Hamilton Beach 2Q Net Skyrockets 69 Percent
CLEVELAND-Second-quarter net income for the Hamilton Beach brand of NACCO Industries recorded a resounding 69 percent gain in the second quarter, to $2.2 million.
The brand benefited from a net sales gain of 6.1 percent to $110.7 million, much of which occurred thanks to increased sales of higher-priced products, particularly in the U.S. market. In addition, Hamilton Beach's numbers received a boost from the absence of $900,000 in pretax costs incurred last year, when the brand's distribution center was moved to a larger facility. Reduced interest expenses resulting from lower debt levels also helped the bottom line.
Hamilton Beach easily outperformed its parent in the quarter, which ended on June 30. NACCO posted net income of $25.5 million, down 3 percent from last year's second quarter. Net sales for the manufacturing conglomerate fell 4.6 percent to $773.4 million.
Looking ahead, NACCO said Hamilton Beach's sales would likely remain challenged given the continuing struggles of the brand's target consumers, those in the middle-market mass range. Yet, considering the weak sales volumes last year and the strength shown by the brand's international and commercial customers, Hamilton Beach said it should continue to post sales gains in the second half of 2012.