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MAYTAG REPORTS RESULTS

 NEWTON, Iowa, July 21 /PRNewswire/ -- Maytag Corporation's (NYSE: MYG) operating income was up significantly during the second quarter on slightly lower sales, according to an announcement today by Leonard A. Hadley, chairman and CEO.
 Hadley said, "Comparable operating income figures show improvement for the quarter primarily because of improved production efficiencies in our North American Appliance Group and some selective price increases. Our recent capital spending and marketing reorganization is paying off in the North American Appliance Group because gross margins and operating income improved in the tight pricing environment of our industry. Net income also improved in the quarter."
 He added, "The corporation's consolidated sales in the quarter ended June 30 were down somewhat from a year ago because of less favorable currency conversions, the absence of sales from the microwave oven operation that Maytag sold in June of 1992 and lower vending equipment sales. Without the reductions from these factors, our sales actually would have been ahead of last year."
 Maytag's consolidated sales in the quarter ended June 30 were $753.3 million, down 2.2 percent from $770.1 million in the second quarter of 1992. Operating income rose 19.2 percent to $55 million, compared to $46.2 million a year ago.
 Net income for the period was $21.3 million, or 20 cents a share, up 12.5 percent from $18.9 million, or 18 cents a share in the year-ago quarter. The increase was achieved despite the fact that Maytag's effective tax rate in this year's second quarter was increased to 41.6 percent from 36 percent in 1992, primarily due to greater than anticipated losses in Europe.
 In terms of major business categories, Maytag's North American Appliance Group had sales of $568.4 million in the second quarter of this year, up slightly from sales of $567.4 million in the second period of 1992. Operating income rose 33.7 percent to $53.1 million from $39.7 million a year ago. This increase was partially due to 1992 results being somewhat lower because of plant start-up costs.
 Maytag's Hoover Europe division posted sales of $101.3 million, down 10.4 percent from sales of $113.1 million in the second quarter of 1992. Hadley said most of the differences in the figures were attributable to less favorable currency conversions in this year's quarter. The division's operating loss in the quarter ended June 30 was $3.6 million, compared to a loss of $7.5 million in the year-ago quarter. Poor economic conditions in Germany, France and Italy continue to impact operating results in Europe.
 Dixie-Narco, the corporation's vending component, had second quarter sales of $47.5 million, down 10 percent from sales of $52.8 million in the second quarter of 1992. Operating income was $6.5 million for the period, compared to $7.8 million a year ago. Hadley said the sales decrease was due to capital constraints experienced by both domestic and export vender customers. The reduction in operating income was a reflection of the reduced revenues.
 In the first six months of this year, Maytag's consolidated sales were $1.470 billion, down 3.5 percent from $1.523 billion in the first half of 1992. Again, Hadley pointed out that this decrease was primarily due to less favorable currency conversions and the divestiture of the microwave oven business.
 In the first quarter of 1993, Maytag took a one-time, after-tax charge of $30 million to cover anticipated additional costs associated with promotional programs in the United Kingdom. Last year, the corporation incurred $307 million in after-tax charges associated with the adoption of two accounting pronouncements, which were retroactive to the first quarter of 1992.
 Excluding these special charges from both years for comparative purposes, Maytag's operating income for the first half of 1993 was $103.6 million, up 2.4 percent from $101.2 million in the first half of 1992. Net income, also excluding the special charges, was $40.8 million, or 38 cents a share in this year's first half versus $43.6 million, or 41 cents a share in the first six months of 1992. The decrease in net income was due to the higher effective tax rate this year compared to 1992.
 Including the promotional related special charge, Maytag's reported operating income for the first half of 1993 was $53.6 million, compared to $101.2 million in the first six months of 1992. The reported net income this year was $10.8 million, or 10 cents a share, compared to a net loss after the cumulative effect of accounting changes of $263.4 million or $2.48 a share.
 First half sales for Maytag's North American Appliance Group were $1.114 billion, down slightly from $1.124 billion in the first half of 1992. Operating income, however, was up 3.7 percent to $104 million, compared to $100.3 million in the first six months of last year.
 Hadley indicated that unit sales volume for the North American Appliance Group was improved in the second quarter and helped bring operating income up for the six-month period.
 Hoover Europe's sales in the first half of 1993 were $204.4 million, down 13.8 percent from $237.2 million a year ago. In terms of local currency, sales in the United Kingdom increased for both the quarter and six-month period compared to last year. Excluding the promotional charge for comparative purposes, the operating loss in this year's first half was $7.7 million, compared to $9.2 million in the first six months of 1992.
 Dixie-Narco's vending equipment sales were $85.3 million in the first half, down 9.9 percent from $94.7 million last year. Operating income was $10.1 million, compared to $11.6 million in 1992.
 Maytag Corporation is a leading appliance enterprise focused on five principal areas of home management: laundry, cooking, dishwashing, refrigeration and floor care. Vending equipment is an additional corporate business.
 Headquartered in Newton, Iowa, Maytag Corporation has 21 manufacturing operations in seven countries and approximately 21,000 employees worldwide. Its appliance brands include Maytag, Hoover, Jenn-Air, Magic Chef and Admiral. Dixie-Narco is the corporation's vending equipment manufacturer.
 MAYTAG CORPORATION
 CONDENSED STATEMENTS OF CONSOLIDATED INCOME
 (In thousands, except per share data)
 Second Quarter Ended Six Months Ended
 June 30 June 30
 1993 1992 1993 1992
 Net sales $ 753,256 $ 770,060 $ 1,470,109 $ 1,523,237
 Cost of sales 569,444 593,257 1,113,564 1,156,786
 Gross profit 183,812 176,803 356,545 366,451
 Selling, general and
 administrative
 expenses 128,818 130,652 302,995 265,289
 Operating
 income 54,994 46,151 53,550 101,162
 Interest expense (19,097) (18,799) (37,832) (37,202)
 Other - net 557 2,236 3,160 4,230
 Income before income
 taxes and cumulative
 effect of accounting
 changes 36,454 29,588 18,878 68,190
 Income taxes 15,147 10,651 8,117 24,548
 Income before
 cumulative effect of
 accounting
 changes 21,307 18,937 10,761 43,642
 Cumulative effect of
 accounting
 changes -- -- -- (307,000)
 Net income
 (loss) $ 21,307 $ 18,937 $ 10,761 $(263,358)
 Income (loss) per average
 share of Common stock:
 Income before
 cumulative effect of
 accounting
 changes $ 0.20 $ 0.18 $ 0.10 $ 0.41
 Cumulative effect of
 accounting
 changes -- -- -- (2.89)
 Net income
 (loss) $ 0.20 $ 0.18 $ 0.10 $ (2.48)
 Average shares
 outstanding 106,175 106,248 106,140 106,176
 The above statements are subject to year-end audit by independent auditors.
 MAYTAG CORPORATION
 CONDENSED STATEMENTS OF CONSOLIDATED FINANCIAL CONDITION
 (In thousands)
 June 30 Dec. 31
 1993 1992
 ASSETS
 Current assets
 Cash and cash equivalents $ 56,746 $ 57,032
 Accounts receivable - net 557,574 476,850
 Inventories 470,764 401,083
 Deferred income taxes 68,724 52,261
 Other current assets 54,970 28,309
 Total current assets 1,208,778 1,015,535
 Other assets 607,388 651,844
 Property, plant and equipment 828,764 834,111
 Total assets $ 2,644,930 $ 2,501,490
 LIABILITIES AND SHAREOWNERS' EQUITY
 Current liabilities
 Accounts payable and accrued expenses $ 541,031 $ 499,604
 Notes payable and
 current maturities of long-term debt 245,568 63,305
 Total current liabilities 786,599 562,909
 Deferred income taxes 71,978 89,011
 Long-term debt 741,770 789,232
 Postretirement benefits other than
 pensions 386,361 380,376
 Other noncurrent liabilities 69,169 80,737
 Shareowners' equity 589,053 599,225
 Total liabilities and shareowners'
 equity $ 2,644,930 $ 2,501,490
 The above statements are subject to year-end audit by independent auditors.
 -0- 7/21/93
 /CONTACT: James G. Powell of Maytag, 515-791-8392/
 (MYG)


CO: Maytag Corporation ST: Iowa IN: HOU SU: ERN

PS -- NY056 -- 3946 07/21/93 12:41 EDT
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Publication:PR Newswire
Date:Jul 21, 1993
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