Small electric appliances maker Hamilton Beach, a business of NACCO Industries, had net income of $12.0 million in the fourth quarter of 2011, up slightly from $11.6 million in 4Q 2010. For full-year 2011, Hamilton Beach net income was $18.4 million on revenues of $493.0 million, compared to income of $24.4 million on revenues of $515.7 million in 2010.
Lower revenues in 2011 stemmed from lower unit sales and NACCO pointed to reduced placements and promotions at retail, mainly at Hamilton Beach's mass market retailers.
While 4Q income was on-par with 4Q 2010, and Ham Beach had more higher-margin products on the shelves, but this wasn't enough to offset fewer unit shipments and higher materials costs. The result was lower 4Q 2011 operating profits.
NACCO said that the middle-market portion of the small kitchen appliance market, where Hamilton Beach operates, weakened in 2011 and NACCO expects it to remain weak in 2012. Hamilton Beach sees its target consumer, the middle-market mass consumer, continuing to struggle with financial concerns and high unemployment rates. The result, it said, is that it expects sales volumes in this segment to remain under pressure.
International markets and markets for commercial appliances are expected to remain strong, which it expects will drive Ham Beach revenue growth in 2012. Hamilton Beach expects a modest increase in its net income in 2012.
In terms of operating costs, Ham Beach sees material costs to increase modestly in the first half of 2012, then level out. Transportation costs, it expects, will increase in the second half of 2012.
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