Hamilton Beach Net Up 5.8 Percent in Q4, 15.2 Percent for Year
CLEVELAND-The Hamilton Beach brand rode the wave of increased sales in higher-ticket merchandise to an increase of 5.8 percent in fourth quarter net income and a 15.2 percent gain in net income for its fiscal year.
According to a statement from NACCO, Hamilton Beach's parent company, net income for the quarter, which ended on Dec. 31, totaled $12.7 million. For the year as a whole, net income was $21.2 million.
Fourth-quarter net sales picked up 12.3 percent to $181.2 million, while for the year net sales were $521.6 million, up 5.8 percent. The NACCO statement said the brand's results owed to higher unit sales volumes of higher-priced product in the U.S. retail market, thanks to "strong fourth-quarter promotions and placements."
For NACCO as a whole, fourth-quarter net income dropped 56.4 percent to $23.7 million, and for the year fell 32.9 percent to $108.7 million. Net sales made a 16.2 percent gain in the quarter, to $318.2 million, and for the year totaled $873.4 million, up 10.5 percent.
Looking ahead to this year, NACCO projected modest growth for Hamilton Beach, given the continuing financial and economic struggles of the brand's middle-market customers. Product innovation, promotions, increased placements,branding programs and advertising--with a particular focus on single-serve coffee products such as The Scoop and FlexBrew--will be key factors in Hamilton Beach's 2013 performance, NACCO said.