Eric Ballantine's questions to Hyster-Yale Inc (HY) leadership • Q2 2025
Question
Eric Ballantine of CVC Credit Partners asked for details on the backlog's profitability mix amid tariff impacts, the specific components being sourced from China and India that are difficult to re-source, and the current competitive landscape, including whether competitors are acting rationally.
Answer
President & CEO Rajiv Prasad stated that pricing discipline remains strong but acknowledged the tariff dynamic is a temporary pressure on profitability. He explained that highly engineered components and high-capacity items like castings are the most difficult to move from China and India. Regarding competition, Mr. Prasad noted that traditional competitors remain disciplined, while Executive Chairman Alfred Rankin added that Chinese competitors, supported by their government, are being the most disruptive factor in the market.