Hamilton Beach battles shipping hurdles caused by massive IT roll-out

Hamilton Beach

A major IT roll-out impacted Hamilton Beach Brands’ revenues in the third quarter, but the company said it expected to capture a “significant” amount of the shortfall in Q4.

The firm, known for its food prep appliances, saw revenues fall from $149.5m to $110.5m for the three months to the end of September, as it suffered a net loss of $2m compared to $600,000 profit a year earlier.

The company blamed shipping challenges relating to the implementation of a new enterprise resource planning (ERP) system for some of its problems.

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The cutover to the new platform temporarily reduced shipping capabilities at the company’s US distribution center, compounding unanticipated constraints in the transportation industry.

It said that while the project had created “greater than expected challenges” for the business, all the shipping hurdles have now been resolved and it expects to benefit in future years from the conversion to a more efficient and secure system.

The company said it has enhanced its shipping capabilities by adding warehouse personnel and lift equipment, extending shifts and augmenting capacity with temporary third-party facilities.

It has also been able to convert some of the order volume with its largest retail customers to direct import to further ease the strain on its shipping capabilities.

Unprecedented demand in the US and Canada continues as homebound consumers engage in more than usual meal and beverage preparation during the pandemic, it said.

Commercial customers in the foodservice and hospitality industries, meanwhile, are beginning to order again as they adjust to the new world created by the global pandemic, it added.

Hamilton Beach Brands has introduced more than 50 new products this year and expects to introduce approximately 100 more new products over the next 24 months.

Based on its current outlook, the company expects total revenue for the second half of 2020 to be in line with last year’s second half and operating profit to increase approximately 20%.

Tags : Hamilton BeachITshipping
Andrew Seymour

The author Andrew Seymour

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