...The ratings on NMHG Holding Co. reflect a below-average business profile, characterized by the company's high exposure to volatile cyclical end-markets, and an aggressive financial profile, offset somewhat by NMHG's fair financial flexibility and position as a leading manufacturer of forklifts. NMHG, based in Portland, Ore., is the largest domestic manufacturer, and the third-largest manufacturer worldwide of forklift trucks. The market is considered 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 growing backlogs occurring mainly because of increased demand within some big-box retail segments and some increased maintenance spending within some heavy industrial markets. However, pricing pressures are constant, forcing participants to continuously improve...
