SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of
earliest event reported): October 20, 1995 (October 17, 1995)
Maytag Corporation
(Exact name of registrant as specified in its charter)
Delaware 1-655 42-0401785
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
403 West 4th Street North, Newton, Iowa 50208
(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code: (515) 792-8000
N/A
(Former name or former address, if changed since last report.)
Page 1 of 4<PAGE>
Item 5. Other Events
The Company announced on October 19, 1995 that it will repurchase up to 10.8
million shares of the Company's stock and increase its December dividend by 12
percent.
A copy of the Company's press release issued October 19, 1995 is attached as
Exhibit 99(a) and is incorporated herein by reference.
The Company announced on October 17, 1995 that it will voluntarily conduct
an in-home product inspection program to eliminate a potential problem with a
small electrical component on Maytag brand dishwashers manufactured between
March 28, 1994 and January 31, 1995.
A copy of the Company's press release issued October 17, 1995 is attached as
Exhibit 99(b) and is incorporated herein by reference.
Item 7. Financial Statements and Exhibits
(c) Exhibits.
The exhibits accompanying this report are listed in the accompanying Exhibit
Index.
2<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Maytag Corporation
(Registrant)
By:s/s John P. Cunningham, Jr.
John P. Cunningham, Jr.
Executive Vice President &
Chief Financial Officer
October 20, 1995
(Date)
3<PAGE>
EXHIBIT INDEX
The following exhibit is filed herewith.
Exhibit No. Exhibit
99(a) Press Release issued October 19, 1995.
99(b) Press Release issued October 17, 1995.
4<PAGE>
Exhibit 99(a)
MAYTAG WILL REPURCHASE SHARES; INCREASE DIVIDEND
NEWTON, IOWA--(Oct. 19, 1995)--Maytag's board of directors
corporation's common stock, and approved a 12 percent increase in
the December dividend, according to an announcement today by
Leonard A. Hadley, chairman and chief executive officer.
"Our balance sheet is significantly stronger than it has
been at any time since 1989, and we've reduced debt by some $400
million in the past 18 months," Hadley said. "We've shed
underperforming assets, operating performance has improved and
our capital investment remains strong. As a result, we are
well-positioned to increase shareowner value as we go forward.
The share repurchase and dividend increase are two important
steps we are able to take now. Both signal our confidence in
Maytag's future and our commitment to improve the value
shareowners receive from their continued investment in Maytag."
Maytag has approximately 108 million shares of common stock
outstanding. The board authorized the repurchase of up to 10.8
million shares, which would represent 10 percent of the
outstanding shares. The repurchase will be conducted at
management's discretion over a non-specified period of time.
Repurchases will be made on the open market or in privately
negotiated transactions. Although there is no obligation to buy
back the maximum number of shares authorized, Hadley said the<PAGE>
company intends to repurchase as many of the authorized shares as
possible, consistent with sound financial judgement.
In other board action, Hadley said the directors approved an
increase of 12 percent in the December dividend. This means the
dividend will be 14 cents a share instead of 12.5 cents. It is
payable Dec. 15 to shareowners of record at the close of business
Dec. 1.
Maytag Corporation is the leading North American producer of
premium brand appliances, Maytag and Jenn-Air brands, and the
leading North American producer of floor care products under the
Hoover brand. The corporation also produces and markets major
appliances under the Magic Chef and Admiral brands, and certain
private labels. Dixie-Narco is the corporation's vending
equipment manufacturer.
-30-
CPI9529
Contact: James G. Powell
Phone: 515-791-8392<PAGE>
Exhibit 99(b)
MAYTAG ANNOUNCES IN-HOME INSPECTION;
WILL VOLUNTARILY REPLACE COMPONENT
(Newton, Iowa. Oct. 17, 1995)--Maytag Corporation announced
today it will voluntarily conduct an in-home product inspection
program to eliminate a potential problem with a small electrical
component on Maytag brand dishwashers manufactured between March
28, 1994, and January 31, 1995. The in-home inspection program
will focus on 231,000 units out of 553,000 manufactured during
the time period. The U.S. Consumer Product Safety Commission has
been notified.
The potential problem involves a small electrical component
in the base of the appliance, which, under unusual circumstances,
could malfunction and render the unit inoperable. Approximately
140 failures have been reported. The likelihood of a malfunction
occurring has been highest within the first eight months after
the dishwasher's installation.
In an extreme situation, a potential fire hazard could
result from the malfunction. One fire involving minor property
damage has been verified.
Products manufactured after January 31, 1995, utilize a
modified design and material so that the electrical component no
longer presents a potential problem.
"Our first concern is customer safety and reassuring
customers of the integrity of our products," explained Maytag
President Richard J. Haines. "During routine monitoring by
Maytag Customer Service, we learned that a small number of units
had malfunctioned. We evaluated the situation closely and
concluded that, in a very few cases, a component failure could
pose a safety hazard. Consequently, we will inspect the product
and replace the component, all at no cost to our customers. <PAGE>
"In our best judgment, consumers can continue to use their
dishwashers prior to the inspection, but should do so only when
at home and when able to attend to the appliance. However, if
there is concern on the consumer's part, we would recommend the
product not be used until it is inspected."
Owners of the products to be inspected will be identified
and notified by Maytag Customer Service through returned warranty
cards and through retail dealers' records.
"We are confident we can notify directly the majority of our
customers through the warranty card information we have on hand,"
Haines said. "And we will begin notifying customers this week."
The inspection program will focus on dishwashers in use
eight months or less and carrying serial numbers ending in one of
the following pairs of letters: KF, KH, KK, KM, KQ, KS, KU, KW,
KY, KZ, or MB. Customers who have owned their dishwashers for
eight months or less and whose dishwashers carry a serial number
ending in these numbers may contact Maytag Customer Service at
1-800-462-9267. NOTE: If the serial number DOES NOT end in these
letters, the product is not involved in the inspection program.
(Serial numbers on Maytag dishwashers are found by opening the
door and looking on the upper left portion of the tub, just below
the countertop.)
Haines concluded: "Although the likelihood of a component
failure is small, we believe the inspection program being
undertaken by Maytag is another expression of our commitment to
dependability."
# # #
Media contact: Tom Schwartz at Maytag 515-791-6342<PAGE>
