Hamilton Beach 2012 Annual Report Download - page 10

8
In 1913, Frank E. Taplin, Sr.,
pictured on the front of this annual
report, started The Cleveland & Western
Coal Company, the predecessor of The
North American Coal Corporation, as a
one-man brokerage firm, selling other
companies’ coal. That original business
has been transformed many times
over the past 100 years to become the
NACCO Industries, Inc. of today.
By 1916, Mr. Taplin’s small
brokerage had evolved into an under-
ground mining company in Southern
Ohio that would, in 1926, become The
North American Coal Corporation. A
dual focus on safety and innovation
would see the company transformed
from an Eastern underground miner
of bituminous coal to, as the 20th cen-
tury closed, the largest lignite surface
miner in the United States. A corpo-
rate diversification program launched
in the early 1980s led to the creation
of NACCO Industries, Inc. in 1986
and the Company’s entry into other
businesses – a controlling investment
in the lift truck industry beginning in
1985 and an acquisition in the house-
wares industry beginning in 1988.
As a diversified holding company,
NACCO grew to become a Fortune
1000 business with revenues of $3.3
billion in 2011.
Fittingly, during its 100th year, the
Company transformed itself yet again.
NACCO’s commitment to creating
shareholder value was demonstrated
in September 2012 when the Company
spun off its materials handling business
as an independent public company,
Hyster-Yale Materials Handling, Inc.,
to NACCO stockholders. As a result, the
financial information in this Annual
Report on Form 10-K has been reclassi-
fied to reflect Hyster-Yale’s pre-spin
operating results as discontinued oper-
ations and all further discussions in this
letter relate to income from continuing
operations. Today, NACCO remains
a strong, multi-industry company
with leading businesses in the mining,
small appliances and specialty retail
industries, and is well positioned to
support its individual businesses in
the years ahead.
The spin-off was not the only
substantial change to the Company’s
business model during 2012. Late in
Subsidiary Financial
Objectives
• NACoal: Earn a minimum return on
capital employed of 13 percent, attain
positive Economic Value Income from all
existing consolidated mining operations
and any new projects, maintain or increase
the profitability of all existing unconsoli-
dated mining operations and achieve
substantial income growth by developing
new mining ventures.
• HBB: Achieve a minimum operating profit
margin of 10 percent.
• Kitchen Collection: Achieve a minimum
operating profit margin of 5 percent.
• All businesses: Generate substantial cash
flow before financing activities.
To Our
MINING