translation of sales into U.S.

America's revenues increased in the third quarter of 2021 compared with the third quarter of 2020, primarily from higher unit and parts volume and higher fleet service revenue.

EMEA's revenues increased mainly due to higher unit and parts volume and favorable foreign currency movements of $3.7 million from the translation of sales into U.S.

JAPIC's revenues increased primarily as a result of improved unit volumes and favorable foreign currency movements of $1.9 million.

The increase in Bolzoni's revenues was mainly due to higher unit volume and favorable foreign currency movements of $1.9 million.

The following table identifies the components of change in operating profit for the second quarter of 2021 compared with the second quarter of 2020:

Operating Profit

Increase (decrease) in 2021 from:

Bolzoni's revenues increased mainly due to higher unit volume, partially offset by a shift in sales to lower-priced products.

The following table identifies the components of change in operating profit for the third quarter of 2021 compared with the third quarter of 2020:

Operating Profit (Loss)

Decrease in 2021 from:

Lift truck gross profit (27.6)

Bolzoni operations 0.1

Nuvera operations (23.8)

Lift truck selling, general and administrative expenses (10.1)

The Company recognized operating profit of $5.9 million in the second quarter of 2021 compared with $8.7 million in the second quarter of 2020.

The decrease in operating profit was mainly due to higher selling, general and administrative expenses in the lift truck business primarily due to the reinstatement of pre-pandemic employee-related salaries and benefits.

In addition, the second quarter of 2020 included $8.3 million of government support incentives received at EMEA and Bolzoni.

The increase in selling, general and administrative expenses was somewhat offset by higher gross profit, primarily from higher unit and part volume and a favorable $6.3 million adjustment for tax credits in Brazil.

The increase in gross profit was somewhat

offset by significant material and freight cost inflation due to supply chain and logistics constraints, mainly in the Americas.

See Note 12 for further discussion of the Brazilian tax credits.

Operating profit in the Americas significantly decreased to $13.6 million in the second quarter of 2021 compared with $23.3 million the second quarter of 2020 due to an increase in operating expenses mainly resulting from the reinstatement of pre-pandemic salaries and benefits that were suspended in 2020 and a decrease in gross profit.

Gross profit declined primarily due to material cost inflation and increased freight costs of $11.6 million, net of price increases of $4.2 million, a shift in sales mix to lower-margin lift trucks and higher manufacturing costs of $3.7 million resulting from inefficiencies associated with component shortages.

Bolzoni operations (0.1)

2021 $ (54.3)

The Company recognized an operating loss of $54.3 million in the third quarter of 2021 compared with operating profit of $7.3 million in the third quarter of 2020.

The change in operating profit (loss) was primarily due to lower gross profit and unfavorable selling, general and administrative expenses in the lift truck business and a larger operating loss at Nuvera.

The decrease in gross profit was primarily due to significant material and freight cost inflation due to supply chain and logistics constraints of $37.2 million, mainly in the Americas.

The increase in selling, general and administrative expenses in the lift truck business was primarily due to the reinstatement of pre-pandemic employee-related salaries and benefits.

In addition, the third quarter of 2021 included $24.7 million of inventory and property, plant and equipment adjustments at Nuvera.

See Note 11 for further discussion of Nuvera's adjustments.

Americas recognized an operating loss of $16.9 million in the third quarter of 2021 compared with an operating profit of $16.1 million the third quarter of 2020 due to a decrease in gross profit and an increase in selling, general and administrative

Gross profit declined primarily due to material cost inflation and increased freight costs of $32.8 million, net of price increases of $4.5 million, a shift in sales mix to lower-margin lift trucks and higher manufacturing costs resulting from inefficiencies associated with component shortages.

The decrease in gross profit was partly offset by the realization of higher margins on parts sales and a $2.2 million favorable adjustment for social contribution taxes previously imposed on material purchases in Brazil.

Despite the absence of $4.7 million of government support incentives received in the prior year, EMEA's operating profit increased to $3.7 million in the second quarter of 2021 from an operating loss of $2.8 million in the second quarter of 2020.

The increase was primarily the result of a substantial improvement in gross profit partially offset by higher operating expenses mainly resulting from the reinstatement of pre-pandemic salaries and employee benefits.

Gross profit improved mainly due to an increase in unit and parts volumes, the favorable effect of currency exchange rates and higher prices implemented to partially offset increases in material and freight costs.

JAPIC's operating loss improved to $1.9 million in the second quarter of 2021 from $3.5 million in the second quarter of 2020 primarily due to improved gross profit from higher unit volume and favorable foreign currency movements.

Bolzoni recognized an operating loss of $0.4 million in the second quarter of 2021 compared with $0.5 million in the second quarter of 2020.

The improvements in gross profit from higher unit volumes of higher margin products and lower manufacturing costs from improved operating efficiencies were offset by material cost and freight cost inflation and the absence of government subsidies of $3.6 million recorded in the second quarter of 2020.

Nuvera's operating loss increased to $9.0 million in the second quarter of 2021 compared with $8.3 million in the second quarter of 2020 as result of the reinstatement of pre-pandemic salaries and benefits and the absence of $0.6 million of a gain on the sale of assets recognized in the second quarter of 2020.

The Company recognized net income attributable to stockholders of $1.9 million in the second quarter of 2021 compared with $3.6 million in the second quarter of 2020.

The decrease was primarily the result of lower operating profit and the write-off of deferred financing fees from the refinancing of the Term Loan (as defined below) in the second quarter of 2021.

These items were partially offset by higher equity earnings in unconsolidated subsidiaries.

See Note 7 for further discussion of the refinancing of the Term Loan.

First Six Months of 2021 Compared with First Six Months of 2020

The following table identifies the components of change in revenues for the first six months of 2021 compared with the first six months of 2020:

See Note 13 for further discussion.

Selling, general and administrative expenses increased mainly as result of the reinstatement of pre-pandemic salaries and benefits that were suspended in 2020.

EMEA had an operating loss of $0.9 million in the third quarter of 2021 compared to an operating profit of $3.3 million in the third quarter of 2020.

The decrease in gross profit was primarily the result of increases in material and freight costs, higher manufacturing costs resulting from inefficiencies associated with component shortages and the absence of $1.5 million of government subsidies received in the third quarter of 2020.

JAPIC's operating loss increased to $3.5 million in the third quarter of 2021 from $3.2 million in the third quarter of 2020 primarily due to lower gross profit from material cost inflation and unfavorable manufacturing variances, partially offset by increased volume and favorable foreign currency movements.

Nuvera's operating loss increased to $32.5 million in the third quarter of 2021 compared with $8.7 million in the third quarter of 2020 as result of charges of $24.8 million recorded in the third quarter of 2021 on Nuvera's inventory and property, plant and equipment.

See Note 11 for further discussion these charges at Nuvera.

The Company recognized net loss attributable to stockholders of $77.2 million in the third quarter of 2021 compared with net income attributable to stockholders of $5.1 million in the third quarter of 2020.

The decrease was primarily the result of lower operating profit and a valuation allowance of $38.4 million provided against deferred tax assets.

See Note 5 for further discussion of the Company's income tax provision.

First Nine Months of 2021 Compared with First Nine Months of 2020

The following table identifies the components of change in revenues for the first nine months of 2021 compared with the first nine months of 2020:

2020 $ 2,092.5

3 unchanged sentences

Eliminations (8.0)

Unit volume and product mix (42.5)

Nuvera revenues (2.3)

Unit volume and product mix (1.3)

2021 $ 2,246.0

Revenues increased 4.0% to $1,497.8 million in the first six months of 2021 from $1,440.1 million in the first six months of 2020.

Revenues increased 7.3% to $2,246.0 million in the first nine months of 2021 from $2,092.5 million in the first nine months of 2020.

The increase was mainly due to favorable currency movements from the translation of sales into U.S.

dollars, primarily in

EMEA, higher parts volumes in all geographic segments of the lift truck business and higher volume at Bolzoni, primarily due to increased customer demand due to post-pandemic recovery.

The increase in revenue was partially offset by lower unit volumes in the Americas, primarily due to global supply chain constraints and component shortages.

Revenues in the Americas decreased in the first six months of 2021 compared with the first six months of 2020, primarily from lower unit volumes in all classes of lift trucks due to global supply chain constraints and component shortages.

The decrease was partially offset by favorable parts sales driven by an increase in customer demand.

dollars, primarily in EMEA, higher parts volumes in the Americas and EMEA, higher volume at Bolzoni and improved fleet service revenue in the Americas.

America's revenues increased slightly in the first nine months of 2021 compared with the first nine months of 2020, primarily from favorable aftermarket sales, including part sales, driven by an increase in customer demand as well as favorable pricing of lift trucks.

The increase was partially offset by lower unit volumes due to global supply chain constraints and component shortages.

EMEA's revenues increased mainly due to favorable foreign currency movements of $36.5 million from the translation of sales into U.S.

1 unchanged sentence

JAPIC's revenues increased primarily as a result of improved unit volumes and favorable foreign currency movements of $9.9 million, partially offset by a shift in sales to lower-priced lift trucks.

The increase in Bolzoni's revenues was mainly due to higher unit volume and favorable foreign currency movements of $5.1 million.

The following table identifies the components of change in operating profit for the first six months of 2021 compared with the first six months of 2020:

Operating Profit

Increase (decrease) in 2021 from:

Bolzoni's revenues increased mainly due to higher unit volume.

The following table identifies the components of change in operating profit for the first nine months of 2021 compared with the first nine months of 2020:

Operating Profit (Loss)

Decrease in 2021 from:

Lift truck gross profit (36.9)

Nuvera operations (24.9)

Lift truck selling, general and administrative expenses (17.8)

Bolzoni operations (1.9)

Nuvera operations (1.1)

The Company recognized operating profit of $9.0 million in the first six months of 2021 compared with $28.9 million in the first six months of 2020.

The decrease in operating profit was primarily due to lower gross profit and unfavorable selling, general and administrative expenses.

Gross profit declined mainly due to lower unit volumes, material cost inflation and increased freight costs, as well as higher manufacturing costs resulting from inefficiencies associated with component shortages.

The decrease in gross profit was partially offset by favorable parts volume in all geographic lift truck segments, favorable foreign currency movements of $12.1 million and a favorable $6.3 million adjustment for tax credits in Brazil.

2021 $ (45.3)

The Company recognized operating loss of $45.3 million in the first nine months of 2021 compared with operating profit of $36.2 million in the first nine months of 2020.

The decrease in operating profit was primarily due to lower gross profit and unfavorable selling, general and administrative expenses in the lift truck business and a higher operating loss at Nuvera.

Gross profit declined mainly due to material cost inflation and increased freight costs of $50.6 million, a shift in sales to lower-margin lift trucks, and higher manufacturing costs resulting from inefficiencies associated with component shortages.

The decrease in gross profit was partially offset by favorable parts volume in the Americas and EMEA, favorable foreign currency movements of $13.6 million and a favorable adjustment of $8.5 million for social contribution taxes previously imposed on material purchases in Brazil.

In addition, the first nine months of 2020 included $6.5 million of government subsidies at EMEA and Bolzoni.

Selling, general and administrative expenses increased as pre-pandemic salaries and benefits were reinstated, including $12.2 million of incentive compensation.

In addition, the first six months of 2020 included $9.6 million of government subsidies at EMEA and Bolzoni.

Operating profit in the Americas decreased to $28.2 million in the first six months of 2021 compared with $61.8 million in the first six months of 2020 due to a decrease in gross profit and higher operating expenses.

Gross profit declined mainly due to lower volume, a shift in mix to lower-margin products, material cost inflation and increased freight costs of $12.7 million, as well as higher manufacturing costs resulting from inefficiencies associated with component shortages of $8.0 million.

These items were partially offset by favorable parts sales and a favorable $6.3 million favorable adjustment for social contribution taxes previously imposed on material purchases in Brazil.

The increase in operating expenses primarily resulted from the reinstatement of pre-pandemic salaries and benefits, including $8.8 million of incentive compensation.

EMEA recognized operating profit of $3.8 million in the first six months of 2021 compared with an operating loss of $7.3 million in the first six months of 2020 mainly as a result of improved gross profit from favorable foreign currency movements of $6.6 million, improved unit and parts volume and improved pricing, partially offset by the absence of $5.0 million of government subsidies received in the first six months of 2020.

JAPIC's operating loss decreased to $4.4 million in the first six months of 2021 from $9.5 million in the first six months of 2020 primarily due to improved gross profit from higher unit volume and favorable foreign currency movements of $4.3 million partially offset by a shift in mix to lower-margin products.

Operating profit at Bolzoni decreased to $0.4 million in the first six months of 2021 compared with $2.2 million in the first six months of 2020 mainly from material cost inflation, including freight, which offset the improved volumes.

Operating profit was

also unfavorably affected by the absence of government subsidies of $4.6 million and the reinstatement of pre-pandemic salaries and employee benefits, including $1.7 million of incentive compensation.

Nuvera's operating loss increased as result of the reinstatement of pre-pandemic salaries and employee benefits and the absence of $0.6 million of a gain on the sale of assets recognized in the first six months of 2020.

The Company recognized net income attributable to stockholders of $7.5 million in the first six months of 2021 compared with $18.9 million in the first six months of 2020.

The decrease was primarily the result of lower operating profit and the write-off of deferred financing fees from the refinancing of the Term Loan in the second quarter of 2021.

These items were partially offset by a $4.6 million gain related to the sale of the Company's preferred shares of OneH2 in the first six months of 2021 and higher equity earnings in unconsolidated subsidiaries.

See Note 7 for further discussion of the refinancing of the Term Loan.

Operating profit in the Americas decreased to $11.3 million in the first nine months of 2021 compared with $77.9 million in the first nine months of 2020 due to a decrease in gross profit and higher operating expenses.

Gross profit declined mainly due to material cost inflation and increased freight costs of $45.5 million, higher manufacturing costs resulting from inefficiencies associated with component shortages of $10.0 million, a shift in mix to lower-margin products and lower volume.

These items were partially offset by favorable parts sales and a favorable adjustment of $8.5 million for social contribution taxes previously imposed on material purchases in Brazil.

The increase in selling, general and administrative expenses primarily resulted from the reinstatement of pre-pandemic salaries and benefits, including $8.9 million of incentive compensation.

EMEA recognized operating profit of $2.9 million in the first nine months of 2021 compared with an operating loss of $4.0 million in the first nine months of 2020 mainly as a result of improved gross profit partially offset by higher selling, general and administrative expenses.

Gross profit increased from favorable foreign currency movements of $6.5 million, improved parts and unit volume and improved pricing, partially offset by the absence of $6.5 million of government subsidies received in the first nine months of 2020.

Selling, general and administrative expenses increased primarily as pre-pandemic salaries and benefits were reinstated, including $1.2 million of incentive compensation.

JAPIC's operating loss decreased to $7.9 million in the first nine months of 2021 from $12.7 million in the first nine months of 2020 primarily due to improved gross profit from higher unit volume and favorable foreign currency movements of $5.0 million partially offset by material cost inflation as well as higher manufacturing costs and a shift in mix to lower-margin products.

Operating profit at Bolzoni decreased to $0.4 million in the first nine months of 2021 compared with $2.3 million in the first nine months of 2020 mainly from material cost inflation, including freight, which offset the improved volumes.

Operating profit was also unfavorably affected by the absence of government subsidies of $5.0 million and the reinstatement of pre-pandemic salaries and employee benefits, including $0.7 million of incentive compensation.

Nuvera's operating loss increased to $51.3 million in the first nine months of 2021 compared with $26.4 million in the first nine months of 2020 as result of charges of $24.8 million recorded in the first nine months of 2021 on Nuvera's inventory and property, plant and equipment.

See Note 11 for further discussion of these charges at Nuvera.

The Company recognized net loss attributable to stockholders of $69.7 million in the first nine months of 2021 compared with net income attributable to stockholders of $24.0 million in the first nine months of 2020.

The decrease was primarily the result of lower operating profit and a valuation allowance of $38.4 million provided against deferred tax assets in the third quarter of 2021.

These items were partially offset by a $4.6 million gain related to the sale of the Company's preferred shares of OneH2 in the first nine months of 2021 and higher equity earnings in unconsolidated subsidiaries.

See Note 5 for further discussion of the Company's income tax provision.

LIQUIDITY AND CAPITAL RESOURCES

The following tables detail the changes in cash flow for the six months ended June 30:

The following tables detail the changes in cash flow for the nine months ended September 30:

2021 2020 Change

Operating activities:

Net income $ 8.4 $ 19.6 $ (11.2)

Net income (loss) $ (68.4) $ 25.3 $ (93.7)

Depreciation and amortization 34.7 31.8 2.9

Impairment charge 10.0 — 10.0

Dividends from unconsolidated affiliates 5.5 7.3 (1.8)

Working capital changes

Other (16.0) 7.3 (23.3)

Net cash used for operating activities (100.7) (12.0) (88.7)

Accounts receivable (70.6) 60.2 (130.8)

Inventories (261.9) 71.1 (333.0)

Accounts payable and other liabilities 173.1 (119.7) 292.8

Other current assets (12.2) (7.4) (4.8)

Other operating activities (2.0) 7.5 (9.5)

Net cash provided by (used for) operating activities (191.8) 76.1 (267.9)

Investing activities:

Expenditures for property, plant and equipment (29.5) (37.2) 7.7

Proceeds from the sale of assets 18.9 6.6 12.3

Net cash provided by (used for) investing activities 0.8 (23.3) 24.1

Proceeds from the sale of assets and investment 19.4 7.4 12.0

Net cash used for investing activities (10.1) (29.8) 19.7

Cash flow before financing activities $ (201.9) $ 46.3 $ (248.2)

Net cash used for operating activities increased $88.7 million in the first six months of 2021 compared with the first six months of 2020, primarily as a result of changes in working capital items and the impact of currency translation included in "Other".

The change in working capital was mainly due to higher inventory levels in the first six months of 2021 resulting from global supply chain constraints and component shortages.

This was partially offset by significantly lower payments of employee-related compensation in the first six months of 2021 compared with the first six months of 2020 due to the Company's cost containment actions in 2020.

The change in net cash provided by (used for) investing activities during the first six months of 2021 compared with the first six months of 2020 is due to the proceeds from the sale of preferred shares of OneH2 for $15.7 million and lower capital expenditures in 2021.

Net cash provided by (used for) operating activities decreased $267.9 million in the first nine months of 2021 compared with the first nine months of 2020, primarily as a result of changes in working capital items and net income (loss).

The changes were mainly due to the global supply chain constraints, component shortages, shipping container availability constraints and higher freight costs.

The change in net cash used for investing activities during the first nine months of 2021 compared with the first nine months of 2020 is due to the proceeds from the sale of preferred shares of OneH2 for $15.7 million and lower capital expenditures in 2021.

2021 2020 Change

Financing activities:

Net increase of long-term debt and revolving credit agreements $ 56.0 $ 45.4 $ 10.6

Net increase (decrease) of long-term debt and revolving credit agreements $ 138.7 $ (2.7) $ 141.4

Cash dividends paid (16.2) (16.0) (0.2)

1 unchanged sentence

Other (0.2) (0.4) 0.2

Net cash provided by financing activities $ 37.5 $ 34.4 $ 3.1

Net cash provided by financing activities increased $3.1 million in the first six months of 2021 compared with the first six months of 2020.

The increase was primarily related to additional borrowings from refinancing the Term Loan (as defined below) in the first six months of 2021 compared to higher borrowings on the Facility (as defined below) during the first six months of 2020 which were primarily used to fund working capital needs.

The increase was partially offset by financing fees paid in connection with the Facility and Term Loan (both defined below).

Net cash provided by (used for) financing activities $ 114.7 $ (19.1) $ 133.8

Net cash provided by (used for) financing activities increased $133.8 million in the first nine months of 2021 compared with the first nine months of 2020.

The increase was primarily related to additional borrowings from refinancing the Term Loan (as defined below) and on the Facility (as defined below) in the first nine months of 2021 compared to the first nine months of 2020.

The borrowings were primarily used to fund working capital needs.

The increase was partially offset by financing fees paid in connection with the amendments of the Facility and Term Loan.

Financing Activities

The Company has a $300.0 million secured, floating-rate revolving credit facility (the "Facility”) that expires in June 2026.

There were no borrowings outstanding under the Facility at June 30, 2021.

The availability under the Facility at June 30, 2021 was $285.4 million, which reflects reductions of $14.6 million for letters of credit and other restrictions.

As of June 30, 2021, the Facility consisted of a U.S.

There were $73.6 million of borrowings outstanding under the Facility at September 30, 2021.

The availability under the Facility at September 30, 2021 was $222.0 million, which reflects reductions of $4.4 million for letters of credit and other restrictions.

As of September 30, 2021, the Facility consisted of a U.S.

revolving credit facility of $210.0 million and a non-U.S.

1 unchanged sentence

The obligations under the Facility are generally secured by a first lien on the working capital assets of the borrowers in the Facility, which include but are not limited to, cash and cash equivalents, accounts receivable and inventory (the "Facility Collateral") and a second lien on the Term Loan Collateral (defined below).

The approximate book value of assets held as collateral under the Facility was $960 million as of June 30, 2021.

The approximate book value of assets held as collateral under the Facility was $1.1 billion as of September 30, 2021.

Borrowings under the Facility bear interest at a floating rate, which can be a base rate, LIBOR or EURIBOR, as defined in the Facility, plus an applicable margin.

1 unchanged sentence

base rate loans and 1.25% to 1.75% for LIBOR, EURIBOR and foreign base rate loans.

The applicable margins, as of June 30, 2021, for U.S.

The applicable margins, as of September 30, 2021, for U.S.

base rate loans and LIBOR loans were 0.25% and 1.25%, respectively.

The applicable margin, as of June 30, 2021, for non-U.S.

The applicable margin, as of September 30, 2021, for non-U.S.

base rate loans and LIBOR loans was 1.25%.

The Facility also required the payment of a fee of 0.25% per annum on the unused commitments as of June 30, 2021.

The Facility includes restrictive covenants, which, among other things, limit additional borrowings and investments of the Company and its subsidiaries subject to certain thresholds, as provided in the Facility.

The Facility limits the payment of dividends and other restricted payments the Company, including its subsidiaries, may make unless certain total excess availability and/or fixed charge coverage ratio thresholds, each as set forth in the Facility, are satisfied.

The Facility also requires the Company, including its subsidiaries to achieve a minimum fixed charge coverage ratio in which 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 June 30, 2021, the Company was in compliance with the covenants in the Facility.

applicable interest rates for borrowings outstanding under the Facility on September 30, 2021 was 3.50%, 1.32% and 1.25% for the U.S.

base rate, U.S.

LIBOR and foreign LIBOR loans, respectively.

The Facility also required the payment of a fee of 0.25% per annum on the unused commitments as of September 30, 2021.

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 Facility limits the payment of dividends and other restricted payments the Company may make unless certain total excess availability and/or fixed charge coverage ratio thresholds, each as set forth in the Facility, are satisfied.

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 September 30, 2021, the Company was in compliance with the covenants in the Facility.

The Company also has a $225.0 million term loan (the "Term Loan"), which matures in May 2028.

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The Company may also be required to make mandatory prepayments, in certain circumstances, as provided in the Term Loan.

At June 30, 2021, there was $225.0 million of principal outstanding under the Term Loan which has been reduced in the unaudited condensed consolidated balance sheet by $5.7 million for discounts and unamortized deferred financing fees.

At September 30, 2021, there was $224.4 million of principal outstanding under the Term Loan which has been reduced in the unaudited condensed consolidated balance sheet by $5.5 million for discounts and unamortized deferred financing fees.

The obligations under the Term Loan are generally secured by a first priority lien on the present and future shares of capital stock, material real property, fixtures and general intangibles consisting of intellectual property (collectively, the "Term Loan Collateral") and a second priority lien on the Facility Collateral.

The approximate book value of assets held as collateral under the Term Loan was $650 million as of June 30, 2021.

The approximate book value of assets held as collateral under the Term Loan was $800 million as of September 30, 2021.

Borrowings under the Term Loan bear interest at a floating rate, which can be a base rate or Eurodollar rate, as defined in the Term Loan, plus an applicable margin.

The applicable margin, as provided in the Term Loan, is 2.50% for base rate loans and 3.50% for Eurodollar loans.

The interest rate on the amount outstanding under the Term Loan at June 30, 2021 was 4.00%.

The interest rate on the amount outstanding under the Term Loan at September 30, 2021 was 4.00%.

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 Term Loan limits the payment of dividends and other restricted payments the Company, including its subsidiaries, may make up to $50.0 million in any fiscal year, unless the consolidated total net leverage ratio, as defined in the Term Loan, does not exceed 2.50 to 1.00 at the time of the payment.

The Term Loan limits the payment of dividends and other restricted payments the Company may make up to $50.0 million in any fiscal year, unless the consolidated total net leverage ratio, as defined in the Term Loan, does not exceed 2.50 to 1.00 at the time of the payment.

The Term Loan also contains a provision requiring a premium to be paid in the event of a repricing of the borrowings under the Term Loan, whether by amendment or entry into new loans, within the six-month period following entry into the Term Loan.

At June 30, 2021, the Company was in compliance with the covenants in the Term Loan.

At September 30, 2021, the Company was in compliance with the covenants in the Term Loan.

The Company incurred fees and expenses of $7.6 million in 2021 related to the amendment of the Facility and the

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Fees related to the Term Loan are presented as a direct deduction of the corresponding debt.

The Company had other debt outstanding, excluding finance leases, of approximately $100.3 million at June 30, 2021.

The Company had other debt outstanding, excluding finance leases, of approximately $109.4 million at September 30, 2021.

In addition to the excess availability under the Facility of $222.0 million, the Company had remaining availability of $23.9 million related to other non-U.S.

revolving credit agreements.

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 April 2028.

Contractual Obligations, Contingent Liabilities and Commitments

On May 28, 2021, the Company entered into an agreement providing for the Amendment and Restatement of the Term Loan, which is described above.

Since December 31, 2020, there have been no other significant changes in the total amount of the Company's contractual obligations or commercial commitments, or the timing of cash flows in accordance with those obligations, as reported on pages 23 and 24 in the Company's Annual Report on Form 10-K for the year ended December 31, 2020.

During the second quarter of 2021, the Company entered into an agreement providing for the amendment and restatement of the Term Loan, which is described above.

As of September 30, 2021, the Company had additional borrowings under the Term Loan, revolving credit agreements and other debt of $130.1 million and higher purchase and other obligations of $145.2 million than the amounts reported on pages 23 and 24 in the Company's Annual Report on Form 10-K for the year ended December 31, 2020.

Capital Expenditures

The following table summarizes actual and planned capital expenditures:

Six Months Ended June 30, 2021 Planned for Remainder of 2021 Planned 2021 Total Actual 2020

Nine Months Ended September 30, 2021 Planned for Remainder of 2021 Planned 2021 Total Actual 2020

Lift truck business $ 20.3 $ 18.2 $ 38.5 $ 44.2

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$ 29.5 $ 22.4 $ 51.9 $ 51.7

Planned expenditures for the remainder of 2021 are primarily for product development, improvements to information technology infrastructure, improvements at manufacturing locations and manufacturing equipment.

Planned expenditures for the remainder of 2021 are primarily for product development, improvements at manufacturing locations, improvements to information technology infrastructure and manufacturing equipment.

The principal sources of financing for these capital expenditures are expected to be internally generated funds and bank financing.

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Debt to total capitalization 46 % 31 % 15 %

BUSINESS PROSPECTS

Lift truck markets continued to grow during the 2021 second quarter, but not at the growth rates seen in the fourth quarter of 2020 and first quarter of 2021.

The global lift truck market increased more than 70% over the second quarter of 2020 when the global economy was experiencing the peak of global pandemic-related shutdowns.

Compared to the first quarter of 2021, the global lift truck market increased 4.7% primarily driven by an 11.9% increase in EMEA.

The market improvements over the first quarter combined with the Company's share gain programs, as well as long lead times and the pull forward of orders before price increases went into effect, translated into an increase in the Company's 2021 second-quarter bookings that exceeded market growth.

The lift truck market growth for the remainder of the year is expected to decrease compared with the high levels in the first half of 2021 as markets begin to return toward pre-pandemic levels.

As a result, the lift truck business is anticipating a substantial decrease in bookings in the second half of 2021 compared with the first half of 2021.

Nevertheless, as a result of the strategic projects which the Company continues to pursue at each of its businesses, the Company expects increased bookings in the second half of 2021 over the second half of 2020 at levels higher than the expected year-over-year market growth rate.

These strategic projects gained traction in the first half of 2021, although definitive time frames for achieving full potential share gain

results are still uncertain due both to the timing of the full impact of the strategic projects and the continuing financial impact of the pandemic and subsequent pandemic-related supply chain and cost challenges.

While recent Lift Truck and Bolzoni market and bookings activity have been strong and better than expected, the level of future bookings and the resulting shipments are still uncertain.

Overall, the Company continues to operate on the assumption that the economic and market environment will remain difficult for at least the remainder of the year until COVID-19 and its variants are mitigated through the broad acceptance of vaccinations and subsequent herd immunity, and related supply chain issues are resolved.

Early in 2020, the Company put in place plans to mitigate the impact of declining markets and bookings and the consequential impact of reduced manufacturing activity from pandemic-related shutdowns by initiating cost reduction measures.

These measures included spending and travel restrictions, significant reductions in temporary personnel, furloughs, salary reductions and suspension of other benefits, including incentive compensation.

Effective January 1, 2021, the Company reinstated pre-pandemic salaries, benefits and incentive compensation programs.

The other cost containment actions are generally still in place, and are expected to remain so until market and economic uncertainty dissipates and results improve.

In the 2020 fourth quarter, the Lift Truck business restructured some of its operations to create a lower long-term cost structure.

The Company anticipates it will incur charges of approximately $0.8 million in the remainder of 2021 for additional costs related to this restructuring.

Estimated benefits from this restructuring program are expected to be approximately $9 million annually beginning in 2022.

The Lift Truck business adjusted production levels at its manufacturing plants early in 2020 to align them more closely with the lower market demand and target bookings levels and has been building those levels back up moderately over the past 12 months.

Given the strong bookings in the prior year fourth quarter and the first half of 2021, as well as backlog levels at historic highs, higher build rates at first appeared reasonable for 2021, but as a result of continuing supply chain and logistics constraints, the Lift Truck business and Bolzoni have not been able to achieve the production levels originally planned for the first half of 2021.

The Company is beginning to see improvement in the supply chain, but production levels are expected to experience continued disruption in the third quarter of 2021, with easing anticipated in the fourth quarter.

However, the Company hopes that these challenges will abate sooner and production levels will be able to be increased above currently planned rates for the second half of the year.

Significant material cost inflation and higher freight costs are also expected to continue into the second half of the year, and the non-renewal of tariff exclusions is also expected to affect the cost of components in the second half of 2021.

Both the Lift Truck business and Bolzoni have announced and implemented price increases to moderate the effect of material cost inflation but many of the orders in the backlog slotted for production in 2021 do not reflect the full effect of these price increases.

As a result, the Company expects to continue to experience margin pressure throughout the second half of 2021 due to the lag between when these price increases went into effect and when they are effective since customer orders in the backlog are generally price protected.

The Company will continue to work closely with suppliers to increase component supply levels and its production levels.

However, the Company anticipates that commodity costs will remain elevated through the second half of the year, although these costs, particularly for steel, remain volatile and sensitive to changes in the global economy and to tariffs, and could be higher or lower than currently forecasted.

The Company will continue to monitor potential future supply and logistics costs and tariffs closely and adjust pricing accordingly.

As a result of these factors, and the increase in costs associated with the reinstatement of pre-pandemic salaries and benefits and the loss of the COVID-related government subsidies, the Company expects substantially lower consolidated operating profit and net income in the second half of 2021 compared with the second half of 2020, primarily due to the Americas and EMEA Lift Truck businesses, with anticipated operating and net losses in the third quarter of 2021 partly as a result of the Lift Truck business' seasonal third-quarter plant shutdowns.

Bolzoni expects significant increases in operating profit and net income in the second half of the year compared with both the respective prior-year period and the first half of 2021.

While the Company's expectations for the 2021 second half have been based on the most recent information available, past quarters have shown that the effects of the pandemic on the economic and lift truck market environments can change expectations rapidly.

Further Company shutdowns or supplier shortages could occur as a result of the new Delta variant that has emerged globally.

Lockdown measures are still in place in a number of European and Asian countries to mitigate the spread of the COVID-19 virus and its variants, and similar actions could be taken by other countries.

At this time, the lockdown measures in place have not required closure of the Company's plants.

The Company is monitoring this situation, including closely monitoring a number of suppliers based in areas where COVID-19 cases are high.

The Company continues to maintain procedures designed to limit the exposure of employees to COVID-19.

However, the Company is prepared to take further action if necessary to maintain the health and safety of its global workforce and to address additional production and supply chain issues that may develop.

The Company remains committed to meeting the needs of dealers and end customers by

ensuring they receive equipment, parts and services in a timely manner to the degree reasonably possible.

More broadly, pandemic-related uncertainty and its effect on the supply chain continue to limit the Company's ability to forecast bookings and shipment levels past the third quarter of 2021.

Despite these challenges, the Company expects to increase its investment in working capital and other expenditures to support growth in its business.

Capital expenditures are expected to be approximately $50 million in the second half of 2021.

While the Company expects to make these substantial additional investments in the business during 2021, maintaining liquidity also continues to be a priority.

At June 30, 2021, the Company's cash on hand was $87.5 million and debt was $345.7 million compared with cash on hand of $103.0 million and debt of $285.4 million at March 31, 2021.

Term Loan debt increased with the refinancing of the Company's term loan in May 2021.

In addition, as of June 30, 2021, the Company had unused borrowing capacity of approximately $313.9 million under the Company's existing revolving credit facilities, including the Company's recently refinanced Asset Backed Revolver, compared with $265.3 million at March 31, 2020.

Despite the potential volatility of near-term economic activity, the Company continues to execute its long-term strategy by focusing on advancing its key strategic initiatives.

Collectively, the key projects underlying its strategic initiatives are expected to have a transformational impact on the Company’s competitiveness, market position and economic performance.

While essentially all of the projects required to execute these initiatives continue to move forward, in the context of the COVID-19 pandemic and current logistics challenges, the pace of certain projects has been given greater emphasis than others.

In addition, certain accelerated projects have experienced delays as a result of the impact of pandemic-related challenges, although the continued increase in bookings and the Company's historically high backlog reinforce the long-term potential payoff from these programs.

At the Lift Truck business, product projects are expected to lay the groundwork for enhanced market position by providing lower cost of ownership and enhanced productivity for the Company’s customers.

While the Company continues to introduce a number of new products during this period, the primary focus continues to be on the Company's new modular and scalable product families covering both internal combustion engine and electric trucks designed to provide customers with enhanced flexibility for meeting their application needs in addition to the benefit of low total cost of ownership.

The introduction of the first of these new modular products, the standard version of the 2-to-3 ton internal-combustion engine lift truck for the EMEA market, was launched in April 2021.

These new EMEA trucks have been very well received and the launch of this new range of the 2-to-3 ton counterbalanced trucks in other markets is expected to continue throughout 2021 and 2022.

The introduction of these new products has led to, and will continue to lead to, significant changes in supply chain sourcing and in the Company’s various manufacturing facilities around the world as certain products are moved between plants.

Consolidated component volume sourced globally from reliable partners is expected to reduce long-term costs and improve quality as these new products are brought to market over time.

Hyster-Yale Group’s largest manufacturing facilities, its Berea, Craigavon and Fuyang plants, are undergoing significant changes to accommodate these new products and significant investments are being made to expand the Berea and Craigavon plants.

Further, the Company is accelerating plans to move certain production locations to provide permanent structural changes designed to reduce costs and optimize its manufacturing footprint.

The Company believes the modular nature of the new products being introduced will enhance its ability to meet customer needs at low cost, and with more specificity, both at the industry level and at the individual customer level.

To capitalize on this capability, the Company has accelerated its focus on implementing comprehensive industry strategies and investing in industry-focused sales capabilities to support its dealers.

Given the COVID-19 environment, the Company has also focused on enhancing its remote selling capabilities through technology and IT enhancements.

OUTLOOK AND STRATEGIC PERSPECTIVE

Consolidated Outlook

Given the extensive component shortages due to supply chain constraints, significant material and freight cost inflation, as well as continued losses at Nuvera, the Company, on a consolidated basis, expects significant operating and net losses for the 2021 fourth quarter and in the first half of 2022.

As the Company continues to evaluate the long-term future cash flow impacts of these issues, additional interim impairment testing may be necessary in future quarters and future impairment charges are reasonably possible.

Consolidated results are expected to return to an operating profit in the second half of 2022 assuming reasonable resolution of component shortages and relative stabilization of material and freight costs.

The Company also expects to have moderately reduced losses at Nuvera as a result of enhanced fuel cell shipments.

While the Company expects to make additional investments in the business during the fourth quarter of 2021, and in 2022, maintaining liquidity will continue to be a priority.

Capital expenditures in the fourth quarter of 2021 are expected to be approximately $22 million.

Lift Truck Strategic Perspective

The global lift truck market is expected to decline in the fourth quarter of 2021 compared with the prior year fourth quarter, but still remain significantly higher than pre-pandemic levels.

Markets in 2022 are expected to recede from the historical highs of 2021, but still be higher than pre-pandemic levels.

As a result of this market outlook, the Lift Truck business is anticipating a substantial decrease in bookings in the 2021 fourth quarter compared with the third quarter of 2021, and in the succeeding 2022 quarters compared with the respective 2021 quarters.

In the first nine months of 2021, the Company has experienced production and shipment levels which are far lower than its objectives due to supply chain logistics constraints.

This is anticipated to continue in the 2021 fourth quarter and in at least the first half of 2022.

Nonetheless, shipments are expected to increase over the prior year fourth quarter and the third quarter of 2021.

Significant material cost inflation and higher freight costs, which continued to worsen in the 2021 third quarter, and the current non-renewal of tariff exclusions are expected to continue to affect the cost of components and freight negatively over the remainder of 2021 compared with the prior year fourth quarter.

The Lift Truck business has implemented price increases several times over the course of 2021 to moderate the effect of material cost inflation, but many of the orders in the backlog slotted for production in the remainder of 2021 and the first half of 2022 do not reflect the full effect of all these price increases.

As a result, the Company expects to continue to experience low margins in the fourth quarter of 2021 and, at best, in the first half of 2022, due to the lag between when unit price increases went into effect and when they are realized as the units are shipped.

The Company will continue to work aggressively to manage supply chain and logistics costs and component availability and tariff exclusions, and will adjust prices accordingly.

As a result of these factors, and the increase in costs associated with the reinstatement of pre-pandemic salaries and benefits, significant operating and net losses are expected in the Lift Truck business in the 2021 fourth quarter and in the first half of 2022.

From a strategic perspective, the Lift Truck business has three core strategies that are expected to have a transformational impact on the Company’s competitiveness, market position and economic performance.

The first is to provide the lowest cost of ownership while enhancing customer productivity.

The primary focus of this strategic initiative is the new modular and scalable product projects, which are expected to lay the groundwork for enhanced market position by providing lower cost of ownership and enhanced productivity for the Company’s customers, including low-intensity applications.

Additional to this are key projects geared toward electrification of trucks for applications now dominated by internal combustion engine trucks, automation product options and providing telemetry and operator assist systems.

The second core strategy is to be the leader in the delivery of industry- and customer-focused solutions.

The primary focus for this strategic initiative is transforming the Company's sales approach by using an industry-focused approach to meet its customers' needs.

The third core strategy is to be the leader in independent distribution.

The main focus of this strategic initiative is on dealer and major account coverage, dealer excellence and ensuring outstanding dealer ownership globally.

As a result of these core strategies and the increased shipment volume potential of the current backlog and 2022 expected bookings, the Lift Truck business expects to return to an operating profit in the second half of 2022.

Over this period, the Company is assuming the stabilization or reduction of product and transportation costs and the continued expectation of improved component and logistics availability.

Over this period and the longer term, the Company is also assuming the continued introduction of the currently released and additional modular and scalable product families and the continued implementation of cost savings initiatives.

Bolzoni Strategic Perspective

Bolzoni expects increases in operating profit and net income in the fourth quarter of 2021 compared with both the prior-year period and the first nine months of 2021.

Over the course of 2022, Bolzoni expects component shortages to moderate and pricing to permit improved returns as the year progresses despite higher costs.

Bolzoni continues to focus on implementing its "One Company - 3 Brands" organizational approach to help streamline corporate operations and strengthen its North America and JAPIC commercial operations.

Bolzoni is also focused on increasing its Americas business and strengthening its ability to serve industries in the North America market by introducing a broader range of locally produced attachments with shorter lead times to serve its customer base and through continuing to sell cylinders and various other components produced in its Sulligent, Alabama plant.

Nuvera continues to focus on serving heavy-duty applications, particularly bus and truck applications, with its 45kW and 60kW engines, which were both released for sale late in 2020.

As a result of those milestones, Nuvera accelerated the 45kW and 60kW engine commercialization operations for the global market and has been focusing on ramping up demonstrations, quotes and bookings of these products in 2021.

In addition, Nuvera has initiated development of a new 125kW engine and also continues to focus on the forklift truck market.

The Company believes that, despite significant current inflation and logistics issues, it is at an inflection point in its businesses as a result of the momentum of its strategic projects as they move to full implementation.

While these initiatives may reduce the Company's near-term financial results, they are expected to position the Company with enhanced market position as market and component supply conditions return to more normal levels.

Nevertheless, the Company recognizes that the timing and shape of the market recovery remains uncertain, and it will continue to maintain its contingency plans which are designed to respond appropriately and with agility to changing conditions.

Once the COVID-19 pandemic and its resulting effects have fully abated and markets have returned to normal, the Company believes the full impact of these projects will lead to significant profitability improvements for a number of years into the future.

In summary, the Company's strategy for the longer term is clear and transformative.

Key projects, as well as explicit objectives for the Lift Truck, Bolzoni and Nuvera businesses, support this long-term strategy, but nearer-term prospects, particularly in 2021, are uncertain as a result of a number of abnormal, largely external, influences.

These influences include the direct impact of the COVID-19 pandemic on some markets, suppliers' manufacturing levels around the world and logistics issues, which collectively create supply and cost challenges, as well as the timing of adoption rates for key fuel cell market segments.

Importantly, the Company has a record lift truck backlog and a strong current booking environment.

Future increased shipment opportunities are very significant.

However, when these increases will occur, given the supply and logistics challenges, is difficult to forecast.

Bolzoni is working to increase its Americas business by strengthening its ability to serve key attachment industries and customers in the North America market through the introduction of a broader range of locally produced attachments with shorter lead times, while continuing to sell cylinders and various other components produced in its Sulligent, Alabama plant.

Bolzoni is also increasing its sales, marketing and product support capabilities both in North America and Europe based on an industry-specific approach, with an immediate focus on the paper, beverage, appliance, 3PL and automotive industries.

Nuvera Strategic Perspective

Nuvera continues to focus on serving niche, heavy-duty vehicle applications with expected strong near-term fuel cell adoption potential, using its 45kW and 60kW engines, which were both released for sale late in 2020.

As a result of these releases, Nuvera accelerated its 45kW and 60kW engine commercialization operations for the global market.

In the fourth quarter of 2021 and in 2022, Nuvera will continue to focus on ramping up demonstrations, quotes and bookings of these products.

In addition, Nuvera has initiated development of a new 125kW engine and continues to focus on applications in the forklift truck market.

EFFECTS OF FOREIGN CURRENCY

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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, including materials and transportation costs, shortages, the imposition of tariffs, or the renewal of tariff exclusions, of raw materials or sourced products and labor or changes in or unavailability of quality suppliers, (2) the duration and severity of the COVID-19 pandemic, any preventive or protective actions taken by governmental authorities, the effectiveness of actions taken globally to contain or mitigate its effects, and any unfavorable effects of the COVID-19 pandemic on either the Company's or its suppliers plants' capabilities to produce and ship products if COVID-19 continues to spread or quarantines are re-established, (3) reduction in demand for lift trucks, attachments and related aftermarket parts and service on a global basis, including any reduction in demand as a result of a COVID-19 triggered economic recession, (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 current economic and market conditions, (5) delays in manufacturing and delivery schedules, (6) the successful commercialization of Nuvera's technology, (7) customer acceptance of pricing, (8) the political and economic uncertainties in the countries where the Company does business, (9) exchange rate fluctuations and monetary policies and other changes in the regulatory climate in the countries in which the Company operates and/or sells products, (10) bankruptcy of or loss of major dealers, retail customers or suppliers, (11) customer acceptance of, changes in the costs of, or delays in the development of new products, (12) introduction of new products by, or more favorable product pricing offered by, competitors, (13) product liability or other litigation, warranty claims or returns of products, (14) the effectiveness of the cost reduction programs implemented globally, including the successful implementation of procurement and sourcing initiatives, (15) changes mandated by federal, state and other regulation, including tax, health, safety or environmental legislation, and (16) 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.

(1) delays in delivery and other supply chain disruptions, or increases in costs as a result of inflation or otherwise, including materials 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, (2) the duration and severity of the COVID-19 pandemic, any preventive or protective actions taken by governmental authorities, the effectiveness of actions taken globally to contain or mitigate its effects, and any unfavorable effects of the COVID-19 pandemic on either the Company's or its suppliers plants' capabilities to produce and ship products if COVID-19 continues to spread or quarantines are re-established, (3) 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 current economic and market conditions, (4) further impairment charges or charges due to the valuation allowances, (5) delays in manufacturing and delivery schedules, (6) reduction in demand for lift trucks, attachments and related aftermarket parts and service on a global basis, including any reduction in demand as a result of a COVID-19 triggered economic recession, (7) the successful commercialization of Nuvera's technology, (8) customer acceptance of pricing, (9) the political and economic uncertainties in the countries where the Company does business, (10) exchange rate fluctuations and monetary policies and other changes in the regulatory climate in the countries in which the Company operates and/or sells products, (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, or more favorable product pricing offered by, competitors, (14) product liability or other litigation, warranty claims or returns of products, (15) the effectiveness of the cost reduction programs implemented globally, including the successful implementation of procurement and sourcing initiatives, (16) changes mandated by federal, state and other regulation, including tax, health, safety or environmental legislation, and (17) 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.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis