US industrial production fell at an annual rate of 1.4% during the second quarter of 2015. Although manufacturing output for June remained unchanged overall, a 3.7% dip in the output of motor vehicles and parts was recorded. The Federal Reserve states the sustained output was largely due to rises in other indexes including mining and utilities. In other news throughout the second quarter the dollar remained strong amid other currencies staying rather volatile. Although the dollars quick rise (which was actually the fastest in 40 years according to Citibank) made many worried about its staying power, its continued strong performance has many at ease.
Highlights from Quarterly Reports
Forklift Manufacturers Update (in order of world size)
1. Toyota Industries
- Overall net sales were up 3.8% in comparison to last year, and the individual segment of Material Handling Equipment saw an increase of 14% during the second quarter.
- The large growth of the Material Handling Equipment segment is being attributed to growths in the North American and European markets.
- Profit increased during the past three months, and Toyota gives credit to both an increase in sales as well as continued promotion of cost reduction efforts.
- The forecast for the remaining part of the year looks positive according to Toyota.
2. KION Group (Linde, STILL, Fenwick)
- Revenue for the second quarter of 2015 came out to approximately $1,375,320,000 which was a 9% increase from the second quarter of 2014.
- The Kion group stock continued with a strong performance during the second quarter, ending 35.4 percent higher then the closing mark of 2014.
- Net income grew an astonishing 60% compared with this same time last year.
- The projection for the rest of year is also good, as most records are projected to be better than their 2014 counterparts.
- Net sales abroad (outside of Jungheinrichs Germany headquarters) were up 13.9% for this past quarter compared with last year.
- A 21.2% increase in net income compared with last year, is being attributed to several strong economies around the world. In fact both sales of new and used machines increased for the Jungheinrich during the past three months.
- Also noted on their report was many of the fleets hired during the past three months were short-term hires, which was not the case in previous years.
- With a Euro-zone growing, the continued success and expansion of Jungheinrich is expected. The demand throughout Europe is expected to grow during the remaining months of 2015, but at a slower rate than the first half of the year.
4. Hyster-Yale Materials Handling
- During the second quarter gross profit for Hyster-Yale was up 3.1% even though revenue actually decreased 3.8%.
- The company Nuvera which was acquired last quarter, saw an overall net loss of $3.5 million (which Hyster-Yale expected ).
- The lift truck section of the company reported a net income of $26.2 million, which is down from the $32.9 million net income reported during the second quarter last year.
- Worldwide shipments of new units increased this quarter compared to last year’s second quarter. Because demand was larger then expected for the first half of the year, it is believed that the global market will decline overall for following quarters.
Other Industry Updates:
- Recently Plug Power has been working hard to try and expand to larger customers, which include industry giants such as Wal-Mart, BMW, and FedEx.
- On August 6th they released second quarter results that highlighted with ( 1.) Record Revenues of $24M ( 2.) Bookings in excess of $59M ( 3.) Positive Gross Margin at 7%.
- Revenue for the second quarter was up almost 39% in comparison with last years numbers.
- A plummeting stock price during the week of August 2nd (falling a total of 7.34%) had some concerned but the overall outlook remains positive.
Many suspected that the growth rate for the US GDP would come out to around 3% for the second quarter, but the actual rate was a 2.3% increase. This is much larger than last quarter’s report of 0.6%, however. A graph representing the quarter to quarter change for the real US GDP is displayed below from Forbes.
Much of the growth of the real GDP is being attributed to an increase in consumer spending during the second quarter. Many motor vehicle companies saw notable increases in sales during the quarter as well. Below is quick video from CNN that goes into more detail about this second quarter reporting.
Other Highlights/News from the Quarter
- On June 17th Gregory Poole announced he has made the decision to become Hyster-Yale lift truck dealer. This development will greatly impact the territory in which Poole sells, to find out more click here to go to an in-depth article.
- During June negotiations started between Mitsubishi Heavy Industries and Unicarriers Corporation for a buyout heated up. With the acquisition of Unicarriers, Mitsubishi hopes to gain some ground on the industry leader in forklifts (Toyota Industries). Last quarter there were reports that both Kion and Mitsubishi were attempting to purchase Unicarriers, but it appears Kion lost on the bidding. Mitsubishi supposedly offered quite a bit more then Kion in talks. The actual agreement allegedly came out to be a $815 million venture for Mitsubishi, but no news of the deal being finalized has been made public yet. (Source: Bloomberg)
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