Hyster-Yale Materials Handling has announced consolidated revenues of USD652.4 million - down 14.8% for the third quarter of 2020. Profit was also slashed, down from USD19.5 million in Q3 2019 to USD7.3 million.

The significant decline in global economic activity as a result of the broad measures taken globally to limit the spread of COVID-19, specifically early in the second quarter of 2020, continued to affect demand for the company's products during the 2020 third quarter. Nevertheless, as a result of the higher-than-anticipated pace of market growth subsequent to the pandemic-related global shutdowns, and the impact of the company's cost reduction programs, third quarter 2020 results significantly exceeded initial expectations.

Hyster-Yale stresses that the improvements were achieved while still prioritising the health and safety of the company's employees worldwide.

Unit shipments decreased from the 2019 third quarter, but were higher than the 2020 second quarter. Shipments were down because of substantially reduced bookings in the second quarter of 2020 due to the pandemic-related shutdowns and lower production rates that were put in place to match market conditions.

Bookings in the third quarter of 2020 were comparable to the respective prior year period, but up substantially from the second quarter of 2020 as global demand steadily improved throughout the third quarter, specifically in the company's primary markets, the Americas and EMEA.

While the company continues to carefully manage its backlog and shipments so that its lead times and production rates match market conditions during this period of uncertainty, the strong third quarter bookings led to a modest increase in the 2020 third quarter backlog over the second quarter.

As market conditions improve, the company expects that increased bookings and the strategic programs it continues to pursue will position each of its businesses to recover to sound long-term financial returns. In the meantime, the company continues to focus on aggressive actions to keep its employees healthy as COVID-19 cases once again spike around the globe and on moderating any resulting additional near-term financial impacts of the COVID-19 pandemic.

Hyster-Yale product programs are expected to lay the groundwork for an enhanced market position by providing lower cost of ownership and enhanced productivity for the company's customers. While the company continues to introduce a number of new products, Hyster-Yale Group's primary focus is on "a new set of modular and scalable product families covering both internal combustion engine and electric trucks, which will provide customers with enhanced flexibility for meeting their application needs in addition to the benefit of lowest total cost of ownership, according to its earnings report.

"Hyster-Yale believes it is at an inflection point in its business as a result of the momentum of its strategic programs as they move to full implementation. While these initiatives may reduce the company's near-term financial results, they are expected to position Hyster-Yale with enhanced market position as market conditions return to more normal levels," the report concludes.