Hamilton Beach 2011 Annual Report Download - page 15

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While financial results were
disappointing, HBB ended 2011 in a
strong operational position. HBB adjusted
quickly to the lower sales levels and
managed inventory and expenses carefully.
The company generated improved cash
flow before financing activities of $20.5
million, up from $12.8 million in 2010.
The company was also able to make a
voluntary prepayment of $60 million on its
term loan. In addition, HBB made solid
strides in its execution of the company’s
strategic goal to build up its global reach
in the international retail and worldwide
commercial businesses and deliver strong
improvements at several U.S. retailers.
Unfortunately, these improvements
were overshadowed by lost promotions
and placements at certain important
retail partners.
Outlook for 2012
The middle-market portion of the small
kitchen appliance market in which HBB
participates weakened over the course of
2011 and is expected to remain weak in
2012. It will be a challenge to increase
placements, promotions and unit volume
substantially at the mass-market retailers
in the U.S. consumer market, especially
since the company’s target consumer, the
middle-market mass consumer, continues
to struggle with financial concerns and
high unemployment rates. While sales
volumes in this segment of the U.S.
consumer market are expected to remain
under pressure, HBB is optimistic it will
grow in 2012. International and commercial
product markets are expected to remain
strong, and this strength as well as the
company’s increase in resources and
products allocated to these segments is
expected to drive revenue growth in 2012.
HBB believes its focus on innovation,
preferred brands and quality products is
still the right strategy, and it will continue to
focus on strengthening its market position
through product innovation, promotions,
Housewa r es
Twelve
Hamilton Beach Brands’ newest products include, clockwise from left: Hamilton Beach®The Scoop™ single-serve coffee maker, Hamilton Beach®The Scoop™ 2-Way Brewer
coffee maker, Proctor Silex®can opener, Proctor Silex®two-slice toaster, Hamilton Beach®Durathon™ electronic nonstick iron