...The ratings reflect NMHG's below average business risk profile as a leading manufacturer of forklifts, its aggressive financial profile, and fair financial flexibility. NMHG competes in the global forklift truck market, which is characterized as moderate in size, very cyclical, and somewhat consolidated. Over the business cycle, the industry grows at GDP-like rates. However, the market, particularly in North America where NMHG is the leading manufacturer, is volatile. Currently, the markets are showing some signs of strength, with increased backlogs occurring mainly because of strength within some niche retail segments, and some increased maintenance spending within some heavy industrial markets. At June 30, 2003, NMHG's backlog is about 11% higher than the prior year period, in line with market demand. Larger forklift manufacturers are also gaining market share from vendor consolidation, which is leading to national account opportunities on a national, and in some instances, global basis....
