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): February 9, 1996
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 February 9, 1996 that it is streamlining its major
home appliance business designed to strengthen its position in the industry and
deliver improved results to customers and shareowners. The Company will take
1996 charges of $50 million for restructuring costs related to the streamlining.
A copy of the Company's press release issued February 9, 1996 is attached as
Exhibit 99(a) 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.
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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 G. J. Pribanic
G. J. Pribanic
Chief Financial Officer
February 9, 1996
(Date)
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EXHIBIT INDEX
The following exhibit is filed herewith.
Exhibit No. Exhibit
99(a) Press Release.
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MAYTAG STREAMLINES MAJOR APPLIANCE BUSINESS FOR
STRONGER POSITION IN INDUSTRY;
TAKES $50 MILLION CHARGE; EXPECTS $35 MILLION ANNUAL PAYBACK
(Newton, Iowa. Feb. 9, 1996)--Maytag Corporation announced today
a streamlining of its major home appliance business designed to
strengthen its position in the industry and to deliver improved
results to customers and shareowners.
Maytag will create a single business unit to manage all
aspects of product design, manufacturing, marketing, and service
for its four major home appliance brands: Maytag, Jenn-Air, Magic
Chef, and Admiral. Previously, these brands were managed under
two separate businesses. The new, consolidated business unit
will be known as Maytag Appliances.
In a related move, the corporation also announced it will
consolidate the manufacturing of Jenn-Air brand cooking products
at Maytag's larger Cleveland, Tennessee, cooking products plant,
and phase out production at its Indianapolis, Indiana, facility.
The Indianapolis facility, where approximately 860 people are
employed, is expected to close by the end of 1996, if not
earlier. Jenn-Air cooking products will continue to be designed
and manufactured as a separate, distinctive product line, focused
on innovation and styled for the upscale cooking market.
"We are streamlining the corporation to deliver better
results and to do a better job of meeting our customers' needs,"
said Leonard A. Hadley, Maytag Corporation chairman and chief
executive officer. "We have strong, widely recognized major<PAGE>
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appliance brands that serve a broad spectrum of customers in the
marketplace. The new, consolidated business unit will help us
serve those customers more effectively and efficiently in
everything we do from manufacturing to marketing.
"Maytag has taken a number of strategic steps in the past
several years to restructure its balance sheet, to divest under-
performing assets, to improve operating performance, and to
further streamline sales and distribution functions," Hadley
said. "The consolidation of our home appliance businesses is one
more step in an ongoing process that builds on those improvements
to deliver more value, more effectively."
The corporation will take 1996 charges of $50 million for
restructuring costs related to the streamlining. The majority of
this will be booked as a one-time charge in the first quarter.
Hadley indicated the corporation could expect a $35 million
annual cost savings beginning in year two of the reorganization,
primarily from lower salaried employee count, efficiencies gained
in the cooking products plant consolidation, and operating
improvements due to the reorganization in its appliance business.
"The reorganization will reduce costs overall," Hadley said,
"but that is not the primary reason to take the step. It will
help us respond more effectively to all the customers who sell
our appliances. It also will help us strengthen our brand
positioning in the marketplace and provide more support for our
field sales force, which is a key strength at Maytag." Hadley
indicated the activities of the individual sales representatives
will not be combined. "Individual sales representatives will
continue to call on the same customers and market the same
brands," Hadley said. "Now, with a streamlined organization,
they will be better equipped to do so."<PAGE>
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The corporation also said it will implement performance
improvement initiatives in key functional areas for Maytag
Appliances, based on the consolidation. Initiatives are targeted
in corporate-wide purchasing, information systems, logistics, and
order entry. The corporation is continuing implementation of a
new regional distribution system, combined with business process
enhancements, to improve order flexibility for appliance dealers
who sell Maytag's brands and to provide faster, more consistent
service. Regional Distribution Centers now are in operation in
the Pacific Northwest and Southern California.
This consolidation in the corporation's home appliance
business does not affect Hoover, the corporation's floor care
business, or Dixie-Narco, its vending machine business.
Maytag Corporation, headquartered in Newton, Iowa, designs,
builds, and markets products that make life easier, simpler, and
more convenient. The corporation's brands include Maytag, Jenn-
Air, Magic Chef, and Admiral in major home appliances; Hoover in
floor care; and Dixie-Narco in vending equipment. Maytag
Corporation employs approximately 16,300.
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Media contact: Tom Schwartz at Maytag 515-791-6342<PAGE>
