Hamilton Beach Net Soars 42.7 Percent in Q3
CLEVELAND-Increased sales in higher-margin products and new products provided a considerable boost to the bottom line for the Hamilton Beach small-appliance brand in the third quarter.
Net income reached $7.4 million, 42.7 percent ahead of the net for the third quarter of last year. Net sales were up 7.4 percent to $134.1 million. NACCO Industries, Hamilton Beach's parent company, said in a statement that the brand posted strong sales totals in its U.S. and Canadian markets, offsetting weaker sales in other international markets.
The improvement in sales of higher-margin products helped offset increases in selling, general and administrative expenses, and additional costs incurred to execute the brand's five strategic initiatives.
Hamilton Beach's bottom line was considerably better than that of its parent in the quarter, which ended on Sept. 30. NACCO reported a 67.7 percent plummet in net income, to $12.3 million, on sales of $228.6 million, 8.8 percent higher than last year's third quarter.
NACCO said Hamilton Beach's sales should grow moderately for the remainder of this year and in 2014, due primarily to the economic struggles of its target middle-market mass consumer. The brand continues to focus on strengthening its North American business through product innovation, increased placements, branding programs and "appropriate levels" of advertising, NACCO said.