MAYFIELD HEIGHTS, Ohio, Feb 19, 2003 /PRNewswire-FirstCall via COMTEX/ -- NACCO Industries, Inc. (NYSE: NC) today announced net income for the fourth quarter of 2002 of $25.3 million, or $3.09 per share, compared to a net loss for the fourth quarter of 2001 of $27.7 million, or $3.38 per share. Revenues for the fourth quarter of 2002 were $737.9 million compared to $655.2 million for the same period in 2001.
Results for the fourth quarter of 2002 include a $7.2 million after-tax extraordinary loss recorded by Bellaire Corporation, a wholly owned non- operating subsidiary which owns the Company's closed Eastern U.S. underground coal mines. This extraordinary loss relates to an increase in Bellaire's obligations to the United Mine Workers of America Combined Benefit Fund primarily as a result of an unfavorable U.S. Supreme Court ruling in January 2003.
On a quarter-to-quarter comparable basis, income before extraordinary loss for the fourth quarter of 2002 was $32.5 million, or $3.97 per share, compared to a net loss for the fourth quarter of 2001 of $27.7 million, or $3.38 per share.
For the 2002 full year, NACCO Industries, Inc. had net income of $42.4 million, or $5.17 per share, including the extraordinary loss previously discussed, compared to a net loss of $36.0 million, or $4.40 per share in 2001. Revenues for 2002 were $2.5 billion compared to $2.6 billion in 2001.
For the 2002 full year, NACCO Industries generated positive consolidated cash flow before financing activities, excluding project mines, of $123.8 million. In 2002 cash flow before financing activities was $57.6 million at NACCO Materials Handling Group; $48.8 million at NACCO Housewares Group; and $29.4 million at North American Coal, excluding project mines.
Discussion of Results
NMHG Wholesale - 2002 Fourth Quarter
NMHG Wholesale's net income increased to $12.6 million on revenues of $399.0 million for the fourth quarter of 2002 compared to a net loss of $11.7 million on revenues of $314.0 million for the fourth quarter of 2001.
Revenues for the fourth quarter of 2002 improved 27 percent, compared to the fourth quarter of 2001, primarily due to increased lift truck volumes worldwide as a result of stronger demand. Lift truck shipments increased 25 percent to 18,032 units in the fourth quarter of 2002 compared to 14,451 units in the fourth quarter a year ago, and increased 18 percent compared to 15,299 units in the third quarter of 2002. NMHG's worldwide wholesale backlog at December 31, 2002 increased 25 percent to 18,800 units compared to 15,100 units at December 31, 2001 and increased slightly compared to 18,700 units at the end of the third quarter of 2002.
Net income in the fourth quarter of 2002 improved primarily as a result of a shift in mix to higher-margin lift trucks in the Americas, increased unit volumes worldwide, lower manufacturing costs driven by the completion of the Danville, Illinois restructuring program in the fourth quarter of 2001 and the successful implementation of expense control programs. Net income in the fourth quarter of 2002 also benefited from the recognition of a $4.2 million after-tax settlement related to the favorable resolution of a tax transfer- pricing audit.
Improved net income for the fourth quarter of 2002 was partially offset by an $8.0 million after-tax restructuring charge attributable to NMHG Wholesale's decision announced in December 2002 to phase out its Lenoir, North Carolina, plant and restructure its Irvine, Scotland, plant. The restructuring charge includes a non-cash charge of $2.5 million after-tax for impairments of building, machinery and tooling. Net loss in the fourth quarter of 2001 included $2.6 million after-tax in phase-out costs for the company's Danville plant and $0.6 million after-tax in other restructuring costs.
NMHG Wholesale - 2002 Full Year
For the 2002 full year, NMHG Wholesale reported revenues of $1.4 billion and net income of $21.5 million compared to revenues of $1.5 billion and a net loss of $14.1 million in 2001.
The decline in revenues was primarily driven by decreased unit volume in the first half of 2002 that was partially offset by increased unit volume in the second half of 2002. Lift truck shipments in 2002 decreased to 64,437 units compared to 68,929 units in 2001. Lift truck shipments in the second half of 2002 increased 15 percent to 33,331 units compared to 28,903 units in the second half of 2001.
Net income for 2002 improved primarily due to a favorable shift in mix to higher-margin lift trucks, the positive impact of cost reduction and expense control programs, including the completion of the Danville plant closure in 2001, and favorable one-time tax benefits in 2002. Net income for 2002 improved despite an $8.0 million after-tax restructuring charge for the plant closing in Lenoir and the plant restructuring in Irvine. Net loss in 2001 included $7.2 million after-tax of expenses related to the Danville plant closure and a $2.8 million after-tax restructuring charge for cost reductions in Europe. Net loss in 2001 included goodwill amortization expense of $11.4 million while no goodwill amortization expense was recognized in 2002 pursuant to a change in accounting rules.
NMHG Wholesale - 2003 Outlook
In 2003, NMHG Wholesale anticipates a modest strengthening of the Americas lift truck market, a relatively flat European lift truck market and a slight improvement in the Asia-Pacific lift truck market. The potential for war and continuing economic uncertainty in the U.S. and Europe could affect overall shipments in 2003. At current exchange rates, adverse currency effects could also reduce NMHG Wholesale's 2003 results. Backlog in 2003 is anticipated to remain at approximately fourth quarter 2002 levels.
NMHG Wholesale expects to incur additional costs for product development in 2003 as it moves toward the initial introduction of newly redesigned 1.0-to-8.0-ton internal combustion engine lift trucks planned for the fourth quarter of 2004. Furthermore, in 2003 NMHG Wholesale expects to incur additional costs related to the Lenoir, North Carolina, and Irvine, Scotland, manufacturing restructuring program announced in December 2002 and additional employee costs as compensation and benefits return to more normal levels. Total costs of the restructuring program to be incurred in 2003 and beyond are expected to be substantially mitigated by future government incentives. NMHG Wholesale expects to realize initial net benefits from this manufacturing restructuring program in 2004 with a full 12-months of estimated annual benefits beginning in 2006. NMHG Wholesale expects income taxes to be at more normal levels in 2003 as one-time tax benefits received in 2002 are not expected to recur.
NMHG Retail - 2002 Fourth Quarter
NMHG Retail operations, which include the required elimination of inter- company transactions between NMHG Wholesale and company owned retail dealerships, incurred a net loss of $2.6 million for the fourth quarter of 2002, compared to a net loss of $14.6 million for the fourth quarter of 2001.
In January 2003, NMHG Retail completed the sale of its only wholly owned U.S. dealer to M.H. Logistics, an independent Hyster(R) dealer with operations in seven states. The remaining divisions of NMHG Retail achieved profitability and positive cash flow during the fourth quarter of 2002. NMHG Retail's improved results were primarily due to lower operating costs in Europe, resulting from restructuring programs implemented in 2001, including the sale of its Hyster Germany dealers at the end of 2001. Results in Asia- Pacific also improved compared to the fourth quarter of 2001.
Revenues for the fourth quarter of 2002 decreased to $43.3 million compared to revenues of $58.0 million for the fourth quarter of 2001 primarily due to the disposition of the Hyster Germany dealers at the end of 2001.
NMHG Retail - 2002 Full Year
For the 2002 full year, NMHG Retail reported a lower net loss of $9.2 million compared to a net loss of $35.3 million for 2001. Improved results in 2002 were primarily due to benefits from global restructuring and realignment programs implemented in 2001, including the sale of NMHG Retail's Hyster Germany dealers, which also resulted in substantial charges taken in 2001. Net loss in 2001 included goodwill amortization expense of $1.5 million while no goodwill amortization expense was recognized in 2002 pursuant to a change in accounting rules.
Revenues for 2002 decreased to $172.2 million compared to $209.1 million in 2001. The decrease was primarily the result of the sale of the Hyster Germany dealerships at the end of 2001.
NMHG Retail - 2003 Outlook
NMHG Retail's operations remaining following the sale of its wholly owned U.S. dealer in January 2003 achieved profitability in the fourth quarter of 2002. NMHG Retail expects to continue programs to improve the performance of its wholly owned dealerships in 2003 as part of its program to reach at least break-even results.
NACCO Housewares Group - 2002 Fourth Quarter
NACCO Housewares Group, which includes NACCO's Hamilton Beach*Proctor- Silex and Kitchen Collection subsidiaries, reported improved revenues of $205.8 million and improved net income of $15.6 million for the fourth quarter of 2002 compared to revenues of $198.7 million and a net loss of $9.5 million for the fourth quarter of 2001.
Revenues at Hamilton Beach*Proctor-Silex improved, despite a weak retail environment, primarily due to increased sales of General Electric-branded products. Increased revenues were partially offset by the impact of Hamilton Beach*Proctor-Silex's strategic decision to withdraw from selected low-margin, opening-price-point business earlier in 2002 and lower sales of the company's TrueAir(TM) home health products.
Kitchen Collection recorded increases in comparable store sales and average sales transactions per store for the fourth quarter of 2002 compared to the fourth quarter of 2001. Kitchen Collection operated 173 stores at December 31, 2002 compared to 168 stores at December 31, 2001.
Net income increased in the fourth quarter of 2002, compared to the fourth quarter of 2001, due to benefits from cost reduction activities, lower manufacturing costs and lower advertising expenditures at Hamilton Beach*Proctor-Silex, an improved sales mix of higher-margin products at Hamilton Beach*Proctor-Silex and increased sales at Kitchen Collection. Net loss in the fourth quarter of 2001 at Hamilton Beach*Proctor-Silex included $8.2 million after-tax in restructuring charges and a $2.3 million after-tax write-off of Kmart receivables.
NACCO Housewares Group - 2002 Full Year
For the 2002 full year, NACCO Housewares Group reported net income of $17.8 million on revenues of $610.3 million compared to a net loss of $12.2 million on revenues of $632.1 million in 2001.
Revenues decreased in 2002, compared to 2001, primarily due to Hamilton Beach*Proctor-Silex's strategic decision to withdraw from opening-price-point business and lower sales of TrueAir(TM) home health products. Decreased revenues were partially offset by increased sales of General Electric-branded products at Hamilton Beach*Proctor-Silex and increased sales at Kitchen Collection.
The Housewares Group's increased net income for 2002, compared to the net loss in 2001, was due to improved manufacturing efficiencies at Hamilton Beach*Proctor-Silex's plants as a result of the successful implementation of restructuring activities initiated in 2001, improved distribution efficiencies and lower advertising expenditures at Hamilton Beach*Proctor-Silex, and increased sales at Kitchen Collection. In both years, Hamilton Beach*Proctor- Silex wrote off approximately $2.5 million after-tax in customer receivables. The Housewares Group's net loss in 2001 included goodwill amortization expense of $3.0 million while no goodwill amortization expense was recognized in 2002 pursuant to a change in accounting rules.
NACCO Housewares Group - 2003 Outlook
Hamilton Beach*Proctor-Silex expects that programs begun in 2002 and new strategic programs planned for 2003 designed to reduce operating costs and improve manufacturing and distribution efficiencies will improve operating margins in 2003. However, revenues in 2003 could be affected by a decline in consumer confidence, which drives retail spending. Further, revenues in 2003 could be affected by Kmart's announced decision to close an additional 316 stores, although Hamilton Beach*Proctor-Silex believes this could be offset by incremental sales to other customers, to other distribution channels and of innovative new products. In 2003, Hamilton Beach*Proctor-Silex will continue to focus on further improving its working capital efficiency.
In 2003, Kitchen Collection will continue programs designed to enhance operating results, including improving its merchandise mix, closing non- performing stores, prudently opening additional Kitchen Collection(R) and Gadgets & More(R) stores, expanding its offerings of Hamilton Beach(R) and Proctor-Silex(R)-branded products and aggressively managing its costs. However, Kitchen Collection believes it will be very difficult to equal or exceed in 2003 the exceptional performance it achieved in 2002.
North American Coal - 2002 Fourth Quarter
North American Coal's net income for the fourth quarter of 2002 was $5.3 million compared to $4.9 million for the fourth quarter of 2001. Net income improved primarily due to increased lignite coal deliveries, including more normal lignite coal deliveries at the Red Hills Mine in Mississippi and a $2.0 million favorable tax adjustment.
Improved net income was partially offset by decreased liquidated damages payments received by the Red Hills Mine due to the customer's power plant reaching commercial operating status in 2002, lower lignite coal deliveries at the Red River Mine in Louisiana compared to the unusually high deliveries in the fourth quarter of 2001, and a $1.9 million after-tax charge for the write- off of an investment in undeveloped reserves that are no longer expected to be developed.
Lignite coal deliveries totaled 9.3 million tons during the fourth quarter of 2002 compared to 8.2 million tons delivered in the fourth quarter of 2001. North American Coal's Florida dragline operations delivered 2.7 million cubic yards of limerock in the fourth quarter of 2002 compared to 2.4 million cubic yards of limerock in the fourth quarter of 2001.
North American Coal - 2002 Full Year
For the 2002 full year, North American Coal's net income was $19.6 million compared to an unusually high $25.6 million for 2001. This decrease was primarily the result of a $9.6 million after-tax decrease in liquidated damages payments received by the Red Hills mine in 2002, compared to 2001, as a result of its customer's power plant reaching commercial operation status in 2002. In addition, net income was reduced by lower lignite coal sales at the Red River Mine in Louisiana compared to unusually high sales in 2001, and a $1.9 million after-tax charge for the write-off of an investment in undeveloped reserves in 2002. The decrease in net income was partially offset by a gain on the sale in 2002 of undeveloped Eastern coal reserves that were not aligned with North American Coal's development strategies and a $2.0 million favorable tax adjustment.
A total of 34.2 million tons of lignite coal was delivered during 2002 compared to 31.4 million tons in 2001. North American Coal's Florida dragline operations delivered 10.6 million cubic yards of limerock in 2002 compared to 8.7 million cubic yards in 2001.
North American Coal - 2003 Outlook
North American Coal anticipates lignite coal deliveries in 2003 to increase, compared with 2002, primarily due to an expected increase in lignite coal production at the Red Hills Mine. However, certain unusual favorable items, which improved financial results in 2002, including liquidated damages and related settlements, are not expected to be repeated in 2003. Furthermore, the adoption of SFAS No. 143, which was effective January 1, 2003 and requires a change in the timing of the recognition of mine-closing costs, is expected to reduce future operating results as compared to operating results in 2002. North American Coal expects to continue working on developing new domestic mining projects.
NACCO Industries, Inc. - 2003 Outlook
NACCO Industries expects generally improved market prospects for its businesses in 2003. However, the Company expects significantly increased investment in new product development, increased costs related to the restructuring program announced in the fourth quarter of 2002 and more normal tax provisions at NACCO Materials Handling Group, a continued sluggish consumer retail environment at NACCO Housewares Group and lower profits at North American Coal's Red Hills Mine reflecting the first full year of normal operations and no liquidated damages payments. Cash flow before financing activities, excluding project mines, in 2003 is expected to be substantial, although lower than 2002 levels. In summary, the Company expects that the programs now in place at all of its subsidiaries will continue to mature in 2003 and will position them for substantially improved results in 2004 through 2006, especially if markets improve. However, this outlook could be dampened by the potential for war and continuing economic uncertainty in the United States and Europe.
In conjunction with this news release, the management of NACCO Industries, Inc. will host a conference call on Thursday, February 20, at 11 a.m. eastern time. The call may be accessed by dialing (800) 915-4836 or over the Internet through NACCO Industries' Web site at www.nacco.com or at www.ccbn.com . Please allow 15 minutes to register, download and install any necessary audio software required to listen to the broadcast. The online archive of the broadcast will be available for 72 hours at the NACCO Web site.
The statements contained in the news release that are not historical facts are "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are made subject to certain risks and uncertainties, which could cause actual results to differ materially from those presented in these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Such risks and uncertainties with respect to each subsidiary's operations include, without limitation:
NACCO Materials Handling Group: (1) changes in demand for lift trucks and related aftermarket parts and service on a worldwide basis, especially in the U.S. where the company derives a majority of its sales, (2) changes in sales prices, (3) delays in delivery or changes in costs of raw materials or sourced products and labor, (4) delays in manufacturing and delivery schedules, (5) exchange rate fluctuations, changes in foreign import tariffs and monetary policies and other changes in the regulatory climate in the foreign countries in which NMHG operates and/or sells products, (6) product liability or other litigation, warranty claims or returns of products, (7) delays in or increased costs of restructuring programs, (8) the effectiveness of the cost reduction programs implemented globally, including the successful implementation of procurement initiatives, (9) customer acceptance of, changes in costs of, or delays in the development of new products, (10) acquisitions and/or dispositions of dealerships by NMHG, (11) the impact of the euro, including increased competition, foreign currency exchange movements and/or changes in operating costs and (12) the uncertain impact on the economy or the public's confidence in general from terrorist activities and the consequent climate of war.
NACCO Housewares Group: (1) changes in the sales prices, product mix or levels of consumer purchases of kitchenware and small electric appliances, (2) bankruptcy of or loss of major retail customers or suppliers, (3) changes in costs of raw materials or sourced products, (4) delays in delivery or the unavailability of raw materials or key component parts, (5) exchange rate fluctuations, changes in the foreign import tariffs and monetary policies and other changes in the regulatory climate in the foreign countries in which Hamilton Beach*Proctor-Silex buys, operates and/or sells products, (6) product liability, regulatory actions or other litigation, warranty claims or returns of products, (7) increased competition, (8) customer acceptance of, changes in costs of, or delays in the development of new products, (9) weather conditions or other events that would affect the number of customers visiting Kitchen Collection stores and (10) the uncertain impact on the economy or the public's confidence in general from terrorist activities and the consequent climate of war.
North American Coal: (1) weather conditions and other events that would change the level of customers' fuel requirements, (2) weather or equipment problems that could affect lignite deliveries to customers, (3) changes in maintenance, fuel or other similar costs, (4) costs to pursue new mining opportunities and (5) changes in the U.S. economy, in U.S. regulatory requirements or in the power industry that would affect demand for North American Coal's reserves.
NACCO Industries, Inc. is an operating holding company with three principal businesses: lift trucks, housewares and lignite coal mining. NACCO Materials Handling Group designs, engineers, manufactures and sells a full line of lift trucks and replacement parts marketed worldwide under the Hyster(R) and Yale(R) brand names. NACCO Housewares Group consists of Hamilton Beach*Proctor-Silex, Inc., a leading manufacturer and marketer of small electric motor and heat-driven household appliances as well as commercial products for restaurants, bars and hotels, and The Kitchen Collection, Inc., a national specialty retailer of brand-name kitchenware, small electrical appliances and related accessories. The North American Coal Corporation mines and markets lignite coal as fuel for power generators. For more information about NACCO Industries, visit the Company's Web site at www.nacco.com .
CONSOLIDATED FINANCIAL AND OPERATING HIGHLIGHTS
NACCO INDUSTRIES, INC. AND SUBSIDIARIES
Three Months Ended Year Ended
December 31 December 31
2002 2001 2002 2001
(In millions, except per share data)
Total revenues $737.9 $655.2 $2,548.1 $2,637.9
Income (loss) before extraordinary
loss and cumulative effect of
accounting changes * $32.5 $(27.7) $49.6 $(34.7)
Extraordinary loss (7.2) - (7.2) -
Cumulative effect of accounting
changes - - - (1.3)
Net income (loss) * $25.3 $(27.7) $42.4 $(36.0)
Earnings before extraordinary loss and
cumulative effect of accounting
changes per share * $3.97 $(3.38) $6.05 $(4.24)
Extraordinary loss (0.88) - (0.88) -
Cumulative effect of accounting
changes - - - (0.16)
Earnings per share * $3.09 $(3.38) $5.17 $(4.40)
Cash dividends per share $0.245 $0.235 $0.970 $0.930
Average shares outstanding 8.199 8.195 8.198 8.190
* Prior year's results reflect the amortization of goodwill of $3.9 million or $0.48 per share and $15.9 million or $1.95 per share in the three months and year ended December 31, 2001, respectively.
CONSOLIDATED FINANCIAL AND OPERATING HIGHLIGHTS
NACCO INDUSTRIES, INC. AND SUBSIDIARIES
Three Months Ended Year Ended
December 31 December 31
2002 2001 2002 2001
(In millions, except per share data)
Revenues
NACCO Materials Handling Group
Wholesale $399.0 $314.0 $1,416.2 $1,463.3
NACCO Materials Handling Group
Retail (incl. elims.) 43.3 58.0 172.2 209.1
NACCO Materials Handling Group 442.3 372.0 1,588.4 1,672.4
NACCO Housewares Group 205.8 198.7 610.3 632.1
North American Coal 89.8 84.5 349.3 333.3
NACCO and Other - - 0.1 0.1
737.9 655.2 2,548.1 2,637.9
Depreciation, depletion and
amortization
NACCO Materials Handling Group
Wholesale 6.8 13.7 29.4 47.0
NACCO Materials Handling Group
Retail (incl. elims.) 2.6 2.6 11.1 13.4
NACCO Materials Handling Group 9.4 16.3 40.5 60.4
NACCO Housewares Group 3.4 4.9 13.9 21.2
North American Coal 9.7 8.8 38.2 35.7
NACCO and Other - 0.1 0.1 0.3
22.5 30.1 92.7 117.6
Operating profit (loss)
NACCO Materials Handling Group
Wholesale 14.6 (13.8) 48.9 1.3
NACCO Materials Handling Group
Retail (incl. elims.) (0.8) (17.3) (3.2) (39.4)
NACCO Materials Handling Group 13.8 (31.1) 45.7 (38.1)
NACCO Housewares Group 29.8 (9.8) 40.9 (8.4)
North American Coal 10.6 14.1 50.1 61.9
NACCO and Other (2.1) (1.2) (4.9) (9.7)
52.1 (28.0) 131.8 5.7
Other income (expense)
NACCO Materials Handling Group
Wholesale (3.9) (5.4) (29.4) (15.5)
NACCO Materials Handling Group
Retail (incl. elims.) 0.8 (2.4) (6.5) (9.8)
NACCO Materials Handling Group (3.1) (7.8) (35.9) (25.3)
NACCO Housewares Group (3.5) (1.4) (10.9) (7.8)
North American Coal (6.8) (7.3) (28.3) (27.3)
NACCO and Other 1.1 2.7 3.0 9.3
Income (loss) before income taxes,
minority interest, extraordinary
loss and cumulative effect of
accounting changes 39.8 (41.8) 59.7 (45.4)
Income tax provision (benefit) 7.6 (13.9) 11.3 (9.9)
Income (loss) before minority
interest, extraordinary loss and
cumulative effect of accounting
changes 32.2 (27.9) 48.4 (35.5)
Minority interest 0.3 0.2 1.2 0.8
Income (loss) before extraordinary
loss and cumulative effect of
accounting changes
NACCO Materials Handling Group
Wholesale 12.6 (11.7) 21.5 (12.8)
NACCO Materials Handling Group
Retail (incl. elims.) (2.6) (14.6) (9.2) (35.3)
NACCO Materials Handling Group 10.0 (26.3) 12.3 (48.1)
NACCO Housewares Group 15.6 (9.5) 17.8 (12.2)
North American Coal 5.3 4.9 19.6 25.6
NACCO and Other 1.6 3.2 (0.1) -
32.5 (27.7) 49.6 (34.7)
Extraordinary loss, net of $3.9 tax
benefit (7.2) - (7.2) -
Cumulative effect of accounting
changes, net of $0.8 tax benefit - - - (1.3)
Net income (loss) $25.3 $(27.7) $42.4 $(36.0)
SELECTED FINANCIAL INFORMATION
NMHG HOLDING CO.**
Three Months Ended Year Ended
December 31 December 31
2002 2001 2002 2001
Detail of other income (expense):
Interest expense $(9.4) $(6.5) $(33.9) $(23.1)
Interest income 1.8 0.6 3.4 3.6
Insurance recovery - - - 8.0
Income (loss) on interest rate swap
agreements (0.8) 0.2 (5.7) (1.4)
Discount on the sale of accounts
receivable - (0.5) (0.5) (4.7)
Other income (expense)- net 5.3 (1.6) 0.8 (7.7)
Total other income (expense) $(3.1) $(7.8) $(35.9) $(25.3)
Capital expenditures $4.0 $10.8 $16.1 $53.5
December 31
2002 2001
Cash and cash equivalents $54.9 $59.6
Debt
Senior notes $247.1 $-
Revolving credit agreements 31.3 301.2
Capital lease agreements and other
debt 46.4 61.2
Total debt $324.8 $362.4
Stockholder's equity $382.3 $382.0
** NMHG Holding Co. is a wholly owned subsidiary of NACCO Industries, Inc. On May 9, 2002, NMHG Holding Co. issued $250.0 million of 10% Senior Notes, which are registered with the SEC.
