Company: NC
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000789933-25-000023
Chunk: 84

Company: NACCO INDUSTRIES INC
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 2
Chunk 84
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 first quarter of 2025 as the boiler issue that impacted the customer's Red Hills Power Plant has been resolved. The first quarter of 2025 and 2024 included a $3.0 million and a $2.5 million inventory impairment charge, respectively, to write down MLMC's coal inventory to its net realizable value.

The increase in earnings of unconsolidated operations was primarily due to improved results at Falkirk, mainly due to a higher per ton management fee beginning in June 2024 when temporary price concessions ended. An increase in demand at Coteau also contributed to the increase in earnings of unconsolidated operations.

NORTH AMERICAN MINING (NAMining) SEGMENT

FINANCIAL REVIEW

Tons delivered by the NAMining segment were as follows for the three months ended March 31: 

THREE MONTHS 2025 2024Total tons delivered12,853 15,173 

The results of operations for the NAMining segment were as follows for the three months ended March 31:

THREE MONTHS 2025 2024Total revenues $31,526 $24,483 Reimbursable costs19,547 12,855 Revenues excluding reimbursable costs$11,979 $11,628 Total revenues $31,526 $24,483 Cost of sales 28,378 21,671 Gross profit 3,148 2,812 Earnings of unconsolidated operations(a)969 1,365 Selling, general and administrative expenses2,147 1,823 Gain on sale of assets— (1)Operating profit$1,970  $2,355 

(a) See Note 6 to the Unaudited Condensed Consolidated Financial Statements for a discussion of our unconsolidated subsidiaries.

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Total revenues increased 28.8% in the first quarter of 2025 compared with the first quarter of 2024, primarily due to an increase in reimbursable costs, which have an offsetting amount in cost of sales and have no impact on gross profit. Revenues excluding reimbursable costs were comparable in the first quarter of 2025 compared with the 2024 period, as an increase in part sales was largely offset by fewer tons delivered due to reduced customer requirements.

The following table identifies the components of change in Operating profit for the first quarter of 2025 compared with the first