CLEVELAND, OH – Hyster-Yale, Inc. (NYSE:HY), a global industry leader in industrial trucks, tractors, trailers, and stackers, announced the expansion of its Board of Directors and the appointment of Ann O'Hara as its newest member. The announcement follows a board meeting held on Wednesday, where the decision was made to increase the board size from fourteen to fifteen directors.
Ann O'Hara, who has led Huhtamaki OYJ's North America segment since 2020, brings a wealth of experience to the Hyster-Yale board. Her tenure at Huhtamaki, a company specializing in consumer packaging solutions, saw the North American business generate over $1.5 billion in revenue in 2023.
O'Hara's academic credentials include a B.S.E. in Chemical Engineering from the University of Pennsylvania and an M.B.A. from Harvard Business School.
In addition to her new role at Hyster-Yale, O'Hara is an active board member at Huhtamaki, Inc. and Huhtamaki Americas, Inc. Her appointment is effective immediately, and she will also serve on the Audit Review Committee and the Planning Advisory Committee.
The company's SEC filing on Friday clarified that there are no undisclosed arrangements or understandings behind O'Hara's appointment and she is not involved in any transactions that would require disclosure under SEC regulations.
As part of her directorship, O'Hara will participate in the non-employee director compensation arrangements as outlined in Hyster-Yale's 2024 Proxy Statement, filed earlier this year on March 28.
Hyster-Yale's choice to bring O'Hara on board reflects the company's commitment to leadership diversity and expertise. This strategic move is expected to further strengthen the company's governance and oversight capabilities. The information pertaining to this appointment is based on a press release statement.
In other recent news, Hyster-Yale Materials Handling (NYSE:HY), Inc. reported a modest revenue increase in their Q3 2024 results, despite a decline in operating profit and net income compared to the same period last year. The company's consolidated revenue reached $1 billion, marking a 2% year-over-year increase. However, operating profit fell to $33 million from $56 million, and net income decreased to $17 million from $36 million.
Challenges faced by Hyster-Yale included supply chain constraints and production issues, which led to a 36% year-over-year decline in factory bookings to $370 million. Despite these hurdles, the company maintains a robust $2.3 billion backlog expected to support 2025 production levels.
Hyster-Yale's subsidiary, Bolzoni, saw a 5% revenue increase and over 100% operating profit growth. However, Nuvera's revenues fell to $0.3 million due to slow hydrogen fuel cell adoption. Looking forward, Q4 results are expected to be comparable to the previous year, and full-year 2024 results are projected to improve significantly due to a strong first half. These are recent developments in the company's performance.
InvestingPro Insights
Hyster-Yale's recent board expansion and appointment of Ann O'Hara come at an interesting time for the company, as revealed by recent InvestingPro data. The company's stock is currently trading at a P/E ratio of 5.95, which is notably low and aligns with one of the InvestingPro Tips suggesting that HY is "Trading at a low earnings multiple." This valuation metric could indicate that the market may be undervaluing the company's current earnings potential.
Additionally, Hyster-Yale has demonstrated a commitment to shareholder returns, with an InvestingPro Tip highlighting that the company "Has raised its dividend for 11 consecutive years." This consistent dividend growth, coupled with a current dividend yield of 2.64%, may be attractive to income-focused investors.
Despite these positive indicators, it's worth noting that the stock "has taken a big hit over the last six months," with a 6-month price total return of -29.72%. This recent performance suggests that O'Hara is joining the board during a challenging period, potentially bringing fresh perspectives to navigate market headwinds.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Hyster-Yale, providing a deeper understanding of the company's financial health and market position.
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