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Maytag Q2 Home Appliances Sales Rise

7/22/2005 08:41:00 AM Eastern

Newton, Iowa — Invigorated by an increase in sales for all major appliances categories in its home appliances segment, Maytag posted a 7.9 percent second quarter sales jump in the segment, hitting $1.16 billion, up from $1.08 billion in the second three months last year.

Second quarter home appliances segment operations benefited from sales growth, a positive mix in majaps and savings from restructuring and a plant closing, with the segment posting operating income of $21 million, compared with an operating loss of $23.7 million in the same period in 2004.

The loss in 2004 included charges and litigation costs of about $46 million, compared with $3 million in costs for the second quarter of this year.

Despite quarterly operational revenue improvements, income in the quarter was offset by rising raw materials costs, including steel and resins, higher fuel and transportation costs and lower floor-care pricing, said the company.

Sales of majaps showed solid improvement during the quarter, ended July 2, with refrigeration and cooking product sales up appreciably, said Ralph Hake, chairman/CEO. “Sales of French-door bottom freezers under the Jenn-Air, Maytag and Amana brand names are strong. In cooking, all Jenn-Air products, including cooktops and wall ovens generated positive gains for the company.

“Also, Jenn-Air stainless steel dishwashers and Maytag’s new Neptune front-loading washers have generated encouraging consumer interest this quarter,” said Hake.

Overall, second quarter sales were up year-over-year in all major categories of the home appliances segment — refrigeration, laundry, cooking, dishwashing and floor care. Sales of commercial products declined vs. a year ago, a result of continued weakness in the vending industry, said Maytag.

For the first half, Maytag’s home appliances segment saw sales rise 2.4 percent, reaching $2.28 billion, from a year-on-year $2.22 billion. Segment operating earnings for the six months climbed to $47.7 million, a 30.2 percent rise over the $36.6 million reported a year earlier.

Consolidated second quarter sales increased 6.7 percent, to $1.23 billion, up from a year-ago $1.15 billion. Operating income for the period was reported at $19.7 million, compared with a $33.3 million loss in the same quarter the prior year. Net income for the three months hit $3.5 million, which compares with a loss of $41.1 million in the second three months of 2004.

In the first half, consolidated Maytag sales edged upward 1.1 percent, to $2.40 billion, from a year-earlier $2.37 billion. Operating income increased to $43.8 million, from $30.2 million, while the company reported net income of $11.2 million, compared with a $2.4 million loss in the first half of last year.