Hamilton Beach 2007 Annual Report Download - page 5

Hamilton Beach Brands
has established a corpo-
rate-wide Environmental
Sustainability program.
Product development
is now guided by five
Eco-Design criteria:
energy consumption,
packaging, hazardous
substances, recycling and disposal and product
reliability. For example, the True Air® Ecoclean™
Air Purifier features a lifetime HEPA filter and is
Energy Star-rated for its efficient operation.
North American
Coal has been a
leader in environ-
mental reclamation
and safety for
many years, having
won numerous
national and state
awards at its mine
sites. In addition, the company is actively
pursuing clean coal projects that utilize new
technologies to reduce power plant emissions
while increasing efficiency.
Kitchen Collection
promotes a number
of environmentally
friendly products in
its stores, including
many made from
fast-growing bamboo
and rubberwood.
New products for
2008 include glassware made from recycled
glass, which will be sold in recycled packaging.
These products carry a special label denoting
they are made with renewable resources.
In 2006, NACCO Industries had a good year with
strong overall results, although performance was enhanced
by several one-time events. While many improvement
programs began to contribute to profitability, our
subsidiary companies faced growing challenges from
external economic and market factors.
In 2007, performance improved in a number
of areas, as planned, although the
one-time events of 2006, of course,
did not recur. In addition, many of
the external factors affecting the
companies intensified rather than
diminished. While the Company fell
short of its plans and we are not
satisfied with the year’s results, we
take a long-term perspective and are
encouraged by the progress we
made on our key improvement programs, which continued
to yield benefits and which helped offset many of the
challenges we faced during the year.
In 2008, external factors, including a slowing U.S.
economy, are likely to affect results significantly. Performance
is anticipated to moderate in some areas according to
operational plans, particularly at North American Coal
and Hamilton Beach Brands. Each subsidiary company
will redouble its efforts to manage costs, drive innovation
and improve sales and marketing professionalism.
However, in this period of
economic uncertainty, the
subsidiaries will pursue growth
carefully in order to preserve
profitability and cash flow. Overall,
we are hopeful continued success of
key programs will provide benefits
in 2008. However, achieving results
in 2008 comparable to results in
2007 will be difficult if the current
economic environment continues. The Company believes
it is positioned for significant profit improvement in 2009
and beyond.
In 2007, performance
improved in a
number of areas,
although unfavorable
external factors
intensified.
03
04
05
06
07
Total Revenues
(In billions)
$.0.0 $1.0 $2.0 $3.0 $4.0
03
04
05
06
07
Net Income
(In millions)
$0 $25 $50 $75 $100 $125
$106.2
$62.5
$47.9
$52.8
$89.3
■ NMHG ■ Housewares ■ NACoal ■ NACCO & Other
03
04
05
06
07
Diluted Earnings Per Share
$0 $5 $10 $15
$12.89
$7.60
$5.83
$6.44
$10.80
$2.5
$2.8
$3.2
$3.3
$3.6
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