Shares of Hyster-Yale Materials Handling (NYSE: HY) plummeted by 11.48% on November 5, 2024, after the lift truck and materials handling solutions manufacturer reported disappointing financial results for the third quarter of 2024 and provided a downbeat outlook for 2025.

For the third quarter, Hyster-Yale's revenue grew 1.5% year-over-year to $1.02 billion, but missed Wall Street's expectations of $1.06 billion. The company's earnings per share (EPS) of $0.97 fell significantly short of analysts' consensus estimate of $1.97, marking a 50.8% miss.

The company's operating profit declined by 44% to $33.1 million, primarily due to lower sales margins on parts, fleet services, and other revenues, as well as higher freight costs and other cost inflation-related variances. The operating profit margin contracted to 3.3% from 5.8% in the prior-year quarter.

Hyster-Yale attributed the weaker-than-expected results to ongoing supply chain challenges, shipping delays on new products, and lower production rates, particularly in the company's EMEA (Europe, Middle East, and Africa) segment. Additionally, the company faced headwinds from elevated freight costs and other cost inflation-related factors.

Looking ahead, the company expects fourth-quarter 2024 consolidated lift truck revenues and operating profit to be roughly comparable year-over-year. However, for the full year 2025, Hyster-Yale believes revenues may be lower than 2024, and operating profit and net income will decline significantly compared to 2024 levels.

The company cited potential revenue decline, anticipated cost inflation, and an operating expense run rate similar to the second half of 2024 as reasons for the expected drop in operating profit in 2025. Moreover, Hyster-Yale announced plans to undertake restructuring programs in the Americas to lower costs, optimize its manufacturing footprint, reduce lead times, and better position the company for increased margins and further growth over the next 12 to 36 months.