Maytag Income Down In Q2 - Twice

Maytag Income Down In Q2

Author:
Publish date:

NEWTON, Iowa -- Coming off the record net income registered in last year's second quarter, Maytag Corp., as was expected by management, reported a net income of $75.67 million for the second quarter ended June 30, down 14.2 percent compared to the $88.20 million registered in the same three months in 1999.

Consolidated sales for the second quarter were $1.10 billion, up nearly 2 percent compared to the $1.09 billion compiled in the year-ago period. Operating income in the second quarter climbed 9 percent to $142.70 million, compared to $156.74 million in the same quarter in 1999.

"Maytag's second-quarter results were essentially what we had anticipated, and what we had advised investors to expect," said Lloyd D. Ward, chairman/CEO. "Early this year, we indicated Maytag's performance in the first two quarters of 2000 would be off from last year's record levels, when our business was strong on all fronts.

"This year's second quarter, operating income was down from last year's period primarily because of the continued investments for the future we're making in e-commerce and innovation initiatives, competitive pressures in our home appliances segment, and decreased sales of commercial products," said Ward.

Maytag's home appliance segment, which includes major appliances and floor-care products, and accounts for nearly 85 percent of the company's total business, enjoyed a sales increase of 3.5 percent to $948.84 million in the second quarter, compared to $916.66 million in the same quarter last year. Operating income for the segment was $143.26 million, down 3 percent from the $147.82 million recorded in the year-ago quarter.

First-half sales for the home appliance segment climbed 3.2 percent to $1.90 billion, compared to $1.84 billion in the same six months in 1999. Operating income was down 2.3 percent to $289.27 million, compared to $296.18 million in the same period last year.

Said Ward, "We expect to recapture momentum in sales and earnings growth during the second half of this year. We should begin to benefit from the new products we've introduced and other initiatives we've undertaken to increase top-line growth and reduce costs.

New products cited by Ward include Maytag's rapid-cook range that cooks food in half the time of a traditional range; the ClimateZone refrigerator; and the new Performa line of dishwashers, refrigerators, ranges and laundry equipment Big things also are expected from the Neptune clothes washer and Jenn-Air rapid-cook wall oven, both available at retail in September.

Maytag's overall sales in the first half were virtually flat at $2.19 billion, compared to the same six months in 1999. Operating income was off 8 percent, down to $285.74 million, from $310.24 million in the year-ago period, Net income dropped 14 percent to $151.59 million, compared to $175.22 million in the same six months a year ago.

Featured

Related Articles