Hamilton Beach 2011 Annual Report Download - page 14

and continues to actively pursue
domestic opportunities for new
coal mining projects. However,
as the prospects for new coal
projects in the United States
are uncertain at best, the
company is looking for new
opportunities to expand its
global reach through mining
activities that serve the
international mining arena
in future years. NACoal is reviewing a
number of international projects in India,
Indonesia, Canada and China, as well
as looking into opportunities to enter the
export market. The company believes
international projects structured similarly
to those in the United States will provide
an important opportunity for growth.
New U.S. mining opportunities are
expected to be more limited, with any
significant growth dependent on the United
States adopting a balanced energy policy
in which coal continues to play a key role.
NACoal will continue to monitor pending
regulations and legislation and may take
a leadership role to help ensure that
reasonable actions are taken. The company
believes that coal must remain an integral
part of the nation’s total energy mix for the
United States to continue to be competitive
in a global economy. NACoal’s customers’
power plants are well-positioned in terms of
relative power costs, and NACoal expects
that the company and its customers will be
able to address effectively any anticipated
changes to regulatory requirements.
NACoal also expects to continue to
take a leadership role in helping ensure
a reasonable mix of energy sources and
appropriate environmental responsibility.
The company is actively associated with
several organizations involved in evaluating
and studying various clean-coal tech-
nologies, some of which are funded by the
federal government. The company continues
to believe that new power plant technologies,
such as integrated gasification combined
cycle power generation, and production of
alternative fuels made from coal, will provide
important opportunities in the future.
Overall, NACoal anticipates reasonable
long-term prospects for global growth. Also,
as the company’s new mines currently
under construction commence operations,
NACoal expects improved profitability over
the long term. This enhanced financial
performance is expected to provide a solid
base for NACoal to attain its long-term
financial targets.
Hamilton Beach
Brands
2011 Results
Hamilton Beach Brands had
disappointing results in 2011. Revenues
declined from $515.7 million in 2010 to
$493.0 million in 2011 as the company
was challenged during the year with lower
unit sales volumes and reduced place-
ments and promotions in the U.S. consumer
retail market, mainly at some of Hamilton
Beach’s mass-market retail customers.
Net income declined from $24.4 million
in 2010 to $18.4 million in 2011 primarily
as a result of the effect of reductions in
unit volumes and margin pressure from
increased product costs. However, although
Hamilton Beach was able to return to an
improved margin position during the
second half of the year, that was not
sufficient to counteract the significant
decline in sales volumes.
Eleven
Top: The prestigious “Sentinels of Safety” Award received by the Sabine Mining Company in 2011.
Bottom: A truck/shovel operation uncovers coal in one of the pits at the Falkirk Mine.