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MAYTAG CORPORATION REPORTS RESULTS

 MAYTAG CORPORATION REPORTS RESULTS
 NEWTON, Iowa, Oct. 15 /PRNewswire/ -- As anticipated in an earlier


announcement, Maytag Corporation's (NYSE: MYG) third quarter earnings, before special charges, were significantly below the comparable period of last year.
 On Aug. 24, Maytag said it expected quarterly earnings would be down. At that time, the firm also announced it would take a one-time third quarter charge of $95 million for a significant reorganization, and it would implement two accounting changes that the Financial Accounting Standards Board (FASB) will require for most large corporations. One pertains to post-retirement medical benefits (FAS 106) and the other involves accounting for income taxes (FAS 109). The accounting changes result in both one-time and ongoing charges, but they do not have an impact on cash flow.
 Maytag Corporation's consolidated sales in the quarter ended Sept. 30 were $735.5 million, compared to $729.5 million in the third quarter of 1991.
 Excluding the third quarter reorganization and FAS charges for comparative purposes, operating income in this year's third quarter was $39.1 million and net income was $14.1 million, or 13 cents a share. In the third quarter of 1991, Maytag's operating income was $53.5 million and net income was $24.2 million, or 23 cents a share.
 Leonard A. Hadley, Maytag Corporation president and chief executive officer, said, "The lower performance in this year's third quarter is due to continued losses in Europe, costs associated with the new dishwasher facility in Jackson, Tenn., and a new line of Magic Chef ranges, competitive pressures and unfavorable economic conditions both here and abroad."
 The reported results for the third quarter, including the reorganization charge and the ongoing accounting charge, showed an operating loss of $61.4 million and a net loss of $50.2 million, or a negative 47 cents a share.
 Hadley said, "We are taking positive steps to strengthen our organization, and we view the reorganization charge as an investment in our future. We expect to recover this charge in approximately three years through improved earnings."
 Discussing significant business components, Hadley said the corporation's North American Appliance Group had sales of $557 million in the third quarter, compared to $557.5 million a year ago. Operating income for the group, excluding FAS accounting charges, totaled $46.5 million, versus $58.4 million in the third quarter of 1991. Including charges for accounting changes reduced the group's third quarter 1992 operating income to $41.1 million.
 Maytag's Hoover Europe division posted third quarter sales of $109.7 million, compared to $103.5 million last year. However, the operating loss this year was $7 million, versus a loss of $5.3 million in the year ago quarter. Hadley said the sales increase was due to differences in foreign currency exchange rates.
 Maytag's vending equipment segment, Dixie-Narco, showed improvement with third quarter sales of $36.9 million and operating income of $3.6 million. In the third quarter of last year, Dixie-Narco had sales of $32.4 million and operating income of $2.2 million. Hadley said comparative operating income this year improved following the closing of the old Dixie-Narco plant in Ranson, W. Va., late last year.
 For the first nine months of this year, Maytag's consolidated sales were $2.26 billion, essentially flat with last year's nine-month total of $2.24 billion.
 Excluding all FAS and reorganization charges from this year and a plant closing charge in 1991, operating income for the 1992 nine-month period was $153 million and net income was $65.9 million, or 62 cents a share. In the first nine months of 1991, operating income was $154.3 million and net income was $64.3 million, or 61 cents a share.
 The required accounting changes being implemented by Maytag are retroactive to Jan. 1, 1992. Consequently the corporation has restated income figures for the first and second quarters to reflect the FAS charges. The one time FAS charges in the first quarter amounted to $307 million or $2.89 a share.
 Incorporating these restated figures, and including all special third quarter charges resulted in reported operating income of $39.8 million in the first nine months of this year and a net loss of $313.6 million, or a negative $2.96 a share. In the first nine months of 1991, including a special charge of $10 million for closing a former vending equipment plant, Maytag's operating income was $144.3 million and net income was $58 million, or 55 cents a share.
 In terms of significant business components, the corporation's North American Appliance Group had sales of $1.68 billion in the first nine months of 1992, compared to $1.65 billion a year ago. Operating income for the group, excluding FAS charges, totaled $159.2 million, versus $154.5 million in the third quarter of 1991. Including the FAS charges resulted in a reported nine-month 1992 operating income of $141.5 million.
 Maytag's Hoover Europe division posted nine month sales of $346.9 million, compared to $362.6 million last year. The operating loss this year was $16.2 million, versus a loss of $8.9 million in the first nine months of 1991.
 Dixie-Narco had nine-month sales of $131.6 million and operating income of $15.2 million. In the first nine months of last year, Dixie- Narco had sales of $124.2 million and operating income of $5 million, including the $10-million plant closing charge.
 Maytag Corporation, headquartered in Newton, Iowa, consists of 12 business units with 21 manufacturing operations in seven countries and approximately 22,000 employees. Its appliance brands include Maytag, Magic Chef, Hoover, Jenn-Air, Admiral, Hardwick and Norge. Dixie-Narco is the corporation's vending equipment manufacturer.
 MAYTAG CORPORATION
 CONDENSED STATEMENTS OF CONSOLIDATED INCOME
 (In thousands, except per share data)
 Third Quarter Nine Months
 September 30 September 30
 1992 1991 1992 1991
 Net sales $ 735,540 $ 729,534 $ 2,258,777 $ 2,244,988
 Cost of sales 573,669 549,143 1,730,455 1,701,262
 Gross profit 161,871 180,391 528,322 543,726
 Selling, general and
 administrative
 expenses 128,260 126,918 393,549 399,424
 Reorganization
 expenses 95,000 95,000
 Operating income (61,389) 53,473 39,773 144,302
 Interest expense (18,980) (18,203) (56,182) (58,029)
 Other - net 1,879 2,217 6,109 5,832
 Income before income
 taxes and cumulative
 effect of accounting
 changes (78,490) 37,487 (10,300) 92,105
 Income taxes (28,256) 13,324 (3,708) 34,079
 Income before cumulative
 effect of accounting
 changes (50,234) 24,163 (6,592) 58,026
 Cumulative effect of
 accounting changes (307,000)
 Net income $ (50,234) $ 24,163 $ (313,592) $ 58,026
 Income per average
 share of common stock:
 Income before cumulative
 effect of accounting
 changes $ (0.47) $ 0.23 $ (0.06) $ 0.55
 Cumulative effect of
 accounting changes (2.89)
 Net income $ (0.47) $ 0.23 $ (2.96) $ 0.55
 Average shares
 outstanding 106,048 105,768 106,086 105,740
 The above statements are subject to year-end audit by independent auditors.
 MAYTAG CORPORATION
 CONDENSED STATEMENTS OF CONSOLIDATED FINANCIAL CONDITION
 (In thousands)
 Sept. 30 Dec. 31
 1992 1991
 ASSETS
 Current assets
 Cash and cash equivalents $ 40,449 $ 48,752
 Accounts receivable - net 531,848 457,773
 Inventories 479,760 489,082
 Deferred income taxes 42,480 24,858
 Other current assets 11,756 56,168
 Total current assets 1,106,293 1,076,633
 Other assets 679,195 622,942
 Property, plant and equipment 857,236 835,493
 Total assets $ 2,642,724 $ 2,535,068
 LIABILITIES AND SHAREOWNERS' EQUITY
 Current liabilities
 Accounts payable and accrued
 expenses $ 472,133 $ 520,534
 Notes payable and
 current maturities of long-term debt 136,676 47,074
 Total current liabilities 608,809 567,608
 Deferred income taxes 47,266 75,210
 Long-term debt 773,277 809,480
 Other noncurrent liabilities 515,891 72,185
 Shareowners' equity 697,481 1,010,585
 Total liabilities and
 shareowners' equity $ 2,642,724 $ 2,535,068
 The above statements are subject to year-end audit by independent auditors.
 -0- 10/15/92
 /CONTACT: James G. Powell for Maytag Corporation, 515-791-8392/
 (MYG) CO: Maytag Corporation ST: Iowa IN: HOU SU: ERN


LR -- NY051 -- 0402 10/15/92 12:06 EDT
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Date:Oct 15, 1992
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