Hamilton Beach, the small appliance business of NACCO Industries, had third quarter 2012 net income of $5.3 million, up from $4.1 million in the third quarter of 2011 - a gain credited mostly to a tax charge in 2011 and lower interest/currency charges in 2012.
Revenues decreased modestly in the third quarter of 2012 on lower unit sales volumes in the U.S. consumer and Canadian retail markets, as well as unfavorable currency rates.
Lower revenue was partially offset by higher price points in the U.S. consumer markets.
For the first nine months of 2012, Hamilton Beach net income was $8.5 million on revenues of $340.4 million, from net income of $6.4 million on revenues of $331.6 million in the first nine months of 2011.
NACCO expects the middle-market portion of the U.S. small kitchen appliance market to remain "stressed" into 2013. Hamilton Beach expects better sales volumes in 4Q 2012 from more promotions and placements. It expects sales volumes in 2013 to be higher than 2012, and expects international and commercial product markets to keep growing into 2013.
Hamilton Beach plans to actively promote its successful Scoop single-serve coffee maker. Three products launched in late 2011, The Scoop, the Two-Way Brewer, and the Durathon iron, are expected to continue gaining market position as they get broader distribution.
In 3Q 2012, Hamilton Beach launched the Open Ease Automatic Jar Opener and plans a 4Q 2012 launch for the FlexBrew single-serve coffee maker. Other new products are in the pipeline for introduction in 4Q 2012 and in 2013, and it expects key placements and promotions for the 2012 holiday season.
With new products, promotions, and improving position in commercial and international markets, Hamilton Beach expects increased revenues in 4Q 2012 and in 2013.
Longer term, it looks to increases its performance in the North America consumer business as well as improve its global Commercial business. It intends to expand in emerging Asian and Latin American markets with products designed specifically for those markets.
NACCO Industries as a whole had 3Q 2012 income of $10.2 million on revenues of $210.1 million, from income of $8.2 million on revenues of $194.6 million in 3Q 2011. NACCO spun-off its materials handling subsidiary in September 2012. Other businesses include coal mining and the Kitchen Collection chain of retail stores.
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