NACCO Industries' Hamilton Beach small appliance business had 2010 net income of $24.4 million on revenues of $515.7 million compared to 2009 net income of $26.1 million on revenues of $497.0 million.
NACCO said the small kitchen appliance market in which Hamilton Beach operates has largely recovered from the recession and there was a degree of improvement in consumer confidence and other key indicators in 2010. Still, the company said mass-market consumers remain cautious as a result of financial concerns and unemployment, and electric housewares in the U.S. remains soft.
Hamilton Beach's international markets and commercial product markets experienced a stronger recovery in 2010 and the momentum in these markets is expected to continue into 2011.
Hamilton Beach expects Melitta-branded beverage appliances, introduced in late 2010, to continue to gain traction in 2011.
Hamilton Beach's planned 2011 product launches include:
• Scoop - a single serve coffee maker
• a new Durathon iron product line
With these and other new product introductions in the pipeline for 2011, Hamilton Beach anticipates revenues in 2011 to increase compared to 2010.
Overall, Hamilton Beach full-year 2011 net income is expected to be slightly lower than 2010 due to increased operating expenses and higher income tax expense. Increased product and transportation costs in the first half of 2011 are expected to reduce net income in the first half of 2011 compared with the first half of 2010.
Hamilton Beach said it will adjust product prices and placements if commodity costs continue to increase as expected.
To increase distribution efficiencies, Hamilton Beach is moving its distribution center into a larger facility during the second quarter of 2011.
NACCO's other businesses include:
• NACCO Materials Handling Group, Inc., which manufactures lift trucks.
• The Kitchen Collection, Inc., a national specialty retailer of kitchenware and gourmet foods operating under the Kitchen Collection and Le Gourmet Chef store names.
• The North American Coal Corporation, which mines and markets coal.
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