Hamilton Beach 2011 Annual Report Download - page 10

now focused on continuous improvement.
NMHG’s challenges in 2012 will be to
enhance distribution effectiveness to
generate additional market share, and
to ensure that customer applications are
properly served with the right products at
the right prices to achieve target margins,
especially in the internal combustion engine
product lines where NMHG now offers
utility, medium-duty and premium heavy-
duty models. As a key component of its
efforts to enhance market share in 2012,
NMHG expects to continue its program
of strengthening its distribution network
by adding strong independent dealers,
allowing more dual brand representation
by dealers and replacing underperforming
dealerships. NMHG also expects to
enhance market share through new product
introductions to fulfill key market segments,
such as expanded distribution of a utility
internal combustion engine lift truck for
low-intensity applications in markets
around the world.
NMHG will increase prices, as
necessary, in response to rising costs,
but in a manner that does not erode its
competitive position. Although commodity
costs stabilized and decreased slightly at
the end of 2011, these markets are highly
volatile and commodity costs, particularly
for steel, are expected to increase in 2012.
Price increases already implemented and
announced in the first quarter of 2012 are
expected to offset a significant portion of
anticipated higher material costs over time.
The company will also continue to monitor
economic conditions and the resulting
effects on costs to determine the need for
any future price increases.
Foreign currency movements are also
expected to affect results negatively. A
stronger Japanese yen is anticipated to
affect both Europe’s and the Americas’
profitability adversely. The weakening
euro is also expected to affect European
operations negatively, while favorably
affecting results in the Americas. However,
NMHG did enter into foreign currency
exchange contracts at favorable rates in
2011, which are expected to moderately
mitigate the effect of currency fluctuations
in 2012.
Overall, net income is expected to
decline materially in 2012 compared with
2011 as a result of the absence of one-
time items, including the elimination of
certain post-retirement benefits, which
benefited 2011 results, adverse currency
movements, an anticipated shift in sales
Seven
Clockwise from bottom left: One of 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 lift truck is shown here. This Yale®Veracitor®GC155VX internal combustion engine lift truck
has a basic lifting capacity of 15,500 pounds and is shown here with a paper roll clamp attachment. Another series in Yale’s new electric-rider lift truck series, the Yale®ERP-VT
three-wheel pneumatic tire lift truck, has a zero-turn radius and a lifting capacity of 3,000 to 4,000 pounds.