Hamilton Beach 2010 Annual Report Download - page 10

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are expected to enhance sales volumes in 2011 and in
future years. NMHG also expects to enhance market
share through new product introductions, which
meet key market needs such as launching a low-cost
and performance internal combustion engine lift
truck in developing markets around the world.
In addition to its focus on programs to reach
target margins by ensuring the right products are
offered at the right prices to serve market applications,
NMHG expects to continue to increase prices in 2011,
as necessary, in response to rising commodity prices
but in a manner that does not erode its competitive
position. NMHG currently anticipates that material
costs, particularly the cost of steel, will continue to
increase in 2011 compared with 2010. As a result,
price increases on selected models were announced
during 2010 which, in combination with additional
increases as needed during 2011, are expected over
time to offset the effect of increased commodity costs.
Overall, net income is expected to increase in 2011
compared with 2010. However, significant operating
profit improvement from increased volume is expected
to be partially offset by increased employee-related
costs, the absence of foreign currency contracts which
favorably affected 2010 results, and by higher effective
tax rates, especially in the first half of 2011. Cash flow
before financing activities in 2011 is expected to be
higher than in 2010.
Longer-Term Perspective
NMHG remains committed to its vision of being
a leading globally integrated designer, manufacturer
and marketer of a complete range of high-quality lift
truck products designed to meet a broad range of
market applications by offering the lowest cost of
ownership and providing outstanding sales, parts
and service support through an outstanding network
of independent dealers.
NMHG is well-positioned to maintain its global
competitiveness. The company’s product pipeline is
on track to produce a continuous stream of new
product innovations and product introductions over
the next several years, which are expected to enhance
its competitiveness and market share. During 2010,
NMHG introduced three new electric-rider lift truck
series in the Americas and one new electric-rider lift
truck series in Europe, all of which were well received
for their improved ergonomics and ability to lower
operating costs and energy consumption while maxi-
mizing productivity. The company plans to introduce
the remainder of its new electric lift truck line in 2011,
with the launch of four additional series of electric-
rider lift trucks in late 2011. NMHG also introduced
new base-model internal combustion engine lift truck
models aimed at the medium-duty segment of the
Americas market in July 2010 and expects to introduce
one in Europe in mid-2011. The remaining trucks
in this base-model range are expected to be rolled
out by 2013. Finally, NMHG expects to introduce a
new 12-ton big truck in mid-2011. To strengthen
innovation and execution of advanced product
development programs, NMHG has recently set up a
new Engineering Concept Centre at NMHG’s European
headquarters in the United Kingdom. In the years
ahead, the company expects to continue to work
aggressively to meet evolving market requirements
in all product segments of the market.
New diesel emission regulations are currently
affecting all lift truck manufacturers. NMHG is working