Hamilton Beach reported third quarter net income of $5.3 million, a 29% increase over net income of $4.1 million for the comparable 2011 period. The company attributed the increase to the absence of a charge incurred in 2011 of $1.3 million pre-tax for the write-off of a capital lease asset, lower interest expense and favorable foreign currency movements, partially offset by higher employee-related costs.
The company indicated that revenues decreased modestly in the third quarter of 2012 compared with the third quarter of 2011 primarily due to lower unit sales volumes, mainly in the U.S. consumer and Canadian retail markets and unfavorable foreign currency movements caused by a strengthening U.S. dollar against the Mexican peso and Canadian dollar. The decline in revenue was partially offset by sales of products with higher price points, particularly in the U.S. consumer markets, according to the company.
For the first nine months of 2012, Hamilton Beach reported net income of $8.5 million on revenues of $340.4 million compared with net income of $6.4 million on revenues of $331.6 million for the first nine months of 2011.
Kitchen Collection, a sister division of NACCO, reported a third quarter 2012 net loss increase to $1.2 million from $0.5 million in the third quarter of 2011 primarily as a result of lower operating margins at both Kitchen Collection and Le Gourmet Chef comparable stores mainly caused by a shift in mix toward lower margin product categories and an increase in selling, general and administrative expenses.