Newton, Iowa - Maytag's third-quarter consolidated sales, which include two months of the recently acquired Amana major appliance business, climbed 16 percent to $1.23 billion, compared with $1.06 billion in the year-ago three months.
Operating income, however, dropped 31.8 percent, to $76.1 million, down from $111.6 million in the same quarter in 2000.
Enjoying the fruits of strong industry-wide majap sales in the third quarter - with shipments of washers, dryers, dishwashers, refrigerators and ranges rising to a quarterly record - Maytag said it gained market share within this favorable environment, and benefited from the addition of the Amana business.
To this end, Maytag sales of majaps jumped 19.3 percent in the third quarter ending Sept. 30, rising to $1.11 billion, compared with $931.3 million in the year-ago quarter. Majap operating income, however, dropped 29.1 percent, to $85.2 million, down from $120.3 million in the same three months in 2000.
Overall company net income, including special charges, was reported as a loss of $29.7 million for the third quarter, compared with a gain of $59.5 million in the same quarter last year. Excluding special charges, net income in the third quarter was $35 million.
'The acquisition of the Amana business enhanced our performance, as sales and cost reductions were much better than anticipated,' said Ralph F. Hake, chairman/CEO. 'Sales of Maytag laundry equipment and side-by-side refrigerators were strong in the quarter, and we continued to gain market share,' said Hake.
Hake also noted improvement over the second quarter in the company's Hoover floor care business during the current three months. This was due to new products and an upgraded line of upright vacuums, he said.
For the nine months, Maytag's consolidated sales were $3.37 billion, up 4 percent from the $3.26 billion recorded in the same quarter last year. Operating income decreased 47 percent to $211.8 million, compared with $397.3 million in the year-ago period.
Overall net income, including special charges, was down 67.6 percent, to $68.4 million, compared with $211.1 million in the year-ago nine months. Excluding special charges, net income for the nine months was $94.8 million.
Majap sales for the nine months rose 5.8 percent to $3 billion, up from $2.83 billion in the same nine months last year. Majap operating income for the nine months dropped 41.3 percent, to $240.5 million, down from $409.6 million in the same period in 2000.
'In the fourth quarter, we will begin to fully integrate the Amana business into our major appliance division, and the synergies generated will reduce our operating costs starting next year,' said Hake.
'With regard to Maytag's business for the remainder of the year,' Hake said, 'These are times of high uncertainty for consumers and for our appliance business. However, if the industry and our orders hold at present levels for the balance of the year, we will achieve the current analysts' earnings consensus for the fourth quarter.'