Hamilton Beach, the small appliances business of NACCO Industries, Inc. (Cleveland, OH), saw its net income decrease to $1.4 million in the second quarter of 2014, from $2.0 million in 2Q 2013.
Hamilton Beach revenues in 2Q 2014 were $118.4 million, from $114.7 million in 2Q 2013.
The moderate revenue increase came from an increase in sales of products with higher price points, mainly in the commercial appliances market and in the United States and Canadian consumer markets.
In the first six months Hamilton Beach's net income was $1.7 million on revenues of $219.7 million, compared to net income of $3.5 million and revenues of $220.8 million in the first six months of 2013.
Hamilton Beach said it saw the overall consumer retail market continue to struggle with consumer traffic at the high-end and middle markets, which was not returning to its expected levels in the second quarter of 2014.
The company said the market conditions were creating uncertainty for the second half of 2014 regarding retail market strength and expectations for consumer activity in the second half of 2014. This concern is particularly strong with the Hamilton Beach target consumer, the middle-market mass consumer. Hamilton Beach sees this customer continuing to struggle with financial and economic concerns.
Hamilton Beach said that, as a result, sales volumes in the middle-market portion of the U.S. small kitchen appliance market in which the appliance maker participates are projected to grow only moderately in the second half.
It expects the Canadian retail market to follow U.S. trends. Other Hamilton Beach international and commercial product markets are expected to grow moderately in the second half.
Te appliance maker expects net income in the second half of 2014 to be comparable to or moderately lower than the second half of 2013.
NACCO's other businesses are gourmet accessories retail chain Kitchen Collection and mining business North American Coal.
NACCO Industries as a whole had a net loss of $3.6 million and revenues of $200.4 million in the second quarter of 2014, compared with net income of $5.1 million and revenues of $196.0 million in the second quarter of 2013.
The company reported a net loss for the six months ended June 30, 2014 of $5.1 million, or $0.66 per diluted share, and revenues of $377.8 million compared with net income of $9.6 million, or $1.16 per diluted share, and revenues of $392.1 million for the first six months of 2013.
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