What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2022-11-01 compared with 2022-08-02 · 176 added, 161 removed, 198 unchanged (63% of the section changed)

8 unchanged sentences

Lift trucks and component parts are manufactured in the United States, China, Northern Ireland, Mexico, the Netherlands, Brazil, the Philippines, Italy, Japan and Vietnam.

The Company owns a 90% majority interest in Hyster-Yale Maximal Forklift (Zhejiang) Co., Ltd.

("Hyster-Yale Maximal").

Hyster-Yale Maximal Forklift (Zhejiang) Co., Ltd.

("Hyster-Yale Maximal") is a Chinese manufacturer of low-intensity and standard lift trucks and specialized material handling equipment.

2 unchanged sentences

In June 2022, the Company purchased 15% of the equity interest of Hyster-Yale Maximal from HK Holding Co for an aggregate purchase price of $25.2 million, which will be paid in annual installments of $8.4 million beginning June 2022 through June 2024.

Subsequently, the Company will have an option to purchase HK Holding Co's remaining interest in Hyster-Yale Maximal at any time prior to June 8, 2056 for $16.8 million.

The Company has an option to purchase HK Holding Co's remaining interest in Hyster-Yale Maximal at any time prior to June 8, 2056 for $16.8 million.

If this option is exercised, the Company will own 100% of the equity interest of Hyster-Yale Maximal.

As of September 30, 2022, the Company owns a 90% majority interest in Hyster-Yale Maximal.

The Company operates Bolzoni S.p.A.

9 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

2022 2021 % Change 2022 2021 % Change

35 unchanged sentences

JAPIC (2.9) (3.5) 17.1 % (10.6) (7.9) (34.2) %

Lift truck business (11.7) 15.4 (176.0) % (22.4) 27.6 (181.2) %

Bolzoni 3.4 (0.4) 950.0 % 5.5 0.4 1,275.0 %

Lift truck business (15.2) (21.3) 28.6 % (37.6) 6.3 n.m.

Bolzoni (1.3) — n.m.

Nuvera (9.0) (32.5) 72.3 % (25.0) (51.3) 51.3 %

5 unchanged sentences

Other (income) expense $ (0.2) $ (2.1) (90.5) % $ (2.3) $ (8.1) (71.6) %

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

2022 2021 % Change 2022 2021 % Change

Net income (loss) attributable to stockholders $ (19.4) $ 1.9 n.m $ (44.4) $ 7.5 n.m.

Earnings (loss) per share $ (1.15) $ 0.11 n.m.

$ (2.63) $ 0.45 n.m.

Reported income tax rate 14.2 % n.m.

Net loss attributable to stockholders $ (37.3) $ (77.2) 51.7 % $ (81.7) $ (69.7) (17.2) %

Loss per share $ (2.20) $ (4.59) 52.1 % $ (4.84) $ (4.15) (16.6) %

Reported income tax rate (13.0) % (36.4) % (5.3) % (42.8) %

- 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.

Unit backlog as of June 30, 2022, excludes 2,700 suspended orders, for which the Company has no currently defined plans to fulfill.

As of June 30, 2022, 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

Unit backlog as of September 30, 2022, excludes 2,600 suspended orders, for which the Company currently has no defined plans to fulfill.

As of September 30, 2022, 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

2022 2021 2022 2021

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

2022 2021 2022 2021

1 unchanged sentence

Backlog, approximate sales value $ 3,700 $ 2,450 $ 3,700 $ 2,450

Second Quarter of 2022 Compared with Second Quarter of 2021

The following table identifies the components of change in revenues for the second quarter of 2022 compared with the second quarter of 2021:

Third Quarter of 2022 Compared with Third Quarter of 2021

The following table identifies the components of change in revenues for the third quarter of 2022 compared with the third quarter of 2021:

Increase (decrease) in 2022 from:

Unit volume and product mix 10.9

Bolzoni revenues 1.6

Eliminations 6.3

Nuvera revenues 1.0

Foreign currency (30.4)

Revenues increased 17.0% to $895.4 million in the second quarter of 2022 from $765.6 million in the second quarter of 2021.

The increase was primarily due to improved pricing, mainly in the Americas, and higher unit and parts volumes in the Americas and EMEA.

The improvement in revenue was partially offset by unfavorable currency movements from the translation of sales into U.S.

America's revenues increased in the second quarter of 2022 compared with the second quarter of 2021, primarily from improved pricing, higher unit volumes and favorable aftermarket sales, including part sales.

EMEA's revenues increased in the second quarter of 2022 compared with the second quarter of 2021 due to improved unit and parts volume and favorable pricing.

Bolzoni revenues (7.8)

Revenues increased 12.3% to $840.1 million in the third quarter of 2022 from $748.2 million in the third quarter of 2021.

The increase was primarily due to improved pricing and higher parts volumes, mainly in the Americas.

The improvement in revenue was partially offset by unfavorable currency movements, primarily in EMEA, from the translation of sales into U.S.

America's revenues increased in the third quarter of 2022 compared with the third quarter of 2021, primarily from improved pricing and higher part sales.

EMEA's revenues increased in the third quarter of 2022 compared with the third quarter of 2021 due to improved unit and parts volume and favorable pricing.

These improvements were partially offset by unfavorable foreign currency movements of $27.6 million from the translation of sales into U.S.

JAPIC's revenues in the second quarter of 2022 were comparable with the second quarter of 2021, primarily as a result of lower unit and parts volumes, partially offset by improved pricing.

Bolzoni's revenues increased in the second quarter of 2022 compared with the second quarter of 2021 mainly due to improved pricing, partially offset by unfavorable foreign currency movements of $5.2 million from the translation of sales into U.S.

The following table identifies the components of change in operating profit (loss) for the second quarter of 2022 compared with the second quarter of 2021:

JAPIC's revenues increased in the third quarter of 2022 compared with the third quarter of 2021, primarily as a result of higher unit volume and improved pricing, partially offset by unfavorable foreign currency movements of $2.3 million from the translation of sales into U.S.

Bolzoni's revenues decreased in the third quarter of 2022 compared with the third quarter of 2021 mainly due to lower volume and unfavorable foreign currency movements of $5.5 million from the translation of sales into U.S.

dollars, partially offset by improved pricing.

The following table identifies the components of change in operating profit (loss) for the third quarter of 2022 compared with the third quarter of 2021:

Operating Profit (Loss)

2021 $ (54.3)

Increase (decrease) in 2022 from:

Nuvera operations 23.5

Lift truck gross profit 8.8

1 unchanged sentence

Bolzoni operations (1.3)

Nuvera operations 1.1

2022 $ (24.9)

The Company recognized an operating loss of $15.7 million in the second quarter of 2022 compared with operating profit of $5.9 million in the second quarter of 2021.

The change in operating profit (loss) was primarily the result of lower gross profit and unfavorable selling, general and administrative expenses in the lift truck business.

The decrease in gross profit was mainly due to significant material and freight cost inflation as well as manufacturing inefficiencies due to supply chain and logistics constraints totaling $85.9 million, primarily in the Americas and EMEA.

In addition, unfavorable foreign currency exchange rates and the absence of $6.3 million for social contribution taxes previously imposed on material purchases in Brazil recorded in 2021 contributed to the lower gross profit.

These changes more than offset the favorable impact of improved pricing of $59.9 million and higher unit and parts volumes.

The Americas recognized an operating profit of $3.1 million in the second quarter of 2022 compared with operating profit of $13.6 million in the second quarter of 2021 due to an increase in selling, general and administrative expenses and a decrease in gross profit.

Selling, general and administrative expenses increased mainly as result of increased employee-related expenses in the second quarter of 2022 compared with the second quarter of 2021, including $4.7 million of incentive compensation.

Gross profit declined primarily due to material cost inflation of $43.0 million and higher manufacturing costs of $14.2 million resulting from inefficiencies associated with component shortages.

The decrease in gross profit was partly offset by improved pricing of $50.5 million and improved parts and units volume.

EMEA recognized an operating loss of $10.8 million in the second quarter of 2022 compared with operating profit of $3.7 million in the second quarter of 2021.

Gross profit decreased primarily from increases in material and freight costs and higher manufacturing costs resulting from inefficiencies associated with component shortages and unfavorable foreign currency exchange rates.

The Company recognized an operating loss of $24.9 million in the third quarter of 2022 compared with an operating loss of $54.3 million in the third quarter of 2021.

The change in operating loss was primarily from the absence of $24.8 million of charges related to the impairment of Nuvera's property, plant and equipment and inventory losses recorded in the third quarter of 2021.

Lift truck gross profit increased due to improved pricing of $81.7 million and higher unit and parts volumes.

The increase in gross profit was partially offset by $68.4 million of material and freight cost inflation as well as manufacturing inefficiencies due to supply chain and logistics constraints, primarily in the Americas and EMEA.

In addition, unfavorable foreign currency movements, including derivative contracts, of $13.6 million reduced the improvements in lift truck gross profit.

The Americas recognized operating profit of $0.9 million in the third quarter of 2022 compared with an operating loss of $16.9 million in the third quarter of 2021 due to an increase in gross profit.

Gross profit improved primarily due to higher pricing of $64.9 million and increased parts and units volume.

The improvement in gross profit was partly offset by material cost inflation of $30.3 million, higher manufacturing costs of $15.3 million resulting from inefficiencies associated with component shortages and unfavorable foreign currency movements of $8.5 million.

EMEA recognized an operating loss of $13.2 million in the third quarter of 2022 compared with $0.9 million in the third quarter of 2021.

These decreases more than offset the favorable impact of improved pricing and higher unit and parts volumes.

JAPIC's operating loss increased to $4.0 million in the second quarter of 2022 compared with $1.9 million in the second quarter of 2021, primarily due to lower gross profit from an unfavorable mix of sales of lower margin trucks, material cost inflation and unfavorable manufacturing variances.

The decrease was partially offset by improved pricing.

Bolzoni's operating profit increased to $3.4 million in the second quarter of 2022 from a $0.4 million operating loss in the second quarter of 2021, mainly due to improved gross profit from higher volume and pricing, partially offset by material cost inflation and unfavorable foreign currency exchange rates.

Nuvera's operating loss decreased to $7.9 million in the second quarter of 2022 compared with $9.0 million in the second quarter of 2021 as result of improved margin from lower production costs in 2022.

The Company recognized a net loss attributable to stockholders of $19.4 million in the second quarter of 2022 compared with net income attributable to stockholders of $1.9 million in the second quarter of 2021.

The decrease was primarily the result of the factors affecting operating profit, higher interest expense and lower pension income.

First Six Months of 2022 Compared with First Six Months of 2021

The following table identifies the components of change in revenues for the first six months of 2022 compared with the first six months of 2021:

JAPIC's operating loss decreased to $2.9 million in the third quarter of 2022 compared with $3.5 million in the third quarter of 2021, primarily due to higher gross profit from improved pricing and higher unit volume, partially offset by an unfavorable shift in sales to lower-margin trucks.

Bolzoni's operating loss increased by $1.3 million in the third quarter of 2022 from the third quarter of 2021, mainly due to lower gross profit from material cost inflation partially offset by higher pricing.

Nuvera's operating loss decreased to $9.0 million in the third quarter of 2022 compared with $32.5 million in the third quarter of 2021 from the absence of $24.8 million of charges related to the impairment of Nuvera's property, plant and equipment and inventory losses recorded in the third quarter of 2021.

The Company recognized a net loss attributable to stockholders of $37.3 million in the third quarter of 2022 compared with $77.2 million in the third quarter of 2021.

The decrease in net loss was primarily the result of the factors affecting operating loss and the absence of $38.4 million provided against deferred tax assets in the third quarter of 2021.

See Note 5 of the Company's condensed consolidated financial statements for further discussion of the Company's income tax provision.

The improved net loss was partially offset by higher interest and pension expense.

First Nine Months of 2022 Compared with First Nine Months of 2021

The following table identifies the components of change in revenues for the first nine months of 2022 compared with the first nine months of 2021:

2021 $ 2,246.0

6 unchanged sentences

2022 $ 2,563.1

Revenues increased 15.0% to $1,723.0 million in the first six months of 2022 from $1,497.8 million in the first six months of 2021.

The increase was primarily due to improved pricing in the Americas and higher unit and parts volume in the Americas, EMEA and Bolzoni.

Revenues increased 14.1% to $2,563.1 million in the first nine months of 2022 from $2,246.0 million in the first nine months of 2021.

The increase was primarily due to improved pricing and a shift in sales to higher-priced lift trucks in the Americas and EMEA, higher unit and parts volume in the Americas, EMEA and Bolzoni and favorable aftermarket sales.

The improvement in revenue was partially offset by unfavorable currency movements from the translation of sales into U.S.

America's revenues increased in the first six months of 2022 compared with the first six months of 2021, primarily from improved pricing of lift trucks, higher unit volumes and favorable aftermarket sales, including part sales.

America's revenues increased in the first nine months of 2022 compared with the first nine months of 2021, primarily from improved pricing of lift trucks, favorable aftermarket sales, including part sales, higher unit volumes and a shift in sales to higher-priced lift trucks.

EMEA's revenues increased mainly due to improved unit and parts volume and favorable pricing.

These improvements were partially offset by unfavorable foreign currency movements of $63.1 million from the translation of sales into U.S.

JAPIC's revenues decreased primarily as a result of lower unit and part volumes and unfavorable foreign currency movements of $1.8 million, partially offset by improved pricing.

Bolzoni's revenues increased mainly due to improved pricing and higher volumes, partially offset by unfavorable foreign currency movements of $8.2 million from the translation of sales into U.S.

dollars in the first six months of 2022 compared with the first six months of 2021.

The following table identifies the components of change in operating profit for the first six months of 2022 compared with the first six months of 2021:

JAPIC's revenues increased slightly as a result of improved pricing, partially offset by lower unit and part volumes and unfavorable foreign currency movements of $4.1 million.

Bolzoni's revenues increased mainly due to improved pricing, partially offset by unfavorable foreign currency movements of $13.8 million from the translation of sales into U.S.

dollars in the first nine months of 2022 compared with the first nine months of 2021.

The following table identifies the components of change in operating profit for the first nine months of 2022 compared with the first nine months of 2021:

Operating Profit (Loss)

2021 $ (45.3)

Increase (decrease) in 2022 from:

1 unchanged sentence

Lift truck selling, general and administrative expenses (10.2)

Bolzoni operations 5.1

Nuvera operations 26.3

Bolzoni operations 3.8

2022 $ (58.9)

The Company recognized an operating loss of $34.0 million in the first six months of 2022 compared with an operating profit of $9.0 million in the first six months of 2021.

The decrease in operating profit was primarily due to lower gross profit in the lift truck business.

Gross profit declined mainly due to material cost inflation of $119.3 million, higher manufacturing costs resulting from inefficiencies associated with component shortages, a shift in sales to lower-margin lift trucks and unfavorable foreign currency movements of $16.9 million.

The decrease in gross profit was partially offset by favorable pricing of $103.8 million and improved unit and parts volume in the Americas and EMEA.

Operating profit in the Americas decreased to $7.5 million in the first six months of 2022 compared with $28.2 million in the first six months of 2021 as a result of a decrease in gross profit and higher operating expenses.

Gross profit declined mainly due to material cost inflation of $83.5 million, higher manufacturing costs resulting from inefficiencies associated with component shortages of $27.8 million, a shift in mix to lower-margin products, unfavorable foreign currency movements of $9.9 million and the absence of $6.3 million for social contribution taxes previously imposed on material purchases in Brazil in the first six months of 2021.

The decrease in gross profit was partially offset by favorable pricing of $91.3 million and improved parts and unit volumes.

The Company recognized an operating loss of $58.9 million in the first nine months of 2022 compared with an operating loss of $45.3 million in the first nine months of 2021.

The higher operating loss was primarily due to lower gross profit in the lift truck business partially offset by the absence of $24.8 million of charges related to the impairment of Nuvera's property, plant and equipment and inventory losses recorded in the first nine months of 2021.

Lift truck gross profit declined mainly due to $222.9 million of material cost inflation and higher manufacturing costs resulting from inefficiencies associated with component shortages and unfavorable foreign currency movements, including derivative contracts, of $30.5 million.

The decrease in gross profit was partially offset by favorable pricing of $185.6 million and improved parts volume in the Americas and EMEA.

Operating profit in the Americas decreased to $8.4 million in the first nine months of 2022 compared with $11.3 million in the first nine months of 2021 as a result of higher operating expenses partially offset by an increase in gross profit.

The increase in selling, general and administrative expenses primarily resulted from higher employee-related expenses, including $9.5 million of incentive compensation.

EMEA recognized an operating loss of $22.2 million in the first six months of 2022 compared with an operating profit of $3.8 million in the first six months of 2021 mainly as a result of lower gross profit.

Gross profit improved as result of favorable pricing of $156.2 million and improved parts volume.

The increase in gross profit was partially offset as result of material and freight cost inflation of $113.8 million, higher manufacturing costs resulting from inefficiencies associated with component shortages of $43.1 million and unfavorable foreign currency movements, including derivative contracts, of $18.4 million.

EMEA recognized an operating loss of $35.4 million in the first nine months of 2022 compared with operating profit of $2.9 million in the first nine months of 2021 mainly as a result of lower gross profit.

Gross profit decreased due to material cost inflation of $54.5 million, unfavorable foreign currency movements of $11.6 million and higher manufacturing costs resulting from inefficiencies associated with component shortages.

The decrease in gross profit was partially offset by improved unit and parts volumes and improved pricing.

JAPIC's operating loss increased to $7.7 million in the first six months of 2022 from $4.4 million in the first six months of 2021, primarily due to lower gross profit from material cost inflation, manufacturing inefficiencies and a shift in mix to lower-margin products, partially offset by improved pricing.

Bolzoni's operating profit increased to $5.5 million in the first six months of 2022 compared with $0.4 million in the first six months of 2021 due to improved gross profit from improved pricing, partially offset by material cost inflation and unfavorable foreign currency exchange rates.

Nuvera's operating loss improved to $16.0 million in the first six months of 2022 compared with $18.8 million in the first six months of 2021 as result of improved margin from lower production costs in 2022.

The Company recognized a net loss attributable to stockholders of $ 44.4 million in the first six months of 2022 compared with net income attributable to stockholders of $ 7.5 million in the first six months of 2021.

The decrease was primarily the result of the factors affecting operating profit, the absence of a $4.6 million gain related to the sale of the Company's preferred shares of OneH2, Inc.

in the first six months of 2021, higher interest expense, lower pension expense and unfavorable mark-to-market adjustments on an equity investment in a third party.

The decrease in gross profit was partially offset by improved pricing and higher unit and parts volumes.

JAPIC's operating loss increased to $10.6 million in the first nine months of 2022 from $7.9 million in the first nine months of 2021, primarily due to lower gross profit from a shift in mix to lower-margin products, material cost inflation and manufacturing inefficiencies, partially offset by improved pricing.

Bolzoni's operating profit increased to $4.2 million in the first nine months of 2022 compared with $0.4 million in the first nine months of 2021 due to higher gross profit from improved pricing and a shift in mix to higher-margin products, partially offset by material cost inflation and unfavorable foreign currency exchange rates.

Nuvera's operating loss decreased to $25.0 million in the first nine months of 2022 compared with $51.3 million in the first nine months of 2021 from the absence of $24.8 million of charges related to the impairment of Nuvera's property, plant and equipment and inventory losses recorded in the first nine months of 2021.

The Company recognized a net loss attributable to stockholders of $ 81.7 million in the first nine months of 2022 compared with $ 69.7 million in the first nine months of 2021.

The increase in net loss was primarily the result of the factors affecting the operating loss, higher interest expense, the absence of a $4.6 million gain related to the sale of the Company's preferred shares of OneH2, Inc.

in the first nine months of 2021 and higher pension expense.

The increase was partially offset by the absence a valuation allowance of $38.4 million provided against deferred tax assets in the third quarter of 2021.

See Note 5 of the Company's condensed consolidated financial statements 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:

2022 2021 Change

Operating activities:

Net income (loss) $ (42.9) $ 8.4 $ (51.3)

Net loss $ (79.5) $ (68.4) $ (11.1)

Depreciation and amortization 33.0 34.7 (1.7)

Dividends from unconsolidated affiliates 15.6 5.5 10.1

Impairment charge — 10.0 (10.0)

Working capital changes

9 unchanged sentences

Purchase of noncontrolling interest (8.4) — (8.4)

Net cash provided by (used for) investing activities (22.9) 0.8 (23.7)

Net cash used for investing activities (27.2) (10.1) (17.1)

Cash flow before financing activities $ 7.1 $ (201.9) $ 209.0

Net cash provided by (used for) operating activities changed $100.9 million in the first six months of 2022 compared with the first six months of 2021, primarily as a result of changes in working capital items and net income (loss).

The changes in working capital were mainly due to a smaller increase in inventory levels and an increase in other liabilities primarily from down payments for customer orders, partially offset by lower payments of accounts payable and higher accounts receivable from increased revenues in the first six months of 2022 compared with the first six months of 2021.

The change in net cash provided by (used for) investing activities during the first six months of 2022 compared with the first six months of 2021 was due to the current year's installment purchase of Maximal's noncontrolling interest in 2022 and the absence of the proceeds from the sale of preferred shares of OneH2 in 2021.

Net cash provided by (used for) operating activities changed $226.1 million in the first nine months of 2022 compared with the first nine months of 2021, primarily as a result of changes in working capital items and the net loss.

The changes in working capital were mainly due to a smaller increase in inventory, accounts receivable and accounts payable in the first nine months of 2022 compared with the first nine months of 2021.

The change in net cash used for investing activities during the first nine months of 2022 compared with the first nine months of 2021 was due to the absence of the proceeds from the sale of preferred shares of OneH2 in 2021 and the current year's installment purchase of Hyster-Yale Maximal's noncontrolling interest in 2022.

2022 2021 Change

4 unchanged sentences

Other (0.2) (0.2) —

Net cash provided by financing activities $ 33.5 $ 37.5 $ (4.0)

Net cash provided by financing activities decreased to $33.5 million in the first six months of 2022 compared with $37.5 million in the first six months of 2021.

The decrease was primarily due to a lower increase in borrowings during the first six months of 2022 versus the first six months of 2021, partially offset by the absence of financing fees paid in 2021.

Net cash provided by (used for) financing activities $ (1.9) $ 114.7 $ (116.6)

The change in net cash provided by (used for) financing activities in the first nine months of 2022 compared with the first nine months of 2021 was primarily due to a smaller increase in borrowings during the first nine months of 2022 versus the first nine months of 2021, partially offset by the absence of financing fees paid in 2021.

Financing Activities

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

There were $165.7 million of borrowings outstanding under the Facility at June 30, 2022.

The availability under the Facility at June 30, 2022 was $130.0 million, which reflects reductions of $4.3 million for letters of credit and other restrictions.

As of June 30, 2022, the Facility consisted of a U.S.

There were $127.0 million of borrowings outstanding under the Facility at September 30, 2022.

The availability under the Facility at September 30, 2022 was $168.8 million, which reflects reductions of $4.2 million for letters of credit and other restrictions.

As of September 30, 2022, the Facility consisted of a U.S.

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

1 unchanged sentence

The Facility can be increased up to $400.0 million over the term of the Facility in minimum increments of $10.0 million, subject to approval by the lenders.

The obligations under the Facility are generally secured by a first priority lien on working capital assets of the borrowers in the Facility, which includes but is not limited to cash and cash equivalents,

accounts receivable and inventory, and a second priority lien on the present and future shares of capital stock, fixtures and general intangibles consisting of intellectual property.

The approximate book value of assets held as collateral under the Facility was $1.1 billion as of June 30, 2022.

The obligations under the Facility are generally secured by a first priority lien on working capital assets of the borrowers in the Facility, which includes but is not limited to

cash and cash equivalents, accounts receivable and inventory, and a second priority lien on the present and future shares of capital stock, fixtures and general intangibles consisting of intellectual property.

The approximate book value of assets held as collateral under the Facility was $1.0 billion as of September 30, 2022.

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.

2 unchanged sentences

base rate loans.

The applicable margins, as of June 30, 2022, for U.S.

The applicable margins, as of September 30, 2022, for U.S.

base rate loans and LIBOR loans were 0.50% and 1.50%, respectively.

The applicable margin, as of June 30, 2022, for non-U.S.

The applicable margin, as of September 30, 2022, for non-U.S.

base rate loans and LIBOR loans was 1.50%.

applicable interest rates for borrowings outstanding under the Facility on June 30, 2022 was 5.25% and 1.50% for the U.S.

applicable interest rate for borrowings outstanding under the Facility on September 30, 2022 was 6.75% and 2.18% for the U.S.

and foreign base rate loans, respectively.

There were no U.S.

base rates loans outstanding on September 30, 2022.

The applicable interest rates for borrowings for the U.S.

LIBOR loans ranged from 2.56% to 3.10% at June 30, 2022.

The Facility also required the payment of a fee of 0.25% per annum on the unused commitments as of June 30, 2022.

LIBOR loans ranged from 4.05% to 4.62% at September 30, 2022.

The Facility also required the payment of a fee of 0.25% per annum on the unused commitments as of September 30, 2022.

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.

1 unchanged sentence

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 June 30, 2022, the Company was in compliance with the covenants in the Facility.

At September 30, 2022, 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.

1 unchanged sentence

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

At June 30, 2022, there was $222.8 million of principal outstanding under the Term Loan which has been reduced in the unaudited condensed consolidated balance sheet by $4.4 million for discounts and unamortized deferred financing fees.

At September 30, 2022, there was $222.2 million of principal outstanding under the Term Loan which has been reduced in the unaudited condensed consolidated balance sheet by $4.3 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, U.S.

1 unchanged sentence

working capital assets of certain borrowers of the Facility, which includes, but is not limited to cash and cash equivalents, accounts receivable and inventory.

The approximate book value of assets held as collateral under the Term Loan was $770 million as of June 30, 2022.

The approximate book value of assets held as collateral under the Term Loan was $730 million as of September 30, 2022.

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.

1 unchanged sentence

In addition, the Term Loan includes a Eurodollar rate floor of 0.50%.

The interest rate on the amount outstanding under the Term Loan at June 30, 2022 was 5.17%.

The interest rate on the amount outstanding under the Term Loan at September 30, 2022 was 6.62%.

The Company holds $180.0 million of contracts that hedge interest payments of Term Loan borrowings.

See Note 7 of the Company's condensed consolidated financial statements for further discussion.

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 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.

At June 30, 2022, the Company was in compliance with the covenants in the Term Loan.

The Company had other debt outstanding, excluding finance leases, of approximately $165.3 million at June 30, 2022.

At September 30, 2022, the Company was in compliance with the covenants in the Term Loan.

The Company had other debt outstanding, excluding finance leases, of approximately $170.2 million at September 30, 2022.

In addition to the excess availability under the Facility of $168.8 million, the Company had remaining availability of $21.9 million related to other non-U.S.

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The following table summarizes actual and planned capital expenditures:

Six Months Ended June 30, 2022 Planned for Remainder of 2022 Planned 2022 Total Actual 2021

Nine Months Ended September 30, 2022 Planned for Remainder of 2022 Planned 2022 Total Actual 2021

Lift truck business $ 14.7 $ 10.5 $ 25.2 $ 30.6

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$ 19.7 $ 15.0 $ 34.7 $ 44.3

Planned expenditures for the remainder of 2022 are primarily for product development, improvements at manufacturing locations and manufacturing equipment and improvements to information technology infrastructure.

Planned expenditures for the remainder of 2022 are primarily for product development, improvements to information technology infrastructure and improvements at manufacturing locations 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 80 % 58 % 22 %

OUTLOOK AND STRATEGIC PERSPECTIVE

PERSPECTIVES AND OUTLOOK

Market Commentary

The global economic outlook remains constrained due to several factors, including aggressive central bank actions designed to control inflation as well as the effects of COVID lockdowns in China and the ongoing Russia/Ukraine conflict.

The latter, combined with forecasted oil production declines, have driven energy prices higher and lowered economic activity, particularly in Europe.

The latest publicly available lift truck market data showed a 2022 second quarter global decline versus a robust 2021 second quarter period as decreases in China and EMEA were partly offset by growth in the Americas.

Internal company estimates indicated a global lift truck market decline in the third quarter of 2022 across all geographic regions, compared with both the prior year quarter and 2022's second quarter.

Looking ahead, the global lift truck market is expected to decrease further in the fourth quarter 2022 and full-year 2023 compared with the respective prior year periods.

However, global market unit volumes in 2023 are expected to remain relatively strong and above pre-pandemic levels, despite an increasing possibility of a global or regional recession.

After several years of extraordinary lift truck market growth that stretched supplier capacity to, and in some cases beyond, its limits, a market slowdown could allow the lift truck component supply base to meet the Company's requirements more effectively.

Operational Perspectives - Lift Truck Business

The ongoing market decline and the Company's focus on booking orders with a strong margin profile resulted in a significant decrease in lift truck bookings from robust prior-year levels and a sequential decline from the 2022 second quarter.

Looking forward, bookings levels are expected to decrease year-over-year in the fourth quarter 2022 and full-year 2023 due to the market outlook and the Company’s continued focus on booking higher-margin orders.

These anticipated decreases combined with planned production levels should help the Company bring its backlog to more competitive levels over the course of 2023.

Backlog levels have trended down modestly over the past two quarters as bookings have declined, but lead times are still extended.

Incoming order selectivity has resulted in higher average prices and margins for both unit bookings and backlog.

As the Company moves through its backlog in the fourth quarter of 2022 and in 2023, lower-margin units, priced in prior years, will have been shipped and the majority of 2023 shipments will be produced from the currently existing higher-margin backlog.

As a result, average unit margins are expected to continue to improve.

The Company believes that its current significant backlog level, including expected built-in margin increases over time, and anticipated continued selective bookings at higher margins will lead to improvements in operating profit in 2023.

In addition, the Company's extended backlog is expected to help mitigate the strain on the business in a recessionary environment.

The Company expects fourth-quarter 2022 production and shipment volumes to increase over the third quarter 2022 as a result of gradually diminishing supply chain bottlenecks and the substantial backlog level.

Full-year 2023 production and shipment volumes are expected to increase versus 2022 given the current substantial backlog and as additional supply chain improvements are anticipated to be achieved, further reducing lead times.

New bookings, consistent with the market outlook, are expected to have sound margins when those trucks are produced in late 2023 and 2024, particularly in the context of more competitive lead times as backlogs are reduced.

The Company continues to experience cost increases, particularly in EMEA, in part due to higher energy costs as a result of the ongoing Russia/Ukraine conflict.

In contrast, Americas and JAPIC cost increases have slowed significantly.

Forward economic indicators suggest moderate cost inflation trends in 2023, absent any additional effects from the Russia/Ukraine conflict or COVID-related global supply chain constraints.

Due to the substantial inflationary pressure over the past 18 months, the Lift Truck business implemented several price increases.

Generally, these price increases are expected to more than fully offset inflationary pressures in 2022 and 2023, and are expected to provide higher margins for trucks which will be produced in upcoming quarters.

As a result of the above factors, and the expected ongoing benefits from cost-savings initiatives, the Lift Truck business expects to generate operating profit in the 2022 fourth quarter.

Further improvements are anticipated in 2023 as production volumes are expected to increase and margins are expected to rise due to an improving price to cost ratio.

The Company's strategic programs are also expected to further enhance margins as they mature, including the further expansion of its modular and scalable product families.

Therefore, the Lift Truck business expects to generate a substantial operating profit in 2023.

These assumptions, however, are highly sensitive to the effect of various market forces, particularly those that impact global supply chains.

Strategic Perspectives - Lift Truck

From a broader 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 as it emerges from the current period of mismatched costs and pricing:

(1) provide the lowest cost of ownership while enhancing customer productivity, with a primary focus on new modular and scalable product projects and projects geared toward electrification of trucks, automation product options and providing telemetry and operator assist systems, (2) be the leader in the delivery of industry- and customer-focused solutions, focused primarily on transforming the Company's sales approach to be industry focused to meet customers' needs, and (3) be the leader in independent distribution, focused on dealer and major account coverage, dealer excellence and ensuring outstanding dealer ownership globally.

The Company continues to make progress on its high-priority projects.

Notably, early in the fourth quarter of 2022, the Company announced that its first hydrogen fuel cell powered container handler, powered by Nuvera ® fuel cell engines, began its testing pilot in the Port of Los Angeles.

Operational and Strategic Perspectives - Bolzoni

In the fourth quarter of 2022, Bolzoni expects to return to profitability based on projected sales volume increases over the third quarter due to moderating component shortages and improved manufacturing efficiencies.

Benefits are also expected from lower material cost inflation and ongoing strict cost controls.

Over the course of 2023, Bolzoni expects component shortages to continue to moderate and increasing prices to help offset higher costs, resulting in increased margins over time and higher operating profit in 2023 versus 2022.

Bolzoni continues to focus on implementing its "One Company - 3 Brands" approach and increasing its Americas business by strengthening its ability to serve key attachment industries and customers in the North America market.

Bolzoni is also increasing its sales, marketing and product support capabilities both in North America and Europe based on an industry-specific approach.

Operational and Strategic Perspectives - Nuvera

Nuvera continues to focus on applying its strategy of placing 45kW and 60kW fuel cell engines in niche, heavy-duty vehicle applications with expected significant fuel cell adoption potential.

Over the first nine months of 2022, Nuvera has announced several projects with various third parties who are testing, or planning to test, Nuvera ® engines in heavy-duty applications, including the Port of Los Angeles and European ports.

Nuvera is also developing a new 125kW fuel cell engine for heavier-duty applications.

During the fourth quarter of 2022 and in 2023, Nuvera expects continued focus on ramping up demonstrations, quotes and bookings of these products.

The Company expects moderately reduced losses at Nuvera in the fourth quarter of 2022.

In 2023, Nuvera expects higher sales with moderately higher costs, resulting in comparable losses to 2022.

Consolidated Outlook

Given the continued component shortages due to supply chain constraints and the consequent reduction in production plans, significant material and freight cost inflation, and, more recently, the impact of the COVID-19 lockdowns in China and the Russia/Ukraine conflict, as well as continued losses at Nuvera, the Company, on a consolidated basis, expects a larger net loss in the third quarter of 2022 than previously projected, but a return to net income in the fourth quarter of 2022.

However, the fourth quarter net income is not expected to offset the losses generated in the first nine months.

Generally, results in the second half of 2022 are expected to be lower than anticipated when the 2022 first quarter earnings release was issued, mainly due to adjustments made to the Company's production schedule as a result of continued supply chain constraints.

These expectations are based on the anticipated reasonable resolution of component shortages and relative stabilization of material and freight costs.

The Company is managing 2022 capital expenditures, operating expenses and its production plans in a manner designed to protect liquidity.

Capital expenditures are expected to be approximately $33 million in 2022.

The Company has implemented a program of strict controls over operating expenses to reduce cash outflow, including delays in the timing of certain strategic program investments.

While the Company expects over time to make these capital expenditures and investments in the business, maintaining liquidity will continue to be a priority.

During 2021 and the first half of 2022, the Company's ability to build and ship trucks was significantly constrained by parts shortages of certain critical components while the remaining components needed to build trucks were received and added to inventory, causing inventory levels to increase substantially.

In this context, the Company expects to reduce inventory significantly in the second half of 2022 by using current inventory to

build trucks, for which production has been significantly delayed due to critical parts shortages, and to receive components as they are needed for production.

At June 30, 2022, the Company's cash on hand was $75.6 million and debt was $580.6 million compared with cash on hand of $65.1 million and debt of $479.0 million at March 31, 2022, and cash on hand of $65.5 million and debt of $518.5 million at December 31, 2021.

As of June 30, 2022, the Company had unused borrowing capacity of approximately $156 million under the Company's revolving credit facilities compared with $218 million at March 31, 2022.

Lift Truck Strategic Perspective

Over the remainder of 2022, the Company expects the global lift truck market to continue to decline from the historical highs of 2021, but remain above pre-pandemic levels.

As a result of this market outlook and the Company accepting only orders with expected sound margins, the Lift Truck business is anticipating a substantial decrease in bookings during the second half of 2022 compared with the second half of 2021, particularly in the Americas.

During 2021, the Company experienced production and shipment levels which were substantially lower than its objectives due to supply chain logistics constraints and component shortages.

Some moderation in the number of suppliers with shortages occurred in the first half of 2022, but shortages are anticipated to continue throughout 2022, and possibly continue to escalate in light of the China lockdowns and Russia/Ukraine conflict.

As a result, planned production schedules for the second half of 2022 and in 2023 have been reduced from what was expected at the time of last quarter's earnings release.

Nevertheless, full-year shipments are currently expected to increase in 2022 over 2021, despite the normal third quarter plant shutdowns, given the Company's robust backlog and actions put in place to mitigate the impact of the supply chain constraints and shortages, with the expectation that supplies of products or commodities are not constrained further.

The Company is hopeful that availability will improve and that consequently production can increase over current 2022 and 2023 production schedules.

As a result of the Russia/Ukraine conflict, material costs continued to increase in the second quarter of 2022.

However, recent signs have indicated some relief from additional material and freight cost inflation in the second half of 2022.

In light of cost inflation in 2021 and what is expected over 2022, the Lift Truck business implemented several price increases in 2021 and in the first half of 2022, but many of the orders in the backlog slotted for production in the third and fourth quarters do not reflect the full effect of all these price increases.

On the other hand, new bookings are being made at close to target margins based on expected future costs at the time of expected production.

Further, the renewal of tariff exclusions is expected to partly offset the anticipated higher material cost inflation in the backlog over the remainder of 2022.

Due to the lag between when unit price increases go into effect and when revenue is realized as the units are shipped, as the Lift Truck segment works through its low-margin backlog in the second half of 2022 and early 2023, margins are expected to improve, specifically in the fourth quarter, when the higher-margin, already-booked trucks are expected to be produced and shipped.

In the meantime, the Company expects to continue to work aggressively to manage component availability in order to increase production rates and continue to adjust prices as costs change.

As a result of these factors, the Lift Truck business expects a significantly lower operating loss in the second half of the year than in the first half, mainly driven by strong operating profit in the fourth quarter of 2022 in the Americas segment.

From a broader 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 as it emerges from the current period of mismatch of costs and pricing.

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 enhancing dealer and major account coverage, dealer excellence and ensuring outstanding dealer ownership globally.

As a result of these core strategies, the increased shipment volume potential of the current backlog and expected bookings in the remainder of 2022, enhanced prices and the renewal of tariff exclusions, the Lift Truck business expects to move from the significant operating loss in the first half of 2022 to operating profit in the fourth quarter.

However, as a result of manufacturing inefficiencies expected in the third quarter due to the normal seasonal plant shutdowns and reductions in production volumes due to continued supply chain constraints, as well as unfavorable currency effects, the Company expects a significant operating loss at the Lift Truck business in the third quarter that is higher than the operating loss in the prior year third quarter, and an

increase to a substantial operating profit in the fourth quarter that is lower than was anticipated at the time of the 2022 first quarter earnings release.

Over the second half of 2022, the Company is projecting the stabilization of product and transportation costs and continued improvement in component and logistics availability, although this could change if the availability of commodities and/or components continues to be seriously affected by various market forces, including an economic recession, the lockdowns in China and the ongoing Russia/Ukraine conflict.

The Company is also anticipating the continued introduction of additional modular and scalable product families and the continued implementation of cost-savings initiatives over this period and in the longer term.

Overall, as the Company's strategic programs mature, as costs and prices come in line over 2022 and 2023, and as production volumes increase, the Lift Truck business is expected to have an increase to a substantial operating profit in the fourth quarter of 2022 and in 2023.

However, results for the remainder of 2022 and in 2023 are expected to be lower than projected in the 2022 first quarter earnings release due to lower productions levels than previously anticipated.

Bolzoni Strategic Perspective

As a result of lower sales and inefficiencies expected from the normal third-quarter seasonal plant shutdowns, reduced demand for legacy components for the Lift Truck business and additional material inflation caused by the Russia/Ukraine conflict, Bolzoni expects near break-even results in the third quarter of 2022.

Bolzoni expects a return to profitability in the fourth quarter of 2022 as component shortages moderate, efficiencies return and benefits are realized from pricing actions.

Bolzoni expects solid operating profit in the second half of 2022 compared with an operating loss in the second half of 2021.

However, operating profit in the second half of 2022 is expected to be significantly lower than in the first half of 2022.

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 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, third-party logistics and automotive industries.

Nuvera Strategic Perspective

Nuvera continues to focus on applying its strategy of placing 45kW and 60kW engines in niche, heavy-duty vehicle applications with expected significant fuel cell adoption potential.

During the remainder of 2022, Nuvera expects to continue to focus on ramping up demonstrations, quotes and bookings of these products.

In addition, Nuvera is developing a new 125kW engine and continues to focus on applications in the forklift truck market.

Excluding the impact of the inventory valuation and fixed asset impairment charges taken in 2021, the Company expects moderately reduced losses at Nuvera in 2022 as a result of enhanced fuel cell shipments, although losses in the second half of 2022 are expected to be higher than in the first half as a result of higher operating expenses.

On a consolidated basis, the Company continues to project a modest operating profit and income before tax in the fourth quarter of 2022.

However, the Company expects a modest net loss in the fourth quarter due to tax expense on profits in areas where a valuation allowance is not currently provided.

In future periods, tax benefits currently offset by valuation allowances are expected to be recognized.

The Company's ongoing efforts to build out its layers of lower-priced, lower-margin backlog in the remainder of 2022 and early 2023 are expected to lead to improving margins and a return to solid operating profit and net income for the 2023 full year.

These expectations are based on the Company's continuing ability to manage component shortages at planned production levels and reasonable stabilization of material and freight costs.

The Company is laser-focused on its cash flows, with detailed action plans to improve future results.

These actions include tightly managing capital expenditures, operating expenses and production plans to maintain adequate liquidity levels.

Capital expenditures are expected to be approximately $35 million for full-year 2022.

The Company expects to continue its disciplined approach to cash outflows, including some delays in the timing of certain strategic program investments.

These capital expenditures and investments will be made over time to support profitable growth.

Working capital continues to be an area of intense focus for the Company.

Inventory levels remain above normal levels due to production delays created by parts shortages.

Reducing inventory levels in the fourth quarter of 2022 and in the first half of 2023 by focusing on the use of current inventory coupled with limited inventory purchases to build trucks, remains a top priority.

As a result of these cash conserving actions, the Company expects solid cash flow before financing activities for the full-year 2022 compared with a significant use of cash in 2021.

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 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, including the impacts of the foregoing risks on the Company's liquidity, (2) any preventive or protective actions taken by governmental authorities related to the COVID-19 pandemic, and any unfavorable effects of the COVID-19 pandemic on either the Company's or its suppliers plants' capabilities to produce and ship products, (3) delays in manufacturing and

delivery schedules, (4) customer acceptance of pricing, (5) 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, as well as armed conflicts, including the Russia/Ukraine conflict, and their regional effects, (6) the ability of the Company and its dealers, suppliers and end-users to access credit in the current economic environment, or obtain financing at reasonable rates, or at all, as a result of interest rate volatility and current economic and market conditions, (7) impairment charges or charges due to valuation allowances, (8) 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 an economic recession, (9) exchange rate fluctuations, interest rate volatility and monetary policies and other changes in the regulatory climate in the countries in which the Company operates and/or sells products, (10) the effectiveness of the cost reduction programs implemented globally, including the successful implementation of procurement and sourcing initiatives, (11) the successful commercialization of Nuvera's technology, (12) the political and economic uncertainties in the countries where the Company does business, as well as the effects of any withdrawals from such countries, (13) bankruptcy of or loss of major dealers, retail customers or suppliers, (14) customer acceptance of, changes in the costs of, or delays in the development of new products, (15) introduction of new products by, more favorable product pricing offered by or shorter lead times available through competitors, (16) product liability or other litigation, warranty claims or returns of products, and (17) changes mandated by federal, state and other regulation, including tax, health, safety or environmental legislation.

renewal of tariff exclusions, on raw materials or sourced products, and labor, or changes in or unavailability of quality suppliers or transporters, including the impacts of the foregoing risks on the Company's liquidity, (2) delays in manufacturing and delivery schedules, (3) customer acceptance of pricing, (4) any preventive or protective actions taken by governmental authorities related to the COVID-19 pandemic, and any unfavorable effects of the COVID-19 pandemic on either the Company's or its suppliers plants' capabilities to produce and ship products, (5) 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, as well as armed conflicts, including the Russia/Ukraine conflict, and their regional effects, (6) the ability of the Company and its dealers, suppliers and end-users to access credit in the current economic environment, or obtain financing at reasonable rates, or at all, as a result of interest rate volatility and current economic and market conditions, including inflation, (7) 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 an economic recession, (8) exchange rate fluctuations, interest rate volatility and monetary policies and other changes in the regulatory climate in the countries in which the Company operates and/or sells products, (9) impairment charges or charges due to valuation allowances, (10) the effectiveness of the cost reduction programs implemented globally, including the successful implementation of procurement and sourcing initiatives, (11) the successful commercialization of Nuvera's technology, (12) the political and economic uncertainties in the countries where the Company does business, as well as the effects of any withdrawals from such countries, (13) bankruptcy of or loss of major dealers, retail customers or suppliers, (14) customer acceptance of, changes in the costs of, or delays in the development of new products, (15) introduction of new products by, more favorable product pricing offered by or shorter lead times available through competitors, (16) product liability or other litigation, warranty claims or returns of products, (17) changes mandated by federal, state and other regulation, including tax, health, safety or environmental legislation, and (18) the ability to attract, retain, and replace workforce and administrative employees.

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