By Ben Glickman

Shares of Hyster-Yale tumbled after the company said it expected earnings and revenue to decline in 2025 as it looks to cut down on expenditures and reduce more costs.

The stock declined 15% to $53.58 in afternoon trading on Tuesday, and was downn as much as 19% earlier in the session. Shares are down 14% this year.

The Cleveland-based forklift maker said before the market open that management had decided to undertake additional cost cutting programs, including optimizing manufacturing and reducing lead times. Hyster-Yale expects to incur restructuring charges after making those changes in the next one to three years, but said the potential charges had yet to be determined.

The company said that demand in the lift-truck market deteriorated throughout the third quarter, which is expected to continue for the remainder of the year. In 2025, Hyster-Yale said the global lift truck market is expected to decline modestly.

Revenue in 2025 is expected be lower than in 2024, while operating profit and net income will decline significantly, the company said.

Hyster-Yale said it had made progress on increasing its working capital efficiency, but that the pace of improvements hadn't been up to expectations. The company said it was now taking "intense efforts" to accelerate those changes.

Revenue rose 2% to $1.02 billion in the third quarter. Hyster-Yale posted a profit of $17.2 million, or 97 cents a share, in the period, compared with a profit of $35.8 million, or $2.06 a share, a year earlier.

Write to Ben Glickman at ben.glickman@wsj.com

(END) Dow Jones Newswires

November 05, 2024 14:33 ET (19:33 GMT)

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