Business Segments

NACCO is a holding company with the following principal subsidiaries: NMHG, HBB, KC and NACoal. See Note 1 for a discussion of the Company's industries and product lines. NACCO's non-operating segment, NACCO and Other, includes the accounts of the parent company and Bellaire Corporation.

The Company has reportable segments for the following three management units: NMHG Americas, NMHG Europe and NMHG Other. NMHG Americas includes its operations in the United States, Canada, Mexico, Brazil and Latin America. NMHG Europe includes its operations in Europe, the Middle East and Africa. NMHG Other includes NMHG's corporate headquarters, its remaining wholly owned dealership and its immaterial operating segments, which include operations in the Asia-Pacific region. Certain amounts are allocated to these geographic management units and are included in the segment results presented below, including product development costs, corporate headquarters expenses, information technology infrastructure costs and NACCO management fees, which are determined by NMHG's corporate headquarters and not directly incurred by the geographic operations. In addition, other costs are incurred directly by these geographic management units based upon the location of the manufacturing plant or sales units, including manufacturing variances, product liability, warranty and sales discounts, which may not be associated with the geographic management unit of the ultimate end user sales location where revenues and margins are reported. Therefore, the reported results of each NMHG segment cannot be considered stand-alone entities as all NMHG reportable segments are inter-related and integrate into a single global NMHG business.

Financial information for each of NACCO's reportable segments is presented in the following table. The line “Eliminations” in the revenues section eliminates revenues from HBB sales to KC. The amounts of these revenues are based on current market prices of similar third-party transactions. No other sales transactions occur among reportable segments. Other transactions among reportable segments are recognized based on current market prices of similar third-party transactions.



	THREE MONTHS ENDED						SIX MONTHS ENDED
	JUNE 30						JUNE 30
	2011			2010			2011			2010
Revenues from external customers
NMHG
NMHG Americas	$	400.8		$	259.8		$	759.4		$	488.1
NMHG Europe	194.8			112.9			368.9			203.9
NMHG Other	52.4			40.8			106.3			96.9
	648.0			413.5			1,234.6			788.9
HBB	104.3			103.3			204.9			205.9
KC	40.0			40.9			80.9			83.7
NACoal	19.4			42.3			37.3			79.9
NACCO and Other	—			—			—			—
Eliminations	(0.7		)	(1.2		)	(1.2		)	(2.0		)
Total	$	811.0		$	598.8		$	1,556.5		$	1,156.4



Operating profit (loss)
NMHG
NMHG Americas	$	24.6		$	10.4		$	46.9		$	16.3
NMHG Europe	3.5			4.1			9.2			2.7
NMHG Other	(0.6		)	(4.7		)	1.8			1.1
	27.5			9.8			57.9			20.1
HBB	3.6			7.8			6.9			15.2
KC	(4.3		)	(2.9		)	(9.7		)	(5.8		)
NACoal	5.3			15.7			14.8			26.7
NACCO and Other	(1.1		)	(3.1		)	(3.6		)	(4.8		)
Eliminations	0.1			—			0.1			0.1
Total	$	31.1		$	27.3		$	66.4		$	51.5
Net income (loss) attributable to stockholders
NMHG
NMHG Americas	$	18.3		$	5.6		$	34.7		$	8.1
NMHG Europe	3.2			2.7			8.5			0.9
NMHG Other	(2.3		)	(1.0		)	(1.7		)	6.3
	19.2			7.3			41.5			15.3
HBB	1.3			3.8			2.3			7.2
KC	(2.7		)	(1.8		)	(6.0		)	(3.6		)
NACoal	4.6			11.3			11.7			19.4
NACCO and Other	(1.0		)	(5.3		)	33.7			(8.3		)
Eliminations	(2.2		)	0.6			(1.2		)	(2.4		)
Total	$	19.2		$	15.9		$	82.0		$	27.6