Hamilton Beach 2007 Annual Report Download - page 3

NACCO Industries, Inc. is an operating holding company with three principal businesses: lift trucks,
housewares and mining. In 2007, total revenues were $3.6 billion and net income was $89.3 million.
Competitive Advantages
•Leading market share positions in the
Americas and worldwide
•Highly recognized Hyster®and Yale®
brand names
•Large installed population base of lift
trucks; an estimated 723,000 Hyster®and
Yale®lift trucks in operation worldwide
•Highly diverse customer base with more
than 600 different end-user applications
in more than 900 industries
•Comprehensive global product line
•Strong dealer network
•Industry-leading national account
coverage in the Americas
•Globally integrated operations with
significant economies of scale
HBB:
•Strong heritage brands with leading
market shares
•Strong relationships with leading retailers
•Highly professional and experienced
management team
•Successful track record of product line
expansion and new product innovation
•Industry-leading working capital
management
Kitchen Collection:
•Highly analytical merchandising skills
and disciplined operating controls
•Two well-established, complementary
retail formats – Kitchen Collection®and
Le Gourmet Chef®
•Lignite coal mines provide steady income
and cash flow before financing activities
and high return on equity
•Contracts are structured to minimize
exposure to market fluctuations of
coal prices
•2.3 billion tons of lignite coal reserves, of
which 1.2 billion tons are committed to
current customers
•Outstanding operational and technological
mining skills
•Highly efficient heavy equipment utilization
•Excellent record of environmental
responsibility and employee safety
Market Positions
NACCO Materials Handling
Group is a world leader in the
lift truck industry with an
estimated 12 percent market
share worldwide, including a
26 percent market share in the
Americas market.
Lift trucks are distributed
through a worldwide network of
independent Hyster®and Yale®
dealers and a limited number
of wholly owned dealers.
HBB is one of the leading
companies in small appliances,
with strong share positions in
many of the categories in which
it competes.
HBB products are primarily
distributed through mass
merchants, national discount
department stores, warehouse
clubs and other retail sales outlets.
Kitchen Collection is the nation’s
leading specialty retailer of kitchen
and related products in factory
outlet malls with 272 stores
throughout the United States in
2007.
North American Coal is the
nation’s largest miner of lignite
coal and among the ten largest
coal producers. Lignite coal is
delivered from mines in Texas,
North Dakota, Louisiana and
Mississippi to adjacent or nearby
power plants.
Financial Objectives
Minimum operating
profit margin target of
9 percent
HBB:
Minimum operating
profit margin target of
10 percent
Kitchen Collection:
Minimum operating
profit margin target of
5 percent
Minimum return on total
capital employed of
13 percent and attain
positive Economic Value
Income from all existing
consolidated mining
operations and any new
projects, and maintain or
increase profitability of all
existing unconsolidated
project mining operations
Key Business Programs
•Manufacturing restructuring
•Quality initiative
•Global supply chain
•Global IT excellence
•New product development
•New product introductions
•Strategic pricing optimization
•National and global accounts
•Dealer structure program
•Aftermarket parts
•NMHG Retail improvements
HBB:
•Purchasing and supplier product
cost reduction
•Continuous quality improvement
•Supply chain optimization
•Product development process
•New product introductions
•Retailer and channel focus
•Strategic brand application
Kitchen Collection:
•Corporate expense management
•Store expense management
•Continuous product cost management
•Logistics efficiency
•Innovative products and merchandising
•Hamilton Beach®brand leverage
• Economic Value Income
•Outlet mall format initiatives
• Traditional mall format initiatives
•Internet format initiative
•Employee safety
•Contract structure
•Lignite mining operations
•Limerock dragline mining operations
•Mining and management innovation
•Environmental commitment
•Leveraging NACoal’s lignite coal reserves
•Direct coal-fired power generation
•Coal gasification
•Coal-based energy production
•Utilizing lignite coal beneficiation
technologies
•Contract mining of lignite coal
•Contract mining of aggregates