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 of forklift trucks and the third-largest worldwide. The market is considered moderate in size, very cyclical, and somewhat consolidated. Larger forklift manufacturers such as NMHG are gaining market share because of vendor consolidation, which is leading to national account opportunities, especially outside of the Americas. National account awards are viewed favorably, as they enable the firm to gain volume and aftermarket opportunities without giving up margins or payable terms.
