Eric Ballantyne's questions to HYSTER-YALE (HY) leadership • Q2 2025
Question
Asked about the profitability mix of the current backlog, the specific components being impacted by tariffs from China and India, and the overall competitive landscape, including the rationality of competitors.
Answer
The company maintains strong pricing discipline and expects backlog profitability to be healthy, though tariffs create a temporary headwind. The main challenge is manufacturing absorption at lower volumes. Component sourcing is being shifted away from high-tariff countries, but this takes time, especially for items like castings where global capacity is concentrated in China. The competitive landscape is most disrupted by government-supported Chinese manufacturers, while traditional competitors remain largely rational.