Good day ladies and gentlemen and welcome to the Quarter One 2014 Hyster-Yale Materials Handling Earnings Conference Call. My name is Mathew and I’ll be your operator for today. At this time all participants are in listen-only mode. We will conduct a question-and-answer session towards the end of this conference. (Operator Instructions). As a reminder, this call is being recorded for replay purposes. And now I’d like to turn the call over to Ms. Christina Kmetko. Please go ahead.

Thank you. Good morning everyone and thank you for joining us today. Yesterday, a press release was distributed outlining Hyster-Yale’s results for the first quarter ended March 31, 2014. Copies of our earnings release and 10-Q are available on our website at www.hyster-yale.com. Our conference call today will be hosted by Al Rankin, Chairman, President, and Chief Executive Officer of Hyster-Yale Materials Handling also in attendance are Michael Brogan, Vice Chairman and Chief Executive Officer of NACCO Materials Handling Group, and Ken Schilling, Vice President and Chief Financial Officer. Al will provide an overview of the quarter and then open up the call to your questions. Before we begin, I would like to remind participants that this conference call may contain certain forward-looking statements. These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements made here today. Additional information regarding these risks and uncertainties are set forth in our earnings release and in our 10-Q. In addition, certain amount discussed during this call are considered non-GAAP numbers. The non-GAAP reconciliation of these amounts are included in our 2014 first quarter earnings release available on the website. I would now turn the call over to Al Rankin. Al?

Good morning. Hyster-Yale Materials handling had revenues of $676 million and net income of $22.1 million or $1.31 a share for the first quarter of 2014. And that compared with revenues of $645 million and net income of $24.6 million or $1.47 per share for the first quarter of 2013. Operating profit was $31.6 million for the first quarter and that compared with $32.1 million for the first quarter a year ago. Income before income taxes was $31.6 million in 2014 and $30.7 million in 2013. Company's cash position was $107 million on March 31 that compared with $175 million at December 31. And debt March 31st was decreased to $33 million from $69.5 million at December 31 of 2013. Our revenues increased in the first quarter of 2014 compared with the first quarter of 2013 primarily due to an increase in sales with higher priced lift truck in all market segments, the favorable effect of unit price increases implemented in 2013 primarily in the Americas mainly to offset the impact of weakness in the Brazilian real and increase in fleet services in parts volume in the Americas. Revenue increase was partially offset by a slight decrease in unit volume and an unfavorable currency movements. Fewer unit shipments in Europe more than offset unit shipment increases in the Americas and Asia-Pacific. Unfavorable currency movements in the first quarter of 2014 compared with the year ago quarter resulted from the weakening of the Brazilian real and the Australian dollar, which was partially mitigated by the strengthening of the euro against the U.S. dollar. In the first quarter of 2014, worldwide new unit shipments were approximately 20,600 units compared with shipments of approximately 20,800 units in the year ago first quarter and 22,700 units in the fourth quarter of 2013. Worldwide backlog…

Thank you. (Operator Instructions) And your first question comes from the line of Mig Dobre of Robert W. Baird. Please proceed.

Good morning.

Good morning.

Let's see, several questions for me. I guess maybe the place to start is your Europe outlook. Can you give us maybe a little more color as far as what sort of led to the slowdown, maybe in the quarter versus your expectations? At least to my knowledge, your exposure to Eastern Europe is fairly limited, but perhaps I'm mistaken there. Fairly limited, but perhaps, I'm mistaken there?

Well, we actually have some significant volumes in Eastern Europe, Russia in particular. And the conditions are certainly unsettled there, both in terms of currency availability of credit and the unpredictability at this point of the market size to a significant degree. And I think, probably in some other countries, in Eastern Europe there is slowing down because of the turmoil associated with the other countries that are threatened perhaps by Russia's actions and internal discontent.

Can you maybe parse out, I mean, $700 million worth of revenue, how much of that revenue in EMEA is related to Eastern Europe directly versus Western or other area?

We really don't get into that level of detail, I think perhaps the important thing is that. As we look forward, we do see unit volumes improving in the rest of the year compared to the previous year. And all other some adverse product mix in likely that later in the year as well, because we're the good product mix in Europe. But we do see modestly improved volumes in total for Europe by the year.

I appreciate that, Al, but I'm trying to figure out exactly why it is that you see that, because if the issue is Eastern Europe who knows when the situation is going to be solved, and it might get worse over there. That's why I'm asking about the exposure.

Well, and I don’t think we're prepared to provide any more detail than what I really outlined at this point.

Sure; okay. I'm also looking at inventory. Your finished goods inventory has picked up. My understanding is that's probably helped with some cost absorption in the quarter. But apparently this is all driven by Europe. How should we be thinking about this finished goods inventory through the year and maybe the impact that's going to have on margins?

Well, if you look at our inventory in terms of day sales outstanding, its actually better the end of first quarter and was a year ago. So the absolute numbers increased and certainly I think that over the course of the year, we see them coming down, we have put in place some strategic inventory buys particularly in the engine area, but we expect inventory requirements to moderate as we go through the rest of the year, and but this is looking forward in terms of the production cycle, this is a heavy period in terms of the inventory require to service a future volume. And so really what we watch particularly carefully is indeed the day sales outstanding and our cash conversion cycles actually will better in first quarter.

I see. Then if we can switch to the Americas. Can you provide any more color on your comment as far as a shift in sales mix to lower-margin units in the Americas?

Well we have some pretty good I really love to little more check in but my recollection is we have some pretty good big truck volumes and some of the areas where we expect to be improving our position are much lower unit priced units and those trucks but we do see volume picking up overall in terms of units nicely in the Americas just as it did in the first quarter.

I see. So here's what I'm wondering here. When you're talking about some of the share gains, and you're talking about maybe some of the electrical products, I've always sort of wondered exactly what the impact on margin over all would be, are you guys building share in that part of the market? I'm wondering if that's what happened here in the quarter and that's what you're highlighting (inaudible) gaining share.

No, no I don’t think so. I think the biggest change for us as we called out was in the comment is currency in terms of margin. It’s not we actually had even in the first quarter pretty good improvement performance in margins and a good portion of that was stripped the way by adverse currency movement. So, no, I don't think it has -- it's really not related to the factor that you're talking about.

Okay, I see. And as far as developing world demand, I'm wondering, we know about Eastern Europe, that's clear. But what are you sort of seeing demand wise in other emerging markets?

Well, so far China continues to be a very large market, but it's clearly our view is that the growth is moderated significantly in China. Our share as a share of total market is low although our share of the foreign brand market in China is quite respectable. And, but I think we don't see the explosive growth in China that is characterized the last few years. In Asia, I think, we see a year that is up a little bit, but Pacific is likely to down a little bit. We see demand falling off in Australia. And so the whole Asia-Pacific area in total is probably pretty flat excluding China and Japan which are up a little bit. Western Europe, I think went through very difficult period in parts of last year. And the market is turning up in Western Europe as we see it. On the other hand, as I suggested earlier, Eastern Europe is turning down; Middle East and Africa we think is going to be up as well, so the total market for the Europe, Middle East and Africa is up. And we see the U.S. market up moderately; Latin America is probably down little bit; Brazil is down a little bit. So in total for the Americas, we see it’s just modestly up because you got some plus and some minuses. I think it gives you some flavor.

No, I appreciate that, it certainly does. I guess my last question really is kind of a competitive dynamic question. One of your bigger competitors Kion has been now as a public company has been vocal about laying on the strategy to get a little more involved with utility type product, they are also looking to gain share or gain share in the Americas and they’ve been vocal about that. I am wondering sort of your thoughts about that and are you seeing change in competitive dynamics that you can highlight.

Well, the other two big companies in the world Toyota and Kion are both very good competitors. They are tough, they’re tenacious and determined. And that with regards especially to your comment about utility trucks for Kion, they do have Chinese source and they are introducing those trucks in various parts of the world to complement their other offerings just as we are. And so, but I haven’t seen anything major on horizon that changes things. And with regard to your comment about the Americas, I would simply say that Kion’s had, it’s a high on the Americas for a very long period of time, there is nothing particularly new there. The question is how do they do it? And I think that's the complex question that they have to sort out and at this point, distribution position and others it's not really designed to give them the position that they really probably like to have in the Americas. So, I'm sure they try to work all kinds of things to change that. But at this point, I don't see major changes that have occurred as of now.

Sure. And I'm presuming that you're still sort of seeing older layers behave quite rationally at this point in the cycle still, there's no change to turn that, right?

No change in the competitive dynamics that I think we've seen for some period of time. We have some competitors that are pretty aggressive on price and others that are little more disciplined. And but has anything fundamentally changed? I don't think, we feel it’s behaviors are -- have changed dramatically at this point.

Alright, that's great. Thank you Al.

Yes.

Thank you for your question. (Operator Instructions).

Okay. Thank you all very much. We appreciate you joining in on this first quarter conference call. Christy?

Thanks for joining us today, we do appreciate your interest. If you do have any follow-up questions, please give me a call. My number is 440-229-5168.

Thank you, Christina. And the reminder ladies and gentlemen, if you wish to listen the replay of this call, you may do so by calling number 617-801-6888 and the access code is 93232006. Thank you very much for participating in today’s conference. This concludes presentation. You may now disconnect. Good day.