Hamilton Beach, the small appliance business of NACCO Industries, had net income of $3.8 million in the second quarter of 2010, down from $4.7 million in 2009, with the decline primarily coming from the full restoration of compensation and benefits that were suspended in the first half of 2009.
Hamilton Beach reported second 2010 revenues of $103.3 million, compared to 2Q 2009 revenues of $107.2 million. Operating profit was $7.8 million for the second quarter of 2010 compared with operating profit of $9.8 million in the second quarter of 2009.
Revenues decreased 4% in the second quarter of 2010 compared with 2009 primarily due to lower average selling prices and lower unit sales volumes attributable to lower volumes in the U.S. and Canadian consumer retail markets, partially offset by increased unit sales volumes in the Mexican and Latin American consumer retail markets, as well as commercial markets. Favorable foreign currency movements caused by a strengthening Canadian dollar and Mexican peso also partially offset the revenue decline.
For the six months ended June 30, 2010, Hamilton Beach reported net income of $7.2 million on revenues of $205.9 million compared with net income of $6.1 million on revenues of $201.4 million for the first six months of 2009.
NACCO said Ham Beach's market, small kitchen appliances, continues to recover and the company is moderately optimistic that markets for its consumer goods will strengthen further in the second half of 2010 compared to 2009. Ham Beach revenues for the second half of 2010 are expected to be higher than 2H 2009, resulting in a moderate increase in revenues for the full year 2010 compared to 2009.
Other NACCO businesses include:
• Kitchen Collection, a kitchenware and gourmet foods retailer
• NACCO Materials Handling Group
• North American Coal
NACCO's overall consolidated net income was $15.9 million, or $1.91 per diluted share, for the second quarter of 2010 on revenues of $598.8 million, compared to consolidated net income for the second quarter of 2009 of $1.6 million, or $0.19 per diluted share, on revenues of $540.5 million.
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