Maytag's First Quarter Operating Results Down From Year-Earlier Period; Normalized Earnings Per Share in Line With Expectations

Apr 17, 2001, 01:00 ET from Maytag Corporation

    NEWTON, Iowa, April 17 /PRNewswire/ --
     As indicated earlier, Maytag's (NYSE:   MYG) first quarter sales and
 earnings were down from the first quarter of 2000, but earnings per share
 excluding a one-time tax gain were in line with management's recent statements
 regarding expected performance.
     (PHOTO:  http://www.newscom.com/cgi-bin/prnh/20000505/MYGLOGO )
     During this year's first quarter, the company noted strong sales of Maytag
 brand washers, dryers and dishwashers and Hoover floor care products, but that
 strength was offset by the overall competitive pricing environment, higher
 operating costs, and increased investment in new product development and
 advertising.
     Maytag's consolidated sales in the first three months of this year were
 $1.076 billion, down 2 percent from $1.095 billion in the year-earlier period.
 Operating income was $74.6 million, compared to $143 million.  Net income,
 which included a one-time tax benefit of $42 million, was $76.3 million, or
 96 cents diluted earnings per share, compared to last year's first quarter net
 income of $75.9 million, or 89 cents per share.  Without the tax benefit, net
 income in the first quarter was $34.3 million, or 43 cents per share.  There
 were 7 percent fewer diluted shares outstanding in this year's first quarter
 due to the company's share repurchase program.
     "As we had anticipated, our first quarter earnings per share showed
 sequential improvement from the 40 cents per share we earned in the fourth
 quarter of last year, which was our immediate goal.  While we are disappointed
 our financial performance was off significantly when compared to the first
 quarter of 2000, our objective remains to build performance momentum
 throughout this year," said Maytag CEO Leonard A. Hadley.
     "During this year's first quarter we had strong volume and market share
 gains in Maytag laundry equipment and dishwashers, as well as Hoover floor
 care products.  These strengths were offset, however, by lower sales in our
 other home appliances, commercial foodservice equipment and vending machines.
 Operating income was hurt by increased manufacturing and merchandising costs,
 plus increased advertising and a less favorable model mix in sales of floor
 care products.
     "As we move through 2001, we will continue to face challenging economic
 and competitive conditions.  We expect our second quarter earnings per share
 to meet or exceed the first quarter's 43 cents per share, excluding the tax
 benefit.  Looking ahead, we remain focused on growing our core businesses and
 investing in new product development for the future."
     Maytag's home appliances segment, which includes major appliances and
 floor care products, had first quarter sales of $944.2 million, down 1 percent
 from sales of $953.4 million in the first quarter of 2000.  Operating income
 for the segment was $85 million, representing an operating margin of 9
 percent.  In the year-earlier period, the segment's operating income was
 $146 million and the operating margin was 15.3 percent.
     The corporation's commercial appliances segment, composed of vending
 equipment and foodservice products, had first quarter sales of $95 million,
 down 15 percent from $111.1 million in the first quarter of 2000.  Operating
 income for the segment decreased 81 percent to $1.4 million, representing an
 operating margin of 1.5 percent.  The significant decline in operating income
 from last year's first quarter was attributable to lower sales of vending
 equipment and a greater operating loss for foodservice equipment.  In the
 first quarter of 2000, the segment had an operating income of $7.4 million and
 an operating margin 6.7 percent.
     The corporation's international segment consists of its 50.5 percent
 ownership in the Rongshida-Maytag joint venture in China.  Rongshida-Maytag
 reported first quarter sales of $37.3 million, up 21 percent from
 $30.9 million in the year-earlier period.  The business posted an operating
 loss of $1 million, versus an operating loss of  $0.2 million in last year's
 first quarter.
 
     Quarterly Conference Call
     Maytag will hold a conference call today to discuss its business
 performance with members of the investment community.  The call will be at
 9:30 a.m. CDT, and those wishing to participate should telephone 212-896-6163
 about 10 minutes prior to the start of the call.  Additionally, the conference
 call will be broadcast live over the Internet.  It can be accessed through the
 News Center on Maytag's Web site, http://www.maytagcorp.com , or by going to
 CCBN's investor center at http://www.companyboardroom.com .  Replays of the
 call will be available on both Web sites.
     Maytag Corporation is a leading producer of home and commercial
 appliances.  Its products are sold to customers throughout North America and
 in international markets.  The corporation's principal brands include Maytag,
 Hoover, Jenn-Air, Maytag Performa, Blodgett and Dixie-Narco.
     Maytag's 2000 Annual Report is available in the Financial Center on the
 corporation's Web site, http://www.maytagcorp.com
 
     Forward-Looking Statements:  Certain statements in this news release,
 including any discussion of management expectations for future periods,
 constitute "forward-looking statements" within the meaning of the Private
 Securities Litigation Reform Act of 1995.  Such forward-looking statements
 involve known and unknown risks, uncertainties and other factors that may
 cause actual results to differ materially from the future results expressed or
 implied by those statements.  For a description of such factors, refer to
 "Forward Looking Statements" in the Management's Discussion and Analysis
 section of Maytag's Annual Report on Form 10-K for the year ended December 31,
 2000, and each quarter's 10-Q.
 
 
            FIRST QUARTER SALES AND EARNINGS COMPARISON (UNAUDITED)
 
                              NET SALES (in thousands)
 
                                                 2001          2000    % Change
     Home appliances                           $944,167      $953,426     (1.0)
     Commercial appliances                       94,968       111,135    (14.5)
     International appliances                    37,339        30,932     20.7
     Consolidated                            $1,076,474    $1,095,493     (1.7)
 
 
                          OPERATING INCOME (in thousands)
 
                                                  2001        2000    % Change
     Home appliances                            $84,989     $146,009    (41.8)
     Commercial appliances                        1,417        7,410    (80.9)
     International appliances                      (968)        (170)  (469.4)
     General corporate                          (10,871)     (10,214)    (6.4)
     Consolidated                               $74,567     $143,035    (47.9)
 
 
                             NET INCOME (in thousands)
 
                                                  2001        2000    % Change
     Comparative                                $34,278      $75,923    (54.9)
     Tax benefit                                 42,000           --
     Reported                                   $76,278      $75,923      0.5
 
 
                            DILUTED EARNINGS PER SHARE
 
                                                 2001        2000     % Change
     Comparative                                 $0.43       $0.89      (51.7)
     Tax benefit                                  0.53          --
     Reported                                    $0.96       $0.89        7.9
 
     Diluted weighted average shares
     outstanding (thousands)                    79,240      85,415       (7.2)
 
 
                               MAYTAG CORPORATION
            CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
                     (In thousands, except per share data)
 
                                                       Three Months Ended
                                                            March 31
                                                     2001              2000
 
     Net sales                                    $1,076,474        $1,095,493
     Cost of sales                                   812,597           781,545
       Gross profit                                  263,877           313,948
     Selling, general and administrative expenses    189,310           170,913
       Operating income                               74,567           143,035
     Interest expense                                (16,261)          (13,523)
     Other -- net                                      1,090            (2,937)
       Income before taxes and minority interest      59,396           126,575
     Income taxes                                    (21,211)           46,200
       Income before minority interest                80,607            80,375
     Minority interest                                (4,329)           (4,452)
       Net income                                    $76,278           $75,923
 
     Basic earnings per common share:
       Net income                                      $1.00             $0.95
 
     Basic weighted-average shares outstanding        76,205            80,151
 
     Diluted earnings per common share:
       Net income                                      $0.96             $0.89
 
     Diluted weighted-average shares outstanding      79,240            85,415
 
 
                               MAYTAG CORPORATION
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (In thousands)
 
                                                    March 31        December 31
                                                      2001              2000
                                                  (Unaudited)
     ASSETS
 
     Current assets
     Cash and cash equivalents                       $21,302           $27,198
     Accounts receivable - net                       632,505           538,403
     Inventories                                     414,810           408,550
     Deferred income taxes                            45,939            45,616
     Other current assets                             34,297            56,792
 
       Total current assets                        1,148,853         1,076,559
 
     Noncurrent assets                               648,785           622,170
 
     Property, plant and equipment                   962,249           970,195
 
       Total assets                               $2,759,887        $2,668,924
 
 
     LIABILITIES AND SHAREOWNERS' EQUITY
 
     Current liabilities
     Accounts payable and accrued expenses          $562,078          $548,775
     Notes payable and current maturities of
      long-term debt                                 464,294           422,912
 
       Total current liabilities                   1,026,372           971,687
 
     Deferred income taxes                            22,529            21,953
 
     Long-term debt, less current portion            431,511           451,336
 
     Postretirement benefit liability                483,969           480,422
 
     Other noncurrent liabilities                    165,914           156,787
 
     Minority interest                               364,202           365,063
 
     Temporary equity: Put option agreements         200,000           200,000
 
     Shareowners' equity                              65,390            21,676
 
       Total liabilities and shareowners' equity  $2,759,887        $2,668,924
 
 

SOURCE Maytag Corporation
    NEWTON, Iowa, April 17 /PRNewswire/ --
     As indicated earlier, Maytag's (NYSE:   MYG) first quarter sales and
 earnings were down from the first quarter of 2000, but earnings per share
 excluding a one-time tax gain were in line with management's recent statements
 regarding expected performance.
     (PHOTO:  http://www.newscom.com/cgi-bin/prnh/20000505/MYGLOGO )
     During this year's first quarter, the company noted strong sales of Maytag
 brand washers, dryers and dishwashers and Hoover floor care products, but that
 strength was offset by the overall competitive pricing environment, higher
 operating costs, and increased investment in new product development and
 advertising.
     Maytag's consolidated sales in the first three months of this year were
 $1.076 billion, down 2 percent from $1.095 billion in the year-earlier period.
 Operating income was $74.6 million, compared to $143 million.  Net income,
 which included a one-time tax benefit of $42 million, was $76.3 million, or
 96 cents diluted earnings per share, compared to last year's first quarter net
 income of $75.9 million, or 89 cents per share.  Without the tax benefit, net
 income in the first quarter was $34.3 million, or 43 cents per share.  There
 were 7 percent fewer diluted shares outstanding in this year's first quarter
 due to the company's share repurchase program.
     "As we had anticipated, our first quarter earnings per share showed
 sequential improvement from the 40 cents per share we earned in the fourth
 quarter of last year, which was our immediate goal.  While we are disappointed
 our financial performance was off significantly when compared to the first
 quarter of 2000, our objective remains to build performance momentum
 throughout this year," said Maytag CEO Leonard A. Hadley.
     "During this year's first quarter we had strong volume and market share
 gains in Maytag laundry equipment and dishwashers, as well as Hoover floor
 care products.  These strengths were offset, however, by lower sales in our
 other home appliances, commercial foodservice equipment and vending machines.
 Operating income was hurt by increased manufacturing and merchandising costs,
 plus increased advertising and a less favorable model mix in sales of floor
 care products.
     "As we move through 2001, we will continue to face challenging economic
 and competitive conditions.  We expect our second quarter earnings per share
 to meet or exceed the first quarter's 43 cents per share, excluding the tax
 benefit.  Looking ahead, we remain focused on growing our core businesses and
 investing in new product development for the future."
     Maytag's home appliances segment, which includes major appliances and
 floor care products, had first quarter sales of $944.2 million, down 1 percent
 from sales of $953.4 million in the first quarter of 2000.  Operating income
 for the segment was $85 million, representing an operating margin of 9
 percent.  In the year-earlier period, the segment's operating income was
 $146 million and the operating margin was 15.3 percent.
     The corporation's commercial appliances segment, composed of vending
 equipment and foodservice products, had first quarter sales of $95 million,
 down 15 percent from $111.1 million in the first quarter of 2000.  Operating
 income for the segment decreased 81 percent to $1.4 million, representing an
 operating margin of 1.5 percent.  The significant decline in operating income
 from last year's first quarter was attributable to lower sales of vending
 equipment and a greater operating loss for foodservice equipment.  In the
 first quarter of 2000, the segment had an operating income of $7.4 million and
 an operating margin 6.7 percent.
     The corporation's international segment consists of its 50.5 percent
 ownership in the Rongshida-Maytag joint venture in China.  Rongshida-Maytag
 reported first quarter sales of $37.3 million, up 21 percent from
 $30.9 million in the year-earlier period.  The business posted an operating
 loss of $1 million, versus an operating loss of  $0.2 million in last year's
 first quarter.
 
     Quarterly Conference Call
     Maytag will hold a conference call today to discuss its business
 performance with members of the investment community.  The call will be at
 9:30 a.m. CDT, and those wishing to participate should telephone 212-896-6163
 about 10 minutes prior to the start of the call.  Additionally, the conference
 call will be broadcast live over the Internet.  It can be accessed through the
 News Center on Maytag's Web site, http://www.maytagcorp.com , or by going to
 CCBN's investor center at http://www.companyboardroom.com .  Replays of the
 call will be available on both Web sites.
     Maytag Corporation is a leading producer of home and commercial
 appliances.  Its products are sold to customers throughout North America and
 in international markets.  The corporation's principal brands include Maytag,
 Hoover, Jenn-Air, Maytag Performa, Blodgett and Dixie-Narco.
     Maytag's 2000 Annual Report is available in the Financial Center on the
 corporation's Web site, http://www.maytagcorp.com
 
     Forward-Looking Statements:  Certain statements in this news release,
 including any discussion of management expectations for future periods,
 constitute "forward-looking statements" within the meaning of the Private
 Securities Litigation Reform Act of 1995.  Such forward-looking statements
 involve known and unknown risks, uncertainties and other factors that may
 cause actual results to differ materially from the future results expressed or
 implied by those statements.  For a description of such factors, refer to
 "Forward Looking Statements" in the Management's Discussion and Analysis
 section of Maytag's Annual Report on Form 10-K for the year ended December 31,
 2000, and each quarter's 10-Q.
 
 
            FIRST QUARTER SALES AND EARNINGS COMPARISON (UNAUDITED)
 
                              NET SALES (in thousands)
 
                                                 2001          2000    % Change
     Home appliances                           $944,167      $953,426     (1.0)
     Commercial appliances                       94,968       111,135    (14.5)
     International appliances                    37,339        30,932     20.7
     Consolidated                            $1,076,474    $1,095,493     (1.7)
 
 
                          OPERATING INCOME (in thousands)
 
                                                  2001        2000    % Change
     Home appliances                            $84,989     $146,009    (41.8)
     Commercial appliances                        1,417        7,410    (80.9)
     International appliances                      (968)        (170)  (469.4)
     General corporate                          (10,871)     (10,214)    (6.4)
     Consolidated                               $74,567     $143,035    (47.9)
 
 
                             NET INCOME (in thousands)
 
                                                  2001        2000    % Change
     Comparative                                $34,278      $75,923    (54.9)
     Tax benefit                                 42,000           --
     Reported                                   $76,278      $75,923      0.5
 
 
                            DILUTED EARNINGS PER SHARE
 
                                                 2001        2000     % Change
     Comparative                                 $0.43       $0.89      (51.7)
     Tax benefit                                  0.53          --
     Reported                                    $0.96       $0.89        7.9
 
     Diluted weighted average shares
     outstanding (thousands)                    79,240      85,415       (7.2)
 
 
                               MAYTAG CORPORATION
            CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
                     (In thousands, except per share data)
 
                                                       Three Months Ended
                                                            March 31
                                                     2001              2000
 
     Net sales                                    $1,076,474        $1,095,493
     Cost of sales                                   812,597           781,545
       Gross profit                                  263,877           313,948
     Selling, general and administrative expenses    189,310           170,913
       Operating income                               74,567           143,035
     Interest expense                                (16,261)          (13,523)
     Other -- net                                      1,090            (2,937)
       Income before taxes and minority interest      59,396           126,575
     Income taxes                                    (21,211)           46,200
       Income before minority interest                80,607            80,375
     Minority interest                                (4,329)           (4,452)
       Net income                                    $76,278           $75,923
 
     Basic earnings per common share:
       Net income                                      $1.00             $0.95
 
     Basic weighted-average shares outstanding        76,205            80,151
 
     Diluted earnings per common share:
       Net income                                      $0.96             $0.89
 
     Diluted weighted-average shares outstanding      79,240            85,415
 
 
                               MAYTAG CORPORATION
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (In thousands)
 
                                                    March 31        December 31
                                                      2001              2000
                                                  (Unaudited)
     ASSETS
 
     Current assets
     Cash and cash equivalents                       $21,302           $27,198
     Accounts receivable - net                       632,505           538,403
     Inventories                                     414,810           408,550
     Deferred income taxes                            45,939            45,616
     Other current assets                             34,297            56,792
 
       Total current assets                        1,148,853         1,076,559
 
     Noncurrent assets                               648,785           622,170
 
     Property, plant and equipment                   962,249           970,195
 
       Total assets                               $2,759,887        $2,668,924
 
 
     LIABILITIES AND SHAREOWNERS' EQUITY
 
     Current liabilities
     Accounts payable and accrued expenses          $562,078          $548,775
     Notes payable and current maturities of
      long-term debt                                 464,294           422,912
 
       Total current liabilities                   1,026,372           971,687
 
     Deferred income taxes                            22,529            21,953
 
     Long-term debt, less current portion            431,511           451,336
 
     Postretirement benefit liability                483,969           480,422
 
     Other noncurrent liabilities                    165,914           156,787
 
     Minority interest                               364,202           365,063
 
     Temporary equity: Put option agreements         200,000           200,000
 
     Shareowners' equity                              65,390            21,676
 
       Total liabilities and shareowners' equity  $2,759,887        $2,668,924
 
 SOURCE  Maytag Corporation

RELATED LINKS

http://www.maytagcorp.com