Small appliance maker Hamilton Beach net income in the first quarter of 2014 was $0.4 million, from $1.5 million in the first quarter of 2013, after a sales decrease that parent company NACCO Industries described as “substantial.” Hamilton Beach revenues in 1Q 2014 were $101.3 million for the first quarter of 2014, compared with revenues of $106.2 million for the first quarter of 2013.
The decrease in unit sales volumes came primarily from the U.S. consumer retail markets, partially offset by a shift in sales to higher-priced, higher-margin appliances.
Hamilton Beach targets the middle-market mass consumer, which NACCO sees continuing to struggle with financial and economic concerns, and the company expects only moderate growth in this market. Hamilton Beach also expects 2014 growth in its international and commercial product markets. Hamilton Beach expects its sales volumes to grow more than the market.
Hamilton Beach expects the FlexBrew coffee maker, launched in late 2012, and the Hamilton Beach Breakfast Sandwich Maker, launched in early 2013, to continue gaining market position.
Hamilton Beach expects full-year 2014 net income to be comparable to or moderately lower than full-year 2013. While the company expects better sales volumes in 2014, the cost of implementing Hamilton Beach strategic initiatives is expected to offset gains.
NACCO Industries as a whole had a net loss of $1.5 million on revenues of $177.4 million in the first quarter of 2014, compared with net income of $4.4 million and revenues of $196.1 million in the first quarter of 2013.
NACCO business segments, in addition to Hamilton Beach, are North American Coal (mining) and gourmet goods retailer Kitchen Collection.
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