What changed in this filing

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Item 1. Business

2025-02-25 compared with 2024-02-27 · 79 added, 68 removed, 234 unchanged (39% of the section changed)

Hyster-Yale Materials Handling, Inc.

("Hyster-Yale" or the "Company") and its subsidiaries, including its operating company Hyster-Yale Group, Inc.

("HYG"), is a globally integrated company offering a full line of high-quality, application-tailored lift trucks and solutions aimed at meeting the specific materials handling needs of its customers.

Hyster-Yale, Inc.

("Hyster-Yale" or the "Company") and its subsidiaries, including its operating company, Hyster-Yale Materials Handling, Inc.

("HYMH"), is a globally integrated company offering a full line of high-quality, application-tailored lift trucks and solutions aimed at meeting the specific materials handling needs of its customers.

The Company's solutions include attachments and hydrogen fuel cell power products, telematics, automation and fleet management services, as well as a variety of other power options for its lift trucks.

The Company is headquartered in Cleveland, Ohio.

Through HYG, the Company designs, engineers, manufactures, sells and services a comprehensive line of lift trucks, attachments and aftermarket parts marketed globally, primarily under the Hyster ® and Yale ® brand names, mainly to independent Hyster ® and Yale ® retail dealerships.

Through HYMH, the Company designs, engineers, manufactures, sells and services a comprehensive line of lift trucks, attachments and aftermarket parts marketed globally, primarily under the Hyster ® and Yale ® brand names, mainly to independent, exclusive Hyster ® and Yale ® retail dealerships.

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

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

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

Hyster-Yale Maximal also designs and produces specialized products in the port equipment and rough terrain forklift markets.

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

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

Hyster-Yale was incorporated as a Delaware corporation in 1999.

The Company’s segments for the lift truck business include the following:

On May 31, 2024, the Company changed its corporate name to Hyster-Yale, Inc.

and the Company's wholly owned operating subsidiary, Hyster-Yale Group, Inc., changed its corporate name to Hyster-Yale Materials Handling, Inc.

The Company has five segments, which include three in the lift truck business as discussed below, as well as Bolzoni S.p.A.

("Bolzoni") and Nuvera Fuel Cells, LLC ("Nuvera").

The Company’s lift truck business includes the following three geographic operating segments:

the Americas, EMEA and JAPIC.

Americas includes lift truck operations in the United States, Canada, Mexico, Brazil, Latin America and the corporate headquarters.

Americas includes lift truck operations in the U.S., Canada, Mexico, Brazil, Latin America and the corporate headquarters.

EMEA includes operations in Europe, the Middle East and Africa.

JAPIC includes operations in the Asia and Pacific regions, including China, as well as the equity earnings of SN operations.

The Company operates Bolzoni S.p.A.

JAPIC includes operations in the Asia and Pacific regions, including China.

Bolzoni is a leading worldwide producer and distributor of attachments, forks and lift tables marketed under the Bolzoni ® , Auramo ® and Meyer ® brand names.

Bolzoni also produces components for lift truck manufacturers.

Bolzoni products are manufactured in the United States, Italy, China, Germany and Finland.

Bolzoni products are manufactured in the U.S., Italy, China, Germany and Finland.

Through the design, production and distribution of a wide range of attachments, Bolzoni has a strong presence in the market niche of lift truck attachments and industrial material handling.

The Company operates Nuvera Fuel Cells, LLC ("Nuvera").

Nuvera is an alternative-power technology company focused on the design, manufacture and sale of hydrogen fuel cell stacks and engines.

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Manufacturing and Assembly

The Company manufactures components, such as frames, masts and transmissions, and assembles lift trucks in the market of sale whenever practical to minimize freight cost and balance currency mix.

The Company manufactures components, such as frames, masts and transmissions, and assembles lift trucks in the market of sale whenever practical to minimize freight cost, serve customers efficiently and balance currency mix.

In some instances, however, it utilizes one worldwide location to manufacture specific components or assemble specific lift trucks.

Additionally, components and assembled lift trucks are exported when it is advantageous to meet demand in certain markets.

The Company operates eleven lift truck manufacturing and assembly facilities worldwide with four plants in the Americas, three in EMEA and four in JAPIC, including joint venture operations.

The Company operates eleven lift truck manufacturing and assembly facilities worldwide with four plants in the Americas, three in EMEA and

four in JAPIC, including joint venture operations.

In addition, the Company operates six principal Bolzoni manufacturing facilities worldwide.

Aftermarket Parts

The Company offers a line of aftermarket parts to service its large installed base of lift trucks currently in use in the industry.

The Company offers a line of aftermarket parts to service its large installed base of lift trucks currently in use in many industries.

The Company offers online technical reference databases specifying the required aftermarket parts to service lift trucks and an aftermarket parts ordering system.

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The Company has a contractual relationship with a third-party, multi-brand, aftermarket parts wholesaler in the Americas and EMEA whereby orders from the Company's dealers for parts are fulfilled by the third party who then pays the Company a commission.

The Company’s marketing organization is structured in three regional divisions:

the Americas;

EMEA, which includes Europe, the Middle East and Africa;

and JAPIC, which includes Japan, Asia, Pacific, India and China.

In each region, certain marketing support functions for the Hyster ® and Yale ® brands are carried out by shared-services teams.

These activities include sales and service training, information systems support, product launch coordination, specialized sales material development, help desks, order entry, marketing strategy and field service support.

The Company has a global marketing organization structured to support the geographic divisions.

The global approach is centered around five key areas:

product management and strategy;

marketing strategy and activation;

sales enablement and training;

digital marketing and lead generation;

and industry strategy and market insights.

Patents, Trademarks and Licenses

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however, as materials handling equipment has become more technologically advanced, the Company and its competitors have increasingly sought patent protection for inventions incorporated into their respective products.

The Company owns the Hyster ® , Yale ® , Maximal ® , Bolzoni ® , Auramo ® , Meyer ® and Nuvera ® trademarks and believes these trademarks are material to its business.

The Company owns the Hyster ® , Yale ® , Maximal ® , Bolzoni Auramo ® , Bolzoni ® , Auramo ® , Meyer ® and Nuvera ® trademarks and believes these trademarks are material to its business.

Distribution Network

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The Company’s end-user base is diverse and fragmented, including but not limited to the following industries:

light and heavy manufacturers, trucking and automotive, rental, building materials and paper suppliers, lumber, metal products, warehouses, retailers, food and beverage distributors, container handling and U.S.

light and heavy manufacturers, trucking and automotive, logistics, rental, building materials and paper suppliers, lumber, metal products, warehouses, retailers, food and beverage distributors, container handling and U.S.

governmental agencies.

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JAPIC 71 9 5 42

Global Accounts

Direct Customer Sales

The Company operates a direct sales program to major customers or global accounts for both Hyster ® and Yale ® .

This program focuses on large customers with centralized purchasing and geographically dispersed operations in multiple dealer territories.

This program focuses on large customers with centralized purchasing and geographically dispersed operations across multiple dealer territories.

This program accounted for 23%, 19% and 17% of new lift truck unit volume in 2024, 2023 and 2022, respectively.

The independent dealers support these major customers by providing aftermarket parts and service on a local basis.

Dealers receive a commission for the support they provide in connection with these major customer sales and for the preparation and delivery of lift trucks to customer locations.

In addition to selling new lift trucks, this global accounts program markets services, including full maintenance leases and fleet management.

Dealers receive an installation fee for the support they provide in connection with these major customer sales and for the preparation and delivery of lift trucks to customer locations.

In addition to selling new lift trucks, this direct customer sales program markets services, including full maintenance leases and fleet management.

Financing of Sales

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Under this agreement, losses related to guarantees for these certain eligible dealers are limited to 7.5% of their original loan balance.

See Notes 17 and 18 to the Consolidated Financial Statements in this Annual Report on Form 10-K for further discussion.

The following table outlines the Company's backlog of unfilled orders placed with its manufacturing and assembly operations for new lift trucks:

December 31, 2023 September 30, 2023 December 31, 2022

Units (in thousands) 78.4 85.3 102.1

Backlog, approximate sales value (in millions) $ 3,330 $ 3,540 $ 3,730

See Note 17, Guarantees and Note 18, Debt and Equity Investments and Related-Party Transactions , to the Consolidated Financial Statements in this Annual Report on Form 10-K for further discussion.

The following table outlines the Company's backlog of unfilled orders placed with its manufacturing and assembly operations for new lift trucks for the years ended (in millions):

December 31, 2024 September 30, 2024

December 31, 2023

Backlog, approximate sales value $ 1,930 $ 2,300 $ 3,330

As of December 31, 2024, the Company expects substantially all of its backlog of unfilled orders placed with its manufacturing and assembly operations for new lift trucks to be sold during the next twelve months.

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Key Suppliers and Raw Materials

During 2022 and 2021, the Company experienced significant increases in material costs, primarily from global price increases for industrial metals, including steel, lead and copper and other commodity products, such as rubber, as a result of increased demand and limited supply.

During 2023 the Company experienced declines in some material costs which helped sustain the Company's strong margin position, however ongoing volatility in global markets and the impact on demand and supply may result in unanticipated cost increases for our product.

During 2022, the Company experienced significant increases in material costs, primarily from global price increases for industrial metals, including steel, lead and copper and other commodity products, such as rubber, as a result of increased demand and limited supply.

During 2023 and 2024, the Company experienced declines in some material costs which helped sustain the Company's strong margin position.

However, ongoing volatility in global markets and the impact on demand and supply may result in unanticipated cost increases for the Company's product.

The Company attempts to pass these increased costs along to its customers in the form of higher prices for its products.

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Other significant components for the Company's lift trucks are engines, axles, brakes, transmissions, batteries and chargers.

In addition, the Company depends on a limited number of suppliers for some of the Company's crucial components, including diesel and gasoline engines, which are supplied by, among others, Power Solutions International, Inc., Yanmar Power Technology Co., LTD.

In addition, the Company depends on a limited number of suppliers for some of its crucial components, including diesel and gasoline engines, which are supplied by, among others, Power Solutions International, Inc., Yanmar Power Technology Co., LTD.

and Kubota Corp., drive-system components, which are supplied by, among others, Dana Corporation, ZF Company and Zapi Inc., and cast-iron counterweights used to counter balance some lift trucks, which are obtained from, among others, Eagle Quest International Ltd.

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Department of Homeland Security, as well as the Company's own internal controls and security procedures.

Although most components are available from numerous sources or in quantities sufficient to meet requirements, the Company has experienced and may continue to experience significant shortages of key components for certain products, which has negatively affected and may in the future negatively affect production levels.

Although most components are available from numerous sources or in quantities sufficient to meet requirements, the Company has experienced, and may continue to experience, significant shortages of key components for certain products.

This has negatively affected, and may in the future negatively affect, production levels.

Government and Trade Regulations

The Company has been impacted by ongoing trade disputes with China, which led to the imposition of tariffs resulting in higher material costs.

In addition, the Company’s business has been affected in the past by trade disputes between the United States and Europe.

In the future, the Company's results of operations may be materially adversely affected to the extent the Company is affected by trade disputes with other foreign jurisdictions, and increased tariffs are levied on its goods or the materials the Company purchases.

In addition, the Company’s business has been affected in the past by trade disputes between the U.S.

There continues to exist significant uncertainty about the future of U.S.

trade policy and potential new tariffs, including but not limited to, potential new tariffs on Canada, China and Mexico.

In the future, the Company's results of operations may be materially adversely affected to the extent the Company is affected by trade disputes with other foreign jurisdictions, and increased or new tariffs are levied on its goods or the materials the Company purchases.

The Company is one of the leaders in the lift truck industry with respect to market share in the Americas and worldwide.

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The Company's aftermarket parts offerings compete with parts manufactured by other lift truck manufacturers, as well as companies that focus solely on the sale of generic parts.

Bolzoni is a leader in the lift truck attachment industry.

Competition in this industry is based primarily on product quality and performance, price, availability of products, comprehensive product line offerings, innovation, including features, the cost of ownership over the life of the attachment, brand loyalty, and customer service.

Bolzoni competes with a few global lift truck attachment manufacturers that operate in all major markets, as well as other niche companies.

The use of fuel-cell technology in industrial and commercial applications is a relatively new development.

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The Company’s big truck development center is located in Nijmegen, the Netherlands, adjacent to a dedicated global big truck assembly facility.

Big trucks are primarily used in handling shipping containers and other specialized heavy lifting applications, including steel, concrete and energy-related industries.

Warehouse trucks, which are primarily used in distribution applications, are designed based on regional differences in stacking and storage practices.

Warehouse trucks are designed based on regional differences in stacking and storage practices.

The Company designs warehouse equipment for sale in the Americas market in Greenville, North Carolina, adjacent to the Americas manufacturing and assembly facility.

The Company designs warehouse equipment for the European market in Masate, Italy, adjacent to its manufacturing and assembly facility for warehouse equipment.

The Company also has an engineering Concept Center in the United Kingdom to support advanced design activities and an engineering office in India to support its global design activities for its four major engineering centers.

The Company also has an engineering Concept Center in the United Kingdom to support advanced design activities and an engineering office in India to support global design activities for its four major engineering centers.

The Company also has the Emerging Market Development Center in China to support low-intensity product development.

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Nuvera has two research and development locations.

In the United States, Billerica, Massachusetts is the primary location for design, development and testing of fuel-cell stacks and engines.

In Europe, the operations at San Donato, Italy are primarily focused on fuel-cell systems integration and testing.

In the U.S., Billerica, Massachusetts is the primary location for design, development and testing of fuel-cell stacks and engines.

In Europe, operations at San Donato, Italy are primarily focused on fuel-cell systems integration and testing.

Sumitomo-NACCO Joint Venture

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owns the remaining 50% interest in SN.

Each stockholder of SN is entitled to appoint directors representing 50% of the vote of SN’s board of directors.

Each SN stockholder is entitled to appoint directors representing 50% of the vote of SN’s board of directors.

All matters related to policies and programs of operation, manufacturing and sales activities require mutual agreement between the Company and Sumitomo Heavy Industries, Ltd.

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As a result, the Company accounts for its ownership in SN using the equity method of accounting.

The Company purchases Hyster ® - and Yale ® -branded lift trucks and related component and aftermarket parts from SN for sale outside of Japan under agreed-upon terms.

The Company purchases Hyster ® - and

Yale ® -branded lift trucks and related component and aftermarket parts from SN for sale outside of Japan under agreed-upon terms.

The Company also contracts with SN for engineering design services on a cost plus basis and charges SN for technology used by SN but developed by the Company.

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Generally, employee benefits for Danville union employees are aligned with non-union U.S.

All other employees at the Company's facilities in the United States are not represented by unions.

In Brazil, all employees are represented by a union.

The Company’s contracts with the Brazilian unions expire annually at which time salaries and certain benefits are negotiated for the following year.

All other employees at the Company's facilities in the U.S.

are not represented by unions.

In Brazil, all employees are represented by a union for salary and benefits contracts, which are negotiated annually for the following year.

In Mexico, certain employees are unionized.

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In Europe, certain employees in the Helsinki, Finland, Salzgitter, Germany, Craigavon, Northern Ireland, Masate, Italy, Piacenza, Italy, San Donato, Italy and Nijmegen, the Netherlands facilities are represented by a union or a works council.

All of the European employees are part of works councils or employee forums, which perform a consultative role on business and employment matters.

The Company believes its current labor relations with both union and non-union employees are generally satisfactory.

The Company believes the long-term best interests of its stockholders are best served by embracing economic, social, environmental and health and safety objectives throughout its organization, which also contributes benefits to its customers and the communities in which it operates.

The Company believes the long-term best interests of its stockholders are best served by embracing economic, social, environmental and health and safety objectives throughout its organization, which also provides benefits to its customers and the communities in which it operates.

The Company has established specific cost-effective corporate projects through its 2026 Aspirations program that are expected to reduce its impact on the environment and conserve natural resources.

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The Company's priority on people focuses on five main areas:

occupational health and safety, employment, diversity and equal opportunity, training and education and engagement with local communities.

occupational health and safety, employment, inclusion and equal opportunity, training and education and engagement with local communities.

Occupational Health & Safety

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The Company is committed to investing in initiatives for recruitment and talent development aimed at attracting and retaining a diverse, competent and qualified pool of skilled individuals.

Some of the employment initiatives offered include various training opportunities, an educational assistance program, competitive wage and benefit programs, promotion of diversity and inclusion initiatives, a wellness program and cultivation of an energetic corporate atmosphere.

In each country where the Company operates, the Company reviews the competitive markets to develop comprehensive benefits packages that address health and well-being, such as medical, dental and vision coverages;

Some of the employment initiatives offered include various training opportunities, an educational assistance program, competitive wage and benefit programs, promotion of inclusion initiatives, a wellness program and cultivation of an energetic corporate atmosphere.

financial security programs such as retirement and savings plans;

paid time off for vacation and holiday time and more.

Diversity and Equal Opportunity

Inclusive and Diverse Work Environment

The Company is dedicated to fostering a respectful and inclusive work environment.

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Attendees are nominated based on their current roles as well as their potential for leadership, their career goals and aspirations as well as other key criteria.

The Company also maintains several Employee Resource Groups ("ERG"), such as the W41 Women’s Network, HYG Veterans Group, Emerging Professionals Network, Green Team and the Young Professionals Network.

These groups are employee-led and employee-run which promote diversity by bringing together employees who share similar interests or affinities.

The Company also maintains several Employee Resource Groups ("ERG"), such as the W41 Women’s Network, HYMH Veterans Group, Emerging Professionals Network, Green Team and the Young Professionals Network.

These groups are open to all employees and are employee-led and employee-run which promote diversity by bringing together employees who share similar interests or affinities.

They offer access to resources, development and leadership opportunities, and are designed to leverage the individual talents, perspectives and experiences of employees to support an inclusive workplace environment.

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• keep all work areas free from environmental health and safety hazards;

• comply with reporting requirements of the Company and government agencies

• comply with reporting requirements applicable to the Company.

The Company strives to efficiently manage operational energy use and mitigate the carbon footprint across global operations.

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• reduce energy consumption within the Company's operations;

• pursue renewable energy and other low-carbon sources

• pursue renewable energy and other low-carbon sources regularly

• collaborate with suppliers to understand their energy challenges and develop solutions

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The Company recognizes the importance of managing energy consumption as efficiently as possible both during the production and use phase of products.

To ensure there is internal accountability, oversight and focus in place for managing energy usage reduction, the Company has established divisional waste and energy committees in both the Americas and EMEA.

These committees meet monthly to discuss progress and updates on current year energy and waste reduction projects as well as plans for future initiatives.

The committees provide quarterly updates to key stakeholders within the organization to keep the business engaged with the topic and updated on the steps the Company is taking to decrease its environmental footprint among other priorities.

To provide internal accountability, oversight and focus for managing energy usage reduction, the Company has established divisional waste and energy committees in both the Americas and EMEA.

These committees meet regularly to discuss progress and updates on current year energy and waste reduction projects as well as plans for future initiatives.

The committees provide regular updates to key stakeholders within the organization to keep the business engaged with the topic and updated on the steps the Company is taking to decrease its environmental footprint among other priorities.

The Company is implementing site-specific energy policies at manufacturing facilities to support local energy management practices.

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As a result, raw material reduction and efficiency efforts are a concerted focus across the Company.

With regards to raw materials and the circular economy, the Company's “Remanufacturing” program covers 12 key components, which enable customers to exchange used parts for remanufactured items.

The Company has strived to optimize its use of raw materials and allow valuable resources to remain in circulation.

With regard to raw materials and the circular economy, the Company's “Remanufacturing” program covers 12 key components, which enable customers to exchange used parts for remanufactured items.

The Company strives to optimize its use of raw materials and allow valuable resources to remain in circulation.

As part of the Company's Supplier Engagement Manual, specific procedures are in place to assess whether its customers are supported and their expectations are met.

The Company has also implemented rules around packaging to assess whether the design and strength of the packaging minimizes cost of materials, labor and shipping.

The Company's sites prioritize waste minimization first, followed by reuse and recycling.

The Company's sites prioritize waste reduction first, followed by reuse and recycling.

Waste reduction efforts have been further supported by ongoing initiatives and campaigns to increase awareness of recycling capabilities.

The three pillar approach drives zero waste to landfill aspirations within the Company's 2026 Aspirations program:

The three pillar approach drives to achieve zero waste to landfill aspirations as outlined within the Company's 2026 Aspirations program:

• Minimize and reduce landfilled waste at all global facilities

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In addition, future changes to environmental laws could require the Company to incur significant additional expense or restrict operations.

Based on current information, the Company does not expect compliance with environmental requirements to have a material adverse effect on the Company’s financial condition or results of operations.

Based on information available as of the date of filing this Annual Report on Form 10-K, the Company does not expect compliance with environmental requirements to have a material adverse effect on the Company’s financial condition or results of operations.

The Company’s products may also be subject to laws and regulations relating to the protection of the environment, including those governing vehicle exhaust.

Regulatory agencies in the United States and Europe have issued or proposed various regulations and directives designed to reduce emissions from spark-ignited engines and diesel engines used in off-road vehicles, such as industrial lift trucks.

Regulatory agencies in the U.S.

and Europe have issued or proposed various regulations and directives designed to reduce emissions from spark-ignited engines and diesel engines used in off-road vehicles, such as industrial lift trucks.

These regulations require the Company and other lift truck manufacturers to incur costs to modify designs and manufacturing processes and to perform additional testing and reporting.

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The Company is investigating or remediating historical contamination at some current and former sites caused by its operations or those of businesses it acquired.

While the Company is not currently aware that any material outstanding claims or obligations exist with regard to these sites, the discovery of additional contamination at these or other sites could result in significant cleanup costs that could have a material adverse effect on the Company’s financial conditions and results of operations.

While the Company is not aware that any material outstanding claims or obligations exist with regard to these sites, the discovery of additional contamination at these or other sites could result in significant cleanup costs that could have a material adverse effect on the Company’s financial conditions and results of operations.

In connection with any acquisition made by the Company, the Company could, under some circumstances, be held financially liable for or suffer other adverse effects due to environmental violations or contamination caused by prior owners of businesses the Company has acquired.

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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-K

Item 1. Business