Hamilton Beach 2010 Annual Report Download - page 11

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to ensure these requirements are satisfied in a cost-
effective manner. However, NMHG expects these
regulations to increase the cost of trucks, which in
turn is likely to lead to substantial price increases for
certain trucks beginning with deliveries in 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. NMHG’s
objective is to leverage this position to increase market
share and improve product margins to target levels.
These programs are expected to move the company’s
financial performance in the next few years toward its
target level of a minimum operating profit margin of
9 percent at the peak of the market cycle.
North American Coal
2010 Results
North American Coal’s coal supply agreements,
which are long-term in nature, again helped the
company achieve strong, stable performance and
steady cash flows in 2010. In addition, several positive
financial developments occurred during the year.
Mississippi Power Company reimbursed NACoal
for previously recognized costs for pre-development
activities related to the new Liberty Mine in Mississippi;
increased earnings at the unconsolidated mines
resulted from contractual price escalation and income
from the Liberty Mine; deliveries increased at the
limerock mining operations due to the reinstatement
of customer mining permits in early 2010, which had
been suspended during 2009; royalty income increased;
and lower costs of sales at the Mississippi Lignite
Mining Company all contributed to enhanced results.
Because of these favorable events, NACoal had net
income in 2010 of $39.6 million compared with
income from continuing operations in 2009 of $30.6
million. NACoal also generated strong cash flow before
financing activities of $32.8 million, which includes
proceeds of $11.2 million from the sale of joint venture
assets in Great American Energy, compared with cash
flow before financing activities of $76.5 million in 2009,
which included proceeds of $41.4 million from the
sale of the assets of the Red River Mining Company.
In 2010, NACoal’s subsidiary, Liberty Fuels,
finalized a new mining contract to provide approxi-
mately 4.2 million tons of lignite coal annually from
its new Liberty Mine to Mississippi Power Company’s
new Ratcliffe power plant currently being built in
Mississippi. This project is in the development phase
and will not be fully operational for several years.
While completion of the project is still contingent on
resolving legal challenges to regulatory approvals
being pursued by the Ratcliffe power plant, initial
deliveries are expected to commence in late 2013.
NACoal also extended its limerock mining contract
with Cemex S.A.B. de C.V. (“Cemex”) to continue
mining at the five Cemex quarries in Florida through
2018. In December 2010, NACoal’s contract to provide
mining services to the San Miguel Mine expired and
was not renewed.
Outlook for 2011
NACoal remains focused on safety, environmental
compliance and continuous improvement programs.
These well-established programs provide a solid
foundation for relatively stable operations at all of its
coal mines in 2011. However, coal tons delivered in
From left to right:
Yale’s new electric-rider lift truck series, the Yale® ERC-VA cushion tire series, has
lifting capacities of 3,000 to 4,000 pounds. These trucks have been designed for overall
productivity at lower costs. The four-wheel truck is shown here.
The new Hyster® E30-40XN electric-rider cushion tire lift truck series has lifting
capacities of 3,000 to 4,000 pounds. These trucks have been designed for overall
productivity at lower costs. The 4,000 pound lift truck model is shown here.
Hyster Company’s new Hyster® H50CT internal combustion engine lift truck has a lifting
capacity of 5,000 pounds and is targeted at moderate duty applications.
The new Yale® MPE Walkie/Rider Motorized Hand Pallet Truck, with a carrying capacity
of 6,000 to 8,000 pounds, excels in warehousing applications where throughput and
productivity are key considerations.