Hamilton Beach 2011 Annual Report Download - page 8

Above from top: Yale’s MPE060-080VG
motorized hand truck has a lifting capacity of
6,000 to 8,000 pounds. NMHG’s new range
of UTILEV®brand forklift trucks, which are
basic forklift trucks that meet the needs of
low-intensity users. The new Hyster®S50CT
internal combustion engine, cushion tire lift
truck has a lifting capacity of 5,000 pounds
and is targeted at the medium-duty segment.
At right, from top: The new European Hyster®
2.5CT internal combustion engine, pneumatic
tire lift truck, with lifting capacities of 2,000
to 2,500 kilograms, targeted for low-intensity
or medium-duty operations. The European
Hyster®H4.0FT Fortens®lift truck, upgraded
with new Hyster technologies, has a lifting
capacity of 4,000 kilograms.
normal lead times. NMHG continued to
strengthen its distribution network by
adding strong independent dealers in
Eastern Europe, adding more dual brand
representation by dealers and replacing
underperforming dealerships. In addition,
the company entered into agreements with
two dealers in India to enhance distribution
by permitting certain Hyster®and Yale®
lift trucks to be manufactured in India
under license. Major enhancements were
also made to many of NMHG’s product
lines, and a new brand of forklift truck
was offered to a market sector NMHG
had not effectively competed in previously.
In addition, to strengthen innovation
and execution of advanced product
development programs, NMHG opened
a new Engineering Concept Centre near
NMHG’s European headquarters in the
United Kingdom.
Five
NACCO Materials
Handling Group
2011 Results
NMHG has engineering, manufac-
turing, sales and distribution operations
throughout the world serving a global
customer base. The company is continually
seeking to expand its reach by enhancing
its dealer network in individual markets
and sourcing components from all over
the globe, while executing its strategy
of manufacturing in the market of sale.
However, while the business benefits
from this global reach, the company is also
susceptible to fluctuating currencies and
market conditions in the countries in which
it operates. The global market recovery
in the materials handling industry, which
began in 2010, continued into 2011. These
improvements resulted in a 41 percent
increase in revenues from $1.8 billion in
2010 to $2.5 billion in 2011, driven by a
33 percent increase in new unit shipments,
as well as increased part sales. Improved
volumes, combined with price increases
implemented in late 2010 and early 2011
that more than offset material cost
increases, manufacturing efficiencies
obtained from increased volumes and tight
control of expenses and the company’s
lean and cautious attitude in running the
business, helped drive the substantial
improvement in net income from $32.4
million in 2010 to $82.6 million in 2011.
Operating profit margins improved from 2.6
percent in 2010 to 4.3 percent in 2011, a
significant improvement but still well below
NMHG’s operating profit margin target of a
7 percent average operating profit margin
at the mid-point of the market cycle. This
substantial improvement occurred despite
the full restoration of compensation and
benefits at the beginning of 2011. NMHG
also generated strong cash flow before
financing activities of $38.7 million in
2011, comparable to the $39.0 million
generated in 2010.
Continued market improvement in
2011 resulted in a number of other positive
developments during the year. A strong,
stable backlog developed and supplier
constraints dissipated, resulting in more