NACCO Industries, Inc. reported fourth quarter 2012 net income for its Hamilton Beach small appliance division increased to $12.7 million from $12.0 million in 2011, a 12% increase. According to the company, the increase was primarily the result of increased sales of higher-margin products, partially offset by higher-employee related costs and a moderate increase in product costs.

For its Kitchen Collection specialty retail business, consisting of Kitchen Collection and Le Gourmet Chef retail stores, the company reported fourth quarter 2012 net income declined to $4.1 million from $7.6 million in 2011.  The net income decline was primarily the result of reduced sales from fewer customer visits, a shift in mix to lower margin products at Kitchen Collection and Le Gourmet Chef comparable stores and unfavorable margins at closed stores from the liquidation of inventory.  Higher employee-related and outside services costs and an impairment charge of $0.7 million pre-tax taken on certain leasehold improvements also contributed to the decline in net income, the company indicated.

For the full year, Hamilton Beach reported net income of $21.2 million and revenues of $521.6 million compared with net income of $18.4 million and revenues of $493.0 million in 2011.

During 2012, Hamilton Beach generated cash flow before financing activities of $24.2 million, which was comprised of net cash provided by operating activities of $27.4 million less net cash used for investing activities of $3.2 million. During 2011, Hamilton Beach generated cash flow before financing activities of $20.5 million, which was comprised of net cash provided by operating activities of $24.2 million less net cash used for investing activities of $3.7 million.

The company’s Kitchen Collection and Le Gourmet Chef retail division reported a net loss of $3.1 million on revenues of $224.7 million compared with net income of $1.1 million on revenues of $221.2 million for the year ended December 31, 2011.

For the 2012 full year, Kitchen Collection generated negative cash flow before financing activities of $0.1 million, which was comprised of net cash provided by operating activities of $3.8 million less net cash used for investing activities of $3.9 million. For the 2011 full year, Kitchen Collection generated cash flow before financing activities of $2.6 million, which was comprised of net cash provided by operating activities of $4.9 million less net cash used for investing activities of $2.3 million.