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Maytag Q1 Majap Sales Zoom 22.5%

4/16/2002 09:04:00 AM Eastern

NEWTON, IOWA - The Amana acquisition and booming sales of high-end major appliances did much to push revenue up 22.5 percent at Maytag during the first quarter. Sales reached $1.1 billion for the three-month period ended March 31, compared with $913.8 million in the same three months in 2001.

Matag's majap operating income soared 40 percent in the first quarter, hitting $119 million, up from $85 million in the year-ago period.

Consolidated net income in the first quarter was $56.8 million, which includes the Amana majap business. This compares with $76.3 million in the first quarter of last year, which includes a one-time tax benefit of $42 million and a loss from discontinued operations of $2.3 million. Excluding the tax benefit and discontinued operations, net income was $36.6 million in the year-ago three months.

"Our sales growth in the first quarter reflected the Amana acquisition and strong sales of higher margin major appliances," said Ralph F. Hake, chairman/CEO. "That favorable sales mix improved operating income. Additionally, the synergies attained with the Amana acquisition, as well as cost control initiatives, leveraged sales growth into higher operating income growth."

Looking ahead, Hake expects year-over-year majap industry sales growth to be more subdued in upcoming quarters. "Even though we do not believe the major appliance industry will continue at the record pace experienced in the first quarter, we anticipate earnings per share performance for the second quarter to be approximately the same level as achieved in the first quarter.

"For the full year, given favorable economic conditions, we're looking for Maytag's 2002 sales to grow 15 percent over 2001," Hake said.