Summary: NMHG Holding Co.

The speculative-grade ratings on Portland, Ore.-based NMHG Holding Co. reflect its vulnerable financial risk profile, fair liquidity, and fair business risk assessment with leading positions in cyclical and volatile markets. 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; currently, demand is solid for lift trucks, following weakness in the 2000-2002 period, although we expect growth rates to decelerate in the near term. Although volumes are robust, margins have been under significant

...The speculative-grade ratings on Portland, Ore.-based NMHG Holding Co. reflect its vulnerable financial risk profile, fair liquidity, and fair business risk assessment with leading positions in cyclical and volatile markets. 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; currently, demand is solid for lift trucks, following weakness in the 2000-2002 period, although we expect growth rates to decelerate in the near term. Although volumes are robust, margins have been under significant pressure because of higher raw material prices and production inefficiencies caused by the company's changeover in most product lines. In 2004, raw materials...

Summary