Maytag Expects to Report Lower Fourth Quarter Results
in midst of Major Appliance Industry Weakness
NEWTON, Iowa -(Dec. 14, 2000) - Maytag Corporation (NYSE: MYG)
announced today that it experienced slower than expected sales of major
appliances during October and November, which will cause fourth quarter
consolidated sales and earnings for the corporation to be below previous
expectations.
"The expectations set by this organization publicly were based on
assumptions that the major appliance industry would be flat or down
slightly for the quarter," said Maytag President and CEO Leonard A.
Hadley. "The industry is down more severely and, as a result, we are
seeing lower volume in our major appliance division, which translates
directly into weaker operating income and operating inefficiencies
associated with lower production levels. Sales of Hoover floor care
products, however, remain strong."
Maytag's Chief Financial Officer Steven H. Wood said, "We now
expect fourth quarter earnings per share from operations to be
approximately 50 percent lower than fourth quarter 1999." Last year
Maytag reported $.82 for the fourth quarter. Additionally, Wood pointed
to special charges that Maytag expects to take in the fourth quarter.
"We expect to include in our fourth quarter results a number of one-time
charges associated with asset write-downs, suspended business
initiatives, and other expenses, including the previously announced
management reorganization. The special charges could total as much as
$55-$65 million pre-tax."
Hadley concluded by saying, "In spite of the weakness in the major
appliance industry in the fourth quarter, which is likely to continue
<PAGE>
into the first quarter of next year, I have a great deal of confidence
in this company and in the actions we are taking to refocus on our core
business and strengths. My challenge to the organization is to deliver
in 2001 earnings-per-share performance that matches or betters full year
2000 earnings-per-share results, excluding the one-time charges.
Assuming benign economic conditions, I believe we can do that."
Maytag will hold a conference call with the investment community
Thursday, Dec. 14 at 10 a.m. Central Time to discuss today s
announcement. Those wishing to participate in the call should telephone
212-896-6029. Additionally, the conference call will be broadcast live
over the Internet. It can be accessed through Investor Broadcast
Network's Vcall Web site at www.vcall.com.
Maytag Corporation is a leading producer of home and commercial
appliances sold throughout North America and international markets. The
corporation's brands include Maytag, Hoover, Jenn-Air, Blodgett, and
Dixie-Narco.
# # #
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. For a
description of such factors, refer to "Forward Looking Statements" in
the Management's Discussion and Analysis section of Maytag's Annual
Report on Form 10-K for the year ended December 31, 1999, and each
quarter's 10-Q.
CPI0049<PAGE>
Media Contact:
Additional Information:
James G. Powell
www.maytagcorp.com
Maytag Communications
641-787-8392
[email protected]<PAGE>
