Hamilton Beach 2009 Annual Report Download - page 18

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Conclusions and NACCO
Outlook
The economic environment has
improved substantially from where it was
a year ago, but a number of uncertainties
still remain. NACCO’s companies will
manage cautiously until evidence of a solid
economic recovery becomes clear. As
markets and volumes turn up, NACCO’s
businesses expect to gain the benefits of
previously established programs. NACCO’s
businesses are well-positioned to achieve
their minimum financial goals when markets
fully recover.
We believe that appropriate plans are
in place for a challenging 2010 at NMHG
and for maintaining the three other
subsidiaries at sound levels in 2010. While
NMHG is planning for about break-even
performance in 2010, it is poised to begin
achieving its financial goals as its markets
recover. We expect continued strong
performance from NACoal and HBB, which
are operating well and either achieving or
close to their targets. Improved results at
Kitchen Collection are expected to continue.
NACCO plans to continue to focus on
maximizing cash flow before financing
activities in 2010 and later years. Capital
expenditures are expected to be modest
in the years ahead unless new growth
opportunities develop. NACCO’s cash on
hand provides flexibility with respect to
capitalizing its subsidiaries, although no
further significant capital injections are
anticipated at this time.
NACCO continues to have great
confidence in the management teams at
each of the Company’s subsidiaries. The
many experienced and capable people who
worked so closely together in a most
challenging 2009 were the key to the
Company’s achievement of strong results
at each company, given the state of each
subsidiary’s markets.
Early in 2009, NACCO’s stock price
reached a remarkable low. Although the
price has recovered significantly since then,
we hope that further price increases will
come as the Company’s income improves as
a result of its strong improvement programs
and the return of stronger market conditions.
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In closing, we would like to give
special acknowledgment to Dr. Michael
Morecroft, who retired in December 2009
as President and Chief Executive Officer of
HBB. Throughout Mike’s 22-year career
with the company, he was an outstanding
leader with a particularly approachable
personal style. This was most evident
during the last eight years when Mike led
HBB. We are pleased to continue to have
the benefit of Mike’s leadership on the
HBB Board as Vice Chairman. We all thank
Mike for his commitment to HBB and wish
him the very best in his retirement.
We would also like to take this
opportunity to express sincere thanks to
Dr. Ian Ross, who is choosing to retire from
NACCO’s Board this May after serving for
15 years. Ian brought unique and extremely
valuable perspectives and insight to the
NACCO Board. His contributions will
be missed.
Finally, we would like to take this
opportunity to thank all of our subsidiaries’
customers, retailers, dealers and suppliers
and all NACCO stockholders for their
continued support, and to thank all NACCO
and subsidiary employees most sincerely
for their hard work, sacrifices and
commitment in meeting the challenges of
2009. We hope for a sustained global
economic recovery and look forward
to a successful 2010.
Alfred M. Rankin, Jr.
Chairman, President and
Chief Executive Officer
NACCO Industries, Inc.
Michael P. Brogan
President and Chief Executive Officer
NACCO Materials Handling Group, Inc.
Gregory H. Trepp
President and Chief Executive Officer
Hamilton Beach Brands, Inc.
Chief Executive Officer
The Kitchen Collection, Inc.
Robert A. LeBrun, Jr.
President
The Kitchen Collection, Inc.
Robert L. Benson
President and Chief Executive Officer
The North American Coal Corporation