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Third-quarter consolidated sales at Maytag, 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 industrywide 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 Amana.
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.
"The acquisition of the Amana business enhanced our performance, as sales and cost reductions were much better than anticipated," said chairman/CEO Ralph Hake. "Sales of Maytag laundry equipment and side-by-side refrigerators were strong in the quarter, and we continued to gain market share."
As part of its Amana purchase, Maytag announced plans to restructure its majap division, including the layoff of 225 salaried employees through the end of the year. (See related story, p. 34.)
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.
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.