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: February 14, 2000
Date of earliest event reported: February 14, 2000
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
Maytag Corporation confirmed that it expects full year results within
the lower end of the range of current estimates in the investment
community, which is from $3.80 to $4.00 per share in 2000. Maytag also
indicated it expects first quarter 2000 diluted earnings per share (EPS)
results could be off 10 percent or more from 1999 s record first quarter
performance of $.95 a share.
Maytag Corporation and SANYO Electric Co., Ltd., announced a master
alliance agreement that provides a framework for the two corporations to
work jointly on product development, mutual product supply and joint
purchasing of parts.
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
February 14, 2000
(Date)
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EXHIBIT INDEX
The following exhibit is filed herewith.
Exhibit No. Exhibit
99(a) Press Release.
4<PAGE>
MAYTAG S FULL-YEAR PERFORMANCE WITHIN RANGE OF EXPECTATIONS;
EXPECTS WEAKER FIRST QUARTER RESULTS COMPARED TO 1999
NEWTON, IOWA-(Feb. 14, 2000)-Maytag Corporation confirmed today that it
expects full year results within the lower end of the range of current
estimates in the investment community, which is from $3.80 to $4.00 per
share in 2000. Maytag also said it expects first quarter 2000 diluted
earnings per share (EPS) results could be off 10 percent or more from
1999 s record first quarter performance of $.95 a share.
In spite of indications of somewhat slower growth in the first
quarter than anticipated, we will continue to invest strategically in high
return, CFROI-based initiatives for future growth, including smart and
aggressive expansion of our intelligent innovation business model outside
North America, said Maytag Chairman and CEO Lloyd D. Ward. The Sanyo
alliance, which we announced this morning, is one specific step we are
taking to extend our business model. Additionally, during this year we do
not anticipate curtailing other critical investments in R&D and the next
wave of innovative products and services, in e-Business initiatives, or in
smart, connected Internet-based appliances. Investments in these areas are
one reason for slower growth early in 2000.
We had said previously that our EPS growth would be slower in the
first half, while accelerating through the second half of 2000; that
continues to be our view. Now, based on early information, we can provide
additional perspective, especially around the first quarter.
Dixie-Narco vending equipment sales to major soft drink bottlers in
the quarter will be off significantly compared to the prior year, due to a
major customer curtailing purchases. This impact is expected to last at
least through the first half and may continue to affect the business for
most of 2000.<PAGE>
The decline in sales for Dixie-Narco is not likely to be offset by
home appliance sales, which are expected to be flat in the first quarter
compared to the prior year.
In floor care, competitive pressures from products in the new bagless
upright vacuum category continue to dampen growth of sales at Hoover.
Hoover will introduce its own innovation advances on bagless upright
vacuums in the second quarter.
In major appliances, Maytag Neptune and Gemini continue to sell well.
Value brands Admiral and Magic Chef continue to be under attack in what is
an increasingly competitive segment of the market for those brands. Maytag
Performa laundry, which competes in value brand price segments, continues
to sell extremely well. Maytag is expanding the Performa line into every
product category and to all retailers as it moves its focus away from less
profitable brands.
We already anticipated the first quarter would be slow as we build
EPS momentum through the year, Ward said. Now, the first quarter will
have some added weakness we had not anticipated due to slower Dixie-Narco
sales. And, as we had reported previously, the Y2K shutdown schedule in
the major appliance division benefited results in the fourth quarter 1999
by several cents a share and will hurt results in the first quarter of 2000
similarly.
During the second half, we expect EPS to increase in the range of 15
to 20 percent year over year. The biggest lift to top line growth and to
earnings in the second half will be new product introductions in floor
care, cooking, dishwashing, foodservice, and refrigeration. We also have
opportunities to drive top and bottom line growth through new distribution
initiatives during the year. <PAGE>
We expect improved margins in the second half due to specific
actions we already have begun, such as global sourcing initiatives, and
through productivity gains resulting from our on-going initiative that
combines Lean Manufacturing and Six Sigma quality. Late in the second
quarter we will deploy our plan to reduce G&A costs by $25 million over two
years. And we are continuing to put the strategic building blocks in place
to construct a value creation model for shareowners that consistently
drives top line growth, margin improvement, and asset turns.
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.
# # #
CPI007
Media Contact:
Additional Information:
James G. Powell www.maytagcorp.com
Maytag Corporate Communications
515-787-8392
[email protected]<PAGE>
MAYTAG AND SANYO ANNOUNCE ALLIANCE
FOR JOINT PRODUCT DEVELOPMENT, TECHNOLOGY AND MARKETING
TOKYO, JAPAN (Feb. 14, 2000) Maytag Corporation and SANYO Electric Co.,
Ltd., today announced a master alliance agreement that provides a framework
for the two corporations to work jointly on product development, mutual
product supply and joint purchasing of parts.
The two companies officially announced the alliance on February 14 in
Osaka, Japan.
The alliance agreement provides the business framework that will
enable Maytag and SANYO jointly to develop and market home appliance
products for the Japanese and Pacific Rim markets. This involves major
appliances and floor care products, with an initial focus on laundry, new
cooking technologies, and floor and fabric care products. Both companies
separately have developed and marketed high-efficiency clothes washers.
Through the alliance, both companies expressed an interest in jointly
developing a high efficiency clothes washer for home use. This is a
product development area under the alliance that also is of interest to
Procter & Gamble, which has co- promoted high-efficiency wash systems with
Maytag in North America and with SANYO in Japan. Procter & Gamble is
expected to support the Maytag and SANYO alliance through efforts to
accelerate high-efficiency wash systems.
Secondly both companies will supply strategic products to each other.
The first project under the alliance agreement brings Maytag brand high
efficiency commercial laundry equipment into Japan for distribution by
SANYO. Initial product shipments arrived in Japan in January. SANYO,
which holds a leading position in the home and commercial laundry market in
Japan, will distribute the Maytag-manufactured commercial laundry equipment
under the Maytag brand name.<PAGE>
SANYO also will explore the possibility of exporting its home appliance
products to Maytag.
Finally both companies will explore component parts procurement
to reduce cost and enhance design efficiency.
Maytag previously had indicated its approach to international markets
would be to focus on targeting specific markets where its innovation
strategy could be successful and to focus on establishing partnerships and
alliances, rather than building and owning assets worldwide. Commenting
on the alliance, Maytag Chairman and CEO Lloyd D. Ward said, Maytag is
committed to taking its innovation strategy to markets worldwide in ways
that will benefit consumers and, ultimately, Maytag s shareowners. The
alliance with SANYO is a significant step forward in that strategy.
Together, Maytag and SANYO offer remarkably complementary strengths in
businesses, brands, and products. SANYO certainly enjoys marketing and
distribution strength in Japan and elsewhere, as well as manufacturing
prowess; we believe we add critical strengths around innovation,
technology, and product concepts that will meet the needs of consumers in
Japan and other markets.
Mr. Satoshi Iue, Chairman and CEO, SANYO Electric Co., Ltd.,
commented, Maytag has been very successful in the North American market
with its brand name products, advanced technology and innovative marketing
strategies. Complementing these assets, SANYO is globally involved in the
fields of multi-media equipment, clean energy and environmental related
products, and home appliance products. In addition to these traditional
areas, we are aggressively developing digitized information appliances and
related key components which will meet the needs of the multi-media
society. In a mature industry, the creation of this alliance is the first
step in mutually developing future new sources of revenue in both our core
local markets and others around the world.
Ward concluded by saying, Over the next five years, this alliance<PAGE>
could return to its partners as much as $100 million (U.S.) pre-tax income
growth from new products and cost reduction benefits from global sourcing
and product supply initiatives. While those benefits won t be realized
immediately, after a start up phase that is the dimension of the target we
have in sight.
Maytag Corporation is a leading producer of home and commercial appliances.
SANYO Electric Co., Ltd. is one of the world s leading home appliance
manufacturers, producing and selling AV/Information and communications
systems, in addition to both electrical and industrial appliances.
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.
# # #
Media Contacts
Maytag Corporation
James G. Powell
Maytag Corporate Communications
(1) 515-787-8392
[email protected]
Additional Information: www.maytagcorp.com
SANYO Electric Co., Ltd.
Kaoru Tanaka
Sanyo Corporate Communications
(81) 6-6994-3546 or 3547
Additional Information:
www.sanyo.co.jp<PAGE>
SANYO Sales & Supply Company
Keisuke Honda
(1) 630-875-3511 / (81) 6-6994-3546 or 3547
Burson-Marsteller, Tokyo
Paul Allen
(81) 3-3264-6693<PAGE>
