UNITED STATES
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: September 23, 1999
Date of earliest event reported: September 23, 1999
Commission file number 1-655
MAYTAG CORPORATION
A Delaware Corporation I.R.S. Employer Identification No. 42-0401785
403 West Fourth Street North, Newton, Iowa 50208
Registrant's telephone number: 515-792-7000
N/A
(Former name or former address, if changed since last
report.)
1<PAGE>
Item 5. Other Events
On September 23,1999, Maytag Corporation's CEO Lloyd D. Ward reinforced the
corporation's innovation strategy during a conference presentation to members
of the investment community hosted by Prudential in Mt. Snow, Vermont.
A copy of the Company's press release issued September 23,1999, 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.
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 G. J. Pribanic
G. J. Pribanic
Chief Financial Officer
September 23, 1999
(Date)
3<PAGE>
EXHIBIT INDEX
The following exhibit is filed herewith.
Exhibit No. Exhibit
99(a) Press Release.
4<PAGE>
Maytag Reinforces Innovation Strategy at Prudential Best Ideas Conference
NEWTON, Iowa (Sept. 23, 1999) Maytag Corporation's CEO Lloyd D. Ward
today reinforced the corporation's innovation strategy during a conference
presentation to members of the investment community hosted by Prudential in
Mt. Snow, Vermont.
"Our goal is profitable growth, and our strategy to achieve that is
intelligent innovation and operating excellence," Ward reiterated to the
audience. "We are taking steps to reinforce both and to strengthen the
culture that will sustain both.
"Although our performance has slowed somewhat from an exceptionally
strong first half, we still expect sales and earnings in the second half to
be at least on par with last year's record level. Given the fundamental
strength of our business, we are disappointed and concerned by the over-
reaction of the stock market to our expected performance.
"Full year 1999 earnings per share is on track to grow in the mid-
teens, behind another year of record sales and earnings for Maytag
Corporation. And we continue to believe we're capable of delivering an
earnings per share growth rate in the low to mid-teens in 2000."
During the presentation, Ward further reinforced Maytag's commitment
to innovation by pointing to the recent announcement of a business
realignment as one initiative aimed at increasing the corporation's
capability to deliver innovation across all its businesses and brands. Ward
also provided more detail around the corporation's target to take out $100
million in costs during the next two years.
"The largest portion, some $40 to $50 million, will come from
accelerated initiatives in our quality and productivity program that
combines the best of Lean Manufacturing concepts and Six Sigma concepts.
<PAGE>
We have realized some savings in 1999 from pilot projects; we expect more
to accrue in 2000. This is an ongoing discipline and is being built into
management accountability and performance objectives."
The second phase in attacking the $100 million in costs, according to
Ward, involves re-engineering the general and administrative cost structure
at Maytag. "Here, we have our sights set on a $20 to $30 million target.
We expect to frame this initiative more precisely and announce our
intentions before the end of the year. We will work to implement those
actions during the first half of 2000 and expect to begin gaining benefits
during the second half."
The third phase involves gaining overall benefits from the business
realignment and specific initiatives focused on supply chain
rationalization and improvement. "We know there is a potential gain here,
in a range of $20 to $30 million," Ward said. "We expect to gain modest
benefits from the realignment this year and through the first half of 2000,
with more substantial benefits occurring in the second half."
Ward concluded by pointing to three near-term growth imperatives that
are expected to drive Maytag's performance. "We are focused on increasing
the speed, efficiency, and effectiveness of innovation. The recent
announcements of a business realignment and formation of Maytag s World
Innovation Network are both key to our ability to deliver innovation faster
and more effectively.
"Second, we are committed to redefining our value brand proposition by
taking our successful intelligent innovation strategy into popular price
points. To date, we have leveraged innovation primarily on premium price
points. Going forward we will deliver innovation to all our products and
brands. With Performa by Maytag products we have proven we can create
<PAGE>
shareowner value by delivering innovation at popular price points as well
as delivering innovation at higher price points. Now, we are taking that
strategy to every business, every product line, and every brand.
"Finally, we are focused on improvement in operating excellence. The
cost, quality, and productivity initiatives underway are central to helping
us create value for consumers, customers, and shareowners," Ward said.
Maytag Corporation is a leading producer of home and commercial
appliances. Its products are sold to customers throughout North America
and in international markets.
# # #
Forward-Looking Statements: Certain statements in this news release,
including any discussion of management expectations for future periods,
constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors that may
cause actual results to differ materially from the future results expressed
or implied by those statements. Refer to Part II, Item 7 of Maytag's
Annual Report on Form 10-K for the year ended December 31, 1998, for a
description of such factors. <PAGE>
CPI9926
Media Contact:
Additional Information:
Jim Powell
www.maytagcorp.com
Maytag Corporate Communications
515-787-8392
[email protected]
g:ldw prudential
