Small electric housewares appliances brand Hamilton Beach reported net income of $2.0 million for the second quarter of 2013 on revenues of $114.7 million, compared with net income of $2.2 million in the second quarter of 2012, on revenues of $110.7 million. Hamilton Beach is a business of NACCO Industries.
Slightly stronger Hamilton Beach sales were the result of more unit sales of appliances with higher price points, mainly in the U.S. consumer retail market. The improvement in revenue was partially offset by lower unit sales in international and Canadian consumer markets.
Excluding the effect of an environmental charge in the quarter, operating profit and net income increased in the second quarter of 2013 compared with the 2012 second quarter. The improvement in net income came in part from sales of higher-margin products.
In the six months ended June 30, 2013, Hamilton Beach reported net income of $3.5 million and revenues of $220.8 million compared with net income of $3.2 million and revenues of $215.6 million for the first six months of 2012.
NACCO characterized Hamilton Beach's target consumer, the middle-market mass consumer, as continuing to struggle with financial and economic concerns. It therefore expects sales volumes in the middle-market portion of the U.S. small kitchen appliance market to grow only moderately in the second half of 2013 compared to the second half of 2012. International and commercial product markets are expected to grow "reasonably" in the second half of 2013 compared with the same period in 2012.
Hamilton Beach is seeking to strengthen its North American consumer market position through product innovation, promotions, increased placements, branding programs, and advertising.
Hamilton Beach expects its The Scoop, the Two-Way Brewer, and the Durathon iron product lines, all introduced in late 2011, along with the FlexBrew, launched in late 2012, to continue to gain market position as distribution expanded over time.
Hamilton Beach launched the Breakfast Sandwich Maker in the first quarter of 2013 and has other new product introductions in the pipeline for 2013, which are expected to increase revenues and operating profit. It expects to increase volumes and revenues in the second half of 2013 compared with the second half of 2012. Net income in the second half is expected to be flat or up slightly from the second half of 2012.
In addition to Hamilton Beach appliance, NACCO Industries businesses are North American Coal (mining) and Kitchen Collection (gourmet kitchen accessories retailing).
NACCO overall had second quarter 2013 income of $5.1 million on revenues of $196.0 million. In the second quarter of 2012, income was $3.4 million on revenues of $171.4 million. The most recent quarter ended June 30, 2013.
In the first six months of 2013, income from continuing operations was $9.6 million on revenues of $392.1 million, compared with income of $8.2 million on revenues of $345.1 million in the first half of 2012.
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