Hamilton Beach 2011 Annual Report Download - page 20

to achieve target margins until sales
volumes increase and additional under-
performing stores have been closed.
Conclusions and NACCO
Outlook
NACCO and its subsidiaries’ efforts
to increase revenues and reduce costs are
affected by the global economic environ-
ment. While the economic environment in
the United States continues to improve,
uncertainties still remain, especially in
Europe. In addition, specific markets for
NACCO’s subsidiaries are moderating or
uncertain at this time. Each subsidiary is
proceeding carefully and monitoring
economic and market conditions closely,
while remaining focused on its programs
for improving financial results and achieving
its minimum financial goals. While NMHG,
HBB and Kitchen Collection did not meet
their minimum financial goals in 2011
and NACoal met only its ROTCE goal,
NACCO’s companies benefited from strong
improvement programs put in place and are
confident that they are solidly positioned
for market improvements. These programs
will enable the subsidiary companies to
continue to move toward achievement of all
the minimum financial objectives, enhance
the strong ROTCE results at NMHG, HBB
and NACoal and reach acceptable levels
at Kitchen Collection.
In 2012, overall consolidated results
are expected to decrease compared with
2011, excluding the Applica settlement,
primarily because of a decrease at NMHG
as a result of an anticipated shift in
sales mix to lower-margin markets, higher
marketing costs and adverse foreign
currency movements. Improvement is
expected at HBB as it focuses on top-line
growth through placements and promo-
tions. Improved results are expected at
Kitchen Collection as new stores gain
traction and the company focuses on
improving the profitability of its Le Gourmet
Chef®stores. Finally, an expected increase
in tons delivered and a higher level of
production at MLMC are expected to lead
to improved results at NACoal.
NACCO plans to continue to focus
on maximizing cash flow before financing
activities in 2012 and in future years, with
an increase in cash flow before financing
activities anticipated for 2012 in compari-
son to 2011, despite an expected increase
in capital expenditures at NMHG and
Kitchen Collection. In general, future capital
expenditures are expected to be modest
relative to cash flow in the years ahead
unless new growth opportunities develop.
NACCO continues to have great
confidence in the management teams
leading each of the Company’s subsidiaries.
These many experienced and highly
motivated professionals worked success-
fully to overcome challenges and deliver
the Company’s strong financial results
in 2011.
O
In closing, we would like to recognize
the outstanding contributions over the past
18 years of Owsley Brown II, who passed
away last fall. He will be greatly missed by
NACCO’s Directors and employees.
We would also like to welcome General
John P. Jumper to the NACCO Board of
Directors. General Jumper is currently Chief
Executive Officer of SAIC, a government
technology solutions company. He retired in
2005 from the United States Air Force after
a distinguished 39-year career, including
service as the 17th Chief of Staff of the
United States Air Force. Prior to assuming
the position of Chief of Staff, General
Jumper served as Commander of Air
Combat Command at Langley Air Force
Base, Virginia. He also served at the
Pentagon as Deputy Chief of Staff for Air
and Space Operations, as the Senior
Military Assistant to two Secretaries of
Defense and as Special Assistant to the
Chief of Staff for Roles and Missions.
We are privileged to have him join us
as a Director.
Finally, we would like to take this
opportunity to thank all of our subsidiaries’
customers, retailers, dealers and suppliers
and all NACCO stockholders for their
continued support. We would also like to
thank all NACCO and subsidiary employees
most sincerely for their continued hard
work and commitment to achieving the
successes and meeting the challenges
of 2011. We look forward to working
together for a successful 2012.
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Alfred M. Rankin, Jr.
Chairman, President and Chief Executive Officer,
NACCO Industries, Inc.
Michael P. Brogan
President and Chief Executive Officer,
NACCO Materials Handling Group, Inc.
Gregory H. Trepp
President and Chief Executive Officer,
Hamilton Beach Brands, Inc.
Chief Executive Officer, The Kitchen Collection, LLC
Robert L. Benson
President and Chief Executive Officer,
The North American Coal Corporation
Richard R. Chene, Jr.
President, The Kitchen Collection, LLC