Hamilton Beach 2008 Annual Report Download - page 9

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Above: The new Hyster Fortis® H170-190FT pneumatic tire internal combustion lift truck, with lifting capacities up to 19,000 pounds, is ideal for use in lumber,
steel and concrete applications. This new series offers a longer wheelbase, a more powerful drive train and a new mast to allow for greater lifting capacities.
Overall, NACoal expects solid operating performance in
2009 with results comparable to 2008. Cash flow before
financing activities is expected to be positive, but down
slightly from 2008.
Longer-Term Perspective
Over time, the company expects to continue its record of
operational excellence in safety, efficiency and environmental
responsibility at each of its mining operations and to deliver
profitability that exceeds its financial objectives.
Significant growth at NACoal will depend on the United
States adopting a balanced energy policy in which coal plays a
key role. Further, the company
believes that coal must remain an
integral part of the energy mix if
this country is going to continue to
be fully competitive in a global
economy. NACoal is taking a
leadership role in helping balance
energy needs with environmental
responsibility. NACoal’s customer,
Basin Electric, is a pioneer in the
carbon capture process, which it
employs at its Dakota Gasification
facility. Most potential customers
with whom NACoal is working
include carbon capture in their
plans for new coal projects. The
company also believes that new
power plant technologies, such as
integrated gasification combined cycle power generation,
and production of alternative fuels made from coal will
provide important opportunities in the future. Overall,
NACoal sees good long-term prospects for additional
mining opportunities and has several promising business
opportunities currently in various stages of negotiation.
NACCO Materials Handling Group
2008 Results
Like many companies in the industrial equipment sector,
NMHG faced exceedingly high material costs in early 2008
that could not be fully offset through price increases and was
confronted with deteriorating market conditions as the year
progressed. The lift truck industry is naturally cyclical and
a downturn had been expected, although not nearly to the
extent seen in late 2008. In fact, in the second half of 2008,
demand for lift trucks fell at rates not previously seen in the
industry’s history and demand for parts declined moderately.
By the end of 2008, there was clear evidence of severe
weakness in all global lift truck markets. For example, in the
fourth quarter of 2008, the lift truck market declined 26.0
percent in Western Europe, 39.5 percent in North America,
44.6 percent in China, 56.8 percent in Eastern Europe and
58.3 percent in Brazil compared with fourth quarter 2007.
Significant currency volatility, particularly in the
Japanese yen, Brazilian real and British pound, compounded
the effects of unrecovered material cost increases and market
deterioration. Currency exchange
rates had a significant adverse
effect on NMHG performance
in a number of geographic areas,
particularly in the United States
since the dollar was very weak
compared with other currencies
for the greater part of the year.
NMHG executed new improve-
ment plans in its Retail operations
and, as a result, they performed
significantly better in 2008 than in
2007. However, improvements in
those operations were constrained by
struggling economies in the United
Kingdom and Australia in the second
half of 2008.
Market Outlook for 2009
NMHG remains very concerned about the potential
depth and breadth of the economic downturn and the ability
and willingness of many of our customers to purchase lift
trucks and parts in 2009. Early market indications in 2009
suggest a continued severe market downturn with key global
lift truck markets either not yet stabilized or continuing at
the extremely low levels of November and December 2008.
While the company hopes that the very low market levels
experienced in late 2008 and early 2009 are near the low point,
the company expects demand to remain depressed through
2009, especially in the first half, with very little recovery until
2010. Consequently, NMHG Wholesale expects to have
significantly lower unit booking and shipment levels and
a reduction in parts sales in 2009 compared with 2008.