Hyster-Yale said Q3/15 net income and revenues were down from the same quarter in 2014. The company noted a shift in the to lower-priced Class 3 warehouse trucks from higher-priced Class 5 trucks.

Hyster-Yale Materials Handling (HYMH) announced consolidated revenues of $652.1 million and net income of $20.9 million for Q3/15 compared with revenues of $695.8 million and net income of $28.4 million for Q3/14.

HYMH noted lift truck business net income of $24.9 million and revenues of $651.6 million for the third quarter of 2015, compared with net income of $28.4 million and revenues of $695.8 million for the third quarter of 2014.

HYMH said the revenue decline was primarily the result of a shift in trucks sold from higher-priced Class 5 trucks, including Big Trucks, to lower-priced Class 3 warehouse trucks and unfavorable currency movements of $13.5 million from the translation of sales into U.S. dollars, which strengthened against the Brazilian real. The revenue decrease was partially offset by price increases implemented in Brazil to offset the impact of the weak Brazilian real, as well as the favorable effect of price increases announced earlier in 2015 in North America.

In the third quarter of 2015, worldwide new unit shipments increased to 22,415 units up 3.2% from 21,721 units in the third quarter of 2014 and were comparable to shipments of 22,420 units in the second quarter of 2015.

Third quarter 2015 bookings were approximately 18,600 units, or approximately $450 million, compared with approximately 19,700 units, or approximately $510 million, for the third quarter of 2014.

Worldwide backlog was approximately 27,100 units, or approximately $670 million, at September 30, 2015 compared with approximately 26,800 units, or approximately $720 million, at September 30, 2014 and approximately 30,900 units, or approximately $715 million, at June 30, 2015.

Total shipments in the Americas segment, which includes the North America, Latin America and Brazil markets, increased by approximately 500 units in the 2015 third quarter compared with 2014, although unit volume improvements in the Americas continue to be negatively affected by the depressed Brazil economy. However, despite overall higher unit volumes, revenues in the Americas declined to $454.1 million in the third quarter of 2015 from $479.1 million in the third quarter of 2014.

Looking forward, HYMH said the Americas market, which experienced reasonably robust demand in most countries except Brazil in the first nine months of 2015, is expected to moderate, while the Brazil market is expected to remain depressed during the fourth quarter of 2015.  As a result of these market conditions, the company anticipates unit shipments and revenues in the Americas to be lower in the fourth quarter of 2015 than in the fourth quarter of 2014, predominantly due to a substantial reduction in units expected to be shipped in Brazil and a currently weak Brazilian real compared with the U.S. dollar. Revenues are also expected to decline as a result of a shift in sales mix to lower-priced lift trucks.  The Americas operating profit is also expected to be somewhat lower than in the comparable 2014 period as a result of lower unit margins and unfavorable manufacturing efficiencies mostly offset by material cost deflation.

In 2016, the company expects the Americas market to continue to moderate compared with 2015, with Brazil declining further from its already depressed levels.  Despite these market conditions, unit shipments, revenues and parts sales are expected to increase in 2016 over 2015 due to the company’s success in winning some large customer accounts in 2015.  In addition, full year 2016 operating profit in the Americas segment is expected to increase compared with 2015, largely as a result of anticipated improvements in Brazil’s operating results due to lower anticipated operating expenses from planned cost reductions and the absence of plant move expenses incurred in 2015.