Maytag Corporation reported third-quarter consolidated sales of U.S. $1.221 billion and operating income of $61.4 million. Reported net income for the period was $36.6 million, or $0.46 per share, consistent with previously announced management expectations. Third quarter earnings were negatively impacted by $0.10 per share due to an after-tax restructuring charge of $8.8 million for the closing of the company's manufacturing plant in Galesburg, IL, U.S. and other discontinued operations. Reported results for discontinued operations benefited from an after-tax gain of $1.2 million primarily related to a note payment for the 2001 sale of Maytag's Blodgett line of cooking products. Partially offsetting this amount was an additional loss recorded on the company's anticipated sale of its joint venture in China.
A year ago, Maytag reported third quarter operating income of $108.7 million on consolidated sales of $1.168 billion. Reported net income for the period was $60.8 million, or $0.77 per share. These results included a $5.5 million after-tax gain, or $0.07 per share, on the sale of a distribution center.
Maytag said that its strong cash flow this year has enabled the company to reduce its debt by $85 million to date and is well on track to meet the $100 million target in 2003. In addition, Maytag said it has already met its 2003 goal of contributing $135 million to the company's pension plan.
The company expects fourth quarter earnings to be in the range of $0.40 to $0.45 per share, which includes after-tax restructuring charges of approximately $8.5 million or $0.11 per share. Full-year 2003 reported earnings are expected to be in the range of $1.62 to $1.67 per share, which includes after-tax restructuring charges of approximately $42 million, or $0.53 per share, for the Galesburg closing and salaried workforce reduction. Also included in these expected results is a $0.01 per share gain in discontinued operations.
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