NEWTON, Iowa, Jan. 28 /PRNewswire-FirstCall/ -- Maytag Corporation
(NYSE: MYG) today reported fourth quarter consolidated sales of $1.16 billion,
down 8.4 percent from sales of $1.27 billion in the same period last year.
Net loss for the fourth quarter of 2004 was $14.1 million or 18 cents per
share, compared to net income of $23.9 million or 30 cents per share a year
ago. The fourth quarter of 2004 included 13 weeks, versus 14 weeks in the
fourth quarter a year ago.
(Logo: http://www.newscom.com/cgi-bin/prnh/20000505/MYGLOGO )
The fourth quarter included restructuring and related charges of 13 cents
per share for the Galesburg closure and "One Company" reorganization, as well
as 13 cents per share for reserves related to the early generation front-load
washer litigation.
Unfavorable fourth quarter and year-over-year comparisons were caused
primarily by lower Hoover floor care sales and margins and lower sales of
vending equipment in Commercial Products, along with higher steel and energy-
related costs.
The diluted earnings (loss) per share for the fourth quarter included the
following:
Three Months Ended
January 1 January 3
2005 2004
Diluted Earnings (Loss) Per Share $(0.18) $0.30
Included in diluted earnings (loss) per
share (net of tax) were the following items:
Restructuring and related
charges - Galesburg 0.01 0.13
Restructuring and related
charges - reorganization 0.12 -
Asset impairment - 0.10
Front-load washer litigation 0.13 -
Loss on investment - 0.09
Income from discontinued operations - (0.06)
For the full year 2004, Maytag's sales were $4.72 billion, down 1.5
percent from $4.79 billion in 2003. Operating income was $40.3 million for
2004 versus $228.3 million for the prior year. Net loss for 2004 was $9
million or 11 cents per share, versus net income of $120.1 million, or $1.53
per share in 2003.
The diluted earnings (loss) per share for the full year 2004 and 2003
included the following:
Full Year Ended
January 1 January 3
2005 2004
Diluted Earnings (Loss) Per Share $(0.11) $1.53
Included in diluted earnings (loss) per
share (net of tax) were the following items:
Restructuring and related
charges - Galesburg 0.30 0.42
Restructuring and related
charges - reorganization 0.30 0.14
Asset impairment - 0.10
Goodwill impairment-Commercial Products 0.12 -
Front-load washer litigation 0.29 -
Adverse judgment on pre-acquisition
distributor lawsuit 0.09 -
Gain on sale of property-Home Appliances (0.10) -
Loss on investment - 0.09
Income from discontinued operations - (0.07)
Commenting on the fourth quarter and full year, Maytag Chairman and CEO
Ralph Hake stated, "Higher raw material and energy costs significantly
impacted our operating results for the quarter and the year. We have addressed
our challenges head on, and have taken decisive steps to improve Maytag's
performance going forward. This includes completing our 'One Company'
restructuring, which is expected to realize $150 million in annual savings.
"We had a cadence of new products in 2004 that continued our leadership in
innovation with a 24-inch compact washer and dryer, the successful French door
bottom-freezer refrigerator, the dual-fuel, double-oven free-standing range,
the Maytag(R) Neptune(R) Drying Center and Maytag(R) Neptune(R) Top-Load high-
efficiency washer, to name just a few. We expect to see the benefit of this
2004 product line-up, along with those planned for 2005, during this coming
year."
Maytag Services and Maytag International experienced double-digit revenue
growth during 2004, with both becoming increasingly important to the overall
business. Weakness in the vending industry produced a sales decline in
Commercial Products, partially offset by improved performance in the Jade
commercial cooking business.
Hake noted that the company experienced sequential volume growth in the
floor care business in the fourth quarter, particularly with extractors and
hard floor cleaners. "While more progress needs to be made, we are seeing some
positive results from implementation of our floor care strategy, which
includes cost reduction efforts and new product launches in uprights,
extractors and bare floor cleaners," Hake said.
Fourth quarter cash flow was favorably impacted by improvements in working
capital levels, a result of lower inventories and higher accounts payable.
Strong, positive cash flow enabled the company to increase cash and cash
equivalents by approximately $107 million from the end of third quarter and
approximately $158 million from the end of 2003.
Commenting on earnings expectations for 2005, Hake said the company is
lowering its earnings guidance for 2005 as a result of lower revenue
generation in the fourth quarter 2004 and recent distribution announcements
that occurred in January. The company expects reported earnings per share in
2005 of $1.10 to $1.30, including about 5 cents in restructuring charges.
Previously, the company noted that 2005 guidance for reported earnings per
share were expected to be in the range of $1.50 to $1.60, including about 5
cents in restructuring charges.
"It's not business as usual for Maytag," Hake said. "We're a leaner
organization that's becoming more responsive on all levels. We expect to
benefit in the coming year from our 'One Company' cost reductions and our
stream of innovative products, including the new Maytag 27-inch washer and
dryer, Jenn-Air suite of reflective glass appliances, the FloorMate(TM) hard
floor cleaner, and a premium upright introduction, among others. As we work
through the first quarter, we also expect to benefit from favorable pricing
initiatives, which were announced late last year."
Maytag Corporation is a leading producer of home and commercial
appliances. Its products are sold to customers throughout North America and
in international markets. The corporation's principal brands include
Maytag(R), Hoover(R), Jenn-Air(R), Amana(R), Dixie-Narco(R) and Jade(R).
Quarterly Conference Call
Maytag will host a conference call today at 8:30 a.m. CT (9:30 a.m. ET) to
discuss its performance with members of the financial community. During the
call, Hake and CFO George Moore will comment on various aspects of the results
and answer questions.
Persons wishing to participate in the call should telephone 800-428-0426
at 8:20 a.m. CT (international participants should dial 212-346-7474). The
conference call will be recorded and available by telephone from 10:30 a.m. CT
Jan. 28 until 10:30 a.m. CT Feb. 1. Persons interested in listening to the
conference call tape should call 800-633-8284 (or internationally 402-977-
9140) and use access code number 21228049.
Additionally, Maytag's conference call will be distributed live over
CCBN's Investor Distribution Network to both institutional and individual
investors. Individual investors can listen to the call through CCBN's
individual investor center at http://www.fulldisclosure.com or by visiting any
of the investor sites in CCBN's Individual Investor Network. Institutional
investors can access the call via CCBN's password-protected event management
site, StreetEvents ( http://www.streetevents.com ). The audio webcast can
also be accessed through Maytag's Web site, http://www.maytagcorp.com , by
clicking on the "Corporate News Center" and then "Conference Calls." Replays
will be available on both the Maytag and CCBN Web sites.
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 January 3,
2004, and each quarter's 10-Q.
FOURTH QUARTER SALES AND EARNINGS COMPARISON (UNAUDITED)
NET SALES (in thousands)
2004 2003 % Change
Home Appliances $1,112,467 $1,214,929 (8.4)
Commercial Products 51,880 56,771 (8.6)
Consolidated $1,164,347 $1,271,700 (8.4)
OPERATING INCOME (LOSS) (in thousands)
2004 2003 % Change
Home Appliances $(4,855) $50,708 (109.6)
Commercial Products (1,417) (3,376) (58.0)
Reported $(6,272) $47,332 (113.3)
Included in operating income (loss)
Restructuring and related
charges-Home Appliances $14,551 $14,471
Asset impairment-Home Appliances - 11,217
Front-load washer litigation-
Home Appliances 15,000 -
Restructuring and related
charges-Commercial Products 298 -
$29,849 $25,688
NET INCOME (LOSS) (in thousands)
2004 2003 % Change
Reported $(14,120) $23,853 (159.2)
Included in net income (loss) (net
of tax)
Restructuring and related charges $10,024 $10,091
Asset impairment - 7,578
Front-load washer litigation 10,125 -
Loss on investments - 7,185
Income from discontinued operations - (4,910)
BASIC EARNINGS (LOSS) PER SHARE
2004 2003 % Change
Reported $(0.18) $0.30 (158.7)
Included in basic earnings (loss)
per share (net of tax)
Restructuring and related charges $0.13 $0.13
Asset impairment - 0.10
Front-load washer litigation 0.13 -
Loss on investments - 0.09
Income from discontinued operations - (0.06)
Basic weighted-average shares
outstanding (thousands) 79,336 78,714
DILUTED EARNINGS (LOSS) PER SHARE
2004 2003 % Change
Reported $(0.18) $0.30 (158.9)
Included in diluted earnings (loss)
per share (net of tax)
Restructuring and related charges $0.13 $0.13
Asset impairment - 0.10
Front-load washer litigation 0.13 -
Loss on investments - 0.09
Income from discontinued operations - (0.06)
Diluted weighted-average shares
outstanding (thousands) 79,336 78,964
TWELVE MONTHS SALES AND EARNINGS COMPARISON (2004 UNAUDITED)
NET SALES (in thousands)
2004 2003 % Change
Home Appliances $4,458,696 $4,498,655 (0.9)
Commercial Products 262,842 293,211 (10.4)
Consolidated $4,721,538 $4,791,866 (1.5)
OPERATING INCOME (LOSS) (in thousands)
2004 2003 % Change
Home Appliances $47,465 $212,274 (77.6)
Commercial Products (7,117) 16,019 (144.4)
Reported $40,348 $228,293 (82.3)
Included in operating income (loss)
Restructuring and related
charges-Home Appliances $69,310 $64,714
Asset impairment-Home Appliances - 11,217
Front-load washer litigation-
Home Appliances 33,500 -
Gain on sale of property (9,711) -
Restructuring and related
charges-Commercial Products 448 215
Goodwill impairment-Commercial
Products 9,600 -
$103,147 $76,146
NET INCOME (LOSS) (in thousands)
2004 2003 % Change
Reported $(9,006) $120,133 (107.5)
Included in net income (loss) (net
of tax)
Restructuring and related charges $47,087 $43,866
Asset Impairment - 7,578
Goodwill impairment-Commercial
Products 9,600 -
Front-load washer litigation 22,613 -
Adverse judgment on pre-
acquisition distributor lawsuit 7,091 -
Gain on sale of property (7,769) -
Loss on investments - 7,185
Income from discontinued operations (339) (5,755)
BASIC EARNINGS (LOSS) PER SHARE
2004 2003 % Change
Reported $(0.11) $1.53 (107.4)
Included in basic earnings (loss)
per share (net of tax)
Restructuring and related charges $0.60 $0.56
Asset Impairment - 0.10
Goodwill impairment-Commercial
Products 0.12 -
Front-load washer litigation 0.29 -
Adverse judgment on pre-
acquisition distributor lawsuit 0.09 -
Gain on sale of property (0.10) -
Loss on investments - 0.09
Income from discontinued operations - (0.07)
Basic weighted-average shares
outstanding (thousands) 79,078 78,537
DILUTED EARNINGS (LOSS) PER SHARE
2004 2003 % Change
Reported $(0.11) $1.53 (107.5)
Included in diluted earnings (loss)
per share (net of tax)
Restructuring and related charges $0.60 $0.56
Asset Impairment - 0.10
Goodwill impairment-Commercial
Products 0.12 -
Front-load washer litigation 0.29 -
Adverse judgment on pre-
acquisition distributor lawsuit 0.09 -
Gain on sale of property (0.10) -
Loss on investments - 0.09
Income from discontinued operations - (0.07)
Diluted weighted-average shares
outstanding (thousands) 79,078 78,746
MAYTAG CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Fourth Quarter Ended Twelve Months Ended
January 1 January 3 January 1 January 3
2005 2004 2005 2004
(unaudited) (unaudited) (unaudited)
Net sales $1,164,347 $1,271,700 $4,721,538 $4,791,866
Cost of sales 1,021,640 1,047,300 4,061,319 3,932,335
Gross profit 142,707 224,400 660,219 859,531
Selling, general and
administrative expenses 119,130 151,380 507,013 555,092
Restructuring and related
charges 14,849 14,471 69,758 64,929
Asset impairment - 11,217 - 11,217
Goodwill impairment-
Commercial Products - - 9,600 -
Front-load washer litigation 15,000 - 33,500 -
Operating income (loss) (6,272) 47,332 40,348 228,293
Interest expense (15,431) (11,977) (56,274) (52,763)
Loss on investments - (7,185) - (7,185)
Adverse judgment on pre-
acquisition distributor
lawsuit - - (10,505) -
Other income (loss) (2,135) 2,150 5,113 4,415
Income (loss) from
continuing operations
before income taxes (23,838) 30,320 (21,318) 172,760
Income taxes (benefit) (9,718) 11,377 (11,973) 58,382
Income (loss) from
continuing operations (14,120) 18,943 (9,345) 114,378
Income from discontinued
operations, net of tax - 4,910 339 5,755
Net income (loss) $(14,120) $23,853 $(9,006) $120,133
Basic earnings (loss) per
common share:
Income (loss) from
continuing operations $(0.18) $0.24 $(0.12) $1.46
Discontinued operations - 0.06 - 0.07
Net income (loss) $(0.18) $0.30 $(0.11) $1.53
Basic weighted-average
shares outstanding 79,336 78,714 79,078 78,537
Diluted earnings (loss)
per common share:
Income (loss) from
continuing operations $(0.18) $0.24 $(0.12) $1.45
Discontinued operations - 0.06 - 0.07
Net income (loss) $(0.18) $0.30 $(0.11) $1.53
Diluted weighted-average
shares outstanding 79,336 78,964 79,078 78,746
Earnings per share totals may not be additive due to rounding
MAYTAG CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
January 1 January 3
2005 2004
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $164,276 $6,756
Accounts receivable - net 629,901 596,832
Inventories 515,321 468,345
Deferred income taxes 55,862 63,185
Other current assets 80,137 94,030
Discontinued current assets - 75,175
Total current assets 1,445,497 1,304,323
Noncurrent assets 653,365 612,546
Discontinued noncurrent assets - 60,336
Total noncurrent assets 653,365 672,882
Property, plant and equipment 921,162 1,046,935
Total assets $3,020,024 $3,024,140
LIABILITIES AND SHAREOWNERS' EQUITY
Current liabilities
Accounts payable $545,901 $466,734
Accrued liabilities 358,119 315,323
Notes payable and
current portion of long-term debt 6,043 95,994
Discontinued current liabilities - 105,739
Total current liabilities 910,063 983,790
Long-term debt, less current portion 972,568 874,832
Postretirement benefit liability 531,995 538,105
Accrued pension cost 496,480 398,495
Other noncurrent liabilities 183,942 144,341
Total discontinued noncurrent liabilities - 18,766
Shareowners' equity (75,024) 65,811
Total liabilities and shareowners'
equity $3,020,024 $3,024,140
MAYTAG CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands)
Twelve Months Ended
January 1 January 3
2005 2004
Operating activities (unaudited)
Net income (loss) $(9,006) $120,133
Net income from discontinued operations (339) (5,755)
Loss on investments - 7,185
Asset impairment - 11,217
Depreciation and amortization 169,782 165,785
Deferred income taxes (6,490) 56,660
Gain on sale of property (9,711) -
Restructuring and related charges, net of cash 36,859 45,939
Goodwill impairment-Commercial Products 9,600 -
Front-load washer litigation, net of cash paid 23,092 -
Adverse judgment on pre-acquisition
distributor lawsuit 10,505 -
Change in working capital (948) 110,299
Pension expense 63,024 64,779
Pension contributions (94,324) (268,119)
Postretirement benefit liability (6,110) 20,595
Other 85,021 25,664
Net cash provided by continuing
operating activities 270,955 354,382
Investing activities
Proceeds from business disposition,
net of transaction costs 11,248 16,168
Settlement of Amana purchase contract - 11,939
Proceeds from property disposition,
net of transaction costs 14,251 -
Capital expenditures-continuing operations (94,420) (199,300)
Investing activities-continuing
operations (68,921) (171,193)
Financing activities
Net proceeds (reduction) in financing
obligations 6,988 (127,592)
Dividends (56,899) (56,524)
Other 5,198 (543)
Financing activities-continuing
operations (44,713) (184,659)
Effect of exchange rates 199 120
Increase (decrease) in cash and
cash equivalents 157,520 (1,350)
Cash and cash equivalents at
beginning of period 6,756 8,106
Cash and cash equivalents at end
of period $164,276 $6,756
SOURCE Maytag Corporation
 back to top
Related links:
http://www.maytagcorp.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/20000505/MYGLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Karen Lynn of Maytag Corporate
Communications, +1-641-787-8185, klynn2@maytag.com
|
