Summary: NMHG Holding Co.

The ratings reflect NMHG's leading positions within cyclical and volatile markets, its aggressive financial profile, and fair financial flexibility. NMHG competes in the global forklift truck market, which is characterized as moderate in size, somewhat consolidated, and modestly capital intensive. Over the business cycle, the industry grows at GDP-like rates. Larger forklift manufacturers are also gaining market share from vendor consolidation, which is leading to national account opportunities. However, the industry is both cyclical and volatile; demand for lift trucks has been improving, a 17% increase in NMHG's first quarter revenues (compared with the prior year period), and a 6% increase in year over year backlog at Mar. 31, 2003. Although manufacturing consists mainly of assembly and some welding of

...The ratings reflect NMHG's leading positions within cyclical and volatile markets, its aggressive financial profile, and fair financial flexibility. NMHG competes in the global forklift truck market, which is characterized as moderate in size, somewhat consolidated, and modestly capital intensive. Over the business cycle, the industry grows at GDP-like rates. Larger forklift manufacturers are also gaining market share from vendor consolidation, which is leading to national account opportunities. However, the industry is both cyclical and volatile; demand for lift trucks has been improving, a 17% increase in NMHG's first quarter revenues (compared with the prior year period), and a 6% increase in year over year backlog at Mar. 31, 2003. Although manufacturing consists mainly of assembly and some welding of purchased components, operating leverage is high because of modest industry profitability, and the highly cyclical nature of higher-margin products. Barriers to entry, including brand...

Summary