Hamilton Beach 2010 Annual Report Download - page 15

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Overall, full-year 2011 net income is expected to
be slightly lower than 2010 due to increased operating
expenses and higher income tax expense. Increased
product and transportation costs in the first half of
2011 are expected to reduce net income in the first
half of 2011 compared with the first half of 2010. The
company will remain focused on adding placements
while maintaining or improving product margins. HBB
continues to monitor commodity costs closely and will
adjust product prices and placements as appropriate
if commodity costs continue to increase as expected.
Also, to increase distribution efficiencies, HBB is
moving its distribution center into a larger facility
during 2011. HBB expects to incur additional expenses
in the second quarter related to this relocation. Cash
flow before financing activities in 2011 is expected to
be higher than in 2010.
Longer-Term Perspective
Product quality, customer service and fact-based
professional sales and marketing remain areas of
excellence for HBB. Important promotional campaigns
designed to support HBB’s brands and new products
are expected to continue. The company’s product and
placement track record continues to be impressive due
to innovation processes centered on understanding
and meeting end-user needs. New products introduced
in 2010, as well as further new product introductions
in the pipeline for 2011 and future years, are expected
to improve revenues. The company expects its product
pipeline to be at or above historical levels in 2011.
HBB is focused on ensuring that the company
remains a leading designer, marketer and distributor
of small electric household and commercial products
sold worldwide under strong brand names and
achieves profitable growth from innovative solutions
that improve everyday living. Longer term, the
company will continue to work to increase revenues
and profitability by gaining placements, improving
efficiencies, reducing costs and pursuing strategic
growth opportunities, including achieving growth for
both the Hamilton Beach®and Proctor Silex®brands,
growth in the high-end consumer market, growth
throughout Latin America and growth in global
commercial markets. The company is well-positioned
to continue its leadership position in the small kitchen
appliances industry and to move toward achieving its
long-term financial objective of a minimum 10 percent
operating profit margin in the years ahead.
Kitchen Collection
2010 Results
Solid strides were made at Kitchen Collection
in 2010 to improve operations in both the Kitchen
Collection®and Le Gourmet Chef®store formats. While
results were encouraging, continued improvement is
still necessary, primarily at the Le Gourmet Chef®
From left to right: Proctor Silex® 1.5 Quart portable oval slow cooker, offered in citrus colors of red, orange, green and yellow; Hamilton Beach
Stay-or-Go® Personal Cup™ pod coffeemaker; Hamilton Beach® Commercial Tournant™ high-performance food blender; Hamilton Beach®
digital two-slice toaster; Hamilton Beach® Big Mouth® Pro juice extractor.