Cleveland, OH - Hyster-Yale Materials Handling, Inc. announced net income of $23.5 million, or $1.40 per diluted share, and revenues of $643.9 million for the third quarter of 2013 compared with net income of $24.9 million, or $1.48 per diluted share, and revenues of $585.6 million for the third quarter of 2012. Operating profit increased to $31.3 million for the third quarter of 2013 from $28.3 million in the third quarter of 2012.
For the nine months ended September 30, 2013, the Company reported net income of $84.3 million, or $5.02 per diluted share, and revenues of $1.9 billion compared with net income of $65.6 million, or $3.90 per diluted share, and revenues of $1.8 billion for the first nine months of 2012. Operating profit increased to $99.3 million for the first nine months of 2013 from $82.7 million during the first nine months of 2012.
The third-quarter 2013 effective tax rate was 21.9% compared with an effective tax rate of 14.4% in the third quarter of 2012. EBITDA for the third quarter of 2013 and the trailing twelve months ended September 30, 2013, was $39.3 million and $161.1 million, respectively. EBITDA in this press release is provided solely as a supplemental non-GAAP disclosure of operating results. For the reconciliation of GAAP results to the non-GAAP results, see page 6. The Company's cash position was $184.7 million as of September 30, 2013, up from $151.3 million as of December 31, 2012. Debt as of September 30, 2013 decreased to $121.8 million from $142.2 million as of December 31, 2012.
Since the inception of a stock repurchase program in November 2012 that permits the repurchase of up to $50 million of the Company's outstanding Class A common stock, Hyster-Yale has purchased approximately 100,000 shares for an aggregate purchase price of $5.2 million, including $3.0 million purchased during the nine months ended September 30, 2013. The Company did not repurchase any shares during the third quarter of 2013.
Discussion of Third Quarter Results
Revenues increased in the third quarter of 2013 compared with the third quarter of 2012 primarily as a result of increases in unit volumes and in other revenue, including National Account customers' maintenance and service revenue, both in the Americas. In addition, an increase in unit prices and higher parts sales, both in the Americas, also favorably affected revenues. Price increases were implemented in the Americas during 2013 mainly to offset the impact of weakness in the Brazilian real. A shift in sales to lower-priced products in the Americas and Europe, as well as unfavorable foreign currency movements partially offset the improvement in revenues. The unfavorable currency movements were the result of the weakening of the Brazilian real and Australian dollar against the U.S. dollar, which were somewhat offset by the strengthening of the euro against the U.S. dollar.
Worldwide new unit shipments increased in the third quarter of 2013, primarily in the Americas, to approximately 21,200 units from shipments of approximately 18,000 units in the third quarter of 2012 and approximately 20,900 units in the second quarter of 2013. Worldwide backlog was approximately 28,400 units at September 30, 2013 compared with approximately 25,600 units at September 30, 2012 and approximately 29,300 units at June 30, 2013.
Despite an increase in operating profit, net income in the third quarter of 2013 declined compared with the third quarter of 2012 as a result of an increase in income tax expense, primarily attributable to a higher effective income tax rate in the third quarter of 2013 compared with the third quarter of 2012, and lower equity earnings at the Company's unconsolidated financing equity affiliate in 2013 compared with 2012. Operating profit for the third quarter of 2013 improved mainly due to an increase in unit and parts volumes and the favorable effect of price increases, all mainly in the Americas. These improvements were partially offset by a shift in sales mix to lower-margin products also primarily in the Americas and higher selling, general and administrative expenses. Selling, general and administrative expenses increased primarily due to higher estimates for incentive compensation in the third quarter of 2013 compared with the third quarter of 2012, increased marketing expenses in the Americas and Europe to support the Company's five strategic initiatives and a required non-cash charge of $1.2 million pre-tax pertaining to pension settlement accounting for one of the Company's U.S. defined benefit pension plans, which recorded a portion of the deferred loss in equity in the income statement during the third quarter of 2013. Estimates for the non-cash equity component of incentive compensation increased by $4.3 million pre-tax during the third quarter mainly due to the 43% increase in the market price of the Company's stock during the quarter.
The global market for forklift trucks is expected to continue to grow moderately in the remainder of 2013 and in 2014 compared with the comparable prior year periods. This growth is expected to be driven primarily by increases in the Chinese market, along with steady growth in the Americas as a result of growth in Brazil and continuing recovery in North America demand, along with nominal growth in the Asia-Pacific, Middle East and Africa markets. The Latin America market weakened during the third quarter of 2013, and is expected to continue to weaken in the fourth quarter of 2013. However, recovery in the Latin America market is anticipated in 2014. European markets are expected to remain weak, mainly as a result of Western European macro-economic conditions. In the context of these market conditions and expected increases in market share, the Company anticipates an overall increase in unit shipments and parts volumes in the fourth quarter of 2013 and in 2014 compared with the comparable prior year periods. The majority of this increase is expected to come from the Americas, with smaller increases in the European and Asian unit shipments.