CLEVELAND–Hamilton Beach reported third-quarter net income of $4.1 million, off 27 percent from last year’s third quarter.
Declining sales and rising costs in the quarter, which ended on Sept. 30, were the culprits. Net sales for the housewares brand fell 5 percent to $126.7 million as unit sales volume declined in the retail market. Rising product costs cut into the bottom line, as did a $1.3 million charge for the write-off of a capital lease asset no longer being leased. The decrease was partially offset by reduced employee-related expenses, favorable foreign currency movements and lower income-tax expense.
Hamilton Beach’s sister operation within NACCO Industries, Kitchen Collection, posted a net loss in the quarter of $500,000 compared to a $100,000 net loss from last year. Sales were up 3 percent to $48.9 million, but rising selling, general and administrative expenses from increased employee and store costs whittled further into the bottom line.
NACCO as a whole increased its net income in the quarter by 90 percent, to $25.7 million, as sales reached $823.4 million, 24 percent ahead of last year’s third quarter.