24782 Thu, 05/03/2012 - 12:07pm
CLEVELAND-First-quarter net income for Hamilton Beach totaled $1.7 million, exactly the same as in last year’s first quarter.
The housewares brand posted net sales of $104.9 million, up 4.3 percent, in the quarter which ended on March 31. A statement from NACCO Industries, Hamilton Beach’s parent company, said sales rose due to an increase in sales of products at higher price points. Gross profit in the quarter rose (figures were not available in the statement), but operating profit fell 36 percent due to an increase in selling, general and administrative expenses. A reduction in interest expense helped offset the drop in operating profit.
Looking ahead, NACCO said the small-appliance sector in which Hamilton Beach operates should continue to be under pressure due to the struggles of the brand’s target market, middle-market mass consumers, with unemployment and financial concerns. However, recent product launches and innovations are expected to bolster revenues and profits for the brand as 2012 moves along.
NACCO as a whole reported a 60 percent drop in net income for the quarter, to $25.2 million. Net sales rose 7.7 percent to $803.2 million.