CLEVELAND–The Hamilton Beach unit of NACCO Industries posted a net loss of $500,000 in the second quarter, compared with a net loss of $400,000 in the second quarter of 2007.
Second-quarter revenues for the housewares manufacturer reached $108.8 million, up 5.3 percent from last year’s second quarter. The increase resulted from a shift toward higher-priced products and favorable foreign-currency changes. However, the bottom line was hit by rising costs for sourced products and freight, which offset both the sales gain and a decrease in selling, general and administrative expenses.
A NACCO statement said the company expects 2008 to be “a very difficult year” for Hamilton Beach, with results “well below” those of last year. Rising prices for fuel and food, along with the depression in the housing market and concerns over mortgage debt, will continue to challenge retailers. Also, the statement added, Hamilton Beach should continue to experience pricing pressure from suppliers as commodity costs for resins, copper, steel and aluminum continue to rise, along with freight costs.
