CLEVELAND—Net income for Hamilton Beach took a 66 percent dive to finish the second quarter at $1.3 million, according to the second-quarter report on financial results from the brand’s parent, NACCO Industries.
The drop in the bottom line resulted from reduced margins on most of Hamilton Beach’s product lines, NACCO said. Higher costs for products and transportation hurt profits in the quarter, which ended on June 30, as well as pretax costs related to the moving of Hamilton Beach’s distribution center and increased bad-debt expense due to a customer’s bankruptcy. Net sales for the brand edged up 1 percent to $104.3 million.
Looking ahead, NACCO warned that difficulties remain for Hamilton Beach through the balance of the year. The brand’s mass-market target consumer “continues to struggle as a result of financial concerns and high unemployment rates,” the company said. “As a result, this segment of the U.S. consumer market is expected to remain challenged.”