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

Maytag Reports Declined Q1 Sales
Apr 22, 2005
 Printable format
 Email this Article
 Search

Appliance maker Maytag Corporation reported first-quarter consolidated sales of U.S. $1.2 billion, down 4.2 percent from sales of $1.2 billion in the same period last year. Consolidated net income for the first quarter was $7.7 million, or $0.10 per share, compared with net income of $38.7 million, or $0.49 per share, in 2003.

Maytag said savings from restructuring activities implemented in 2004 only partially offset rising costs. Lower net sales and higher costs -- primarily for steel and energy-related items, and higher distribution costs -- reduced first-quarter, year-over-year profitability.

Maytag Chairman and CEO Ralph Hake stated that while the company achieved the gains that were anticipated through the "One Company" restructuring, it is clear that not enough progress has been made.

"We must immediately take more aggressive steps to improve our cost position by reducing our manufacturing footprint," he said. "This will require a manufacturing restructuring that addresses our noncompetitive supply chain costs and burden absorption issues. A new financing plan will fund these business initiatives, which will include a new credit agreement and finalizing plans to refinance 2006 debt maturities."

In Maytag's Home Appliance segment, the company reported that sales declined compared to 2003 as a result of lower sales of OEM refrigeration products, lower sales at Best Buy, and lower average selling prices for floor care products.

However, Mr. Hake noted that the company experienced sequential market share improvement in all major appliance categories, signaling that the actions Maytag has implemented to improve its sales performance are taking root.

"We expect further growth from new products scheduled for launch in the first half 2005, among them are the Maytag(R) Neptune(R) 27-in washer and dryer, the Jenn-Air(R) suite of glass-front appliances, and the new Hoover(R) FloorMate(TM) hard floor cleaner," Mr. Hake said.

In addition, he noted that the Jenn-Air(R) premium appliance lines and the company's value brands posted strong gains in the quarter. Maytag said it saw an improvement in average selling prices in the first quarter of 2005 based upon its recent pricing actions; however, these increases were largely offset by selected 2004 price repositioning and product mix.

As expected, floor care sales were down year-over-year due to pricing actions in 2004. However, floor care did see stabilization in market share in key categories with positive momentum attributed to the full-size extractor category.

"We expect new floor care product launches to take hold with new premium products slated for the second half of the year," Mr. Hake said. "Going forward, our most innovative products this year focus on floor care and laundry, which we believe are significant opportunities."

Maytag Services and Maytag International reported double-digit revenue growth this quarter versus the same period in 2004. Commercial Products remained down year-over-year given the ongoing weakness in the vending industry.

Mr. Hake said that the lower-than-expected realization from Maytag's pricing actions, as well as higher fuel and energy-related raw material costs, have prompted the company to reduce guidance for 2005.

Maytag now expects reported earnings per share for the full-year 2005 in the range of $0.45 to $0.55, including approximately $0.10 in restructuring charges. Earlier, the company noted that 2005 guidance for reported earnings per share were expected to be in the range of $1.10 to $1.30, including about $0.05 for restructuring charges.

Back to Daily News

 

Daily News

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

Nov 21, 2014: Electrolux: new U.S. fridge efficiency requirements are more complex than anticipated

Nov 21, 2014: Whirlpool brand launches Perceptions of Care video

Nov 21, 2014: Hon Hai 3Q profit $1 billion

Nov 21, 2014: Environmental Product Declarations for aluminum product types released

Nov 20, 2014: Report: Drop in affluents' consumer confidence may foretell signal trouble ahead for some retailers

More Daily News>>

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

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

November 2014: U.S. Appliance Industry: Market Value, Life Expectancy & Replacement Picture 2014
October 2014: Portrait of the European Appliance Industry
September 2014: Appliance Industry Focus: HVAC
June 2014: Appliance Magazine Market Insight: April 2014




 
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