NACCO Housewares Finishes 2006 with Increased Income
Mar 1, 2007
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NACCO Industries, Inc. (Cleveland, Ohio, U.S.) said net income for the fourth quarter of 2006 was U.S. $70.0 million, or $8.48 per diluted share, compared with Q4 2005 net income of $32.4 million, or $3.94 per diluted share. Revenues for the fourth quarter of 2006 were $978.6 million compared with revenues of $906.8 million for the fourth quarter of 2005. Net income for the fourth quarters of 2006 and 2005 includes after-tax extraordinary gains of $12.8 million and $4.7 million, respectively.
The NACCO Housewares Group includes Hamilton Beach/Proctor-Silex small electric housewares appliances as well as Kitchen Collection housewares. NACCO is a diversified company with significant business interests in materials handling and mining.
NACCO previously announced that its attempts to acquire Applica Incorporated ended unsuccessfully in January 2007 when a rival bidder acquired all of Applica's outstanding shares. Under the terms of a merger agreement between NACCO and Applica, NACCO received a termination fee of $6 million from Applica in the fourth quarter of 2006. NACCO said it continues to pursue litigation against Applica and its acquirer and has reserved all of its rights in relation to this matter. Full-year Applica transaction expenses, net of the termination fee, were $5.2 million pre-tax, $2.7 million of which was incurred in the fourth quarter of 2006.
NACCO Housewares Group reported net income of $21.2 million for the fourth quarter of 2006 on revenues of $288.3 million, compared with net income of $14.9 million for the fourth quarter of 2005 on revenues of $239.3 million. For the 2006 full year, NACCO Housewares Group reported an increase of $4.6 million in net income to $25.9 million on revenues of $711.5 million from $21.3 million on revenues of $639.1 million in 2005.
Outlook for Housewares
NACCO Housewares Group is moderately optimistic that markets for its consumer goods will strengthen in 2007. Economic conditions affecting consumers, such as energy and gasoline prices and interest rates, have stabilized and NACCO expects they will remain stable in 2007. Continued product innovation, promotions and branding programs at Hamilton Beach/Proctor-Silex are expected to strengthen the brands' market positions. However, the company expects pricing pressure to continue in 2007 from suppliers due to commodity costs for resins, copper and aluminum.
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