Hamilton Beach 2010 Annual Report Download - page 9

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share as orders increased and dealers rebuilt inventory
levels as the market improved.
Nonetheless, 2010 was not without its challenges.
Material costs began increasing due to rising
commodity costs in the second half of the year, which
resulted in the implementation of price increases. In
addition, currency rates throughout the year became
less favorable than in the prior year, despite the positive
effect of certain foreign currency contracts and
currently continue to be less favorable.
Outlook for 2011
Although the global lift truck market continues
to recover, the pace is still unclear in certain parts of
the world. Nonetheless, NMHG expects global market
demand for units and parts volumes to continue to
improve in all markets in 2011 compared with 2010,
particularly in the Americas, with more significant
growth in the second half of the year. As a result,
the company expects increased bookings in 2011
compared with 2010. Unit shipment levels and parts
sales are also expected to increase in 2011. Given this
market outlook, NMHG is optimistic about recovery
prospects but continues to move cautiously in bringing
capacity back online until the pace and sustainability
of the recovery is clearer.
Actions taken over the past few years to respond
to extremely depressed market conditions helped
NMHG achieve favorable financial results in 2010.
However, costs are expected to increase significantly
in 2011 since the company will have a complete year
of fully restored compensation and benefits, as well
as costs of a larger workforce working additional shifts
to meet market demand. NMHG will continue to
adjust manufacturing levels as needed to respond to
market demand levels and supply chain constraints.
Overall, NMHG’s product development, supply
chain, manufacturing processes and quality and
reliability programs are performing at expected levels
and are now focused on continuous improvement.
NMHG’s greatest challenges in 2011 will be to enhance
distribution effectiveness to generate additional
market share and to ensure that market applications
are properly served with the right products at the
right prices to achieve target margins, especially in
the new medium-duty internal combustion engine
product line and in its existing heavy-duty internal
combustion engine premier product line.
In 2011, NMHG expects to continue its program
of consolidating and strengthening its dealerships as a
key component of its efforts to enhance market share.
In early 2011, the company entered into agreements
with two dealers in India to enhance distribution and
permit specified Hyster®and Yale®lift trucks to be
manufactured in India under license for the Indian
market. These new dealers and licensing agreements
Left: Hyster’s Yardmaster II HR 45-36 Big Truck transports a windmill blade to a different location. The Yardmaster II has a lifting capacity of 36,000 –
45,000 pounds and is ideal for use in heavy-duty applications.
Above from left to right: The new Yale® ESC-AC stand-up three-wheel electric-rider cushion tire lift truck has a lifting capacity of 3,000 to 4,000 pounds.
The Hyster® H450HD Big Truck, with lifting capacities up to 45,000 pounds, features a tire handler attachment for lifting and moving oversize tires.
The new Hyster® H50CT internal combustion engine lift truck has a lifting capacity of 5,000 pounds and is targeted at the medium-duty
market segment.