Maytag Corporation presented its strategies for improved performance during a conference with financial analysts in New York, NY, U.S., saying that Maytag is a much different company than it was 1 year ago.
Ralph F. Hake, chairman and CEO of Maytag, said that the One Company initiative announced in June, which integrated Maytag Appliances, Hoover floor care, and Maytag's corporate headquarters, will transform the organization into a faster, leaner, and more unified Maytag.
"Through our One Company restructuring initiative, we have laid the foundation for a much reduced cost structure, improved profitability, enhanced customer responsiveness, and accelerated decision-making that will positively impact our overall competitiveness," he said.
Mr. Hake told analysts that Maytag is on track to achieve U.S. $150 million in annual savings from the One Company restructuring. "An additional $30 million in annual savings is expected as a result of our new refrigeration strategy now in place," he said.
Maytag also announced that it will achieve improved earnings in 2005, expected to be in the range of U.S. $1.50 to $1.60 per share, including $0.05 per share in restructuring and related charges.
Additionally, the appliance maker said it has broadened its focus beyond North America as it expands global sourcing opportunities. "We will achieve cost improvement and become more market-responsive as a result of accelerated global procurement, the start-up of a China design center to supplement existing R&D resources, and product supply partnerships with Asian companies," Mr. Hake said.
George Moore, Maytag's executive vice president and CFO, said that aggressive cost-saving initiatives and appliance pricing increases have been implemented to help offset steel and fuel cost increases, which continue to pressure profitability. "Net debt levels have decreased and we have consistently generated strong cash flows," Mr. Moore said.
The company announced that upcoming product launches include Jenn-Air(R) glass-front refrigerators and dishwashers, additions to Maytag(R) high-efficiency laundry offerings, Jade(TM) residential cooking products and refrigeration, Jenn-Air small appliances, additions to the SkyBox(TM) by Maytag, and Hoover(R) extractors, hard surface cleaners, and high-end vacuum cleaners.
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