SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                 -------------


                                    FORM 10-Q


|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934

                  For the quarterly period ended June 30, 2003

                                       OR

|_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934

            For the transition period from __________ to __________

                        Commission file number 333-89248
                                               ---------


                                NMHG Holding Co.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

DELAWARE                                                              31-1637659
--------------------------------------------------------------------------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
 incorporation or organization)


650 N.E. Holladay Street; Suite 1600; Portland, OR                         97232
--------------------------------------------------------------------------------
(Address of principal executive offices)                              (Zip code)


                                  (503)721-6000
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

                                      N/A
--------------------------------------------------------------------------------
(Former  name,  former  address and former  fiscal year,  if changed  since last
report)

NMHG  HOLDING CO. IS A WHOLLY OWNED  SUBSIDIARY  OF NACCO  INDUSTRIES,  INC. AND
MEETS THE CONDITIONS IN GENERAL INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q. WE ARE
FILING THIS FORM WITH REDUCED DISCLOSURE FORMAT UNDER GENERAL INSTRUCTION H(2).


Indicate  by check  mark  whether  the  registrant:  (1) has filed  all  reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.
                                                           YES   X     NO
                                                               -----      -----

Indicate  by check mark  whether  the  registrant  is an  accelerated  filer (as
defined in Rule 12b-2 of the Exchange Act).

                                                           YES   X     NO
                                                               -----      -----
At July 31, 2003, 100 common shares were outstanding.









                                NMHG HOLDING CO.

                                TABLE OF CONTENTS





Part I.  FINANCIAL INFORMATION
                                                                               
         Item 1     Financial Statements                                             Page Number
         ------     --------------------                                             -----------

                    Unaudited Condensed Consolidated Balance Sheets -
                    June 30, 2003 and December 31, 2002                                    3

                    Unaudited Condensed Consolidated Statements of Operations
                    for the Three Months and Six Months Ended June 30, 2003
                    and 2002                                                               4

                    Unaudited Condensed Consolidated Statements of Cash Flows
                    for the Six Months Ended June 30, 2003 and 2002                        5

                    Unaudited Condensed Consolidated Statements of Changes
                    in Stockholder's Equity for the Six Months Ended
                    June 30, 2003 and 2002                                                 6

                    Notes to Unaudited Condensed Consolidated Financial
                    Statements                                                            7-21

         Item 2     Management's Discussion and Analysis of Financial
         ------     -------------------------------------------------
                    Condition and Results of Operations                                  22-28
                    -----------------------------------

         Item 4     Controls and Procedures                                               29
         ------     -----------------------

Part II. OTHER INFORMATION

         Item 1     Legal Proceedings                                                     30
         ------     -----------------

         Item 5     Other Information                                                     30
         ------     -----------------

         Item 6     Exhibits and Reports on Form 8-K                                      30
         ------     --------------------------------

         Signature                                                                        31


         Exhibit Index                                                                    32





                                       2









                                     PART I
                              FINANCIAL INFORMATION
                          Item 1 - Financial Statements
                          -----------------------------


                 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                        NMHG HOLDING CO. AND SUBSIDIARIES



                                                                                 JUNE 30           DECEMBER 31
                                                                                   2003                2002
                                                                               ----------          -----------
                                                                               (in millions, except share data)
                                                                                              
ASSETS

Current Assets
    Cash and cash equivalents                                                  $     28.7           $     54.9
    Accounts receivable, net                                                        212.8                193.1
    Tax advances, NACCO Industries, Inc.                                             20.8                 16.4
    Inventories                                                                     249.9                222.0
    Deferred income taxes                                                            23.9                 21.6
    Prepaid expenses and other                                                       14.1                 29.9
                                                                               ----------           ----------
       Total Current Assets                                                         550.2                537.9

Property, Plant and Equipment, Net                                                  238.0                242.1
Goodwill                                                                            347.5                343.7
Other Non-current Assets                                                             72.8                 79.8
                                                                               ----------           ----------
       Total Assets                                                            $  1,208.5           $  1,203.5
                                                                               ==========           ==========

LIABILITIES AND STOCKHOLDER'S EQUITY

Current Liabilities
    Accounts payable                                                           $    198.8           $    186.9
    Revolving credit agreements                                                      15.6                 31.3
    Current maturities of long-term debt                                             19.1                 20.0
    Accrued payroll                                                                  18.8                 23.3
    Accrued warranty obligations                                                     27.2                 23.1
    Other current liabilities                                                       118.5                114.2
                                                                               ----------           ----------
         Total Current Liabilities                                                  398.0                398.8

Long-term Debt                                                                      272.3                273.5

Other Non-current Liabilities                                                       134.9                147.8

Minority Interest                                                                      .7                  1.1

Stockholder's Equity
    Common stock, par value $1 per share, 100 shares authorized;
       100 shares outstanding                                                         ---                  ---
    Capital in excess of par value                                                  198.2                198.2
    Retained earnings                                                               230.8                226.8
    Accumulated other comprehensive income (loss):
       Foreign currency translation adjustment                                        6.1                (10.3)
       Minimum pension liability adjustment                                         (31.9)               (31.9)
       Deferred loss on cash flow hedging                                             (.6)                 (.5)
                                                                               ----------           ----------
                                                                                    402.6                382.3
                                                                               ----------           ----------
       Total Liabilities and Stockholder's Equity                              $  1,208.5           $  1,203.5
                                                                               ==========           ==========


See notes to unaudited condensed consolidated financial statements.



                                       3






            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                        NMHG HOLDING CO. AND SUBSIDIARIES




                                                                   THREE MONTHS ENDED                SIX MONTHS ENDED
                                                                         JUNE 30                          JUNE 30
                                                                 ----------------------         ------------------------
                                                                    2003         2002              2003           2002
                                                                 ---------    ---------         ---------      ---------
                                                                                       (in millions)

                                                                                                  
Revenues                                                         $   428.4    $   388.7         $   847.4       $  760.5
Cost of sales                                                        352.9        320.2             697.1          630.3
                                                                 ---------    ---------         ---------       --------

Gross Profit                                                          75.5         68.5             150.3          130.2

Selling, general and administrative expenses                          59.9         58.1             122.0          113.2
                                                                 ---------    ---------         ---------       --------

Operating Profit                                                      15.6         10.4              28.3           17.0

Other income (expense)
    Interest expense                                                  (8.7)        (8.6)            (17.3)         (14.1)
    Loss on interest rate swap agreements                              (.3)        (3.1)              (.7)          (2.8)
    Income from unconsolidated affiliates                              1.0           .1               1.7            1.1
    Other - net                                                         .7         (1.0)               .9            (.2)
                                                                 ---------    ---------         ---------       --------
                                                                      (7.3)       (12.6)            (15.4)         (16.0)
                                                                 ---------    ---------         ---------       --------
Income (Loss) Before Income Taxes and Minority Interest                8.3         (2.2)             12.9            1.0

Income tax provision (benefit)                                         2.8          (.7)              4.4           (1.6)
                                                                 ---------    ---------         ---------       --------

Income (Loss) Before Minority Interest                                 5.5         (1.5)              8.5            2.6

Minority interest income                                                .2           .3                .5             .5
                                                                 ---------    ---------         ---------       --------

Net Income (Loss)                                                $     5.7    $    (1.2)        $     9.0       $    3.1
                                                                 =========    =========         =========       ========

Comprehensive Income                                             $    20.4    $    13.1         $    25.3       $   18.2
                                                                 =========    =========         =========       ========



See notes to unaudited condensed consolidated financial statements.




                                       4






            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                        NMHG HOLDING CO. AND SUBSIDIARIES




                                                                                              SIX MONTHS ENDED
                                                                                                  JUNE 30
                                                                                        ---------------------------
                                                                                           2003              2002
                                                                                        ---------         ---------
                                                                                               (in millions)
                                                                                                    
Operating Activities
    Net income                                                                          $     9.0         $     3.1
    Adjustments to reconcile net income
      to net cash provided by (used for) operating activities:
        Depreciation and amortization                                                        17.5              20.7
        Deferred income taxes                                                                 2.4               5.0
        Minority interest                                                                     (.5)              (.5)
        Other non-cash items                                                                 (1.9)              1.1
        Working capital changes
           Intercompany receivable/payable, affiliate                                        (4.5)             15.1
           Accounts receivable                                                              (14.8)            (24.7)
           Inventories                                                                      (17.0)             16.1
           Other current assets                                                              (4.7)             (3.4)
           Accounts payable and other liabilities                                             7.5               9.2
                                                                                        ---------         ---------
           Net cash (used for) provided by operating activities                              (7.0)             41.7

Investing Activities
    Expenditures for property, plant and equipment                                          (10.8)             (9.1)
    Proceeds from the sale of assets                                                         13.0                .7
    Proceeds from unconsolidated affiliates                                                   ---                .7
                                                                                        ---------         ---------
           Net cash provided by (used for) investing activities                               2.2              (7.7)

Financing Activities
    Additions to long-term debt and revolving credit agreements                              15.6             288.2
    Reductions of long-term debt and revolving credit agreements                            (34.1)           (297.2)
    Cash dividends paid                                                                      (2.5)            (15.0)
    Notes receivable/payable, NACCO Industries, Inc.                                          ---              (8.0)
    Financing fees paid                                                                       (.1)            (13.0)
                                                                                        ---------         ---------
           Net cash used for financing activities                                           (21.1)            (45.0)

    Effect of exchange rate changes on cash                                                   (.3)              2.3
                                                                                        ---------         ---------

Cash and Cash Equivalents
    Decrease for the period                                                                 (26.2)             (8.7)
    Balance at the beginning of the period                                                   54.9              59.6
                                                                                        ---------         ---------

    Balance at the end of the period                                                    $    28.7         $    50.9
                                                                                        =========         =========


See notes to unaudited condensed consolidated financial statements.



                                       5





UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY
                       NMHG HOLDING CO. AND SUBSIDIARIES


                                                           SIX MONTHS ENDED
                                                                JUNE 30
                                                      --------------------------
                                                         2003            2002
                                                      ---------       ---------
                                                             (in millions)

Common Stock                                          $     ---       $     ---
                                                      ---------       ---------

Capital in Excess of Par Value                            198.2           198.2
                                                      ---------       ---------

Retained Earnings
  Beginning balance                                       226.8           229.5
  Net income                                                9.0             3.1
  Cash dividends declared                                  (5.0)          (15.0)
                                                      ---------       ---------
                                                          230.8           217.6
                                                      ---------       ---------

Accumulated Other Comprehensive Income (Loss)
  Beginning balance                                       (42.7)          (45.7)
  Foreign currency translation adjustment                  16.4            11.6
  Reclassification of hedging activity into earnings         .1             1.8
  Current period cash flow hedging activity                 (.2)            1.7
                                                      ---------       ---------
                                                          (26.4)          (30.6)
                                                      ---------       ---------
Total Stockholder's Equity                            $   402.6       $   385.2
                                                      =========       =========

      See notes to unaudited condensed consolidated financial statements.


                                       6




         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                        NMHG HOLDING CO. AND SUBSIDIARIES
                                  JUNE 30, 2003
                          (Tabular Amounts in Millions)

Note 1 - Basis of Presentation
------------------------------

The accompanying  unaudited condensed  consolidated financial statements include
the  accounts of NMHG  Holding  Co.  ("NMHG  Holding,"  the parent  company),  a
Delaware  corporation,  and  its  wholly  owned  subsidiaries,  NACCO  Materials
Handling  Group,  Inc.  ("NMHG  Wholesale")  and NMHG  Distribution  Co.  ("NMHG
Retail")  (collectively,  "NMHG" or the  "Company").  Intercompany  accounts and
transactions have been eliminated.  NMHG Holding is a wholly owned subsidiary of
NACCO Industries, Inc. ("NACCO"). The Company's subsidiaries operate in the lift
truck industry.  The Company manages its lift truck operations as two reportable
segments: wholesale manufacturing and retail distribution.

NMHG   designs,   engineers,   manufactures,   sells,   services  and  leases  a
comprehensive  line of lift trucks and  aftermarket  parts and service  marketed
globally under the Hyster(R) and Yale(R) brand names.  NMHG  Wholesale  includes
the manufacture and sale of lift trucks and related service parts,  primarily to
independent  and wholly  owned Hyster and Yale retail  dealerships.  NMHG Retail
includes  the sale,  leasing  and  service  of Hyster  and Yale lift  trucks and
related service parts by wholly owned retail dealerships and rental companies.

These  financial  statements  have been prepared in accordance  with  accounting
principles  generally  accepted  in the  United  States  for  interim  financial
information and the  instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly,  they do not include all of the information and footnotes  required
by accounting principles generally accepted in the United States. In the opinion
of  management,  all  adjustments  (consisting  of  normal  recurring  accruals)
considered  necessary for a fair  presentation of the financial  position of the
Company as of June 30, 2003 and the results of its  operations for the three and
six month  periods  ended June 30,  2003 and 2002,  and the  results of its cash
flows and changes in  stockholder's  equity for the six month periods ended June
30, 2003 and 2002 have been included.

The  balance  sheet at  December  31,  2002 has been  derived  from the  audited
financial statements at that date but does not include all of the information or
notes required by accounting  principles generally accepted in the United States
for complete financial statements.

Operating  results for the three and six month  periods  ended June 30, 2003 are
not necessarily indicative of the results that may be expected for the remainder
of the year ending  December 31,  2003.  For further  information,  refer to the
consolidated   financial  statements  and  footnotes  thereto  included  in  the
Company's  Annual  Report on Form 10-K for the fiscal  year ended  December  31,
2002.

Certain amounts in the prior period's Unaudited Condensed Consolidated Statement
of  Cash  Flow  have  been  reclassified  to  conform  to the  current  period's
presentation.

Note 2 - Inventories
--------------------

Inventories are summarized as follows:

                                                   JUNE 30        DECEMBER 31
                                                     2003            2002
                                                 -----------    ---------------
    Manufactured inventories:
      Finished goods and service parts           $     112.1    $          99.9
      Raw materials and work in process                121.2              110.3
                                                 -----------    ---------------
         Total manufactured inventories                233.3              210.2

    Retail inventories                                  30.2               23.4
                                                 -----------    ---------------
         Total inventories at FIFO                     263.5              233.6

    LIFO reserve                                       (13.6)             (11.6)
                                                 -----------    ---------------
                                                 $     249.9    $         222.0
                                                 ===========    ===============

The cost of certain  manufactured  and  retail  inventories,  including  service
parts, has been determined using the LIFO method.  At June 30, 2003 and December
31, 2002, 62% and 64%, respectively,  of total


                                       7



inventories  were  determined  using the  LIFO  method.  An actual  valuation of
inventory under the LIFO method can be made only at the end of the year based on
the  inventory  levels  and  costs  at  that  time.  Accordingly,  interim  LIFO
calculations  must  necessarily be based on  management's  estimates of expected
year-end  inventory  levels and costs.  Because  these  estimates are subject to
change  and may be  different  than the  actual  inventory  levels  and costs at
year-end,  interim  results are  subject to the final  year-end  LIFO  inventory
valuation.

Note 3 - Restructuring Charges
------------------------------

The changes to the Company's  restructuring accruals since December 31, 2002 are
as follows:
                                          Asset       Lease
                             Severance  Impairment  Impairment  Other  Total
                             ---------  ----------  ----------  -----  -----
NMHG Wholesale
Balance at December 31, 2002 $     9.3  $      3.8  $      ---  $  .9  $ 14.0(a)
Foreign currency effect             .2         ---         ---    ---      .2
Reversal                           (.3)        ---         ---    ---     (.3)
Payments                          (1.6)        ---         ---    ---    (1.6)
                             ------------------------------------------------
Balance at June 30, 2003     $     7.6  $      3.8  $      ---  $  .9  $ 12.3
                             ================================================


NMHG Retail
Balance at December 31, 2002 $     1.5  $      ---  $       .1  $ ---  $  1.6
Reversal                           (.4)        ---         ---    ---     (.4)
Payments                           (.3)        ---         (.1)   ---     (.4)
                             ------------------------------------------------
Balance at June 30, 2003     $      .8  $      ---  $      ---  $ ---  $   .8
                             ================================================

(a) The December 31, 2002 balance  indicated in the table above does not include
$7.6 million in curtailment losses relating to pension and other post-retirement
benefits  which will not be paid until  employees  reach  retirement  age. These
amounts were  accrued in the fiscal year ended  December 31, 2000 as part of the
restructuring of the Danville, Illinois assembly plant. Final severance payments
for the Danville restructuring plan were made in 2002.

NMHG 2002 Restructuring Program

As announced in December 2002,  NMHG Wholesale is phasing out its Lenoir,  North
Carolina,  lift truck component facility and restructuring  other  manufacturing
and  administrative  operations,  primarily  its  Irvine,  Scotland,  lift truck
assembly  and  component  facility.  During  the fourth  quarter  of 2002,  NMHG
Wholesale  recognized a  restructuring  charge of  approximately  $12.5  million
pre-tax.  Of this amount,  $3.8 million  relates to a non-cash asset  impairment
charge for building,  machinery and tooling,  which was determined  based on the
then current  market values for similar  assets and broker quotes as compared to
the net book value of these  assets;  and $8.7 million  relates to severance and
other  employee  benefits  to be paid to  approximately  615  manufacturing  and
administrative  employees.  Payments began during the second quarter of 2003. As
of June 30,  2003,  payments  of $0.7  million  were made to  approximately  100
employees.  Payments are expected to continue  through 2005.  In addition,  $0.3
million of the amount  accrued at December  31,  2002 was  reversed in the first
half of 2003.  Approximately  $2.5  million  of  pre-tax  costs  which  were not
eligible  for  accrual in  December  2002 and are not shown in the table  above,
primarily  related to manufacturing  inefficiencies,  were expensed in the first
half of 2003. Of the $2.5 million  additional  costs incurred  during 2003, $2.3
million  is  classified  as cost of sales  and $0.2  million  is  classified  as
selling,  general,  and  administrative  expenses  in  the  Unaudited  Condensed
Consolidated Statement of Operations for the six months ended June 30, 2003.

NMHG 2001 Restructuring Programs

During 2001,  management committed to the restructuring of certain operations in
Europe for both the Wholesale and Retail segments of the business. As such, NMHG
Wholesale  recognized  a  restructuring  charge of  approximately  $4.5  million
pre-tax for severance and other  employee  benefits to be paid to  approximately
285 direct and indirect factory labor and administrative personnel in Europe. As
of December 31, 2002,  payments of $3.4 million to  approximately  245 employees
had been made and $0.2 million of the amount originally  accrued was reversed in
2002. Although the majority of the headcount  reductions were made by the end of
2002,  payments of $0.9 million to 16  employees  were made during the first six
months of 2003.

                                       8



NMHG Retail  recognized a  restructuring  charge of  approximately  $4.7 million
pre-tax in 2001, of which $0.4 million  related to lease  termination  costs and
$4.3 million  related to  severance  and other  employee  benefits to be paid to
approximately 140 service technicians,  salesmen and administrative personnel at
wholly owned dealers in Europe. As of December 31, 2002,  severance  payments of
$2.8 million had been made to approximately 110 employees. Although the majority
of the headcount  reductions were made by the end of 2002, during the first half
of 2003,  severance  payments of $0.3  million  were made to six  employees.  In
addition,  $0.4 million of the amount  accrued at December 31, 2002 was reversed
in the first six months of 2003.

Note 4 - Accounting for Guarantees
----------------------------------

In November  2002, the Financial  Accounting  Standards  Board  ("FASB")  issued
Interpretation   ("FIN")  No.  45,   "Guarantor's   Accounting   and  Disclosure
Requirements for Guarantees,  Including  Indirect  Guarantees of Indebtedness of
Others." FIN No. 45 requires  guarantors  to  recognize,  at the  inception of a
guarantee,  a  liability  for the fair  value of the  obligation  undertaken  in
issuing the guarantee for those guarantees  initiated or modified after December
31,  2002.  However,  certain  guarantees,   including  product  warranties  and
guarantees  between parties under common control (i.e.,  parent and subsidiary),
are not required to be recognized  at fair value at  inception.  FIN No. 45 also
requires additional disclosures of guarantees,  including product warranties and
guarantees  between  parties  under common  control,  beginning  with interim or
annual  periods ending after December 15, 2002.  Guarantees  initiated  prior to
December 31, 2002 are not  recognized as a liability  measured at fair value per
this Interpretation, but are subject to the disclosure requirements. The Company
has made the required  disclosures  in these  financial  statements.  Also,  the
Company  has   recognized   guarantees   included   within  the  scope  of  this
Interpretation and initiated after December 31, 2002 as liabilities  measured at
fair value. The adoption of the fair value provisions of this Interpretation did
not have a material  impact on the  Company's  financial  position or results of
operations for the three or six months ended June 30, 2003.

Under  various   financing   arrangements  for  certain   customers,   including
independently owned retail dealerships, NMHG provides guarantees of the residual
values of lift  trucks,  or recourse or  repurchase  obligations  such that NMHG
would  be  obligated  in the  event of  default  by the  customer.  Terms of the
third-party  financing  arrangements  for which NMHG is  providing  a  guarantee
generally range from one to five years.  Total guarantees and amounts subject to
recourse or repurchase  obligations  at June 30, 2003 and December 31, 2002 were
$168.2 million and $153.6 million,  respectively.  Losses  anticipated under the
terms of the  guarantees,  recourse  or  repurchase  obligations,  which are not
significant,  have been  reserved for in the  accompanying  Unaudited  Condensed
Consolidated Financial Statements.  Generally,  NMHG retains a security interest
in the related  assets  financed  such that, in the event that NMHG would become
obligated under the terms of the recourse or repurchase obligations,  NMHG would
take title to the assets financed. The fair value of collateral held at June 30,
2003 was approximately $180.7 million, based on Company estimates.

NMHG has a 20% ownership  interest in NMHG Financial  Services,  Inc. ("NFS"), a
joint venture with GE Capital  Corporation  ("GECC"),  formed  primarily for the
purpose of providing  financial  services to Hyster and Yale lift truck  dealers
and national account customers in the United States.  NMHG's ownership in NFS is
accounted for using the equity method of accounting.  Generally, NMHG sells lift
trucks through its  independent  dealer network or directly to customers.  These
dealers and customers may enter into a financing transaction with NFS or another
unrelated  third-party.  NFS  provides  debt  financing  to  dealers  and  lease
financing to both dealers and customers.  On occasion, the credit quality of the
customer or  concentration  issues  within GECC  necessitate  providing  standby
recourse or repurchase  obligations  or a guarantee of the residual value of the
lift trucks  purchased by customers and financed  through NFS. At June 30, 2003,
$122.2  million of the $168.2 million of guarantees  discussed  above related to
transactions  with NFS. In addition,  in  connection  with the  formation of the
current joint venture agreement that expires in April 2004, NMHG also provides a
guarantee  to GECC for 20% of NFS' debt with GECC,  such that NMHG would  become
liable under the terms of NFS' debt  agreements with GECC in the case of default
by NFS. At June 30, 2003, the amount of NFS' debt  guaranteed by NMHG was $101.2
million.  NFS has not  defaulted  under the terms of this debt  financing in the
past and NMHG does not expect NFS to default in the foreseeable future.

NMHG  provides a standard  warranty  on its lift  trucks,  generally  for six to
twelve months or 1,000 to 2,000 hours. In addition, NMHG sells extended warranty
agreements which provide additional  warranty up to three to five years or up to
3,600 to 10,000 hours.  The specific  terms and  conditions of those  warranties
vary  depending  upon the  product  sold and the  country  in  which  NMHG  does
business.  Revenue  received  for the sale of  extended  warranty  contracts  is
deferred and  recognized in the same manner as the costs are incurred to perform
under the warranty  contracts,  in accordance with FASB Technical Bulletin 90-1,

                                       9



"Accounting  for Separately  Priced  Extended  Warranty and Product  Maintenance
Contracts."  The  Company  estimates  the costs that may be  incurred  under its
warranty programs,  both standard and extended, and records a liability for such
costs at the time  product  revenue  is  recognized.  Factors  that  affect  the
Company's  warranty  liability include the number of units sold,  historical and
anticipated  rates  of  warranty  claims  and the cost per  claim.  The  Company
periodically  assesses  the adequacy of its recorded  warranty  liabilities  and
adjusts the amounts as necessary.

Changes in the Company's current and long-term warranty  obligations,  including
deferred  revenue on extended  warranty  contracts,  during the six months ended
June 30, 2003 are as follows:


      Balance at December 31, 2002       $    41.9
      Warranties issued                       16.8
      Settlements made                       (16.1)
      Changes in estimates                    (2.2)
      Foreign currency effect                   .2
                                         ---------
      Balance at June 30, 2003           $    40.6
                                         =========

The Company's  periodic  review of the estimates  used to calculate its warranty
obligations  resulted in an  adjustment  of $2.2 million  recognized  in the six
months ended June 30, 2003 to reduce the estimated  required accrual at June 30,
2003.  This  adjustment  is not  necessarily  indicative  of  future  trends  or
adjustments  that may be  required  to adjust the  warranty  accrual  during the
remainder of 2003.




                                       10





Note 5 - Unaudited Condensed Consolidating Guarantor and Non-Guarantor Financial
--------------------------------------------------------------------------------
Information
-----------

The following tables set forth the unaudited condensed consolidating  statements
of operations  for the three and six month periods ended June 30, 2003 and 2002,
the condensed  consolidating  statements of cash flows for the six month periods
ended June 30, 2003 and 2002 and the condensed  consolidating  balance sheets as
of June 30, 2003 and December 31, 2002. The following information is included as
a result of the guarantee of the Parent Company's Senior Notes by each of NMHG's
wholly owned U.S. subsidiaries  ("Guarantor  Companies").  None of the Company's
other  subsidiaries  has guaranteed the Senior Notes.  Each of the guarantees is
joint and  several  and full and  unconditional.  "NMHG  Holding"  includes  the
consolidated  financial  results of the  parent  company  only,  with all of its
wholly owned subsidiaries accounted for under the equity method.


           UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
                    FOR THE THREE MONTHS ENDED JUNE 30, 2003
                                 (in millions)



                                     NMHG      Guarantor  Non-Guarantor  Consolidating      NMHG
                                  Holding Co.  Companies    Companies     Eliminations  Consolidated
                                 ------------  ---------  -------------  -------------  ------------

                                                                         
Revenues                         $        ---  $   257.5  $       231.2  $       (60.3) $      428.4

Cost of sales                             ---      219.8          193.4          (60.3)        352.9
Selling, general, and
   administrative expenses                ---       29.5           30.4            ---          59.9
                                 ------------  ---------  -------------  -------------  ------------

Operating profit                          ---        8.2            7.4            ---          15.6

Interest expense                          ---       (7.0)          (1.7)           ---          (8.7)
Other income                              ---         .3             .1            ---            .4
                                 ------------  ---------  -------------   ------------  ------------

Income before
   income taxes, minority
   interest and income from
   unconsolidated affiliates              ---        1.5            5.8            ---           7.3

Income tax provision                      ---        1.3            1.5            ---           2.8

Minority interest income                  ---        ---             .2            ---            .2

Income (loss) from
   unconsolidated affiliates              5.7        5.5            ---          (10.2)          1.0
                                 ------------  ---------   ------------   ------------   -----------

Net income (loss)                $        5.7  $     5.7   $        4.5   $      (10.2)  $       5.7
                                 ============  =========   ============   ============   ===========





                                       11







           UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
                    FOR THE THREE MONTHS ENDED JUNE 30, 2002
                                 (in millions)



                                    NMHG       Guarantor  Non-Guarantor  Consolidating      NMHG
                                  Holding Co.  Companies    Companies     Eliminations  Consolidated
                                 ------------  ---------  -------------  -------------  ------------

                                                                         
Revenues                         $        ---   $  248.3   $      181.0   $      (40.6)  $     388.7


Cost of sales                             ---      206.1          154.1          (40.0)        320.2
Selling, general, and
   administrative expenses                ---       31.0           26.9             .2          58.1
                                 ------------  ---------   ------------   ------------   -----------


Operating profit (loss)                   ---       11.2            ---            (.8)         10.4

Interest expense                         (1.8)      (5.7)          (2.2)           1.1          (8.6)
Other expense                             ---       (2.4)          (1.7)           ---          (4.1)
                                 ------------  ---------   ------------   ------------   -----------

Income (loss) before
   income taxes, minority
   interest and income from
   unconsolidated affiliates             (1.8)       3.1           (3.9)            .3          (2.3)

Income tax provision (benefit)            (.8)      (1.7)           1.6             .2           (.7)

Minority interest income                  ---        ---             .3            ---            .3

Income (loss) from
   unconsolidated affiliates              (.2)      (5.0)           ---            5.3            .1
                                 ------------   --------    -----------   ------------   -----------

Net income (loss)                $       (1.2)  $    (.2)   $      (5.2)  $        5.4   $      (1.2)
                                 ============   ========    ===========   ============   ===========




                                       12







            UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2003
                                  (in millions)



                                    NMHG       Guarantor  Non-Guarantor  Consolidating      NMHG
                                  Holding Co.  Companies    Companies     Eliminations  Consolidated
                                 ------------  ---------  -------------  -------------  ------------

                                                                         
 Revenues                        $        ---  $   520.3  $       445.3  $      (118.2) $      847.4

 Cost of sales                            ---      441.6          373.7         (118.2)        697.1
 Selling, general, and
    administrative expenses               ---       62.1           59.9            ---         122.0
                                 ------------  ---------  -------------  -------------  ------------

 Operating profit                         ---       16.6           11.7            ---          28.3

 Interest expense                         ---      (14.0)          (3.3)           ---         (17.3)
 Other income                             ---        ---             .2            ---            .2
                                 ------------  ---------  -------------- -------------  ------------

 Income before income
    taxes, minority interest and
    income from
    unconsolidated affiliates             ---        2.6             8.6           ---          11.2

 Income tax provision                     ---        2.2             2.2           ---           4.4

 Minority interest income                 ---        ---              .5           ---            .5
 Income (loss) from
    unconsolidated affiliates             9.0        8.6             ---         (15.9)          1.7
                                 ------------   --------   ------------- -------------  ------------

 Net income (loss)               $        9.0   $    9.0   $         6.9 $       (15.9) $        9.0
                                 ============   ========   ============= =============  ============






                                       13







            UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2002
                                  (in millions)



                                    NMHG       Guarantor  Non-Guarantor  Consolidating       NMHG
                                  Holding Co.  Companies    Companies     Eliminations   Consolidated
                                 ------------  ---------  -------------  -------------   ------------

                                                                         
 Revenues                        $        ---  $   487.4  $       362.3  $       (89.2)  $      760.5

 Cost of sales                            ---      414.3          305.2          (89.2)         630.3
 Selling, general, and
    administrative expenses               ---       61.7           51.5             ---         113.2
                                 ------------  ---------  -------------  --------------  ------------

 Operating profit                         ---       11.4            5.6             ---          17.0

 Interest expense                        (3.6)      (8.2)          (2.3)            ---         (14.1)
 Other income (expense)                   ---       (1.0)          (2.0)            ---          (3.0)
                                 ------------  ---------  -------------  --------------  ------------

 Income (loss) before income
    taxes, minority interest and
    income from
     unconsolidated  affiliates          (3.6)       2.2            1.3             ---           (.1)

 Income tax provision (benefit)          (1.4)      (1.8)           1.6             ---          (1.6)

 Minority interest income                 ---        ---             .5             ---            .5

 Income (loss) from
    unconsolidated affiliates             5.3        1.3            ---            (5.5)          1.1
                                 ------------  ---------  -------------  --------------  ------------

 Net income (loss)               $        3.1  $     5.3  $          .2  $         (5.5) $        3.1
                                 ============  =========  =============  ==============  ============





                                       14







                 UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET
                               AS OF JUNE 30, 2003
                                  (in millions)



                                                 NMHG       Guarantor  Non-Guarantor  Consolidating     NMHG
                                               Holding Co.  Companies    Companies     Eliminations  Consolidated
                                               -----------  ---------  -------------  -------------  ------------

                                                                                      
Cash and cash equivalents                      $       ---  $     6.1  $        22.6  $         ---  $       28.7
Accounts and notes receivable, net                     9.5       92.5          192.4          (81.6)        212.8
Inventories                                            ---      130.8          119.1            ---         249.9
Other current assets                                   2.8       43.2           16.0           (3.2)         58.8
                                               -----------  ---------  -------------  -------------  ------------
  Total current assets                                12.3      272.6          350.1          (84.8)        550.2

Property, plant and equipment, net                     ---      131.0          107.0            ---         238.0
Goodwill                                               ---      307.3           40.2            ---         347.5
Other non-current assets                             645.4      278.6           31.7         (882.9)         72.8
                                               -----------  ---------  -------------  -------------  -------------
Total Assets                                   $     657.7  $   989.5  $       529.0  $      (967.7) $    1,208.5
                                               ===========  =========  =============  =============  ============

Accounts and intercompany notes
   payable                                     $       2.5  $   126.9  $       141.9  $       (72.5) $      198.8
Other current liabilities                              3.3      113.7           82.9          (16.3)        183.6
Revolving credit agreements                            2.0        ---           13.6            ---          15.6
                                               -----------  ---------  -------------  -------------  ------------
  Total current liabilities                            7.8      240.6          238.4          (88.8)        398.0

Long-term debt                                       247.3      261.8           41.4         (278.2)        272.3
Other long-term liabilities                            ---      105.4           46.7          (16.5)        135.6

Stockholder's equity                                 402.6      381.7          202.5         (584.2)        402.6
                                               -----------  ---------  -------------  -------------  ------------
Total liabilities and stockholder's equity     $     657.7  $   989.5  $       529.0  $      (967.7) $    1,208.5
                                               ===========  =========  =============  =============  ============






                                       15







                 UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET
                             AS OF DECEMBER 31, 2002
                                  (in millions)



                                                  NMHG      Guarantor  Non-Guarantor  Consolidating      NMHG
                                               Holding Co.  Companies    Companies     Eliminations  Consolidated
                                               -----------  ---------  -------------  -------------  ------------

                                                                                      
Cash and cash equivalents                      $       ---  $     5.3  $        49.6  $         ---  $        54.9
Accounts and notes receivable, net                    259.7     120.3          161.7         (348.6)         193.1
Inventories                                             ---     121.5          100.5            ---          222.0
Other current assets                                    3.7      55.2            9.3            (.3)          67.9
                                               ------------ ---------  -------------  -------------  -------------
  Total current assets                                263.4     302.3          321.1         (348.9)         537.9

Property, plant and equipment, net                      ---     133.3          108.8            ---          242.1
Goodwill                                                ---     307.3           36.4            ---          343.7
Other non-current assets                              374.8     238.4           27.1         (560.5)          79.8
                                               ------------ ---------  -------------  -------------  -------------
Total Assets                                   $      638.2 $   981.3  $       493.4  $      (909.4) $     1,203.5
                                               ============ =========  =============  =============  =============

Accounts and intercompany notes
   payable                                     $        --- $   375.2  $       152.5  $      (340.8) $       186.9
Other current liabilities                               3.6     114.4           75.1          (12.5)         180.6
Revolving credit agreements                             5.2       ---           26.1            ---           31.3
                                               ------------ ---------  -------------  -------------  -------------
  Total current liabilities                             8.8     489.6          253.7         (353.3)         398.8

Long-term debt                                        247.1      11.5           14.9            ---          273.5
Other long-term liabilities                             ---     118.7           44.2          (14.0)         148.9
Stockholder's equity                                  382.3     361.5          180.6         (542.1)         382.3
                                               ------------ ---------  -------------  -------------  -------------
Total liabilities and stockholder's equity     $      638.2 $   981.3  $       493.4  $      (909.4) $     1,203.5
                                               ============ =========  =============  =============  =============




                                       16








            UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2003
                                  (in millions)



                                                      NMHG      Guarantor   Non-Guarantor   Consolidating        NMHG
                                                   Holding Co.  Companies     Companies      Eliminations    Consolidated
                                                  ------------  ---------   -------------   -------------    ------------

                                                                                              
Net cash provided by (used for) operating
   activities                                     $        3.1  $      4.5   $       (9.3)  $        (5.3)   $        (7.0)

Investing activities
  Expenditures for property, plant and equipment           ---        (6.3)          (4.5)            ---            (10.8)
  Proceeds from the sale of assets                         ---        11.5            1.5             ---             13.0
                                                  ------------  ----------  -------------   -------------    -------------
    Net cash provided by (used for) investing
     activities                                            ---         5.2           (3.0)            ---              2.2

Financing activities
  Additions to long-term debt and revolving
     credit agreements                                     ---         2.1            13.5            ---             15.6
  Reductions of long-term debt and revolving
     credit agreements                                    (3.1)       (1.9)          (29.1)           ---            (34.1)
  Notes receivable/payable, affiliates                     2.6        (6.6)            1.2            2.8              ---
  Other-net                                               (2.6)       (2.5)            ---            2.5             (2.6)
                                                  ------------  ----------  --------------  -------------    -------------
    Net cash provided by (used for) financing
     activities                                           (3.1)       (8.9)          (14.4)           5.3            (21.1)

Effect of exchange rate changes on cash                    ---         ---             (.3)           ---              (.3)
                                                  ------------  ----------  --------------  -------------    -------------

Cash and cash equivalents
Increase (decrease) for the period                         ---          .8           (27.0)           ---            (26.2)
Balance at the beginning of the period                     ---         5.3            49.6            ---             54.9
                                                  ------------  ----------  --------------  -------------    -------------
Balance at the end of the period                  $        ---  $      6.1  $         22.6  $         ---    $        28.7
                                                  ============  ==========  ==============  =============    =============





                                       17








            UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2002
                                  (in millions)



                                                     NMHG       Guarantor   Non-Guarantor   Consolidating         NMHG
                                                  Holding Co.   Companies     Companies      Eliminations     Consolidated
                                                  -----------   ---------   -------------   -------------     ------------

                                                                                              
Net cash provided by (used for) operating
   activities                                     $      (3.4)  $    44.5   $          .4   $          .2     $       41.7

Investing activities
  Expenditures for property, plant and equipment          ---        (6.1)           (2.5)            (.5)            (9.1)
  Proceeds from the sale of assets                        ---          .4              .3             ---               .7
  Other-net                                             132.7          .7             ---          (132.7)              .7
                                                  -----------   ---------   -------------   -------------     ------------
    Net cash provided by (used for) investing
     activities                                         132.7        (5.0)           (2.2)         (133.2)            (7.7)

Financing activities
  Additions to long-term debt and revolving
     credit agreements                                  266.2         4.5            17.5             ---            288.2
  Reductions of long-term debt and revolving
     credit agreements                                    ---      (277.1)          (20.1)            ---           (297.2)
  Notes receivable/payable, affiliates                 (367.6)      355.9             3.4              .3             (8.0)
  Other-net                                             (27.9)     (132.8)            ---           132.7            (28.0)
                                                  -----------   ---------   -------------   -------------     ------------
    Net cash provided by (used for) financing
     activities                                        (129.3)      (49.5)             .8           133.0            (45.0)

Effect of exchange rate changes on cash                   ---         ---             2.3             ---              2.3
                                                  -----------   ---------   -------------   -------------     ------------

Cash and cash equivalents
Increase (decrease) for the period                        ---       (10.0)            1.3             ---             (8.7)
Balance at the beginning of the period                    ---        21.9            37.7             ---             59.6
                                                  -----------   ---------   -------------   -------------     ------------
Balance at the end of the period                  $       ---   $    11.9   $        39.0   $         ---     $       50.9
                                                  ===========   =========   =============   =============     ============




                                       18





Note 6 - Segment Information
----------------------------

Financial  information for each of the Company's reportable segments, as defined
by SFAS No.  131,  "Disclosures  about  Segments  of an  Enterprise  and Related
Information," is presented in the following table.

NMHG  Wholesale  derives a portion of its revenues from  transactions  with NMHG
Retail.  The amount of these revenues,  which are based on current market prices
of similar third-party transactions, are indicated in the following table on the
line "NMHG Eliminations" in the revenues section.




                                                            THREE MONTHS ENDED               SIX MONTHS ENDED
                                                                  JUNE 30                         JUNE 30
                                                       ------------------------------  ------------------------------
                                                            2003             2002           2003            2002
                                                       --------------   -------------  --------------  --------------
                                                                                           
 REVENUES FROM EXTERNAL CUSTOMERS
     NMHG Wholesale                                    $        389.2   $       347.2  $        771.8  $        674.9
     NMHG Retail                                                 57.5            58.6           111.4           114.8
     NMHG Eliminations                                          (18.3)          (17.1)          (35.8)          (29.2)
                                                       --------------   -------------  --------------  --------------
   NMHG Consolidated                                   $        428.4   $       388.7  $        847.4  $        760.5
                                                       ==============   =============  ==============  ==============

 GROSS PROFIT
     NMHG Wholesale                                    $         64.3   $        57.6  $        128.4  $        106.4
     NMHG Retail                                                 11.5            10.6            21.8            22.9
     NMHG Eliminations                                            (.3)             .3              .1              .9
                                                       --------------   -------------  --------------  --------------
   NMHG Consolidated                                   $         75.5   $        68.5  $        150.3  $        130.2
                                                       ==============   =============  ==============  ==============

 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
     NMHG Wholesale                                    $         48.8   $        44.4  $         99.2  $         86.8
     NMHG Retail                                                 11.2            14.0            22.9            27.0
     NMHG Eliminations                                            (.1)            (.3)            (.1)            (.6)
                                                       --------------   -------------  --------------  --------------
   NMHG Consolidated                                   $         59.9   $        58.1  $        122.0  $        113.2
                                                       ==============   =============  ==============  ==============

OPERATING PROFIT (LOSS)
    NMHG Wholesale                                     $         15.5   $        13.2  $         29.2  $         19.6
    NMHG Retail                                                    .3            (3.4)           (1.1)           (4.1)
    NMHG Eliminations                                             (.2)             .6              .2             1.5
                                                       --------------   -------------  --------------  --------------
  NMHG Consolidated                                    $         15.6   $        10.4  $         28.3  $         17.0
                                                       ==============   =============  ==============  ==============

INTEREST EXPENSE
    NMHG Wholesale                                     $         (7.3)  $        (6.6) $        (14.5) $        (10.2)
    NMHG Retail                                                   (.9)            (.9)           (1.8)           (1.7)
    NMHG Eliminations                                             (.5)           (1.1)           (1.0)           (2.2)
                                                       --------------   -------------- --------------  --------------
  NMHG Consolidated                                    $         (8.7)  $        (8.6) $        (17.3) $        (14.1)
                                                       ==============   ============== ==============  ==============

INTEREST INCOME
    NMHG Wholesale                                     $           .7   $          .6  $          1.2  $          1.2
    NMHG Retail                                                   ---             ---              .1             ---
                                                       --------------   -------------  --------------  --------------
  NMHG Consolidated                                    $           .7   $          .6  $          1.3  $          1.2
                                                       ==============   =============  ==============  ==============

OTHER-NET, INCOME (EXPENSE)
    NMHG Wholesale                                     $           .3   $        (3.6) $          ---  $         (2.1)
    NMHG Retail                                                    .4            (1.0)             .6            (1.0)
                                                       --------------   -------------  --------------  --------------
  NMHG Consolidated                                    $           .7   $        (4.6) $           .6  $         (3.1)
                                                       ==============  ==============  ==============  ==============






                                       19







                                                             THREE MONTHS ENDED               SIX MONTHS ENDED
                                                                  JUNE 30                          JUNE 30
                                                      -------------------------------   ----------------------------
                                                           2003              2002             2003           2002
                                                      --------------    --------------  -------------   ------------
                                                                                            
INCOME TAX PROVISION (BENEFIT)
    NMHG Wholesale                                    $          3.1    $          1.4  $         5.4   $         .9
    NMHG Retail                                                 ---               (1.9)           (.7)          (2.2)
    NMHG Eliminations                                            (.3)              (.2)           (.3)           (.3)
                                                      --------------    --------------  -------------   ------------
  NMHG Consolidated                                   $          2.8    $          (.7) $         4.4   $       (1.6)
                                                      ==============    ==============  =============   ============

NET INCOME (LOSS)
    NMHG Wholesale                                    $          6.3    $          2.5  $        11.0   $        8.1
    NMHG Retail                                                  (.2)             (3.4)          (1.5)          (4.6)
    NMHG Eliminations                                            (.4)              (.3)           (.5)           (.4)
                                                      --------------    --------------  -------------   ------------
  NMHG Consolidated                                   $          5.7    $         (1.2) $         9.0   $        3.1
                                                      ==============    ==============  =============   ============

DEPRECIATION, DEPLETION AND
  AMORTIZATION EXPENSE
    NMHG Wholesale                                    $          6.6    $          7.6  $        13.2   $       15.2
    NMHG Retail                                                  2.4               2.5            4.3            5.5
                                                      --------------    --------------  -------------   ------------
  NMHG Consolidated                                   $          9.0    $         10.1  $        17.5   $       20.7
                                                      ==============    ==============  =============   ============

CAPITAL EXPENDITURES
    NMHG Wholesale                                    $          5.6    $          2.4  $         8.4   $        7.8
    NMHG Retail                                                  1.7                .5            2.4            1.3
                                                      --------------    --------------  -------------   ------------
  NMHG Consolidated                                   $          7.3    $          2.9  $        10.8   $        9.1
                                                      ==============    ==============  =============   ============






                                                                                      JUNE 30          DECEMBER 31
                                                                                        2003              2002
                                                                                 ---------------    ----------------
                                                                                              
TOTAL ASSETS
    NMHG Wholesale                                                               $       1,117.7    $        1,070.7
    NMHG Retail                                                                            172.0               187.7
    NMHG Holding/Eliminations                                                              (81.2)              (54.9)
                                                                                 ---------------    ----------------
  NMHG Consolidated                                                              $       1,208.5    $        1,203.5
                                                                                 ===============   =================



NACCO  charges  fees to its  operating  subsidiaries  for  services  provided by
NACCO's  corporate  headquarters.  The amounts charged to NMHG were $2.1 million
and $4.1  million  for the three  and six month  periods  ended  June 30,  2003,
respectively. This compares with $1.7 million and $3.5 million for the three and
six month periods ended June 30, 2002, respectively.



                                       20







Note 7 - Accounting Standards Not Yet Adopted
---------------------------------------------

In January 2003, the FASB issued FIN No. 46, "Consolidation of Variable Interest
Entities." FIN No. 46 clarifies the application of Accounting  Research Bulletin
("ARB") No. 51,  "Consolidated  Financial  Statements"  for certain  entities in
which  equity  investors  do  not  have  the  characteristics  of a  controlling
financial  interest or do not have  sufficient  equity at risk for the entity to
finance its activities  without additional  subordinated  financial support from
other parties. FIN No. 46 requires that variable interest entities,  as defined,
should be  consolidated  by the  primary  beneficiary,  which is  defined as the
entity that is expected to absorb the majority of the expected losses, receive a
majority of the expected gains, or both.

The Company will adopt this Interpretation for the reporting period beginning on
July 1, 2003,  as  required.  NMHG does have an interest in a variable  interest
entity,  NFS. The Company,  however,  has concluded that NMHG is not the primary
beneficiary  and the Company does not consider  NMHG's  variable  interest to be
significant.  NMHG will continue to use the equity method to account for its 20%
interest in NFS. The Company  continues to review two other  entities with which
NMHG is  affiliated  to  determine  if they meet the  definition  of a  variable
interest entity. The Company expects to have its analysis complete and adopt FIN
No. 46 during the third quarter of 2003.

On April 30, 2003, the FASB issued SFAS No. 149,  "Amendment of Statement 133 on
Derivative  Instruments  and  Hedging  Activities."  This  Statement  amends and
clarifies  accounting for  derivatives  and hedging based on decisions made: (a)
previously  as part  of the  Derivative  Implementation  Group  process,  (b) in
connection  with other FASB  projects and (c)  regarding  other  issues  raised,
including  the  characteristics  of  a  derivative  that  contains  a  financing
component.  This  Statement is effective for contracts  entered into or modified
after June 30, 2003 and should be applied  prospectively,  with the exception of
certain  transactions.  The Company has not yet determined what impact,  if any,
the  adoption  of this  Statement  will have on its  results  of  operations  or
financial position.

On May 15, 2003, the FASB issued SFAS No. 150, "Accounting for Certain Financial
Instruments with Characteristics of both Liabilities and Equity." This Statement
provides  guidance on how an entity  classifies and measures  certain  financial
instruments with  characteristics of both liabilities and equity. This Statement
is effective for financial  instruments  entered into or modified  after May 31,
2003,  and otherwise is effective at the  beginning of the first interim  period
beginning  after June 15, 2003.  This  Statement  requires the  recognition of a
cumulative effect of a change in accounting  transition adjustment for financial
instruments  existing at adoption date. The Company has not yet determined  what
impact,  if any,  the  adoption  of this  Statement  will have on its results of
operations or financial position.

Note 8 - Equity Investments
---------------------------

NMHG has a 20%  ownership  interest in NFS, a joint  venture  with GECC,  formed
primarily  for the purpose of  providing  financial  services to Hyster and Yale
lift truck dealers and national account  customers in the United States.  NMHG's
ownership in NFS is accounted  for using the equity  method of  accounting.  See
Notes 4 and 7.

NMHG has a 50% ownership  interest in Sumitomo NACCO Materials Handling Company,
Ltd.  ("SN"),  a limited  liability  company which was formed  primarily for the
manufacture and distribution of  Sumitomo-Yale  branded lift trucks in Japan and
the export of Hyster and Yale  branded  lift trucks and related  components  and
service parts  outside of Japan.  NMHG  purchases  products from SN under normal
trade terms.

Summarized financial information for these equity investments is as follows:

                           THREE MONTHS ENDED      SIX MONTHS ENDED
                                JUNE 30                JUNE 30
                          --------------------    ------------------
                           2003          2002       2003       2002
                          -------      -------    -------     ------
     Revenues             $  63.5      $  54.9    $ 119.9    $  94.9
     Gross Profit         $  21.9      $  18.7    $  42.0    $  31.2
     Net Income           $   2.9      $   2.1    $   6.3    $   3.6





                                       21





                  Item 2 - Management's Discussion and Analysis
                of Financial Condition and Results of Operations
                          (Tabular Amounts in Millions)

=================================================================
Critical Accounting Policies and Estimates
=================================================================

Please refer to the discussion of the Company's Critical Accounting Policies and
Estimates  as disclosed  on pages 10 and 11 in the  Company's  Form 10-K for the
fiscal year ended December 31, 2002.


==================================
FINANCIAL REVIEW
==================================

The segment and geographic results of operations for NMHG were as follows:



                                               THREE MONTHS ENDED              SIX MONTHS ENDED
                                                     JUNE 30                       JUNE 30
                                           --------------------------    --------------------------
                                                2003         2002            2003           2002
                                           ------------   -----------    -----------    -----------
                                                                            
Revenues
    Wholesale
      Americas                             $      251.7   $     237.6    $     507.9    $     465.9
      Europe, Africa and Middle East              111.5          92.2          214.2          176.8
      Asia-Pacific                                 26.0          17.4           49.7           32.2
                                           ------------   -----------    -----------    -----------
                                                  389.2         347.2          771.8          674.9
                                           ------------   -----------    -----------    -----------
    Retail (net of eliminations)
      Americas                                       .5           6.4            1.2           14.0
      Europe, Africa and Middle East               19.9          16.2           37.4           32.3
      Asia-Pacific                                 18.8          18.9           37.0           39.3
                                           ------------   -----------    -----------    -----------
                                                   39.2          41.5           75.6           85.6
                                           ------------   -----------    -----------    -----------
      NMHG Consolidated                    $      428.4   $     388.7    $     847.4    $     760.5
                                           ============   ===========    ===========    ===========

Operating profit (loss)
    Wholesale
      Americas                             $       13.0   $      11.6    $      26.2    $      20.8
      Europe, Africa and Middle East                1.6           1.8            2.1           (1.0)
      Asia-Pacific                                   .9           (.2)            .9            (.2)
                                           ------------   -----------    -----------    -----------
                                                   15.5          13.2           29.2           19.6
                                           ------------   -----------    -----------    -----------
    Retail (net of eliminations)
      Americas                                      (.1)          (.4)            .1            (.2)
      Europe, Africa and Middle East                (.8)           .7           (2.3)           1.0
      Asia-Pacific                                  1.0          (3.1)           1.3           (3.4)
                                           ------------   -----------    -----------    -----------
                                                     .1          (2.8)           (.9)          (2.6)
                                           ------------   -----------    -----------    -----------
      NMHG Consolidated                    $       15.6   $      10.4    $      28.3    $      17.0
                                           ============   ===========    ===========    ===========





                                       22




FINANCIAL REVIEW - continued




                                               THREE MONTHS ENDED             SIX MONTHS ENDED
                                                     JUNE 30                       JUNE 30
                                           --------------------------    -------------------------
                                               2003           2002          2003           2002
                                           ------------   -----------    -----------   -----------
                                                                           
Interest expense
    Wholesale                              $       (7.3)  $      (6.6)   $     (14.5)  $     (10.2)
    Retail (net of eliminations)                   (1.4)         (2.0)          (2.8)         (3.9)
                                           ------------   -----------    -----------   -----------
      NMHG Consolidated                    $       (8.7)  $      (8.6)   $     (17.3)  $     (14.1)
                                           ============   ===========    ===========   ===========

Other-net
    Wholesale                              $        1.0   $      (3.0)   $       1.2   $       (.9)
    Retail (net of eliminations)                     .4          (1.0)            .7          (1.0)
                                           ------------   -----------    -----------   -----------
      NMHG Consolidated                    $        1.4   $      (4.0)   $       1.9   $      (1.9)
                                           ============   ===========    ===========   ===========

Net income (loss)
    Wholesale                              $        6.3   $       2.5    $      11.0   $       8.1
    Retail (net of eliminations)                    (.6)         (3.7)          (2.0)         (5.0)
                                           ------------   -----------    -----------   -----------
      NMHG Consolidated                    $        5.7   $      (1.2)   $       9.0   $       3.1
                                           ============   ===========    ===========   ===========

Effective tax rate
    Wholesale                                      33.7%         38.9%          34.0%         10.6%
    Retail (net of eliminations)                   33.3%         36.2%          33.3%         33.3%
      NMHG Consolidated                            33.7%         31.8%          34.1%          (a)



(a) The  effective  tax rate for the six  months  ended  June 30,  2002 for NMHG
Consolidated is not meaningful. See below.


The  effective tax rate for the six months ended June 30, 2002 is 10.6% for NMHG
Wholesale and is not meaningful for NMHG  Consolidated due to a $1.9 million tax
benefit  recognized in the first quarter of 2002 related to the  recognition  of
previously  generated  losses in China,  combined with a relatively low level of
pre-tax income. These factors resulted in a net tax benefit generated on pre-tax
income for NMHG Consolidated.

Second Quarter of 2003 Compared with Second Quarter of 2002

NMHG  Wholesale:  Revenues  increased to $389.2 million in the second quarter of
2003, up 12.1% from $347.2  million in the second  quarter of 2002. The increase
in revenues was largely due to increased unit volume  worldwide,  a shift in mix
to  higher-priced  lift trucks and favorable  foreign currency  movements.  Lift
truck  shipments  increased  5.1% to 16,961 units in the second  quarter of 2003
from 16,135 units in the second quarter of 2002.

Operating  profit  increased to $15.5 million in the second quarter of 2003 from
$13.2 million in the second quarter of 2002. Operating profit improved primarily
due to (i) a favorable shift in mix to  higher-margin  lift trucks,  (ii) a $1.6
million favorable  adjustment related to favorable product liability  experience
and  (iii) a $1.1  million  gain on the sale of idle  property  recorded  in the
second  quarter of 2003.  In  addition,  operating  profit in 2002  included  an
impairment loss of approximately $0.8 million,  included in selling, general and
administrative expenses in the accompanying statement of operations,  on certain
property,  consisting  primarily  of  land,  owned in  South  America  due to an
estimated decline in value based on broker quotes.  These increases in operating
profit were partially offset by (i) unfavorable foreign currency effects largely
as a result of the  weakening  U.S.  dollar  against  the euro,  (ii)  increased
product  development  expenses  and (iii)  additional  expenses,  which were not
eligible for accrual in 2002, related to the previously  announced  phase-out of
the  Lenoir,  North  Carolina  lift truck  component  facility.  See  additional
discussion of the NMHG Wholesale  restructuring programs under the heading "NMHG
Restructuring Plans" in this Form 10-Q.



                                       23




FINANCIAL REVIEW - continued

Net income  increased  to $6.3  million in the second  quarter of 2003 from $2.5
million  in the  second  quarter of 2002  primarily  as a result of the  factors
affecting operating profit plus increased income from unconsolidated  affiliates
and  certain  favorable  foreign  currency  transactions.   Also  affecting  the
comparability  of net income is a  decrease  in the loss on  interest  rate swap
agreements:  the second quarter of 2002 net income includes a pre-tax expense of
$3.1 million related to (i) the  mark-to-market of interest rate swap agreements
that no longer  qualified for hedge  accounting due to the refinancing of NMHG's
debt and (ii) the  recognition of previously  deferred  losses on these interest
rate swap agreements.

The  worldwide  backlog  level  increased  to 19,400 units at June 30, 2003 from
17,500 units at June 30, 2002 and 17,300  units at the end of the first  quarter
of 2003 primarily due to an increase in demand.

NMHG Retail (net of  eliminations):  Revenues  decreased to $39.2 million in the
second  quarter of 2003 from $41.5 million in the second  quarter of 2002.  This
decrease  is  primarily  due to the January 3, 2003 sale of NMHG  Retail's  only
wholly owned U.S. dealer. NMHG Retail-Americas revenues were $0.5 million in the
second quarter of 2003 compared with $6.4 million in the second quarter of 2002.
This  decrease  in  Americas  revenues  was  partially  offset by an increase in
revenues due to favorable  foreign  currency  effects.  NMHG Retail generated an
operating  profit of $0.1 million in the second quarter of 2003 compared with an
operating  loss of $2.8  million  in the  second  quarter  of  2002,  which  was
primarily  the  result of  stronger  operating  results  in  Asia-Pacific.  NMHG
Retail's  net loss  improved to $0.6  million from a net loss of $3.7 million in
the second quarter of 2002 due to the factors  affecting  operating profit and a
decrease in interest  expense  allocated  to NMHG Retail and  favorable  foreign
currency movements included in other-net expenses.

First Six Months of 2003 Compared with First Six Months of 2002

NMHG Wholesale:  Revenues increased to $771.8 million in the first six months of
2003 from  $674.9  million  in the first six  months of 2002.  The  increase  in
revenues was primarily the result of increased  unit volume,  favorable  foreign
currency  movements  and,  to a  lesser  degree,  a  favorable  shift  in mix to
higher-priced lift trucks. Unit shipments increased 10.6% to 34,413 units in the
first six  months of 2003 as  compared  with  31,106 in the first six  months of
2002.

Operating profit increased to $29.2 million in the first half of 2003 from $19.6
million  in the  first  half of 2002.  The  increase  in  operating  profit  was
primarily the result of a favorable  shift in mix to  higher-margin  lift trucks
and increased  volume,  partially  offset by increased  product  development and
marketing expenses and unfavorable  foreign currency effects largely as a result
of the weakening U.S. dollar against the euro.

Net income  increased to $11.0 million in the first six months of 2003 from $8.1
million  in the first six  months of 2002 as a result of the  factors  affecting
operating  profit and  additional  income from  unconsolidated  affiliates and a
decrease  in the loss on  interest  rate swap  agreements.  These  factors  were
partially offset by an increase in interest expense,  including the amortization
of deferred financing fees.

NMHG Retail (net of  eliminations):  Revenues  decreased to $75.6 million in the
first six  months of 2003 from  $85.6  million  in the first six months of 2002.
This decrease is primarily due to the January 3, 2003 sale of NMHG Retail's only
wholly  owned U.S.  dealer,  partially  offset by an  increase  in units sold in
Europe. NMHG Retail-Americas  revenues were $1.2 million in the first six months
of 2003 compared with $14.0 million in the first six months of 2002. NMHG Retail
generated  an  operating  loss of $0.9  million  in the first six months of 2003
compared with an operating loss of $2.6 million in the first six months of 2002,
primarily  as a result of  stronger  operating  results  in  Asia-Pacific.  NMHG
Retail's net loss improved to $2.0 million in the six months ended June 30, 2003
from a net loss of $5.0  million  in the  first  six  months  of 2002 due to the
factors affecting  operating profit and a decrease in interest expense allocated
to NMHG Retail and favorable  foreign currency  movements  included in other-net
expenses.




                                       24




FINANCIAL REVIEW - continued

NMHG Restructuring Plans

NMHG 2002 Restructuring Program

As announced in December 2002,  NMHG Wholesale is phasing out its Lenoir,  North
Carolina,  lift truck component facility and restructuring  other  manufacturing
and  administrative  operations,  primarily  its  Irvine,  Scotland,  lift truck
assembly  and  component  facility.  During  the fourth  quarter  of 2002,  NMHG
Wholesale  recognized a  restructuring  charge of  approximately  $12.5  million
pre-tax.  Of this amount,  $3.8 million  relates to a non-cash asset  impairment
charge for building,  machinery and tooling,  which was determined  based on the
then current  market values for similar  assets and broker quotes as compared to
the net book value of these  assets;  and $8.7 million  relates to severance and
other  employee  benefits  to be paid to  approximately  615  manufacturing  and
administrative  employees.  Payments began during the second quarter of 2003. As
of June 30,  2003,  payments  of $0.7  million  were made to  approximately  100
employees.  Payments are expected to continue  through 2005.  In addition,  $0.3
million of the amount  accrued at December  31,  2002 was  reversed in the first
half of 2003.

Approximately  $2.5 million of pre-tax costs primarily  related to manufacturing
inefficiencies,  which were not  eligible  for  accrual in December  2002,  were
expensed  in the first six  months of 2003.  Of the  additional  costs  incurred
during 2003,  $2.3 million is classified as cost of sales and the remaining $0.2
million is classified  as selling,  general and  administrative  expenses in the
Unaudited  Condensed  Consolidated  Statement of  Operations  for the six months
ended  June  30,  2003.   Additional  costs  for  severance  and   manufacturing
inefficiencies  are expected to be approximately  $8.1 million for the remainder
of 2003,  $8.5  million in 2004 and $5.7  million in 2005.  Initial net benefits
from this restructuring  program are expected to be realized in 2004 with a full
twelve  months of  estimated  annual  pre-tax  benefits of  approximately  $14.3
million expected beginning in 2005. Although a majority of the projected savings
is the  result of a  reduction  in fixed  factory  costs,  the  overall  benefit
estimates  could vary  depending  on unit  volumes and the  resulting  impact on
manufacturing  efficiencies.  In  addition,  outlays for  capital  expenditures,
primarily  for new tooling and  equipment,  of  approximately  $4.3  million are
expected for the remainder of 2003.

This  restructuring  program will allow the Company to re-focus its product line
manufacturing  activities,  including  the  manufacture  of new product lines in
Europe.  As a result,  the Company expects to receive  government  grants during
2003  through 2005  totaling  approximately  $6.5  million over that  three-year
period. Of this total amount, $1.1 million is expected to be received in 2003.

NMHG 2001 Restructuring Programs

During 2001,  management committed to the restructuring of certain operations in
Europe for both the Wholesale and Retail segments of the business. As such, NMHG
Wholesale  recognized  a  restructuring  charge of  approximately  $4.5  million
pre-tax for severance and other  employee  benefits to be paid to  approximately
285 direct and indirect factory labor and administrative personnel in Europe. As
of December 31, 2002,  payments of $3.4 million to  approximately  245 employees
had been made and $0.2 million of the amount originally  accrued was reversed in
2002.  Payments of $0.9 million to 16  employees  were made during the first six
months of 2003. The majority of the headcount reductions were made by the end of
2002. As a result of the reduced  headcount in Europe,  NMHG Wholesale  realized
pre-tax cost savings  primarily from reduced employee wages and benefits of $4.6
million for the first six months of 2003 and estimates  pre-tax  savings of $4.6
million for the  remainder of 2003.  Annual  pre-tax cost saving of $9.2 million
are  expected  to  continue  subsequent  to 2003 as a  result  of this  program.
Although a majority of the  projected  savings is the result of a  reduction  in
fixed factory costs, the overall benefit  estimates could vary depending on unit
volumes and the resulting impact on manufacturing efficiencies or due to changes
in foreign currency rates.




                                       25




FINANCIAL REVIEW - continued

NMHG Retail  recognized a  restructuring  charge of  approximately  $4.7 million
pre-tax in 2001, of which $0.4 million  related to lease  termination  costs and
$4.3 million  related to  severance  and other  employee  benefits to be paid to
approximately 140 service technicians,  salesmen and administrative personnel at
wholly owned dealers in Europe. As of December 31, 2002, severance payments, net
of  currency  effects,  of $2.8  million  had  been  made to  approximately  110
employees.  During  the first six  months of 2003,  severance  payments  of $0.3
million  were made to six  employees.  In  addition,  $0.4 million of the amount
accrued at December 31, 2002 was  reversed in the first six months of 2003.  The
majority of the headcount  reductions were made by the end of 2002. Cost savings
primarily  from reduced  employee  wages,  employee  benefits and lease costs of
approximately $1.6 million pre-tax were realized in the first six months of 2003
and are  expected to be  approximately  $1.6  million for the  remainder of 2003
related to this program. Annual pre-tax cost saving of $3.1 million are expected
to continue  subsequent to 2003 as a result of this program.  Estimated benefits
could be reduced by  additional  severance  payments,  if any, made to employees
above the statutory or contractually required amount that was accrued in 2001 or
due to changes in foreign currency rates.


LIQUIDITY AND CAPITAL RESOURCES

Expenditures  for  property,  plant and  equipment  were $8.4  million  for NMHG
Wholesale  and $2.4 million for NMHG Retail during the first six months of 2003.
These  capital  expenditures  include  tooling  for  new  products,   machinery,
equipment  and lease and rental  fleet.  It is  estimated  that  NMHG's  capital
expenditures for the remainder of 2003 will be  approximately  $20.8 million for
NMHG Wholesale and $0.8 million for NMHG Retail.  Planned  expenditures  for the
remainder of 2003 include tooling for new products, capital expenditures arising
as  a  result  of  the  manufacturing  restructuring  programs,  replacement  of
machinery and  equipment  and  additions to retail lease and rental  fleet.  The
principal sources of financing for these capital expenditures will be internally
generated funds and bank borrowings.

Since  December 31, 2002,  there have been no  significant  changes in the total
amount of NMHG's  contractual  obligations  or  commercial  commitments,  or the
timing of cash flows in accordance  with those  obligations,  as reported in the
Company's 10-K for the year ended December 31, 2002.

During  2002,  NMHG issued  $250.0  million of 10%  unsecured  Senior Notes that
mature on May 15, 2009.  The Senior Notes are senior  unsecured  obligations  of
NMHG Holding Co. and are  guaranteed  by  substantially  all of NMHG's  domestic
subsidiaries.  NMHG Holding Co. has the option to redeem all or a portion of the
Senior Notes on or after May 15, 2006 at the redemption  prices set forth in the
Indenture  governing the Senior  Notes.  The proceeds from the Senior Notes were
reduced by an original issue discount of $3.1 million.

Additionally,  NMHG has a secured, floating-rate revolving credit facility which
expires in May 2005.  Availability  under the revolving credit facility is up to
$175.0  million and is governed by a borrowing  base derived from advance  rates
against the inventory and accounts  receivable of the  borrowers,  as defined in
the revolving  credit  facility.  Adjustments  to reserves  booked against these
assets,  including inventory  reserves,  will change the eligible borrowing base
and thereby impact the liquidity provided by the facility. At June 30, 2003, the
borrowing base under the revolving  credit  facility was $105.3  million,  which
reflects  reductions for the commitments or  availability  under certain foreign
credit facilities and for an excess  availability  requirement of $15.0 million.
Borrowings  outstanding  under this facility were $2.0 million at June 30, 2003.
Therefore,  at June 30, 2003, the excess availability under the revolving credit
facility was $103.3  million.  The floating rate of interest  applicable to this
facility on June 30, 2003 was 5.875%,  including  the  applicable  floating rate
margin.

In addition to the amount  outstanding  under the Senior Notes and the revolving
credit facility,  NMHG had borrowings of approximately $33.0 million outstanding
at June 30, 2003 under various  foreign  working  capital  facilities  and other
domestic term loans.

NMHG believes that funds available under the revolving  credit  facility,  other
available lines of credit and operating cash flows are sufficient to finance all
of its operating needs and commitments arising during the foreseeable future.





                                       26




LIQUIDITY AND CAPITAL RESOURCES - continued

NMHG's capital structure is presented below:


                                                                       JUNE 30       DECEMBER 31
                                                                         2003           2002
                                                                     -----------   ---------------

                                                                             
   Total net tangible assets                                         $     361.2   $         362.8
   Goodwill and other intangibles at cost                                  494.7             487.7
                                                                     -----------   ---------------
      Net assets before amortization of intangibles                        855.9             850.5
   Accumulated goodwill and other intangibles amortization                (145.6)           (142.3)
   Total debt                                                             (307.0)           (324.8)
   Minority interest                                                         (.7)             (1.1)
                                                                     -----------   ---------------

   Stockholder's equity                                              $     402.6   $         382.3
                                                                     ===========   ===============

   Debt to total capitalization                                               43%               46%



The  decrease in total net  tangible  assets of $1.6 million is in part due to a
$26.2  million  decrease in cash,  an $8.6  million  decrease in net assets as a
result of the sale of NMHG Retail's  wholly owned U.S.  dealership on January 3,
2003, an $11.9 million increase in trade and intercompany accounts payable and a
$9.1  million  increase  in other  current  liabilities.  These  decreases  were
partially  offset  by  increases  of $24.1  million  in trade  and  intercompany
accounts  receivable  and a $27.9 million  increase in inventory.  Stockholder's
equity at June 30,  2003  increased  $20.3  million as a result of net income of
$9.0 million and a favorable  foreign currency  translation  adjustment of $16.4
million  partially  offset  by a  dividend  to  NACCO  of  $5.0  million  and an
unfavorable adjustment to the deferred loss on hedges of $0.1 million.



EFFECTS OF FOREIGN CURRENCY

NMHG  operates  internationally  and enters  into  transactions  denominated  in
foreign currencies.  As such, the Company's financial results are subject to the
variability  that arises from  exchange rate  movements.  The effects of foreign
currency  fluctuations on revenues,  operating profit and net income (loss) have
either  been  discussed  above or were not  material in the three and six months
ended June 30,  2003 as  compared  with the three and six months  ended June 30,
2002.


OUTLOOK

NMHG Wholesale

NMHG Wholesale  expects overall lift truck  shipments to increase  moderately in
the second  half of 2003  compared  with the second half of 2002.  While  global
market prospects continue to be more uncertain than usual, lift truck markets in
the Americas are anticipated to improve in the second half of 2003 while markets
in Europe and Asia-Pacific are expected to remain relatively flat.

NMHG Wholesale  expects that results in the second half of 2003 will be affected
by ongoing costs for a product development program that is expected to mature in
2004-2006  and  additional  costs  related to the Lenoir,  North  Carolina,  and
Irvine,  Scotland,  manufacturing  restructuring  program  announced in December
2002.


NMHG Retail

NMHG Retail  expects to continue its programs to improve the  performance of its
wholly owned dealerships in 2003 as part of its objective to achieve and sustain
at least break-even results.



The  statements  contained in this Form 10-Q 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


                                       27



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 the Company's  operations  include,
without limitation:

(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, and (11) the uncertain
impact on the  economy or the  public's  confidence  in general  from  terrorist
activities and the impact of the situation in Iraq.





                                       28






                         Item 4. Controls and Procedures

Evaluation of disclosure controls and procedures: The Company maintains a set of
disclosure controls and procedures designed to ensure that information  required
to be  disclosed  by the Company in reports  that it files or submits  under the
Securities Exchange Act of 1934 is recorded, processed,  summarized and reported
within the time periods  specified in Securities and Exchange  Commission  rules
and forms.  An  evaluation  was carried out under the  supervision  and with the
participation  of the Company's  management,  including the Principal  Executive
Officer  and  the  Principal  Financial  Officer,  of the  effectiveness  of the
Company's disclosure controls and procedures as of the end of the period covered
by this report. Based on that evaluation, these officers have concluded that the
Company's disclosure controls and procedures are effective.

Changes in internal controls:  Subsequent to the date of their evaluation, there
have been no significant  changes in the Company's internal controls or in other
factors that could significantly affect these controls, including any corrective
action with regard to significant deficiencies and material weaknesses.



                                       29







                                     Part II
                                OTHER INFORMATION

Item 1.         Legal Proceedings - None
-------         -----------------

Item 5.         Other Information - None
-------         -----------------

Item 6.         Exhibits and Reports on Form 8-K
-------         --------------------------------
                (a) Exhibits.
                    See Exhibit Index on page 32 of this quarterly report on
                    Form 10-Q.
                (b) Reports on Form 8-K.
                    None.




                                       30




                                    Signature





Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.




                                              NMHG Holding Co.
                                   ---------------------------------------------
                                                (Registrant)


Date      August 14, 2003                   /s/ Michael K. Smith
        -------------------        ---------------------------------------------
                                              Michael K. Smith
                                   Vice President Finance & Information Systems
                                            and Chief Financial Officer
                                         (Authorized Officer and Principal
                                         Financial and Accounting Officer)



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                                  Exhibit Index





Exhibit
Number*       Description of Exhibits
-------       -----------------------

31.1          Certification of Reginald R. Eklund pursuant to Rule
              13a-14(a)/15d-14(a) of the Exchange Act

31.2          Certification of Michael K. Smith pursuant to Rule
              13a-14(a)/15d-14(a) of the Exchange Act

32            Certifications  pursuant to 18 U. S. C. Section 1350, as adopted
              pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed
              and dated by Reginald R. Eklund and Michael K. Smith



*Numbered in accordance with Item 601 of Regulation S-K.




                                       32