CLEVELAND, Nov. 3 /PRNewswire-FirstCall/ -- NACCO Industries, Inc.
(NYSE: NC) today announced a consolidated net loss for the third
quarter of 2008 of $17.4 million, or $2.10 per share, on revenues
of $917.8 million. These results compared with consolidated net
income for the third quarter of 2007 of $21.1 million, or $2.55 per
share, on revenues of $875.2 million. NACCO Materials Handling
Group's ("NMHG") Wholesale and Retail third quarter 2008 results
were negatively affected by the recognition of a non-cash charge in
the aggregate amount of $14.5 million net of taxes against the
accumulated deferred tax assets for its Australian operations and
for certain U.S. state taxing jurisdictions. NACCO and Subsidiaries
Consolidated Third Quarter Highlights Economic conditions
deteriorated considerably in the third quarter of 2008,
significantly affecting consolidated results. Key perspectives on
NACCO's third quarter results include: -- NMHG Wholesale reported a
net loss of $12.7 million in 2008 compared with net income of $5.0
million in 2007. The key drivers for the net loss at NMHG Wholesale
were unfavorable foreign currency movements, material cost
increases net of previously announced price increases, and a
non-cash charge of $7.7 million against the accumulated deferred
tax assets as noted above, coupled with a downturn in the North
American and European forklift markets. -- NMHG Retail reported a
net loss of $7.4 million in 2008 compared with net income of $1.8
million in 2007. The key drivers for the net loss at NMHG Retail
were a non-cash charge of $6.8 million against the accumulated
deferred tax assets as noted above and the absence of a gain of
$3.0 million, or $2.6 million net of taxes of $0.4 million, on the
sale of a European dealership in the third quarter of 2007. --
Rising product costs and a weak North America consumer market had
an adverse effect on results at both Hamilton Beach and Kitchen
Collection. -- Hamilton Beach's net income decreased to $1.2
million in 2008 from $6.3 million in 2007. The decrease in 2008
primarily resulted from increased product costs net of price
increases, reduced sales of higher-margin products, and adverse
currency changes. -- Kitchen Collection's net loss was $3.3 million
in 2008 compared with a net loss of $0.9 million in 2007. The
increase in the net loss was primarily the result of lower sales
and margins at Le Gourmet Chef(R) stores largely as a result of
mark downs on discontinued products in connection with the
implementation of a significant updating of the products offered.
-- North American Coal's net income was $7.0 million in 2008
compared with $7.8 million in 2007. The decline was primarily the
result of a decrease in limerock deliveries and higher costs of
sales due to lower production levels in 2008 at Mississippi Lignite
Mining Company. -- Given the current difficult market conditions,
NACCO Industries, Inc. increased the capitalization of three of its
subsidiaries by contributing $25 million to NMHG, $13 million to
Hamilton Beach and $5.8 million to Kitchen Collection during the
nine months ended September 30, 2008. For the nine months ended
September 30, 2008, NACCO reported a net loss of $12.3 million, or
$1.49 per share, on revenues of $2.7 billion. This compared with
consolidated net income of $37.6 million, or $4.55 per diluted
share, on revenues of $2.5 billion for the first nine months of
2007. Consolidated Outlook for Fourth Quarter 2008 As economic and
market conditions deteriorate, NACCO's consolidated results are
being significantly affected. How deep and how long this downturn
will be is quite uncertain. The consumer markets in which Hamilton
Beach and Kitchen Collection participate are declining as consumers
reduce purchases. The forklift truck capital goods market, in which
NMHG participates, also appears to be heading into a significant
cyclical downturn that has resulted in a decline in bookings in the
Americas and Europe. In addition, material cost increases and
foreign currency movements are continuing to affect results
negatively. Price increases implemented to offset increased
material and transportation costs at NMHG and Hamilton Beach are
expected to improve margin recovery over time. However, these price
increases are not expected to fully offset the effect of the
significantly higher costs being incurred in the fourth quarter of
2008 since the impact of these price increases is delayed because
of the fixed prices for units in NMHG's backlog and price
commitments to customers at Hamilton Beach. In addition, North
American Coal expects lower delivery requirements due to customer
power plant outages and weak limerock markets due to lower housing
and construction markets in Florida. Overall, the economic
environment is not expected to improve in the fourth quarter of
2008 or the first part of 2009. Therefore, all subsidiaries are
anticipating very difficult operating environments, which are
expected to lead to significantly reduced results in the fourth
quarter of 2008 compared with the same period in 2007. Likewise, in
the first part of 2009, operating conditions are expected to be
very difficult. As a result of the current economic environment,
the uncertainty in the overall financial markets and expectations
for the fourth quarter of 2008 and early 2009, NACCO expects to
focus on maximizing cash generation and is unlikely to pursue share
buybacks in the near term. Detailed Discussion of Results NMHG
Wholesale - Third Quarter Results NMHG Wholesale reported a net
loss of $12.7 million on revenues of $673.2 million for the third
quarter of 2008, compared with net income of $5.0 million on
revenues of $622.9 million for the third quarter of 2007. The net
loss included the negative impact of the recognition of a non-cash
charge of $7.7 million against the accumulated deferred tax assets
for its Australian operations and for certain U.S. state taxing
jurisdictions. The third-quarter 2008 net loss also includes $1.7
million, or $1.2 million net of taxes of $0.5 million, of
additional restructuring charges for the Irvine, Scotland
manufacturing restructuring program announced in August 2007, and
additional costs related to the same program of $0.9 million, or
$0.6 million net of taxes of $0.3 million, primarily for
accelerated depreciation and manufacturing inefficiencies as a
result of the Irvine restructuring. Included in the third-quarter
2007 net income was $5.0 million, or $3.5 million net of taxes of
$1.5 million, of restructuring charges, and additional costs of
$0.4 million, or $0.3 million net of taxes of $0.1 million, related
to the same program. Revenues increased in the third quarter of
2008 compared with the third quarter of 2007 primarily as a result
of favorable foreign currency movements from the strength of the
euro and British pound compared with the U.S. dollar during the
majority of the quarter, a favorable shift in sales mix to higher-
priced lift trucks in Europe and the effect of unit and parts price
increases implemented during late 2007 and early 2008 in the
Americas and Europe. An increase in fleet services in Asia-Pacific
and the United States also contributed to the revenue improvement
in the third quarter of 2008. The increase in revenues was
partially offset by reduced unit volumes in the Americas and Europe
as a result of a decrease in shipments in the third quarter of 2008
to 20,709 units from shipments of 21,247 units in the third quarter
of 2007. NMHG Wholesale's worldwide backlog decreased to
approximately 26,000 units at September 30, 2008 compared with
approximately 30,500 units at September 30, 2007 and 28,400 units
at June 30, 2008. Excluding the effect of the non-cash charge of
$7.7 million, the decrease in net income in the third quarter of
2008 compared with the third quarter of 2007 was primarily the
result of unfavorable foreign currency movements of $15.0 million
pre-tax, mainly due to the sourcing of lift trucks and components
for the U.S. market from countries with appreciated currencies,
material cost increases of $24.8 million pre-tax, primarily from
increased steel and transportation costs, partially offset by
benefits totaling $13.3 million pre-tax from price increases
implemented in prior periods, and higher warranty costs in the
Americas and Europe. Partially offsetting the decrease in net
income were reduced selling, general and administrative expenses
mainly due to a decrease in employee-related expenses and lower
product liability expense as a result of better claims experience.
For the nine months ended September 30, 2008, NMHG Wholesale
reported a net loss of $1.6 million on revenues of $2.1 billion
compared with net income of $24.4 million on revenues of $1.8
billion for the first nine months of 2007. NMHG Wholesale - Outlook
NMHG Wholesale expects significant declines in all lift truck
markets in the fourth quarter of 2008 compared with 2007. As a
result, the company expects lower unit booking and shipment levels
for the fourth quarter of 2008 compared with 2007. Elevated
material costs, specifically steel, and fuel and freight costs are
expected to continue to affect results unfavorably in the fourth
quarter of 2008. Price increases implemented in 2007 and through
October of 2008 are expected to partially offset these higher costs
in the fourth quarter. The company is working to mitigate these
higher costs through additional price increases when appropriate.
The effect of any such increases will not affect fourth quarter
2008 results because of the fixed prices for units in the backlog.
Unfavorable foreign currency movements are having a significant
adverse affect on 2008 earnings. To offset the effects of adverse
currency movements, NMHG Wholesale implemented a manufacturing
restructuring program in 2007, which is expected to be completed in
early 2009, to lessen NMHG Wholesale's exposure to future currency
exchange rate fluctuations, reduce the manufacturing footprint of
NMHG Wholesale's European manufacturing operations, provide
additional opportunities to source components from lower-cost
countries and reduce working capital. This program and other
related manufacturing restructuring programs are anticipated to
improve net results beginning in 2009, and, at maturity, generate
benefits which are expected to exceed $20 million in annual cost
savings. However, the company anticipates future additional charges
related to this manufacturing restructuring program of
approximately $1.2 million during the fourth quarter of 2008 and
$0.6 million in 2009. NMHG Wholesale's warehouse truck and big
truck product development and manufacturing programs, and its
significant new electric-rider lift truck program, are progressing
satisfactorily. The new electric-rider lift truck program is
expected to bring a full line of newly designed products to market
over the course of 2009 including the introduction of a new 1 to 2
ton electric counterbalanced lift truck in early 2009. These
long-term programs are expected to contribute positively to future
results. NMHG Retail - Third Quarter Results NMHG Retail, which
includes the required elimination of intercompany transactions
between NMHG Wholesale and NMHG's wholly owned retail dealerships,
reported a net loss for the third quarter of 2008 of $7.4 million
on revenues of $23.2 million, compared with net income of $1.8
million on revenues of $33.0 million for the third quarter of 2007.
During the third quarter of 2008, NMHG Retail recognized a non-cash
charge of $6.8 million against its deferred tax assets. In
addition, the absence of a gain of $3.0 million, or $2.6 million
net of taxes of $0.4 million, from the sale of a European retail
dealership in the third quarter of 2007 adversely affected net
income. Excluding the non-cash charge and prior year gain on sale,
NMHG Retail's operating results in the third quarter of 2008
improved slightly over the comparable period in 2007. Revenues
decreased primarily as a result of the sale of a retail dealership
in Europe during the third quarter of 2007 and lower unit and
service volume in Europe. These decreases were partially offset by
a decrease in intercompany sales transactions, which caused a
decrease in the required intercompany revenue elimination compared
with the prior year third quarter, favorable foreign currency
movements due to the strength of the Australian dollar compared
with the U.S. dollar and improved service volume in Asia-Pacific.
For the nine months ended September 30, 2008, NMHG Retail had a net
loss of $8.6 million on revenues of $69.3 million, compared with a
net loss of $7.8 million on revenues of $121.3 million for the
first nine months of 2007. NMHG Retail - Outlook NMHG Retail's key
improvement programs, especially those implemented in Asia-Pacific
during 2007, are expected to have a favorable effect on the fourth
quarter of 2008 and during 2009 and to assist the company in
meeting its strategic objective of achieving at least break-even
results while building market position. However, if economic
conditions in the United Kingdom and Australia deteriorate further,
sales of units and services could decline further, which would
adversely affect revenues and profit margins. Hamilton Beach -
Third Quarter Results Hamilton Beach reported net income of $1.2
million for the third quarter of 2008 on revenues of $138.2
million, compared with net income of $6.3 million for the third
quarter of 2007 on revenues of $140.4 million. Hamilton Beach's
third-quarter 2008 revenues were comparable between years but net
income declined significantly compared with the third quarter of
2007. The primary reason for the decrease was increased product and
freight costs of $9.7 million, net of price increases of $1.7
million. Also contributing to the increased loss were reduced sales
of certain higher-margin products and adverse currency changes. For
the nine months ended September 30, 2008, Hamilton Beach reported a
net loss of $2.1 million on revenues of $342.2 million compared
with net income of $5.8 million on revenues of $340.5 million for
the first nine months of 2007. Hamilton Beach - Outlook As consumer
spending is expected to be significantly reduced, retail
expectations are low this year for the normally high fourth quarter
holiday-selling season. Current economic factors still affecting
U.S. consumers, such as high food prices, depressed home values and
financial concerns are among factors creating this challenging
retail environment. As a result, Hamilton Beach expects the fourth
quarter of 2008 to be a very difficult quarter with results below
those in 2007. While fuel and other commodity costs for resins,
copper, steel, and aluminum softened late in the third quarter,
costs are expected to remain elevated for products purchased for
sale in the fourth quarter. Hamilton Beach price increases
negotiated with customers earlier this year are expected to have a
positive impact in the fourth quarter of 2008. However, these price
increases are not expected to fully offset higher costs because of
price commitments to customers. Hamilton Beach has secured strong
placements and promotional programs for the fourth quarter of 2008.
In addition, Hamilton Beach is introducing a new consumer
advertising campaign titled "Good Thinking(TM)" during the fourth
quarter of 2008, which includes four of the company's most
innovative products: the BrewStation(R) Coffeemaker; the Stay or
Go(TM) Slow Cooker; the Dual Wave(TM) Blender; and the
OpenStation(TM) Can Opener. These products, as well as further new
product introductions in the pipeline for 2009, are expected to
favorably affect revenues. However, reduced consumer confidence and
uncertainty in U.S. consumer markets makes price point and margin
mix prospects, and as a result overall revenues, very difficult to
predict. Longer term, Hamilton Beach will continue to work to
improve revenues and profitability by remaining focused on
developing innovative products, improving efficiencies, reducing
costs and pursuing strategic growth opportunities. Kitchen
Collection - Third Quarter Results Kitchen Collection reported a
net loss of $3.3 million on revenues of $45.6 million for the third
quarter of 2008, compared with a net loss of $0.9 million on
revenues of $46.6 million for the third quarter of 2007. The net
loss was primarily driven by the change in the Le Gourmet Chef(R)
store format due to a planned substantial updating of the products
offered, which required significant mark downs on discontinued
products. The Kitchen Collection(R) store format also contributed
to a small increase in the net loss in the third quarter of 2008
compared with the previous year largely due to increased
promotional markdowns. The number of Kitchen Collection(R) stores
remained comparable between years at 199, while Le Gourmet Chef
operated 79 stores at September 30, 2008 compared with 70 at
September 30, 2007. Kitchen Collection and Le Gourmet Chef operated
198 and 74 stores at December 31, 2007, respectively. For the nine
months ended September 30, 2008, Kitchen Collection reported a net
loss of $10.2 million on revenues of $124.5 million compared with a
net loss of $6.8 million on revenues of $125.2 million for the
first nine months of 2007. Kitchen Collection - Outlook The
uncertainty in the U.S. economy and the financial markets and a
reduction in consumer confidence are expected to continue to affect
consumer traffic to outlet mall locations and retail spending
decisions unfavorably in the fourth quarter, all of which make
forecasts of revenue very difficult. Nevertheless, Kitchen
Collection expects modest increases in revenues in the fourth
quarter of 2008 compared with 2007 as a result of the opening of
seasonal store locations during the holiday season and sales at new
stores opened since the fourth quarter of 2007. In particular, the
completion of the abnormal discontinued product discounts, which
ended in October, as part of the implementation of the new product
enhancement program at Le Gourmet Chef(R) stores, is expected to
benefit the Le Gourmet Chef operations significantly in the fourth
quarter of 2008 and in 2009 increasingly. Longer term, Kitchen
Collection also expects to continue programs for its Kitchen
Collection(R) store format which are designed to enhance its
merchandise mix, store displays and appearance and optimize store
selling space. Kitchen Collection also expects to have a full year
impact in 2009 from the Le Gourmet Chef product enhancement program
and to achieve growth in the Le Gourmet Chef(R) outlet and
traditional mall store formats, while maintaining disciplined cost
control and implementing merchandising improvement programs. North
American Coal - Third Quarter Results North American Coal's net
income for the third quarter of 2008 was $7.0 million on revenues
of $39.0 million, compared with net income of $7.8 million on
revenues of $34.4 million for the third quarter of 2007. The
following table provides a comparison of North American Coal's
lignite coal and limerock deliveries for the third quarter of 2008
compared with the third quarter of 2007. 2008 2007 Lignite coal
deliveries (tons) (in millions) Consolidated mines 2.1 1.9
Unconsolidated mines 6.8 7.0 Total lignite coal deliveries 8.9 8.9
Limerock deliveries (cubic yards) 4.6 8.6 Net income for the 2008
third quarter decreased compared with the 2007 third quarter
primarily due to fewer limerock deliveries as a result of lower
customer requirements, mainly due to a decline in the southern
Florida housing and construction markets, and higher costs of sales
at Mississippi Lignite Mining Company in 2008 primarily due to the
capitalization of fixed costs over lower production levels in 2008.
These unfavorable items were partially offset by improved
operations at the Red River Mining Company, higher royalty income
and lower interest expense. For the nine months ended September 30,
2008, North American Coal's net income was $17.2 million on
revenues of $104.4 million, compared with net income of $24.4
million on revenues of $103.9 million for the first nine months of
2007. North American Coal - Outlook Overall, North American Coal
expects results for the fourth quarter of 2008 to be well below
2007. Lower delivery requirements due to customer power plant
outages and higher costs of sales because of the capitalization of
fixed costs over lower production levels in 2008 at the Mississippi
Lignite Mining Company are expected to reduce results in the fourth
quarter of 2008 compared with the fourth quarter of 2007. An
increase in development expenses and professional fees related to
new mine development opportunities is also expected in the fourth
quarter of 2008 compared with 2007. These additional costs are
expected to be partially offset by increased royalty income.
Deliveries from the limerock dragline mining operations are also
expected to be lower in the fourth quarter of 2008 compared with
2007. Limerock customer projections for fourth quarter 2008
deliveries reflect the continued significant decline in the
southern Florida housing and construction markets. Over the longer
term, North American Coal expects to continue its efforts to
develop new domestic coal projects and is encouraged that more new
project opportunities may become available, including opportunities
for coal-to-liquids, coal gasification and other clean coal
technologies. Further, the company continues to pursue additional
non-coal mining opportunities. Conference Call In conjunction with
this news release, the management of NACCO Industries, Inc. will
host a conference call on Tuesday, November 4, 2008, at 11:00 a.m.
eastern time. The call may be accessed by dialing (888) 713-4216
(Toll Free) or (617) 213-4868 (International), Passcode: 43078592,
or over the Internet through NACCO Industries' website at
http://www.nacco.com/. Please allow 15 minutes to register,
download and install any necessary audio software required to
listen to the broadcast. A replay of the call will be available
shortly after the end of the conference call through November 11,
2008. The online archive of the broadcast will be available on the
NACCO Industries website. Non-GAAP Measures For certain pre-tax
disclosures included in this earnings release, the resulting
after-tax amount and the related income tax amount have been
included. Certain after-tax amounts are considered non-GAAP
measures in accordance with Regulation G. Management believes that
after-tax information is useful in analyzing the Company's net
income. Forward-looking Statements Disclaimer The statements
contained in the news release that are not historical facts are
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These forward-looking statements are made
subject to certain risks and uncertainties, which could cause
actual results to differ materially from those presented in these
forward-looking statements. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date hereof. The Company undertakes no obligation to
publicly revise these forward-looking statements to reflect events
or circumstances that arise after the date hereof. Such risks and
uncertainties with respect to each subsidiary's operations include,
without limitation: NMHG: (1) reduction in demand for lift trucks
and related aftermarket parts and service on a worldwide basis,
including the ability of NMHG's dealers and end-users to obtain
financing at reasonable rates as a result of current economic
conditions, (2) changes in sales prices, (3) delays in delivery or
increases in costs, including transportation costs, of raw
materials or sourced products and labor, (4) exchange rate
fluctuations, changes in foreign import tariffs and monetary
policies and other changes in the regulatory climate in the foreign
countries in which NMHG operates and/or sells products, (5) delays
in, increased costs from or reduced benefits from restructuring
programs, (6) customer acceptance of, changes in the prices of, or
delays in the development of new products, (7) introduction of new
products by, or more favorable product pricing offered by, NMHG's
competitors, (8) delays in manufacturing and delivery schedules,
(9) changes in or unavailability of suppliers, (10) product
liability or other litigation, warranty claims or returns of
products, (11) the effectiveness of the cost reduction programs
implemented globally, including the successful implementation of
procurement and sourcing initiatives, (12) acquisitions and/or
dispositions of dealerships by NMHG, (13) changes mandated by
federal and state regulation including health, safety or
environmental legislation, (14) the ability of NMHG and its
suppliers to access credit in the current economic environment and
(15) the ability of NMHG to obtain future financing on reasonable
terms or at all. Hamilton Beach: (1) changes in the sales prices,
product mix or levels of consumer purchases of small electric
appliances, (2) changes in consumer retail and credit markets, (3)
bankruptcy of or loss of major retail customers or suppliers, (4)
changes in costs, including transportation costs, of sourced
products, (5) delays in delivery of sourced products, (6) changes
in, or unavailability of quality or cost effective, suppliers, (7)
exchange rate fluctuations, changes in the foreign import tariffs
and monetary policies and other changes in the regulatory climate
in the foreign countries in which Hamilton Beach buys, operates
and/or sells products, (8) product liability, regulatory actions or
other litigation, warranty claims or returns of products, (9)
customer acceptance of, changes in costs of, or delays in the
development of new products, (10) increased competition, including
consolidation within the industry, (11) the ability of Hamilton
Beach and its customers and suppliers to access credit in the
current economic environment and (12) the ability of Hamilton Beach
to obtain future financing on reasonable terms or at all. Kitchen
Collection: (1) changes in gasoline prices, weather conditions, the
level of consumer confidence as a result of the current financial
crisis or other events or other conditions that may adversely
affect the number of customers visiting Kitchen Collection(R) and
Le Gourmet Chef(R) stores, (2) changes in the sales prices, product
mix or levels of consumer purchases of kitchenware, small electric
appliances and gourmet foods, (3) changes in costs, including
transportation costs, of inventory, (4) delays in delivery or the
unavailability of inventory, (5) customer acceptance of new
products, (6) increased competition and (7) the ability to obtain
future financing on reasonable terms or at all. North American
Coal: (1) weather conditions, extended power plant outages or other
events that would change the level of customers' lignite coal or
limerock requirements, (2) weather or equipment problems that could
affect lignite coal or limerock deliveries to customers, (3)
changes in mining permit requirements that could affect deliveries
to customers, including in connection with the ongoing Florida
limerock mining litigation, (4) changes in costs related to
geological conditions, repairs and maintenance, new equipment and
replacement parts, fuel or other similar items, (5) costs to pursue
and develop new mining opportunities, including costs in connection
with North American Coal's joint ventures, (6) changes in U.S.
regulatory requirements, including changes in power plant emission
regulations, (7) changes in the power industry that would affect
demand for North American Coal's reserves, (8) the ability of North
American Coal's utility customers to access credit markets to
maintain current liquidity and (9) the ability of North American
Coal to obtain future financing on reasonable terms or at all.
About NACCO NACCO Industries, Inc. is an operating holding company
with three principal businesses: lift trucks, housewares and
mining. NACCO Materials Handling Group, Inc. designs, engineers,
manufactures, sells, services and leases a comprehensive line of
lift trucks and aftermarket parts marketed globally under the
Hyster(R) and Yale(R) brand names. NACCO Housewares Group consists
of Hamilton Beach Brands, Inc., a leading designer, marketer and
distributor of small electric household appliances, as well as
commercial products for restaurants, bars and hotels, and The
Kitchen Collection, Inc., a national specialty retailer of
kitchenware and gourmet foods operating under the Kitchen
Collection(R) and Le Gourmet Chef(R) store names in outlet and
traditional malls throughout the United States. The North American
Coal Corporation mines and markets lignite coal primarily as fuel
for power generation and provides selected value-added mining
services for other natural resources companies. For more
information about NACCO Industries, visit the Company's website at
http://www.nacco.com/. NACCO INDUSTRIES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED FINANCIAL AND OPERATING HIGHLIGHTS Three
Months Ended Nine Months Ended September 30 September 30 2008 2007
2008 2007 (In millions, except per share data) Total revenues
$917.8 $875.2 $2,730.9 $2,510.0 Gross profit $103.9 $150.6 $353.6
$411.0 Earnings of unconsolidated project mining subsidiaries $9.7
$9.8 $27.6 $27.7 Operating profit $3.0 $34.0 $25.5 $66.2 Other
income (expense) (7.0) (7.5) (22.8) (19.4) Income (loss) before
income taxes and minority interest (4.0) 26.5 2.7 46.8 Income tax
provision 13.2 5.4 14.7 9.3 Income (loss) before minority interest
(17.2) 21.1 (12.0) 37.5 Minority interest income (expense) (0.2) -
(0.3) 0.1 Net income (loss) $(17.4) $21.1 $(12.3) $37.6 Basic and
diluted earnings (loss) per share $(2.10) $2.55 $(1.49) $4.55 Cash
dividends per share $0.5150 $0.5000 $1.5300 $1.4800 Basic weighted
average shares outstanding 8.283 8.267 8.279 8.261 Diluted weighted
average shares outstanding 8.283 8.274 8.279 8.270 (All amounts are
subject to annual audit by our independent registered public
accounting firm.) NACCO INDUSTRIES, INC. AND SUBSIDIARIES UNAUDITED
CONSOLIDATED FINANCIAL AND OPERATING HIGHLIGHTS Three Months Ended
Nine Months Ended September 30 September 30 2008 2007 2008 2007 (In
millions) Revenues NACCO Materials Handling Group Wholesale $673.2
$622.9 $2,093.5 $1,822.4 NACCO Materials Handling Group Retail
(incl. elims.) 23.2 33.0 69.3 121.3 NACCO Materials Handling Group
696.4 655.9 2,162.8 1,943.7 Hamilton Beach 138.2 140.4 342.2 340.5
Kitchen Collection 45.6 46.6 124.5 125.2 Housewares Eliminations
(1.4) (2.1) (3.0) (3.3) NACCO Housewares Group 182.4 184.9 463.7
462.4 North American Coal 39.0 34.4 104.4 103.9 Total $917.8 $875.2
$2,730.9 $2,510.0 Depreciation, depletion and amortization NACCO
Materials Handling Group Wholesale $9.7 $9.3 $29.2 $24.7 NACCO
Materials Handling Group Retail (incl. elims.) 0.9 1.8 2.8 6.9
NACCO Materials Handling Group 10.6 11.1 32.0 31.6 Hamilton Beach
1.1 1.0 2.8 2.8 Kitchen Collection 0.7 0.5 2.1 1.7 NACCO Housewares
Group 1.8 1.5 4.9 4.5 North American Coal 3.0 3.3 8.9 9.5 NACCO and
Other - - 0.1 0.1 Total $15.4 $15.9 $45.9 $45.7 Operating profit
(loss) NACCO Materials Handling Group Wholesale $(5.0) $8.2 $15.7
$37.1 NACCO Materials Handling Group Retail (incl. elims.) (0.6)
2.7 (0.9) (7.8) NACCO Materials Handling Group (5.6) 10.9 14.8 29.3
Hamilton Beach 3.9 14.2 3.4 16.8 Kitchen Collection (4.8) (0.9)
(15.6) (10.0) NACCO Housewares Group (0.9) 13.3 (12.2) 6.8 North
American Coal 9.3 10.6 23.7 33.1 NACCO and Other 0.2 (0.8) (0.8)
(3.0) Total $3.0 $34.0 $25.5 $66.2 (All amounts are subject to
annual audit by our independent registered public accounting firm.)
NACCO INDUSTRIES, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED
FINANCIAL AND OPERATING HIGHLIGHTS Three Months Ended Nine Months
Ended September 30 September 30 2008 2007 2008 2007 (In millions)
Other income (expense) NACCO Materials Handling Group Wholesale
$(3.5) $(2.5) $(11.0) $(7.0) NACCO Materials Handling Group Retail
(incl. elims.) (0.4) (0.9) (1.4) (3.0) NACCO Materials Handling
Group (3.9) (3.4) (12.4) (10.0) Hamilton Beach (2.4) (4.1) (8.0)
(7.5) Kitchen Collection (0.4) (0.6) (0.9) (1.3) Housewares
Eliminations - 0.4 - 0.5 NACCO Housewares Group (2.8) (4.3) (8.9)
(8.3) North American Coal (1.2) (1.8) (4.7) (4.6) NACCO and Other
0.9 2.0 3.2 3.5 Total $(7.0) $(7.5) $(22.8) $(19.4) Net income
(loss) NACCO Materials Handling Group Wholesale $(12.7) $5.0 $(1.6)
$24.4 NACCO Materials Handling Group Retail (incl. elims.) (7.4)
1.8 (8.6) (7.8) NACCO Materials Handling Group (20.1) 6.8 (10.2)
16.6 Hamilton Beach 1.2 6.3 (2.1) 5.8 Kitchen Collection (3.3)
(0.9) (10.2) (6.8) Housewares Eliminations 1.3 0.2 1.8 0.2 NACCO
Housewares Group (0.8) 5.6 (10.5) (0.8) North American Coal 7.0 7.8
17.2 24.4 NACCO and Other (3.5) 0.9 (8.8) (2.6) Total $(17.4) $21.1
$(12.3) $37.6 (All amounts are subject to annual audit by our
independent registered public accounting firm.) DATASOURCE: NACCO
Industries, Inc. CONTACT: Christina Kmetko of NACCO Industries,
Inc., +1-440-449-9669 Web site: http://www.nacco.com/
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