Turning to results at the individual subsidiary companies, NACCO Materials Handling Group reported net income of $3.8 million on revenues at 442 million in the third quarter, compared to a net loss of $22.4 million on revenues at 328 billion in the previous year.
Operating profit was 8.2 million in comparison to an operating loss of 20.4 million in 2009.
At third quarter of 2009, operating loss and the net loss include restructuring charges totally 6.9 million both before and after tax for restructuring of our Italian operations and for additional reduction in-force programs that occurred during that period.
Revenues increased 35% in the third quarter compared with previous year as a result of an increase in units and parts volume in the Americas and Europe. New unit’s shipments increased to approximately 15,400 units in the third quarter from 13,800 units in the second quarter and from 9,400 units in the previous year’s third quarter. The backlog was approximately 24,500 units at September 30 and that compared with 21,700 at June 30, and about 13,200 a year ago in 2009.NACCO Materials Handling Group’s third quarter net income increased very significantly compared with third quarter of 2009 primarily due to higher sales volumes and margins on both units and parts, and lower manufacturing variances as a result of higher production levels in 2010. Favorable foreign currency movements primarily from the strengthening of the Brazilian Real against U.S. dollar and the absence of restructuring charges which we had in the previous year also contributed to the increase. The improvement in net income was partially offset by an increase in employee-related expenses, which resulted from the partial restoration of compensation and benefits which were reduced in 2009, increased material and freight costs, and higher income tax expense. As you forward, NACCO Materials Handling Group expects that the global market levels per units and parts volumes will continue to improve in the fourth quarter of 2010 compared with the fourth quarter of 2009. All markets are expected to continue to grow but at moderate rates during the fourth quarter. Read the rest of this transcript for free on seekingalpha.com