Hamilton Beach 2009 Annual Report Download - page 13

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to represent both the Hyster
®
and Yale
®
brands under controlled conditions. This
new policy is expected to enhance sales
effectiveness through specialization around
end customer application needs. Another
priority will be to continue to strengthen
NMHG’s competitive pricing strategy based
on more regularly updated product costs
and value-selling around base products
and bundled features.
The company believes it currently
has a broad grouping of the right products
available at appropriate cost and price
structures as a result of programs imple-
mented in earlier years. The introduction of
a number of additional products in 2010
will largely complete this major effort.
Also, despite some recent 2010 commodity
cost increases, material costs are expected
to remain flat over the course of the year.
However, the lift truck market is currently
very price-competitive, with significant
pricing pressures in all markets due mainly
to the excess capacity that results from
current low market levels.
Overall, NMHG expects a net loss in
the first half of 2010, with a difficult first
quarter. However, the net loss is expected to
be much smaller than the loss realized in the
first half of 2009. Modest market improve-
ments from improved parts and unit volumes
anticipated in the second half of 2010 are
expected to lead to about break-even results
for the full year, based on the company’s
current forecast of market conditions. Cash
flow before financing activities for 2010 is
expected to be positive, but significantly
lower than 2009 because the working
capital reductions achieved in 2009 will
not be repeated in 2010.
Longer-Term Perspective
NMHG’s vision continues to be to
ensure its place as a leading globally
integrated designer, manufacturer and
marketer of a complete range of high-
quality, application-tailored lift trucks,
offering the lowest cost of ownership,
outstanding parts and service support and
the best overall value.
As a result of mature improvement
programs, NMHG is well-positioned to
maintain its global competitiveness. The
company’s focus on its product pipeline
is also expected to help enhance the
company’s competitiveness and market
share. A continuous stream of new product
innovations and product introductions is
on track. The new electric-rider lift truck
program is bringing a full line of newly
designed products to market. The company
is expected to introduce the remainder of
its new electric lift truck line in 2010 and
early 2011. The company introduced the
2 to 3 ton four-wheel electric trucks
in Europe in early 2010 and expects to
introduce five additional series over the
remainder of the year. In addition, NMHG
plans to introduce a 25 to 32 ton big truck
and several warehouse trucks. Finally,
NMHG is developing a new base-model
internal combustion engine lift truck aimed
at the medium-duty segment of the market.
The first lift trucks in this series are expected
to be introduced in mid-2010, with a
complete rollout by 2012.
Overall, NMHG believes its products,
supply chain, manufacturing, quality,
pricing, distribution and sales and marketing
programs will position the company well in
the global lift truck market. As the market
turns up, these programs are expected to
move the company’s financial performance
to target levels and to an enhanced market
share position.
Hamilton Beach Brands
2009 Results
Despite the global recession and its
negative effects on retail markets, which
unfavorably affected sales volumes in 2009,
HBB operated exceptionally well during
The new Yale®ERP-045-070VL electric-
rider lift truck, with lifting capacities of
up to 7,000 pounds, shown above,
provides a zero-emissions alternative
for indoor and outdoor applications.
The innovative component design and
the “Drop Battery Box” allows for
pneumatic tires on an electric truck.
The new Hyster®H550-700HD
series of big trucks with lifting
capacities up to 70,000 pounds,
shown below, features a
redesigned hydraulic system
for optimal reliability and
lower operating costs.