CLEVELAND, Nov. 4 /PRNewswire-FirstCall/ -- NACCO Industries, Inc.
(NYSE: NC) today announced a consolidated net loss for the third
quarter of 2009 of $3.9 million, or $0.47 per share, on revenues of
$532.6 million compared with a consolidated net loss for the third
quarter of 2008 of $17.3 million, or $2.09 per share, on revenues
of $917.8 million. NACCO's third quarter 2008 results were
negatively affected by the recognition of a non-cash tax charge of
$14.5 million against the accumulated deferred tax assets at NACCO
Materials Handling Group's ("NMHG") Australian operations and for
certain U.S. state taxing jurisdictions. NACCO's consolidated
revenues for the third quarter of 2009 were lower than the prior
year primarily as a result of lower volumes at NMHG due to a
significant drop in global forklift truck market demand. NACCO and
Subsidiaries Consolidated Third Quarter Highlights Key perspectives
on NACCO's third quarter results are as follows: -- NMHG's net loss
was $22.4 million in 2009, compared with a net loss of $20.1
million in 2008. In early October 2009, NMHG announced a
manufacturing restructuring program and additional
reduction-in-force programs that resulted in a restructuring charge
of $6.9 million both before and after tax. The third-quarter 2008
net loss included a restructuring charge of $1.7 million, or $1.2
million net of taxes of $0.5 million, and additional related costs
of $0.9 million, or $0.6 million net of taxes of $0.3 million.
Excluding the tax charge and the restructuring charges noted above,
third quarter 2009 operating results declined significantly from
the third quarter of 2008. The key drivers for the decline in
operating results at NMHG were a significant decline in volume for
units and parts and unfavorable product sales mix, partially offset
by lower material costs, favorable foreign currency movements,
favorable pricing, lower warranty costs and benefits from cost
containment actions. -- In light of the current difficult economic
conditions, NACCO increased the capitalization of NMHG by making
non-cash contributions of $2.4 million during the third quarter of
2009. -- Hamilton Beach's net income increased to $6.9 million in
2009 from $1.3 million in 2008. The increase resulted primarily
from lower product costs, sales of higher-margin and higher-priced
products and reduced freight costs, partially offset by a decline
in volume. -- Kitchen Collection's net income increased to $0.3
million in 2009 from a net loss of $3.3 million in 2008 primarily
due to improved gross margins at comparable stores. -- North
American Coal's net income increased to $11.4 million in 2009
compared with $7.0 million in 2008 primarily due to lease bonus
payments for leasing certain oil and gas mineral rights to a third
party, partially offset by reduced operating results at Red River
Mining Company and higher income tax expense. For the nine months
ended September 30, 2009, NACCO reported a net loss of $11.4
million, or $1.38 per share, on revenues of $1.6 billion. This
compared with a net loss of $9.4 million, or $1.14 per share, on
revenues of $2.7 billion for the first nine months of 2008.
Consolidated Outlook for 2009 Economic and market conditions
continued to be weak in the third quarter of 2009, although some
positive signs of limited recovery began to emerge. The forklift
truck capital goods market in which NMHG participates continues to
be in a significant global downturn that has resulted in an
unprecedented decline in industry factory bookings in the Americas,
Europe and Asia-Pacific, although the decline, specifically in the
Americas, appears to have stabilized at very low levels. The
consumer markets in which Hamilton Beach and Kitchen Collection
participate are likely to continue to be weak during the fourth
quarter 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 fourth quarter of 2009
despite anticipated lower market levels. While North American
Coal's lignite coal operations continue to be strong, customer
power plant outages and temporarily challenging mining conditions
are expected to result in lower deliveries in the fourth quarter.
North American Coal also expects limerock production to be
significantly lower due to an unfavorable legal ruling that set
aside customers' existing mining permits at most of the limerock
mining operations and continued low demand for limerock due to the
decline in the housing and construction markets in southern
Florida. Limerock customers are expected to return to production
under new permits, which are currently anticipated to be issued in
early 2010. The Company continues to operate on the assumption that
the economic environment will not improve significantly in the
fourth quarter of 2009 or the first part of 2010. Aggressive cost
containment actions and other programs put in place in late 2008
and during 2009 to help meet the challenges of 2009 have moderated
the effect of the economic downturn in the first nine months of the
year and are expected to affect results favorably in the fourth
quarter of 2009. The Company will continue to focus on cost
reductions during the fourth quarter of 2009. At NMHG, these cost
containment actions will not overcome the effect of reduced
volumes, and NMHG is expected to have a moderate loss in the fourth
quarter of 2009. While the consumer businesses anticipate continued
weak markets during the 2009 fourth-quarter holiday season, both
Hamilton Beach and Kitchen Collection currently expect
significantly improved fourth quarter results, compared with very
weak 2008 results before charges for goodwill and intangible
impairments. Kitchen Collection is expected to benefit
significantly from the new Le Gourmet Chef® store format that is in
place, improved merchandising and sustained improvements in
logistics. North American Coal expects results in the fourth
quarter of 2009, excluding the pending Red River Mining Company
sale transaction, to be moderately lower than the fourth quarter 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 in capitalizing its subsidiaries. Detailed Discussion
of Results NMHG - Third Quarter Results Due to the immateriality of
the remaining Retail operations after the sale of the Australian
Hyster® Retail dealerships, the Company has changed its discussion
of NMHG to eliminate the separate Retail discussion and to discuss
only consolidated NMHG information. NMHG reported a net loss of
$22.4 million on revenues of $328.4 million for the third quarter
of 2009 compared with a net loss of $20.1 million on revenues of
$696.4 million for the third quarter of 2008. The third-quarter
2009 net loss includes a restructuring charge totaling $6.9 million
before and after tax for NMHG's Italian operations announced in
early October 2009 and additional reduction-in-force programs.
Included in the third-quarter 2008 net loss was $1.7 million, or
$1.2 million net of taxes of $0.5 million, of restructuring
charges, and additional costs of $0.9 million, or $0.6 million net
of taxes of $0.3 million, related to the Irvine, Scotland
restructuring program. In addition, the third-quarter 2008 net loss
included a non-cash tax charge of $14.5 million against the
accumulated deferred tax assets for NMHG's Australian operations
and for certain U.S. state taxing jurisdictions. Revenues decreased
53 percent in the third quarter of 2009 compared with the third
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 third quarter
of 2009 declined 55 percent to approximately 9,400 units from
shipments of approximately 20,700 units in the third quarter of
2008. The effect of unfavorable foreign currency movements as the
U.S. dollar strengthened against the British pound and Australian
dollar and an unfavorable shift in sales mix to lower-priced lift
trucks in the Americas and Europe also contributed to the decrease
in revenues. The favorable effect of unit and parts price increases
implemented in prior years in the Americas and Europe slightly
offset those revenue decreases. Unit shipments were down
significantly from the prior year but were down only moderately
from unit shipments of approximately 9,900 in the second quarter of
2009. Parts sales also declined in the third quarter of 2009
compared with the previous year's third quarter, but increased
moderately over the second quarter of 2009. NMHG's worldwide
backlog increased slightly to approximately 13,200 units at
September 30, 2009 from a low of approximately 12,300 units at June
30, 2009. Worldwide backlog was approximately 26,000 units at
September 30, 2008. NMHG's net loss, excluding the effect of the
prior year tax charge and restructuring charges discussed
previously, increased significantly in the third quarter of 2009
compared with the third quarter of 2008 primarily as a result of a
decline in gross profit of $34.6 million, partially offset by $20.5
million pre-tax of favorable foreign currency movements and lower
selling, general and administrative expenses. 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 decreases in material costs totaling $20.7 million pre-tax,
price increases implemented in prior periods, which resulted in
benefits totaling $13.6 million pre-tax, and reduced warranty costs
resulting from better claims experience and lower sales volumes.
Selling, general and administrative expenses declined $5.2 million
due to reduced workforce levels and other cost containment actions
implemented in late 2008 and 2009. These favorable expense
reductions were partially offset by an increase in product
liability expense caused by the absence of a favorable adjustment
taken in the prior year third quarter, as well as the absence of a
favorable adjustment in the prior year to reduce the accrual for
the 2008 incentive compensation plans. For the nine months ended
September 30, 2009, NMHG reported a net loss of $44.0 million on
revenues of $1.1 billion compared with a net loss of $10.2 million
on revenues of $2.2 billion for the first nine months of 2008. NMHG
- Outlook Global market levels for units appear to have stabilized
in 2009 at current low levels, especially in the Americas. Parts
volumes also appear to be stabilizing around current levels. NMHG
is not anticipating a market upturn of any significance in the last
quarter of 2009. As a result, the company expects continued
significantly lower levels in all lift truck markets, significantly
lower unit shipment levels and a reduction in parts sales in the
fourth quarter of 2009 compared with the fourth quarter of 2008.
However, unit bookings and parts sales are expected to increase
slightly in the fourth quarter of 2009 compared with the third
quarter of 2009. NMHG has taken a number of steps in late 2008 and
during 2009 to respond to the market outlook, and the company
continues to resize the organization as market conditions warrant
through restructurings and reductions-in-force. Early in October
2009, NMHG announced the closure of one of the company's Italian
facilities which is expected to be completed in early 2010.
Estimated benefits from this restructuring program are
approximately $3.1 million in 2010, approximately $3.5 million in
2011 and approximately $3.1 million in 2012 and annually
thereafter. This program supplements the estimated benefits from
the Irvine, Scotland restructuring program of approximately $2.5
million in the fourth quarter of 2009, approximately $15.6 million
in 2010 and approximately $18 million annually thereafter. In
addition, estimated benefits at the current reduced workforce
levels from the reductions-in-force programs implemented over the
last two years are approximately $11.8 million in the fourth
quarter of 2009 and approximately $50 million on a current
annualized basis with approximately 75 percent of the benefits
related to manufacturing operations. Additional actions taken
include capital expenditure restraints, additional planned plant
downtime, 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 fourth quarter of 2009 compared with 2008.
NMHG is closely monitoring its operations and will make additional
adjustments if necessary. NMHG 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's
warehouse truck and big truck product development programs, and its
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 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 the 2 to 3 ton
four-wheel electric trucks in Europe in the fourth quarter of 2009
and the remainder of the electric-rider lift truck series
throughout 2010. NMHG is expected to operate at a loss for the 2009
full year. However, modest unit and parts volume improvements,
benefits from new product introductions, benefits from
restructuring programs, reduced material and product costs, as well
as further general expense reductions, are anticipated in the
fourth quarter, which are expected to lead to a moderate loss in
the fourth quarter of 2009. Cash flow before financing activities
is expected to improve further in the fourth quarter of 2009
primarily as a result of a reduction in working capital and low
capital expenditures. Longer-term, NMHG has been reviewing ways to
strengthen its Hyster® and Yale® dealer structure in North America.
As a result of this review, NMHG has adjusted its policy to permit
common ownership of dealers for its two brands, Hyster® and Yale®,
in defined North American territories, under controlled conditions.
Hamilton Beach - Third Quarter Results Hamilton Beach reported net
income of $6.9 million for the third quarter of 2009 on revenues of
$118.9 million, compared with net income of $1.3 million for the
third quarter of 2008 on revenues of $138.2 million. Hamilton
Beach's third-quarter 2009 revenues declined 14 percent compared
with 2008 primarily due to reduced sales volumes as a result of
lower consumer spending stemming from the weak global economy,
coupled with reduced distribution to certain retailers. Despite a
decrease in revenues, net income increased in the third quarter of
2009 compared with 2008 primarily from an increase in gross profit.
Lower product costs resulting from the decline in commodity costs,
sales of higher-margin and higher-priced products, lower freight
costs and cost containment initiatives, partially offset by the
decline in volume, were the primary factors for the improvement in
gross profit over the prior year third quarter. For the nine months
ended September 30, 2009, Hamilton Beach reported net income of
$13.0 million on revenues of $320.3 million compared with net
income of $0.8 million on revenues of $342.2 million for the nine
months ended September 30, 2008. Hamilton Beach - Outlook The
economy and other consumer financial concerns are among factors
creating an extremely uncertain and challenging retail environment,
which has resulted in low retail expectations for the normally
strong fourth-quarter holiday-selling season. Accordingly, Hamilton
Beach anticipates revenues for the fourth quarter of 2009 to be
lower than the fourth quarter of 2008. As a result of anticipated
lower full year 2009 volumes, Hamilton Beach took aggressive cost
containment actions in early 2009. These actions, along with
initiatives to improve pricing and product positioning and
initiatives to reduce product and transportation costs are expected
to continue to affect results favorably in the fourth quarter of
2009, resulting in significantly improved fourth quarter 2009 net
income compared with a very weak 2008 fourth quarter. 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 levels of advertising. In addition, Hamilton Beach's
"Good Thinking®" consumer advertising campaign will commence during
the fourth quarter of 2009, and will include two of the company's
most innovative products: the BrewStation® Coffeemaker and the Stay
or Go® Slow Cooker. These products, as well as further new product
introductions in the pipeline for 2010, are expected to affect
revenues favorably. Overall, full-year 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 as a result of
previously discussed actions, including suspended or reduced
employee compensation and benefits. However, if the company's
markets, which currently appear to have stabilized, begin to
deteriorate again, revenues and earnings could be adversely
affected. Kitchen Collection - Third Quarter Results Kitchen
Collection reported net income of $0.3 million on revenues of $48.3
million for the third quarter of 2009 compared with a net loss of
$3.3 million on revenues of $45.6 million for the third quarter of
2008. Kitchen Collection's third quarter 2009 revenues increased
six percent compared with the prior year primarily as a result of
an increase in new store and comparable store sales at both Kitchen
Collection® and Le Gourmet Chef®. Comparable store transactions and
customer visits were up but the average sales transaction value was
lower at the Kitchen Collection® stores as consumers continued to
seek value brands and buy basic needs items in the current economy.
However, the Le Gourmet Chef® stores had an increase in the average
sales transaction value as a result of improvements in
merchandising and fewer markdowns despite a decrease in comparable
store transactions and customer visits. At September 30, 2009,
Kitchen Collection® operated 211 stores, which included nine
seasonal stores that were kept open after the 2008 holiday season,
compared with 199 stores at September 30, 2008 and 202 stores at
December 31, 2008. Le Gourmet Chef® operated 77 stores at September
30, 2009, down from 79 stores at September 30, 2008 and 83 stores
at December 31, 2008. Kitchen Collection reported slightly better
than breakeven earnings in the third quarter of 2009 compared with
a large net loss in the third quarter of 2008. The improvement in
results was primarily driven by fewer product markdowns and
improvements in merchandise offered at both Kitchen Collection® and
Le Gourmet Chef® stores. In the prior year, the Le Gourmet Chef®
store format was substantially updated, including the products
offered. This update required significant markdowns on discontinued
products in 2008. Kitchen Collection's third quarter 2009 results
also benefited from lower product costs. For the nine months ended
September 30, 2009, Kitchen Collection reported a net loss of $4.2
million on revenues of $128.6 million compared with a net loss of
$10.2 million on revenues of $124.5 million for the first nine
months of 2008. Kitchen Collection - Outlook Uncertainties in the
U.S. economy and consumer financial concerns are expected to
continue to affect consumer traffic to outlet and traditional malls
and negatively affect retail spending decisions in the fourth
quarter of 2009. Nevertheless, Kitchen Collection expects an
improved fourth-quarter holiday-selling season compared with 2008
due to the continued strength of Kitchen Collection® stores and the
expectation of significantly improved margins at the Le Gourmet
Chef® stores resulting from the conclusion of new product
enhancement and store-merchandising programs. In addition, the
opening of seasonal store locations during the holiday season,
capital expenditure restraints and administrative cost control
measures implemented in late 2008 and throughout 2009 are also
expected to continue to improve results in the fourth quarter of
2009. Overall, Kitchen Collection expects that its current sales
and merchandising programs and sustained improvements in logistics
will lead to significantly improved fourth-quarter and full-year
results compared with 2008 results before charges of $3.9 million
pre-tax for goodwill and intangible impairment. Cash flow before
financing activities is expected to be about breakeven 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, with the
exception of opening seasonal stores for the holiday season, the
total number of Kitchen Collection® and Le Gourmet Chef® stores is
not expected to increase in the fourth quarter of 2009. North
American Coal - Third Quarter Results North American Coal's net
income for the third quarter of 2009 was $11.4 million on revenues
of $37.7 million compared with net income of $7.0 million on
revenues of $39.0 million for the third quarter of 2008. North
American Coal's lignite coal and limerock deliveries for the third
quarter of 2009 compared with the third quarter of 2008 are as
follows: 2009 2008 -------- -------- Lignite coal deliveries (tons)
(in millions) Consolidated mines 2.1 2.1 Unconsolidated mines 6.9
6.8 -------- -------- Total lignite coal deliveries 9.0 8.9
======== ======== Limerock deliveries (cubic yards) 0.8 4.6
======== ======== Revenues decreased in the third quarter of 2009
compared with the third quarter of 2008 primarily due to reduced
deliveries at the limerock dragline mining operations resulting
mainly 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 decrease in revenues was
partially offset by contractual price escalation and increased coal
deliveries at the Mississippi Lignite Mining Company. The increase
in the 2009 third quarter net income compared with the 2008 third
quarter was primarily attributable to the receipt of lease bonus
payments of $7.1 million pre-tax for leasing certain oil and gas
mineral rights controlled by North American Coal to a third party.
Increased earnings of unconsolidated mines mainly due to
contractual price escalation and improved results at the limerock
dragline mining operations primarily due to the new cost
reimbursable management fee contracts also contributed to the
increase in net income. These increases were partially offset by
reduced operating results at the Red River Mining Company as a
result of difficult mining conditions and an increase in income tax
expense resulting from a shift in the mix of pre-tax income to
entities with higher income tax rates. For the nine months ended
September 30, 2009, North American Coal's net income was $29.3
million on revenues of $110.4 million, compared with net income of
$17.2 million on revenues of $104.4 million for the first nine
months of 2008. North American Coal - Outlook Overall, North
American Coal expects full year 2009 net income to improve in
comparison with 2008, although results in the fourth quarter of
2009, excluding the pending Red River Mining Company sale
transaction, are expected to be lower than the fourth quarter of
2008. In addition, full year cash flow before financing activities
and before the effect of the pending Red River Mining Company
transaction is expected to increase. Tons delivered by the lignite
coal mines are expected to decrease in the fourth quarter of 2009
compared with 2008 as a result of inclement October weather
conditions and an increase in customer power plant outage days. In
addition, contractual price escalation is not expected to affect
fourth-quarter results as favorably in 2009 as it did in 2008
because of recent declines in commodity costs. An increase in
income tax expense resulting from a shift in the mix of pre-tax
income toward entities with higher income tax rates is also
expected to continue to unfavorably affect fourth quarter results.
Limerock customer projections for the 2009 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 in early 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
from limerock mining operations outside of the lake belt region
reflect the continued decline in the southern Florida housing and
construction markets. 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, which will then allow the quarry
to reach full capacity. North American Coal commenced limerock
mining at this quarry during the third quarter of 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. The company has a number of
new project opportunities for which it expects to continue to incur
additional expenses in the fourth quarter of 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. In addition, in
the third quarter of 2009, North American Coal entered into a new
contract mining services agreement to provide approximately 650,000
tons of lignite coal annually to a customer that currently
purchases lignite coal from The Sabine Mining Company, with initial
deliveries expected to commence in 2013. 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 preparation for the expected construction of a new
mine. In addition, the company is working on a project with
Mississippi Power to provide lignite coal to a new coal
gasification Integrated Gasification Combined Cycle power plant in
Mississippi. North American Coal is also pursuing a new mine in
Texas and anticipates that it will sign an agreement for this mine
in the fourth quarter of 2009. 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, November 5, 2009 at 11:00 a.m. eastern
time. The call may be accessed by dialing (888) 680-0879 (Toll
Free) or (617) 213-4856 (International), Pass code: 64872045, 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 November 12,
2009. The online archive of the broadcast will be available on the
NACCO Industries website. Non-GAAP Measures For certain pre-tax
disclosures included in this earnings release, the resulting
after-tax amount and the related income tax amount have been
included. Certain after-tax amounts are considered non-GAAP
measures in accordance with Regulation G. Management believes that
after-tax information is useful in analyzing the Company's net
income. For purposes of this earnings release, discussions about
net income (loss) refer to net income (loss) attributable to
stockholders. 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 and (9) the ability of North American Coal's
utility customers to access credit markets to maintain current
liquidity. About NACCO NACCO Industries, Inc. is an operating
holding company with subsidiaries in the following principal
industries: lift trucks, small appliances, 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 Nine Months Ended September 30
September 30 --------------------- --------------------- 2009 2008
2009 2008 ---------- ---------- ---------- ---------- (In millions,
except per share data) Total revenues $532.6 $917.8 $1,636.4
$2,730.9 Cost of sales 438.3 813.8 1,363.2 2,372.7 ----------
---------- ---------- ---------- Gross profit 94.3 104.0 273.2
358.2 Earnings of unconsolidated mines 10.5 9.7 30.8 27.6 Operating
expenses Selling, general and administrative expenses 94.7 109.2
281.1 353.1 Restructuring charges 6.9 1.7 9.1 3.1 Gain on sale of
assets (6.0) (0.3) (8.2) (0.5) ---------- ---------- ----------
---------- 95.6 110.6 282.0 355.7 Operating profit 9.2 3.1 22.0
30.1 Other income (expense) (7.7) (7.0) (22.8) (22.8) ----------
---------- ---------- ---------- Income (loss) before income taxes
1.5 (3.9) (0.8) 7.3 Income tax provision 5.5 13.2 10.9 16.4
---------- ---------- ---------- ---------- Net loss (4.0) (17.1)
(11.7) (9.1) Net (income) loss attributable to noncontrolling
interest 0.1 (0.2) 0.3 (0.3) ---------- ---------- ----------
---------- Net loss attributable to stockholders $(3.9) $(17.3)
$(11.4) $(9.4) ========== ========== ========== ========== Basic
and diluted loss per share $(0.47) $(2.09) $(1.38) $(1.14)
========== ========== ========== ========== Cash dividends per
share $0.5175 $0.5150 $1.5500 $1.5300 Basic and diluted weighted
average shares outstanding 8.291 8.283 8.289 8.279 (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
Nine Months Ended September 30 September 30 ---------------------
--------------------- 2009 2008 2009 2008 ---------- ----------
---------- ---------- (In millions) Revenues NACCO Materials
Handling Group $328.4 $696.4 $1,079.5 $2,162.8 Hamilton Beach 118.9
138.2 320.3 342.2 Kitchen Collection 48.3 45.6 128.6 124.5 North
American Coal 37.7 39.0 110.4 104.4 NACCO and Other - - - -
Eliminations (0.7) (1.4) (2.4) (3.0) ---------- ----------
---------- ---------- Total $532.6 $917.8 $1,636.4 $2,730.9
========== ========== ========== ========== Operating profit (loss)
NACCO Materials Handling Group $(20.4) $(5.6) $(34.7) $14.8
Hamilton Beach 13.5 4.0 27.7 8.0 Kitchen Collection 0.6 (4.8) (6.3)
(15.6) North American Coal 16.9 9.3 39.2 23.7 NACCO and Other (1.4)
0.2 (4.0) (0.8) Eliminations - - 0.1 - ---------- ----------
---------- ---------- Total $9.2 $3.1 $22.0 $30.1 ==========
========== ========== ========== Net income (loss) attributable to
stockholders NACCO Materials Handling Group $(22.4) $(20.1) $(44.0)
$(10.2) Hamilton Beach 6.9 1.3 13.0 0.8 Kitchen Collection 0.3
(3.3) (4.2) (10.2) North American Coal 11.4 7.0 29.3 17.2 NACCO and
Other (1.5) 0.8 (4.4) 0.6 Eliminations 1.4 (3.0) (1.1) (7.6)
---------- ---------- ---------- ---------- Total $(3.9) $(17.3)
$(11.4) $(9.4) ========== ========== ========== ========== (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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