Newton, Iowa - Encouraged by a strong third quarter for its major appliances business — which achieved a record three months for unit sales — Maytag posted a 4.8 percent majap dollar sales gain, reaching $1.15 billion, up from $1.10 billion in the same period a year earlier.
Operating income for the majap segment, which includes floor care products, dropped 39.3 percent, to $68.5 million, compared with $112.8 million in the same quarter in 2002. Current year operating income includes a $13.1 million charge.
'Maytag appliances witnessed solid gains in market share as a result of new product introductions within an environment of strong industry shipments,' said Ralph Hake, chairman/CEO.
Maytag's majap segment sales were off slightly in the first nine months, down less than 1 percent, to $3.32 billion, from $3.34 in the same period a year ago. Operating income for the segment in the period was $203.6 million, down 42 percent from the $359.6 million recorded in last year's first nine months. The current period included $33 million in charges.
Consolidated third quarter Maytag sales increased 4.6 percent, hitting $1.22 billion, up from $1.17 billion in the year-ago three months. Net income for the quarter slid to $36.6 million, down from $60.8 million year-on-year, nearly a 40 percent drop. Third quarter earnings were negatively impacted by an $8.8 million charge. Also, advertising expenditures tied to new product introductions and burden absorption tied to lower production levels, helped reduce profitability.
Nine-month consolidated sales were nearly flat, coming in at $3.52 billion, off less than 1 percent, compared with $3.54 billion a year ago. Net income for the nine months reached $96.3 million, a 48 percent slide from the $185.5 million recorded in the same time frame in 2002.