Hyster-Yale Materials Handling, Inc. (NYSE:HY) Q3 2023 Earnings Conference Call November 1, 2023 11:00 AM ET

Company Participants

Christina Kmetko - Investor Relations

Rajiv Prasad - President and Chief Executive Officer

Scott Minder - Senior Vice President, Chief Financial Officer and Treasurer

Alfred Rankin - Executive Chairman

Conference Call Participants

Operator

Good morning. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the Hyster-Yale Materials Handling Third Quarter 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]

Thank you. Christina Kmetko, Investor Relations, you may begin your conference.

Christina Kmetko

Thank you. Good morning, everyone, and thank you for joining us for Hyster-Yale's 2023 third quarter earnings call. I'm Christina Kmetko, and I'm responsible for Investor Relations.

Yesterday evening, we published our third quarter 2023 results and filed our 10-Q, both of which are available on our website. We are recording this webcast. The webcast will be on our website later this afternoon and available for approximately 12-months.

I'd like to remind you that our comments today, including answers to any questions, will include statements related to expected future results of the company and are, therefore, forward-looking statements. Our actual results may differ materially from our forward-looking statements due to a wide range of risks and uncertainties that are described in our earnings release, 10-Q and other SEC filings. We may not update these forward-looking statements until our next quarterly earnings conference call.

With me today are Al Rankin, Executive Chairman; Rajiv Prasad, President and Chief Executive Officer; and Scott Minder, our Senior Vice President, Chief Financial Officer and Treasurer.

With the formalities out of the way, I'll turn the call over to Rajiv to give his perspective on our strong third quarter results in the global Lift Truck markets.

Rajiv Prasad

Thanks, Christie, and good morning, everyone. I'm pleased to report that Hyster-Yale had another strong quarter with significant year-over-year revenue and earnings growth. We're continuing to gain momentum as supply chains improve, and we are benefiting from actions we have taken over the past several years to drive growth and sustainable profitability.

In the third quarter, consolidated revenues grew by 19% or $161 million to just over $1 billion. Our operating profit improved by almost $84 million from a prior year loss. These results exceeded our expectations for several reasons. First, product margins expanded faster due largely to lower-than-anticipated material costs. Second, we sold more higher-margin aftermarket parts, and we had lower operating expenses than forecasted.