Revenues for the first quarter of 2009 were $558.6 million, 35 percent lower than the $865.0 million in the prior-year period. The revenue decline was primarily attributable to lower volumes at NACCO's materials handling subsidiary ("NMHG") mainly as a result of the deteriorating global economy.

As a result of the significant drop in volume at NMHG, the Company incurred a consolidated net loss for the first quarter of 2009 of $9.1 million, or $1.10 per share, compared with consolidated net income for the first quarter of 2008 of $5.6 million, or $0.68 per share.

NACCO and Subsidiaries Consolidated First Quarter Highlights

Economic conditions deteriorated further in the first quarter of 2009, significantly affecting consolidated results. Key perspectives on NACCO's first quarter results are as follows:

   --  NMHG Wholesale's net loss was $19.1 million in 2009, compared with net       income of $7.9 million in 2008.  The key driver for the change in       results at NMHG Wholesale was a significant decline in volume for       units and parts.   --  NMHG Retail had net income of $0.6 million in 2009, compared with a       net loss of $0.6 million in 2008.  The key drivers for the improvement       were the favorable effect of a reduction in intercompany eliminations       and reduced spending, partially offset by unfavorable margins.   --  A weak North America consumer market affected volumes at both Hamilton       Beach and Kitchen Collection.  However, as a result of favorable       factors, both reported improved results in the first quarter.       --  Hamilton Beach's net income increased to $1.4 million in 2009 from           $0.1 million in 2008. The increase primarily resulted from reduced           expenses as a result of cost containment actions implemented in           late 2008 and early 2009, partially offset by the unfavorable           effects of higher costs of products sold.  During the fourth           quarter of 2008, Hamilton Beach changed its method of valuing           inventories from the last-in, first-out method to the first-in,           first-out method. Financial information for the prior year quarter           has been revised to reflect this change.       --  Kitchen Collection had a smaller net loss of $2.8 million in 2009           compared with $3.2 million in 2008 primarily due to a reduction in           expenses.   --  North American Coal's net income increased significantly to $10.8       million in 2009 compared with $3.8 million in 2008 primarily due to an       increase in coal deliveries, contractual price escalation and reduced       costs for diesel fuel at the lignite coal mines.    --  In light of the current difficult economic conditions, NACCO increased       the capitalization of two of its subsidiaries by making cash and       non-cash contributions of $28.9 million to NMHG and $3.1 million to       Kitchen Collection during the quarter ended March 31, 2009.    Consolidated Outlook for 2009  

Economic and market conditions continued to be very weak in the first quarter of 2009 and the global recession appears likely to continue through 2009. The depth and duration of this downturn is quite uncertain. The forklift truck capital goods market in which NMHG participates is in a significant global downturn that has resulted in unprecedented declines in factory bookings in the Americas, Europe and Asia-Pacific. The consumer markets in which Hamilton Beach and Kitchen Collection participate are likely to continue to decline in 2009 as consumers reduce purchases. Changes in product positioning and product costs have been implemented at NMHG and Hamilton Beach to achieve more acceptable margin positions despite declining markets. While North American Coal's lignite coal operations continue to be strong, the company expects limerock production and limerock deliveries to be significantly lower in 2009 compared with 2008 due to continued low demand in the housing and construction markets in southern Florida and an unfavorable legal ruling that set aside customers' existing mining permits at most of the limerock mining operations. Limerock customers are expected to reduce inventory levels before returning to production under new permits that are expected to be issued toward the end of 2009.

The Company is operating on the assumption that the economic environment will not improve significantly in 2009. Accordingly, NACCO has and continues to put aggressive plans in place to help meet the challenges of 2009. Cost containment actions were implemented at all subsidiaries in late 2008 and additional actions were taken in the first quarter of 2009.

At NMHG, these cost containment actions will not overcome the effect of reduced volumes. NMHG is expected to have a significant full-year loss, although NMHG's second half 2009 results are expected to be significantly better than results in the first half of the year. NMHG Retail's objective is to achieve break-even results in 2009. While the consumer businesses anticipate weak markets in 2009, both Hamilton Beach and Kitchen Collection currently expect significantly improved 2009 results compared with very weak results before charges for goodwill and intangible impairment in 2008, especially at Kitchen Collection, where the new Le Gourmet Chef store format is in place and the prior year's large product clearance program has been successfully completed. North American Coal expects 2009 net income to improve in comparison with 2008.

Overall, NACCO expects its subsidiaries to generate substantial cash flow before financing activities. Currently, NACCO has substantial cash available, which provides the Company with flexibility to capitalize its subsidiaries.

   Detailed Discussion of Results    NMHG Wholesale - First Quarter Results  

NMHG Wholesale reported a net loss of $19.1 million on revenues of $371.6 million for the first quarter of 2009 compared with net income of $7.9 million on revenues of $677.9 million for the first quarter of 2008.

Revenues decreased in the first quarter of 2009 compared with the first quarter of 2008 primarily as a result of a decrease in units and parts volume in all geographic regions due to the economic downturn in each of these markets. Worldwide shipments in the first quarter of 2009 declined 52.1 percent to 10,711 units from shipments of 22,341 units in the first quarter of 2008. Unfavorable foreign currency movements as the U.S. dollar strengthened against the euro, British pound and Australian dollar also contributed to the decrease in revenues. A favorable shift in sales mix to higher-priced lift trucks in the Americas, Europe and Asia-Pacific and the effect of unit and parts price increases implemented in prior years in the Americas and Europe slightly offset the decrease in revenues.

NMHG Wholesale's worldwide backlog was approximately 12,800 units at March 31, 2009 compared with approximately 29,100 units at March 31, 2008 and 14,900 units at December 31, 2008.

The significant decrease in results in the first quarter of 2009 compared with the first quarter of 2008 was primarily attributable to a decline in gross profit partially offset by reduced workforce levels and lower selling, general and administrative expenses as a result of cost containment actions, including reductions in employee-related expenses, which were implemented in late 2008 and early 2009. Gross profit declined mainly because of reduced unit and parts volume, a shift in sales to lower-margin units and an increase in manufacturing costs as less fixed cost was absorbed due to lower production volumes. These unfavorable items were partially offset by reduced warranty costs, resulting from better claims experience and lower sales volumes, and benefits totaling $12.2 million pre-tax from price increases implemented in prior periods. The benefits of these price increases were partially offset by material cost increases of $3.0 million pre-tax. In addition, the company recognized income tax expense on a pre-tax loss rather than an income tax benefit as a result of an interim tax accounting adjustment due to a shift in the mix of pre-tax losses to jurisdictions where the company does not currently recognize a tax benefit for the losses.

NMHG Wholesale - Outlook

NMHG Wholesale expects significant declines in all lift truck markets in 2009 compared with 2008, with limited recovery until 2010, despite global market levels which appear to have stabilized at a very low level in recent months. As a result, the company expects significantly lower unit booking and shipment levels and a reduction in parts sales in 2009 compared with 2008.

NMHG took a number of steps in late 2008 and the first quarter of 2009 to respond to the market outlook, which include capital expenditure restraints, planned plant downtime, reductions-in-force, restrictions on spending and travel, suspension of incentive compensation and profit-sharing, wage freezes and salary and benefit reductions, all of which are expected to continue to reduce expenses in 2009 compared with 2008.

NMHG Wholesale is also actively monitoring commodity costs and other supply chain drivers to ensure timely implementation of reductions in procurement costs because material costs, specifically steel, and fuel and freight costs, have moderated.

NMHG Wholesale completed its manufacturing restructuring program in the first quarter of 2009. This program is anticipated to improve results over the remainder of 2009, and to generate benefits of approximately $15 million in annual cost savings when production returns to more normal volume levels.

NMHG Wholesale's warehouse truck and big truck product development programs, and its important new electric-rider lift truck program, are progressing as planned. The new electric-rider lift truck program is expected to bring a full line of newly designed products to market, including the introduction of two series in the second quarter of 2009 and two series in the second half of 2009.

NMHG Wholesale expects a significant loss in the second quarter. However, modest unit and parts volume improvements, benefits from new product introductions, improved material costs and product cost reductions, as well as further general expense reductions, are expected in the second half of the year, resulting in earnings beginning to improve, especially in the fourth quarter. Nevertheless, NMHG is expected to operate at a loss for the 2009 full year. Cash flow before financing activities is expected to improve significantly in 2009 compared with 2008 primarily as a result of a reduction in working capital and lower capital expenditures.

NMHG Retail - First Quarter Results

NMHG Retail, which includes the required elimination of intercompany transactions between NMHG Wholesale and NMHG's wholly owned retail dealerships, reported net income for the first quarter of 2009 of $0.6 million on revenues of $17.5 million compared with a net loss of $0.6 million on revenues of $21.0 million for the first quarter of 2008.

Revenues decreased primarily because of unfavorable foreign currency movements due to the weakening of the Australian dollar and lower unit and parts volume and rental revenues in Europe and Asia-Pacific. These decreases were partially offset by a decline in intercompany sales transactions, which caused a reduction in the required intercompany revenue elimination compared with the prior year quarter.

NMHG Retail's improved earnings were primarily the result of a reduction in intercompany eliminations, reduced spending and a higher income tax benefit partially offset by lower volume, unit and rental margins in Europe and lower unit, service and rental margins in Asia-Pacific.