Hamilton Beach 2010 Annual Report Download - page 18

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focus will shift to growth in the number of these
stores. The Le Gourmet Chef®website, which was
updated in 2009, and the Kitchen Collection®website,
which was updated in 2010, are also expected to
provide ongoing revenue growth opportunities.
With the improvements made or planned,
Kitchen Collection®stores are expected to achieve
higher margins in 2011 than their long-term operating
margin target of 5 percent. Le Gourmet Chef®stores
are not expected to achieve the target margin until
sales volumes increase and certain underperforming
stores have been closed.
Conclusions and NACCO Outlook
The economic environment continues to
improve, but uncertainties still remain. NACCO’s
companies will be managed cautiously until each
company’s management is more comfortable that a
solid, sustainable economic recovery is unfolding. In
2010, NACCO’s companies benefited from programs
put in place prior to and during the downturn. These
programs and improving markets are expected to
lead to solid financial performance in 2011, which will
enable each subsidiary company to continue to move
toward achievement of its minimum financial goals.
In 2011, overall consolidated results are expected
to improve moderately over 2010. Improvement is
expected at NMHG despite anticipated cost increases.
We expect continued strong performance from HBB,
which continues to operate very well. Improved
results are expected at Kitchen Collection as the
company focuses on improving the profitability of
its Le Gourmet Chef®stores. Finally, while results are
expected to decline moderately at NACoal primarily
because of the absence of certain non-recurring
benefits realized in 2010 and the loss of the San Miguel
Mine, ongoing operations are expected to continue
to be excellent.
NACCO plans to continue to focus on maximizing
cash flow before financing activities in 2011 and future
years, with an increase in cash flow before financing
activities anticipated for 2011 in comparison to 2010.
However, capital expenditures are expected to increase
at NMHG and NACoal. In general, future capital
expenditures are expected to be modest relative
to cash flow in the years ahead unless new growth
opportunities develop.
NACCO continues to have great confidence in
the management teams at each of the Company’s
subsidiaries. The many experienced and capable
people who worked together so closely and success-
fully during the steep global downturn have clearly
been the key to the Company’s remarkably strong
results at each subsidiary company in 2010.
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In closing, we would like to welcome Richard R.
Chene, Jr. as the new President of Kitchen Collection.
He brings extensive senior-level retail experience to
Kitchen Collection. Rich joined us on February 1, 2011.
Finally, we would like to take this opportunity
to thank all of our subsidiaries’ customers, retailers,
dealers and suppliers and all NACCO stockholders for
their continued support, and to thank all NACCO and
subsidiary employees most sincerely for their hard
work, sacrifice and commitment over the past year.
We are pleased with 2010 results and look forward to
greater achievement in 2011.
Alfred M. Rankin, Jr.
Chairman, President and Chief Executive Officer, NACCO Industries, Inc.
Michael P. Brogan
President and Chief Executive Officer
NACCO Materials Handling Group, Inc.
Gregory H. Trepp
President and Chief Executive Officer, Hamilton Beach Brands, Inc.
Chief Executive Officer, The Kitchen Collection, LLC
Robert L. Benson
President and Chief Executive Officer,
The North American Coal Corporation
Richard R. Chene, Jr.
President, The Kitchen Collection, LLC