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CLEVELAND, OH – NACCO Industries Inc . (NYSE:NC), a $256 million market cap company in the coal mining sector, has disclosed the upcoming termination of a subsidiary’s pension plan. The Board of Directors of The Coteau Properties Company, an indirect wholly-owned subsidiary, has decided to terminate The Coteau Properties Company Pension Plan, effective June 30, 2025. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 4.08, suggesting adequate resources to manage its pension obligations.
The decision, made on Monday, April 22, 2025, will result in the distribution of the plan’s assets to the participants as soon as administratively feasible after the termination date, in compliance with the plan’s terms and applicable laws. The pension plan in question is a qualified defined benefit plan, which was frozen on December 31, 2004.
Carroll L. Dewing, the Senior Vice President and Chief Operating Officer of NACCO Industries, and a named executive officer, is among the participants of the plan. Dewing’s pension benefits had been increased by a cost-of-living adjustment until December 31, 2013. His benefits are calculated based on a set formula involving his "final average pay" and years of credited service.
Despite the termination of the pension plan, Dewing will not accrue new benefits but will be entitled to a distribution of his vested accrued benefit. The actuarial present value of Dewing’s accrued benefit is $469,300. He has the option to receive this as a lump sum distribution, if elected.
The termination of this pension plan is part of NACCO Industries’ broader financial strategy. The company has not provided additional details on the reasons for the plan’s termination or any further plans for restructuring its retirement benefits. InvestingPro analysis shows NACCO operates with moderate debt levels and has maintained profitability over the last twelve months, with annual revenues of $237.71 million. For deeper insights into NACCO’s financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, covering over 1,400 US stocks with expert analysis and actionable intelligence.
This information is based on a press release statement from the Securities and Exchange Commission (SEC) filing by NACCO Industries. The company is incorporated in Delaware and headquartered in Cleveland, Ohio, operating within the Standard Industrial Classification of Bituminous Coal & Lignite Surface Mining.
In other recent news, NACCO Industries reported strong financial results for the fourth quarter and full year of 2024. The company achieved a net income of $7.6 million for the quarter, contributing to a full-year net income of $33.7 million. Revenue for the fourth quarter reached $70.42 million, and earnings per share stood at $1.02. The company’s adjusted EBITDA more than doubled year-over-year, reaching $59.4 million. NACCO Industries has expanded its capabilities in specialized and underwater mining and continues to support the development of lithium reserves at Thacker Pass. The company anticipates a modest increase in consolidated operating profit for 2025, with expectations of a cash flow positive year. CEO J.C. Butler highlighted the company’s strategic direction and commitment to shareholder engagement. Investors may note that NACCO’s coal mining segment significantly improved its adjusted EBITDA, quadrupling from the previous year.
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