CLEVELAND–Net income for the Hamilton Beach unit of NACCO Industries dropped 17.1 percent for the 2007 fiscal year, as the unit’s sales slipped by 1.1 percent.
Last year’s net income totaled $18.4 million for the small-electrics manufacturer, on sales of $540.7 million. According to a statement from NACCO, a rise in interest expense from increased borrowings were primarily responsible for the decline on the bottom line. Reduced unit volumes overall and decreased sales to key retailers pushed overall sales down for Hamilton Beach, although this factor was somewhat offset by an increase of sales of higher-priced products.
The economic factors that made the market difficult for Hamilton Beach in 2007 are expected to continue this year, the NACCO statement said.
Hamilton Beach is bracing itself for “significant pricing pressure” from suppliers, due to rising costs from resins, copper, steel and aluminum—which will likely prove unfavorable to its operating results in 2008.