CLEVELAND—The Hamilton Beach brand posted a decrease of 19 percent in net income in the second quarter, to $3.8 million.
A statement from NACCO, the brand’s parent company, attributed the falloff in the bottom line to higher employee-related costs—which occurred due to the full restoration of compensation and benefits that were suspended in the first half of last year. In addition, Hamilton Beach’s net sales slipped 4 percent to $103.3 million, driven down by lower average selling prices and a decline in unit sales volumes. Reduced production costs and the increase in sales of higher-margin products only partly offset the decline in net profit, NACCO said.
The statement added that Hamilton Beach is “moderately optimistic” that the market for its products will improve in the second half of this year. “However…the pace and sustainability of the upturn remains uncertain because consumers continue to struggle with financial concerns and high unemployment rates,” the statement said.