Hamilton Beach Q2 Net Falls on One-Time Charge
CLEVELAND-A $2.3 million charge sent Hamilton Beach's second-quarter net income downward by 10.3 percent, to $2 million.
The charge was related to an estimate for an environmental liability at the housewares brand's facility in Picton, Ontario, Canada. Absent that charge, according to a statement from parent company NACCO Industries, Hamilton Beach's net increased in the quarter, although the company didn't specify by how much.
Net sales in the quarter, which ended on June 30, benefited from a gain in sales of products at higher price points, chiefly in the U.S. market. Sales were up 3.6 percent to $114.7 million. Increased expenses from both the operating and advertising side partially offset this increase.
For NACCO as a whole, second-quarter net income fell 76.3 percent to $5.1 million. Net sales totaled $196 million, up 14.3 percent.
Looking ahead, NACCO said Hamilton Beach's sales are expected to grow moderately in 2013's second half, given the continued economic struggles among the brand's middle-market consumers, which are its target customers. The company expects the brand's The Scoop, the Two-Way Brewer and the Durathon, all introduced in late 2011, to gain market share, along with the FlexBrew, which was debuted late last year.
In addition, the brand has hopes for the Breakfast Sandwich Market, introduced earlier this year. "These products, as well as other new product introductions in the pipeline for 2013, are expected to increase both revenues and operating profit," NACCO said.