CLEVELAND, Aug. 5 /PRNewswire-FirstCall/ -- NACCO Industries, Inc.
(NYSE: NC) today announced consolidated net income attributable to
stockholders for the second quarter of 2009 of $1.6 million, or
$0.19 per diluted share, on revenues of $545.2 million compared
with consolidated net income attributable to stockholders for the
second quarter of 2008 of $2.3 million, or $0.28 per diluted share,
on revenues of $948.1 million. Revenues declined in the second
quarter of 2009 primarily as a result of lower volumes at NACCO's
materials handling subsidiary ("NMHG") due to a significant drop in
global market demand. NACCO and Subsidiaries Consolidated Second
Quarter Highlights Key perspectives on NACCO's second quarter
results are as follows: -- NMHG Wholesale's net loss attributable
to stockholders was $1.3 million in 2009, compared with net income
attributable to stockholders of $3.2 million in 2008. The key
driver for the change in results at NMHG Wholesale was a
significant decline in volume for units and parts, partially offset
by favorable foreign currency movements, favorable pricing, lower
warranty and inventory carrying costs and benefits from cost
containment actions. -- NMHG Retail had a net loss of $1.8 million
in 2009, compared with a net loss of $0.6 million in 2008. The key
drivers for the increase in the net loss were reduced volumes,
unfavorable margins, increased income tax expense and the loss on
sale of certain Australian Hyster dealership assets, partially
offset by reduced spending. -- In light of the current difficult
economic conditions, NACCO increased the capitalization of NMHG by
making cash and non-cash contributions of $33.9 million during the
second quarter of 2009. -- A weak North American consumer market
continued to affect volumes at Hamilton Beach and Kitchen
Collection. However, as a result of certain favorable factors, both
reported improved results in the second quarter. -- Hamilton
Beach's net income increased to $4.7 million in 2009 from a net
loss of $0.6 million in 2008. The increase primarily resulted from
sales of higher-priced products and reduced expenses as a result of
cost containment actions implemented in late 2008 and early 2009,
partially offset by the unfavorable effects of higher costs of
products sold. -- Kitchen Collection had a smaller net loss of $1.7
million in 2009 compared with $3.7 million in 2008 primarily due to
improved gross margins at comparable stores and a reduction in
operating expenses. -- North American Coal's net income increased
to $7.1 million in 2009 compared with $6.4 million in 2008
primarily due to an increase in coal deliveries, contractual price
escalation at the consolidated and unconsolidated mining operations
and reduced costs for diesel fuel at the consolidated mining
operations. The Company reported a consolidated net loss
attributable to stockholders for the six months ended June 30, 2009
of $7.5 million, or $0.90 per share, on revenues of $1.1 billion.
This compared with consolidated net income of $7.9 million, or
$0.95 per diluted share, on revenues of $1.8 billion for the first
six months of 2008. Consolidated Outlook for 2009 Economic and
market conditions continued to be very weak in the second quarter
of 2009 and the global recession appears likely to continue through
the remainder of 2009. The forklift truck capital goods market in
which NMHG participates continues to be in a significant global
downturn that has resulted in unprecedented declines in industry
factory bookings in the Americas, Europe and Asia-Pacific, although
the declines are beginning to stabilize at very low levels. The
consumer markets in which Hamilton Beach and Kitchen Collection
participate are likely to continue to decline during the remainder
of 2009 as consumers struggle with high unemployment rates and
lower income levels. Changes in product positioning and product
costs have been implemented at NMHG and Hamilton Beach to achieve
more acceptable margin positions in the second half of 2009 despite
lower market levels. While North American Coal's lignite coal
operations continue to be strong, the company expects limerock
production to be significantly lower in the second half of 2009
than in the second half of 2008 due to an unfavorable legal ruling
that set aside customers' existing mining permits at most of the
limerock mining operations and continued low demand in the housing
and construction markets in southern Florida. Limerock customers
are expected to return to production under new permits currently
anticipated to be issued toward the beginning of 2010. The Company
is operating on the assumption that the economic environment will
not improve significantly in the latter half of 2009. Aggressive
plans and cost containment actions put in place in late 2008 and
early 2009 to help meet the challenges of 2009 have moderated the
effect of the economic downturn in the first half of the year. The
Company will continue to focus on cost reductions throughout the
remainder of 2009. At NMHG, these cost containment actions will not
overcome the effect of reduced volumes. NMHG is expected to have a
significant full year loss, although NMHG's second half 2009
results are expected to improve compared with the first half of the
year, despite an anticipated very weak third quarter. NMHG Retail
expects to incur moderate losses in the second half of 2009. While
the consumer businesses anticipate continued weak markets in the
remainder of 2009, both Hamilton Beach and Kitchen Collection
currently expect significantly improved 2009 full year results,
with steadily increasing improvements in the third and fourth
quarters, compared with very weak 2008 results before charges for
goodwill and intangible impairment. Kitchen Collection is expected
to benefit significantly from the new Le Gourmet Chef store format
that is in place and from the non-recurrence of the prior year's
large product clearance program which was successfully completed in
the third quarter of 2008. North American Coal expects full year
2009 net income to improve in comparison with 2008, although
results in the second half of 2009, exclusive of pending
transactions, are expected to be moderately lower than the second
half of 2008. Overall, NACCO expects its subsidiaries to generate
substantial cash flow before financing activities over the
remainder of 2009 and for the full year. Currently, NACCO has
substantial cash availability, which provides the Company with
flexibility to capitalize its subsidiaries. Detailed Discussion of
Results NMHG Wholesale - Second Quarter Results NMHG Wholesale
reported a net loss attributable to stockholders of $1.3 million on
revenues of $342.7 million for the second quarter of 2009 compared
with net income attributable to stockholders of $3.2 million on
revenues of $742.4 million for the second quarter of 2008. Revenues
decreased 54 percent in the second quarter of 2009 compared with
the second quarter of 2008 primarily as a result of a decrease in
units and parts volume in all geographic regions due to the
economic downturn in each of these markets. Worldwide shipments in
the second quarter of 2009 declined 59 percent to approximately
9,700 units from shipments of approximately 23,400 units in the
second quarter of 2008. Unfavorable foreign currency movements as
the U.S. dollar strengthened against the British pound and
Australian dollar also contributed to the decrease in revenues. A
favorable shift in sales mix to higher-priced lift trucks in
Asia-Pacific and the effect of unit and parts price increases
implemented in prior years in the Americas and Europe slightly
offset the revenue decline. Unit revenues and shipments were down
significantly from the prior year and were also down nine percent
compared with unit shipments of 10,711 in the first quarter of
2009. Parts sales also declined in the second quarter of 2009
compared with both the previous year's second quarter and the first
quarter of 2009. NMHG Wholesale's worldwide backlog was
approximately 12,300 units at June 30, 2009 compared with
approximately 12,800 units at March 31, 2009, 14,900 units at
December 31, 2008 and 28,400 units at June 30, 2008. The $4.5
million decrease in reported results in the second quarter of 2009
compared with the second quarter of 2008 was primarily attributable
to a decline in gross profit of $50.3 million partially offset by
$18.8 million pre-tax of favorable foreign currency movements,
reduced workforce levels and lower employee-related and other
selling, general and administrative expenses totaling $22.6 million
as a result of cost containment actions implemented in late 2008
and early 2009. Gross profit declined mainly as a result of
significantly reduced unit and parts volume, a shift in mix to
sales of lower-margin units and an increase in manufacturing costs
as less fixed costs were absorbed due to lower production volumes.
These unfavorable items were partially offset by price increases
implemented in prior periods, which resulted in benefits totaling
$13.4 million pre-tax, reduced warranty costs resulting from better
claims experience and lower sales volumes, lower inventory carrying
costs and decreases in material costs totaling $6.1 million,
pre-tax. For the six months ended June 30, 2009, NMHG Wholesale
reported a net loss attributable to stockholders of $20.4 million
on revenues of $714.3 million compared with net income attributable
to stockholders of $11.1 million on revenues of $1.4 billion for
the first six months of 2008. NMHG Wholesale - Outlook NMHG
Wholesale expects continued significant declines in all lift truck
markets for the second half of 2009 compared with the second half
of 2008. Global market levels for units do, however, appear to have
stabilized at current low levels. Parts volumes also appear to be
stabilizing around current levels. NMHG Wholesale is not
anticipating a market upturn of any significance during 2009. As a
result, the company expects significantly lower unit booking and
shipment levels and a reduction in parts sales in the remainder of
2009 compared with the second half of 2008, although parts sales
are expected to pick up slightly in the second half of 2009
compared with the first half of 2009. NMHG Wholesale took a number
of steps in late 2008 and the first quarter of 2009 to respond to
the market outlook. These steps included capital expenditure
restraints, planned plant downtime, reductions-in-force,
restrictions on spending and travel, suspension of incentive
compensation and profit-sharing, wage freezes and salary and
benefit reductions, all of which are expected to continue to reduce
expenses in the remainder of 2009 compared with 2008. NMHG
Wholesale is closely monitoring its operations and will make
additional adjustments if necessary. NMHG Wholesale is also
actively monitoring commodity costs and other supply chain drivers
to ensure timely implementation of reductions in pricing because
material costs, specifically steel, fuel and freight, have
moderated. NMHG Wholesale's warehouse truck and big truck product
development programs, and its important new electric-rider lift
truck program, are progressing as planned. The new electric-rider
lift truck program is expected to bring a full line of newly
designed products to market. During the second quarter of 2009,
NMHG Wholesale introduced two series, the 1 to 2 ton three- and
four-wheel electric trucks in Europe and the 2 to 3 ton four-wheel
electric trucks in the Americas, which have been very well
received. The company expects to introduce two additional series in
the second half of 2009. NMHG Wholesale is expected to operate at a
loss for the 2009 full year. However, modest unit and parts volume
improvements, benefits from new product introductions, reduced
material and product costs, as well as further general expense
reductions, are anticipated in the second half of the year, which
are expected to drive an improvement in earnings in the fourth
quarter following a very weak third quarter. Cash flow before
financing activities is expected to continue to improve
significantly in the second half of 2009 compared with 2008 in
addition to improvements realized in the first half of 2009
primarily as a result of a reduction in working capital and lower
capital expenditures. Longer-term, NMHG Wholesale has been
reviewing ways to strengthen its Hyster and Yale dealer structure
in North America. As a result of this review, NMHG Wholesale has
adjusted its current policy to permit common ownership of dealers
for its two brands, Hyster and Yale , in defined North American
territories, under controlled conditions. NMHG Retail - Second
Quarter Results NMHG Retail, which includes the required
elimination of intercompany transactions between NMHG Wholesale and
NMHG's wholly owned retail dealerships, reported a net loss for the
second quarter of 2009 of $1.8 million on revenues of $19.3 million
compared with a net loss for the second quarter of 2008 of $0.6
million on revenues of $25.1 million. Revenues decreased primarily
because of unfavorable foreign currency movements due to the
weakening of the Australian dollar and British pound. In addition,
lower new and used unit and parts volumes and lower rental and
service revenues in Asia-Pacific and Europe also contributed to the
decline. The decrease in revenues was partially offset by a
reduction in the required intercompany revenue elimination compared
with the prior year quarter caused by a decline in intercompany
sales transactions. NMHG Retail's increased net loss was primarily
the result of lower volume, reduced rental margins in Europe and
lower unit, service and rental margins in Asia-Pacific. Also
contributing to the increased net loss was the increase in income
tax expense due to the recognition of expense on a pre-tax loss
rather than a benefit as a result of a change in the intercompany
tax elimination adjustment. In addition, during the 2009 second
quarter, NMHG Retail sold certain Australian Hyster dealership
assets for a small loss. Lower operating expenses in Asia-Pacific
and Europe as a result of cost reductions partially offset these
unfavorable items. For the six months ended June 30, 2009, NMHG
Retail had a net loss of $1.2 million on revenues of $36.8 million
compared with a net loss of $1.2 million on revenues of $46.1
million for the first six months of 2008. NMHG Retail - Outlook
NMHG Retail's operations are expected to continue to focus on
achieving the company's strategic objective of at least break-even
results while building market position. However, if economic
conditions in the United Kingdom and Australia remain low or
continue to deteriorate, sales of units, parts and service are
likely to decline further, which could continue to affect revenues
and profit margins adversely. Hamilton Beach - Second Quarter
Results Hamilton Beach reported net income of $4.7 million for the
second quarter of 2009 on revenues of $107.2 million, compared with
a net loss of $0.6 million for the second quarter of 2008 on
revenues of $108.8 million. Revenues decreased in the 2009 second
quarter compared with 2008 primarily due to adverse foreign
currency movements caused by a weakening Canadian dollar and
Mexican peso. This decline was largely offset by Hamilton Beach's
strong presence at mass merchants, which drove moderately improved
volumes in the second quarter of 2009. Net income increased in the
second quarter of 2009 compared with 2008 primarily as a result of
sales of higher-priced products, lower transportation and
warehousing costs and cost containment actions implemented in late
2008 and early 2009, which included personnel reductions and the
suspension or reduction of several employee-related benefits. The
improvement in net income was partially offset by higher costs of
products sold in the second quarter of 2009 compared with the
second quarter of 2008 mainly due to higher commodity costs. For
the six months ended June 30, 2009, Hamilton Beach reported net
income of $6.1 million on revenues of $201.4 million compared with
a net loss of $0.5 million on revenues of $204.0 million for the
first six months of 2008. Hamilton Beach - Outlook The global
recession and other consumer financial concerns are among factors
creating an extremely uncertain and challenging retail environment.
As a result, Hamilton Beach's revenues for the second half of 2009
are expected to be lower than the second half of 2008. As a result
of anticipated lower volumes, Hamilton Beach took aggressive cost
containment actions in early 2009, including personnel reductions,
spending and travel restrictions, suspension of incentive
compensation, other employee-related benefit reductions and wage
freezes. These actions, along with initiatives to improve pricing
and product positioning and to reduce product and transportation
costs in light of softening commodity costs for resins, copper,
steel, aluminum and fuel, are expected to continue to help Hamilton
Beach have significantly improved results for the remainder of the
year in comparison with 2008. Despite the challenging economic
environment, Hamilton Beach is placing continued focus on
strengthening its market position through product innovation,
promotions and branding programs, together with appropriate
advertising. New products were introduced in 2008, and additional
new product introductions are in the pipeline for 2009. As a result
of these new products, Hamilton Beach anticipates continued strong
placements in the remainder of 2009, with increased placements and
distribution at some retailers. Overall, 2009 net income and cash
flow before financing activities are currently expected to improve
significantly compared with very weak 2008 results before the
goodwill impairment charge of $80.7 million pre-tax because of the
previously discussed actions, with steadily, increasing
improvements in the third and fourth quarters. However, if the
company's markets, which currently appear to have stabilized,
deteriorate, revenues and earnings could be adversely affected.
Kitchen Collection - Second Quarter Results Kitchen Collection
reported a net loss of $1.7 million on revenues of $40.6 million
for the second quarter of 2009 compared with a net loss of $3.7
million on revenues of $39.7 million for the second quarter of
2008. Kitchen Collection's second quarter 2009 revenue increased
slightly compared with the prior year. The increase over the prior
year was a result of an increase in new store sales and an increase
in Kitchen Collection comparable store sales mainly as a result of
an increase in the number of store transactions. The increase was
partially offset by lower comparable store sales at the Le Gourmet
Chef stores due to fewer transactions and a lower average sales
transaction value at both Kitchen Collection and Le Gourmet Chef .
Opening and closing stores caused the number of Kitchen Collection
and Le Gourmet Chef stores to be 202 and 78, respectively, at June
30, 2009, from 198 and 74, respectively, at June 30, 2008, and 202
and 83 stores, respectively, at December 31, 2008. Kitchen
Collection had a lower net loss in the second quarter of 2009
compared with the second quarter of 2008. The year over year
decrease was primarily due to higher gross margins caused by fewer
markdowns in 2009 compared with 2008, lower product and freight
costs and a decrease in warehousing costs as a result of the
movement of the Le Gourmet Chef warehouse from a third-party
provider to a Kitchen Collection-managed distribution operation in
the third quarter of 2008. For the six months ended June 30, 2009,
Kitchen Collection reported a net loss of $4.5 million on revenues
of $80.3 million compared with a net loss of $6.9 million on
revenues of $78.9 million for the first six months of 2008. Kitchen
Collection - Outlook Uncertainty in the U.S. economy and diminished
consumer confidence are expected to continue to affect consumer
traffic to outlet and traditional malls and negatively affect
retail spending decisions for the remainder of 2009. Nevertheless,
Kitchen Collection expects an improved holiday selling season in
late 2009 due to the continued strength of Kitchen Collection
stores and to the expectation of significantly improved margins at
the Le Gourmet Chef stores resulting from the conclusion of new
product enhancement and store-merchandising programs and from the
completion of a large product clearance program in the Le Gourmet
Chef stores that significantly reduced margins in 2008. Capital
expenditure restraints and administrative cost control measures
implemented in late 2008 and early 2009 are also expected to
continue to improve results in the latter half of 2009. Overall,
Kitchen Collection expects that increasing improvements in
quarterly results for the second half of the year will lead to
significantly improved full year results compared with 2008 results
before charges for goodwill and intangible impairment of $3.9
million, pre-tax. Cash flow before financing activities is expected
to be about break-even in 2009 and significantly improved compared
with 2008. Longer term, Kitchen Collection expects to deliver store
growth in the Kitchen Collection and Le Gourmet Chef formats.
However, the total number of Kitchen Collection and Le Gourmet Chef
stores is unlikely to increase in 2009. North American Coal -
Second Quarter Results North American Coal's net income for the
second quarter of 2009 was $7.1 million on revenues of $36.2
million compared with net income of $6.4 million on revenues of
$33.1 million for the second quarter of 2008. North American Coal's
lignite coal and limerock deliveries for the second quarter of 2009
compared with the second quarter of 2008 are as follows: 2009 2008
-------- -------- Lignite coal deliveries (tons) (in millions)
Consolidated mines 1.9 1.6 Unconsolidated mines 6.4 6.5 --------
-------- Total lignite coal deliveries 8.3 8.1 ======== ========
Limerock deliveries (cubic yards) 0.6 6.3 ======== ========
Revenues increased in the second quarter of 2009 compared with the
second quarter of 2008 primarily due to increased coal deliveries
and contractual price escalation at the Mississippi Lignite Mining
Company, higher sales to third-parties at Red River Mining Company
and an increase in revenues from other mining services. These
increases were partially offset by reduced deliveries at the
limerock dragline mining operations primarily resulting from an
unfavorable legal ruling that set aside North American Coal's
customers' mining permits at most of the limerock mining operations
and the continued decline in the southern Florida housing and
construction markets. The company's customers are currently
appealing this ruling. The increase in the 2009 second quarter net
income compared with the 2008 second quarter was primarily
attributable to favorable operating results at the lignite mining
operations and revenues from other mining services. Results at the
consolidated mining operations improved as a result of increased
tonnage, contractual price escalation and reduced costs for diesel
fuel. Results at the unconsolidated mining operations improved
mainly due to increased deliveries and contractual price
escalation. These increases were partially offset by higher
employee-related expenses, expenses from developing new mining
opportunities and an increase in income tax expense resulting from
a shift in the mix of pre-tax income toward entities with higher
income tax rates. North American Coal - Outlook North American
Coal's lignite coal mining operations have not been significantly
affected by the economic downturn because of the long-term
contracts with North American Coal's customers and continued stable
demand for electricity from the power plants it serves. North
American Coal expects improved full year results at its lignite
coal mining operations in 2009 provided that its customers continue
to achieve currently planned power plant operating levels. Tons
delivered by the lignite coal mines are expected to increase for
the 2009 full year compared with 2008, but are expected to decline
moderately in the second half of 2009 compared with the second half
of 2008. In addition, contractual price escalation is not expected
to affect second half results as favorably in 2009 as it did in the
second half of 2008 because of recent declines in commodity costs.
Limerock customer projections for 2009 third and fourth quarter
deliveries continue to be down compared with the prior year. For
limerock mining operations within the lake belt region of Florida,
production will be significantly reduced due to an unfavorable
legal ruling that set aside North American Coal's customers' mining
permits at most of the limerock mining operations. Customers are
expected to return to production under new permits that are
currently anticipated to be issued toward the beginning of 2010.
The company has mitigated its financial exposure to these limerock
operations by entering into new cost reimbursable management fee
contracts with the majority of its customers. Customer projections
for deliveries for limerock mining operations outside of the lake
belt region reflect the continued decline in the southern Florida
housing and construction markets. In addition, early in the third
quarter of 2009, North American Coal entered into a new limerock
mining services contract for a quarry outside of the region covered
by the legal ruling which calls for deliveries of approximately 1.0
million cubic yards annually once the market improves, allowing the
quarry to resume full operation. North American Coal expects to
commence limerock mining at this quarry in the third quarter of
2009. Overall, North American Coal expects full year 2009 net
income to improve in comparison with 2008, although results in the
second half of 2009, exclusive of pending transactions, are
expected to be moderately lower than the second half of 2008. Full
year cash flow before financing activities is expected to increase
due to increased cash flow from operations. The company has a
number of new project opportunities for which it expects to incur
additional expenses in 2009. In April 2009, North American Coal
entered into an agreement to sell the assets of the Red River
Mining Company in Louisiana to its customer for approximately $42
million in cash, subject to closing adjustments. The sale of the
mine, which is subject to customary closing conditions, including
regulatory approval, is expected to generate a substantial gain and
enhance cash flow when the transaction is completed in late 2009.
In the second quarter of 2009, North American Coal entered into a
new contract mining services agreement to provide approximately
300,000 to 400,000 tons of lignite coal annually to a new customer,
with initial deliveries expected to commence in 2010. The company
is also continuing to pursue other contract mining opportunities.
The company continues to seek permitting at its Otter Creek Reserve
in North Dakota in expectation of the construction of a new mine.
In addition, the company is working on a project with Mississippi
Power to provide lignite coal to a new power plant in Mississippi.
Over the longer term, North American Coal expects to continue its
efforts to develop new domestic coal projects and is hopeful that
more new project opportunities may become available, including
opportunities for coal-to-liquids, coal gasification and other
clean coal technologies. Further, the company continues to pursue
additional non-coal mining opportunities. Conference Call In
conjunction with this news release, the management of NACCO
Industries, Inc. will host a conference call on Thursday, August 6,
2009 at 11:00 a.m. eastern time. The call may be accessed by
dialing (888) 713-4205 (Toll Free) or (617) 213-4862
(International), Passcode: 29940809, or over the Internet through
NACCO Industries' website at http://www.nacco.com/. Please allow 15
minutes to register, download and install any necessary audio
software required to listen to the broadcast. A replay of the call
will be available shortly after the end of the conference call
through August 13, 2009. The online archive of the broadcast will
be available on the NACCO Industries website. Forward-looking
Statements Disclaimer The statements contained in the news release
that are not historical facts are "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These
forward-looking statements are made subject to certain risks and
uncertainties, which could cause actual results to differ
materially from those presented. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date hereof. The Company undertakes no obligation to
publicly revise these forward-looking statements to reflect events
or circumstances that arise after the date hereof. Such risks and
uncertainties with respect to each subsidiary's operations include,
without limitation: NMHG: (1) reduction in demand for lift trucks
and related aftermarket parts and service on a worldwide basis,
including the ability of NMHG's dealers and end-users to obtain
financing at reasonable rates as a result of current economic
conditions, (2) changes in sales prices, (3) delays in delivery or
increases in costs, including transportation costs, of raw
materials or sourced products and labor, (4) exchange rate
fluctuations, changes in foreign import tariffs and monetary
policies and other changes in the regulatory climate in the foreign
countries in which NMHG operates and/or sells products, (5) delays
in, increased costs from or reduced benefits from restructuring
programs, (6) customer acceptance of, changes in the costs of, or
delays in the development of new products, (7) introduction of new
products by, or more favorable product pricing offered by, NMHG's
competitors, (8) delays in manufacturing and delivery schedules,
(9) changes in or unavailability of suppliers, (10) bankruptcy of
or loss of major dealers, retail customers or suppliers, (11)
product liability or other litigation, warranty claims or returns
of products, (12) the effectiveness of the cost reduction programs
implemented globally, including the successful implementation of
procurement and sourcing initiatives, (13) acquisitions and/or
dispositions of dealerships by NMHG, (14) changes mandated by
federal and state regulation, including health, safety or
environmental legislation, (15) the ability of NMHG and its dealers
and suppliers to access credit in the current economic environment
and (16) the ability of NMHG to obtain future financing on
reasonable terms or at all. Hamilton Beach: (1) changes in the
sales prices, product mix or levels of consumer purchases of small
electric appliances, (2) changes in consumer retail and credit
markets, (3) bankruptcy of or loss of major retail customers or
suppliers, (4) changes in costs, including transportation costs, of
sourced products, (5) delays in delivery of sourced products, (6)
changes in, or unavailability of quality or cost effective,
suppliers, (7) exchange rate fluctuations, changes in the foreign
import tariffs and monetary policies and other changes in the
regulatory climate in the foreign countries in which Hamilton Beach
buys, operates and/or sells products, (8) product liability,
regulatory actions or other litigation, warranty claims or returns
of products, (9) customer acceptance of, changes in costs of, or
delays in the development of new products, (10) increased
competition, including consolidation within the industry, (11) the
ability of Hamilton Beach and its customers and suppliers to access
credit in the current economic environment and (12) the ability of
Hamilton Beach to obtain future financing on reasonable terms or at
all. Kitchen Collection: (1) changes in gasoline prices, weather
conditions, the level of consumer confidence and disposable income
as a result of the current financial crisis or other events or
other conditions that may adversely affect the number of customers
visiting Kitchen Collection and Le Gourmet Chef stores, (2) changes
in the sales prices, product mix or levels of consumer purchases of
kitchenware, small electric appliances and gourmet foods, (3)
changes in costs, including transportation costs, of inventory, (4)
delays in delivery or the unavailability of inventory, (5) customer
acceptance of new products, (6) increased competition and (7) the
ability of Kitchen Collection to obtain future financing on
reasonable terms or at all. North American Coal: (1) weather
conditions, extended power plant outages or other events that would
change the level of customers' lignite coal or limerock
requirements, (2) weather or equipment problems that could affect
lignite coal or limerock deliveries to customers, (3) changes in
mining permit requirements that could affect deliveries to
customers, including the resumption of Florida limerock mining, (4)
changes in costs related to geological conditions, repairs and
maintenance, new equipment and replacement parts, fuel or other
similar items, (5) costs to pursue and develop new mining
opportunities, including costs in connection with North American
Coal's joint ventures, (6) consummation of the sale of the Red
River Mining Company, (7) changes in U.S. regulatory requirements,
including changes in power plant emission regulations, (8) changes
in the power industry that would affect demand for North American
Coal's reserves, (9) the ability of North American Coal's utility
customers to access credit markets to maintain current liquidity
and (10) the ability of North American Coal to obtain future
financing on reasonable terms or at all. About NACCO NACCO
Industries, Inc. is an operating holding company with subsidiaries
in the following principal industries: lift trucks, small appliance
distribution, specialty retail and mining. NACCO Materials Handling
Group, Inc. designs, engineers, manufactures, sells, services and
leases a comprehensive line of lift trucks and aftermarket parts
marketed globally under the Hyster and Yale brand names. Hamilton
Beach Brands, Inc. is a leading designer, marketer and distributor
of small electric household appliances, as well as commercial
products for restaurants, bars and hotels. The Kitchen Collection,
Inc. is a national specialty retailer of kitchenware and gourmet
foods operating under the Kitchen Collection and Le Gourmet Chef
store names in outlet and traditional malls throughout the United
States. The North American Coal Corporation mines and markets
lignite coal primarily as fuel for power generation and provides
selected value-added mining services for other natural resources
companies. For more information about NACCO Industries, visit the
Company's website at http://www.nacco.com/. NACCO INDUSTRIES, INC.
AND SUBSIDIARIES UNAUDITED CONSOLIDATED FINANCIAL AND OPERATING
HIGHLIGHTS Three Months Ended Six Months Ended June 30 June 30
--------------------- --------------------- 2009 2008 2009 2008
---------- ---------- ---------- ---------- (In millions, except
per share data) Total revenues $545.2 $948.1 $1,103.8 $1,813.1 Cost
of sales 452.1 826.2 924.9 1,558.9 ---------- ---------- ----------
---------- Gross profit 93.1 121.9 178.9 254.2 Earnings of
unconsolidated project mining subsidiaries 9.8 9.3 20.3 17.9
Operating expenses Selling, general and administrative expenses
88.3 119.7 186.4 243.9 Restructuring charges 1.5 0.8 2.2 1.4 Gain
on sale of assets (0.5) - (2.2) (0.2) ---------- ----------
---------- ---------- 89.3 120.5 186.4 245.1 Operating profit
(loss) 13.6 10.7 12.8 27.0 Other income (expense) (7.2) (7.6)
(15.1) (15.8) ---------- ---------- ---------- ---------- Income
(loss) before income taxes 6.4 3.1 (2.3) 11.2 Income tax provision
5.0 0.7 5.4 3.2 ---------- ---------- ---------- ---------- Net
income (loss) 1.4 2.4 (7.7) 8.0 Net (income) loss attributable to
noncontrolling interest 0.2 (0.1) 0.2 (0.1) ---------- ----------
---------- ---------- Net income (loss) attributable to
stockholders $1.6 $2.3 $(7.5) $7.9 ========== ========== ==========
========== Basic and diluted earnings (loss) per share $0.19 $0.28
$(0.90) $0.95 ========== ========== ========== ========== Cash
dividends per share $0.5175 $0.5150 $1.0325 $1.0150 Basic weighted
average shares outstanding 8.289 8.282 8.288 8.278 Diluted weighted
average shares outstanding 8.294 8.288 8.288 8.285 (All amounts are
subject to annual audit by our independent registered public
accounting firm.) NACCO INDUSTRIES, INC. AND SUBSIDIARIES UNAUDITED
CONSOLIDATED FINANCIAL AND OPERATING HIGHLIGHTS Three Months Ended
Six Months Ended June 30 June 30 ---------------------
--------------------- 2009 2008 2009 2008 ---------- ----------
---------- ---------- (In millions) Revenues NACCO Materials
Handling Group Wholesale $342.7 $742.4 $714.3 $1,420.3 NACCO
Materials Handling Group Retail (including elims.) 19.3 25.1 36.8
46.1 ---------- ---------- ---------- ---------- NACCO Materials
Handling Group 362.0 767.5 751.1 1,466.4 ---------- ----------
---------- ---------- Hamilton Beach 107.2 108.8 201.4 204.0
Kitchen Collection 40.6 39.7 80.3 78.9 North American Coal 36.2
33.1 72.7 65.4 NACCO and Other - - - - Eliminations (0.8) (1.0)
(1.7) (1.6) ---------- ---------- ---------- ---------- Total
$545.2 $948.1 $1,103.8 $1,813.1 ========== ========== ==========
========== Operating profit (loss) NACCO Materials Handling Group
Wholesale $(0.7) $7.3 $(13.5) $20.7 NACCO Materials Handling Group
Retail (including elims.) (1.0) (0.1) (0.8) (0.3) ----------
---------- ---------- ---------- NACCO Materials Handling Group
(1.7) 7.2 (14.3) 20.4 ---------- ---------- ---------- ----------
Hamilton Beach 9.8 1.3 14.2 4.0 Kitchen Collection (2.6) (5.3)
(6.9) (10.8) North American Coal 9.5 7.9 22.3 14.4 NACCO and Other
(1.5) (0.3) (2.6) (1.0) Eliminations 0.1 (0.1) 0.1 - ----------
---------- ---------- ---------- Total $13.6 $10.7 $12.8 $27.0
========== ========== ========== ========== Net income (loss)
attributable to stockholders NACCO Materials Handling Group
Wholesale $(1.3) $3.2 $(20.4) $11.1 NACCO Materials Handling Group
Retail (including elims.) (1.8) (0.6) (1.2) (1.2) ----------
---------- ---------- ---------- NACCO Materials Handling Group
(3.1) 2.6 (21.6) 9.9 ---------- ---------- ---------- ----------
Hamilton Beach 4.7 (0.6) 6.1 (0.5) Kitchen Collection (1.7) (3.7)
(4.5) (6.9) North American Coal 7.1 6.4 17.9 10.2 NACCO and Other
(1.4) (0.6) (2.9) (0.2) Eliminations (4.0) (1.8) (2.5) (4.6)
---------- ---------- ---------- ---------- Total $1.6 $2.3 $(7.5)
$7.9 ========== ========== ========== ========== (All amounts are
subject to annual audit by our independent registered public
accounting firm.) DATASOURCE: NACCO Industries, Inc. CONTACT:
Christina Kmetko, of NACCO Industries, Inc., +1-440-449-9669 Web
Site: http://www.nacco.com/
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