Summary: NMHG Holding Co.

The ratings on NMHG Holding Co. reflect its leading positions within cyclical and volatile markets, its aggressive financial profile, and its 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, with a 17% increase in NMHG's first-quarter revenues, from the year-earlier level, and a 6% increase in year-over-year backlog at March 31, 2003. Although manufacturing consists mainly of assembly and some welding of

...The ratings on NMHG Holding Co. reflect its leading positions within cyclical and volatile markets, its aggressive financial profile, and its 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, with a 17% increase in NMHG's first-quarter revenues, from the year-earlier level, and a 6% increase in year-over-year backlog at March 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,...

Summary