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» NACCO Industries Inc. Q3 2009 Earnings Call Transcript
» NACCO Industries, Inc. F4Q and Year End 2008 Earnings Call Transcript
» NACCO Industries Inc. Q3 2008 Earnings Call Transcript
I'll now turn the call over to Mr. Rankin.Al Rankin Good morning. NACCO announced last evening a consolidated net income of $11.7 million or $1.40 a share for the first quarter of 2010 and that was on revenues of $558 million and compares with a net loss for the first quarter of 2009 of $9.1 million or $1.10 per share on revenues that were quite similar, $555 million. If you look at the highlights by subsidiary, NACCO Materials Handling Group profits improved to $26.5 million, net income in 2010 was $8 million compared with a net loss of $18.5 million in previous year. Hamilton Beach's net income was $2 million better at $3.4 million in the first quarter compared with of $1.4 million a year ago. Kitchen Collection had an improvement of $1 million with a smaller net loss at a low seasonal first quarter of $1.8 million compared with a net loss of $2.8 million the year before. North American Coal's net income declined $2.7 million. Net income was a very strong $8.1 million compared with $10.8 million. NACCO and Other, which includes parent company operations have a net loss of $3.0 million compared with a $1.5 million a year ago, which is an increase of $1.5 million. And NACCO recorded a $3.1 million interim tax provision in eliminations in the first quarter of 2010 and that compares with an actual interim tax benefit in 2009. So now I will turn to more detailed discussion of the results of each subsidiary. NACCO Materials Handling Group, as I indicated, had improved income of $8 million compared to $18.5 million loss in the previous year. Sales went down to $375 million from $389 million. Operating profit improve to $10.3 million from a loss of $12.6 million in the previous year.
In the first quarter of 2010, worldwide new unit shipments increased to approximately 11,100 from shipments of approximately 10,800 in the first quarter of 2009 and that was the first time in six quarters that worldwide new unit shipments had increased over the comparable quarter in the prior year.For the third consecutive quarter, parts sales increased over the preceding quarter and were up over the prior year quarter for the first time in five quarters. NACCO Materials Handling Group worldwide backlog, very importantly, was approximately 16,900 units at March 31; that compares with 12,800 a year ago and 13,200 at the end of 2009. The first quarter net income increased significantly compared with the first quarter of 2009, primarily as a result of a substantial increase in operating profit and a change in the effective income tax rates. Operating profit increased $22.9 million and that was primarily due to improved gross profit, lower operating expenses, which included a $4.4 million of favorable product liability adjustment, the absence of a bad debt charge, which we recognized in the previous year, and a $1.9 million pre-tax partial reversal of a restructuring accrual. Also it was due to releases of cumulative foreign currency translation and deferred profit, partially offset by a loss on the sale of certain Australian operations. In total, those accounted for $4.2 million swing and had an impact on the profitability of $3 million in operating profit in the first quarter of 2010. Our gross profit improved mainly as a result of improved margins on units despite lower revenues, improved parts margins on higher sales volumes, lowering manufacturing variances due to increased plant activity and the effect of favorable foreign currency movements. Read the rest of this transcript for free on seekingalpha.com