Home
Global Supplier Directory
APPLIANCE Engineer
Supplier Solutions
APPLIANCE Line
Whitepaper Library
Calendar of Events
Association Locator
Contents Pages
Market Research
Subscription Center


 
Daily News

Whirlpool Will Sell Hoover, Jade Commercial, Dixie-Narco, Amana Microwave
May 23, 2006
 Printable format
 Email this Article
 Search

Whirlpool Corporation said today its merger with Maytag is expected to generate pre-tax annualized cost savings in excess of U.S. $400 million. Cost efficiencies are expected from all areas of the value chain, including product manufacturing, infrastructure and support areas, global procurement, and logistics. The company expects to gain the majority of efficiencies during 2007, and anticipates savings to be fully realized in 2008.

Whirlpool (Benton Harbor, Michigan, U.S.) will incur approximately $450 million in pre-tax, one-time costs to realize the annualized savings estimates. Approximately $150 million of these costs are expected to impact earnings over the next 3 years with the remainder capitalized under purchase accounting.

The company's previous estimated cost savings were $300-to-$400 million with one-time costs of $350-to-$500 million.

"Our increased savings estimates further demonstrate the value creating opportunity of this acquisition. The actions we have recently announced, including the consolidation of laundry production into our Clyde and Marion, Ohio, facilities, will represent a significant portion of our expected annualized savings," said Jeff M. Fettig, Whirlpool's chairman and CEO. "We have moved quickly to integrate the Maytag business since closing the transaction 7 weeks ago and we are pleased with our progress to date."

Businesses For Sale

Whirlpool also announced its decision to sell off several businesses that came with the Maytag purchase, and Fettig says the sales will allow Whirlpool to focus on its core appliance business. For-sale businesses include:

  • Hoover floor-care
  • Dixie-Narco vending systems
  • Amana commercial microwave
  • Jade commercial products appliance businesses

    "We have received strong interest from a number of potential buyers and anticipate completing these transactions by the end of this year," Fettig said.

    Revised Guidance
    Whirlpool also revised its guidance to reflect the integration of Maytag and now expects full-year 2006 earnings per diluted share from continuing operations of $6.00 to $6.25, compared to the pre-acquisition range of $7.00 to $7.25.

    Back to Daily News

  •  

    Daily News

    ...........................................................

    Sep 19, 2014: Builder confidence at highest level since Nov. 2005

    Sep 19, 2014: Builders Show, Kitchen/Bath Show, and 3 other events converge for 2015 Design & Construction Week

    Sep 19, 2014: GE Appliances supporting Susan G. Komen

    Sep 18, 2014: AHRI at White House unveils $5 billion refrigerant R&D plan

    Sep 18, 2014: Solar microinverter market could break $1 billion by 2018

    More Daily News>>

    RSS Feeds
    .........................................................
    Appliance Industry
    Market Research

    ...........................................................

    March 2014: Market Research - 62nd Annual U.S. Appliance Industry Forecast
    February 2014: Appliance Magazine Market Insight: December 2013
    January 2014: Market Research - Appliance Historical Statistical Review: 1954-2012
    January 2014: Appliance Magazine Market Insight: November 2013




     
    Contact Us | About Us | Subscriptions | Advertising | Home
    UBM Canon © 2014  

    Please visit these other UBM Canon sites

    UBM Canon Corporate | Design News | Test & Measurement World | Packaging Digest | EDN | Qmed | Plastics Today | Powder Bulk Solids | Canon Trade Shows