NACCO Industries, Inc. announced consolidated net income for the second quarter of 2007 of US$9.9 million, or $1.20 per share, an increase of $5.2 million or $0.63 per share, from 2006 second quarter consolidated net income of $4.7 million, or $0.57 per share.
The company, which recently approved a plan to spin off its Hamilton Beach/Proctor-Silex business to the NACCO stockholders during the third quarter of 2007, reported consolidated revenues of $830.9 million compared with revenues of $796.9 million for the second quarter of 2006. Revenues at NMHG Wholesale, NMHG Retail and Kitchen Collection increased, while revenues at Hamilton Beach/Proctor-Silex and North American Coal decreased.
Second-quarter 2007 revenues at Hamilton Beach/Proctor-Silex decreased 9% compared with the second quarter of 2006, primarily due to reduced unit volumes, an additional restructuring charge, increased interest expense and spin-off related expenses incurred in the second quarter of 2007. The company completed the closure of the Saltillo, Mexico manufacturing facility in May 2007, which resulted in an additional restructuring charge of $1.0 million, or $0.6 million net of taxes of $0.4 million. In addition, Hamilton Beach/Proctor-Silex paid a special cash dividend of $110 million, which resulted in an increase in borrowings with a related increase in interest expense compared with the prior year. Hamilton Beach/Proctor-Silex also incurred pre-tax expenses of approximately $0.6 million for professional fees related to the planned spin-off.
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