NEW YORK, Nov. 19 /PRNewswire-FirstCall/ -- Maytag Corporation (NYSE: MYG)
today presented its strategies for improved performance during a conference
with financial analysts in New York City, saying that Maytag is a much
different company than it was just a year ago.
(Logo: http://www.newscom.com/cgi-bin/prnh/20000505/MYGLOGO )
Chairman and CEO Ralph F. Hake commented, "Through our One Company
restructuring initiative, we have laid the foundation for a much reduced cost
structure, improved profitability, enhanced customer responsiveness and
accelerated decision-making that will positively impact our overall
competitiveness."
Hake said that the One Company initiative announced in June, which
integrated Maytag Appliances, Hoover floor care and Maytag's corporate
headquarters, will transform the organization into a faster, leaner and more
unified Maytag. "While this initiative brings with it many changes, our
strategy remains a constant. Innovative products, preferred brands, best-in-
class quality and best-in-class costs are the key to future profitable
growth."
At the conference, Maytag executives outlined plans to achieve improved
earnings in 2005, expected by the company to be in the range of $1.50 to $1.60
per share, including 5 cents per share in restructuring and related charges.
This shows marked improvement over full-year 2004 earnings per share.
Hake told analysts that Maytag is on track to achieve $150 million in
annual savings from the One Company restructuring. "An additional $30 million
in annual savings is expected as a result of our new refrigeration strategy
now in place," he added.
Maytag has broadened its focus beyond North America as the company expands
global sourcing opportunities. "We will achieve cost improvement and become
more market-responsive as a result of accelerated global procurement, the
start-up of a China design center to supplement existing R&D resources, and
product supply partnerships with Asian companies," Hake said.
George Moore, Maytag's executive vice president and chief financial
officer, pointed out that aggressive cost-saving initiatives and appliance
pricing increases have been implemented to help offset steel and fuel cost
increases, which continue to pressure profitability.
"Net debt levels have decreased, and we have consistently generated strong
cash flows," Moore added.
The company demonstrated its commitment to product innovation by citing
the numerous launches over the past year, including:
-- Maytag(R), Amana(R) and Jenn-Air(R) French door bottom-freezer
refrigerators
-- Maytag(R) Double Oven ranges
-- Jenn-Air(R) Dual-Fuel ranges
-- Jade(TM) wall ovens
-- Neptune(R) Top Load washers
-- Neptune(R) Drying Center
-- Maytag(R) compact front load laundry
-- Maytag(R) and Jenn-Air(R) stainless steel tall-tub dishwashers
-- Hoover(R) Agility(TM) extractors
-- SkyBox(TM) by Maytag Rookie(TM) mini refrigerators with customizable
front panels
-- Dixie-Narco(R) ice cream venders and snack venders.
Among planned, upcoming product launches are Jenn-Air(R) glass front
refrigerators and dishwashers, additions to Maytag(R) high efficiency laundry
offerings, Jade(TM) residential cooking products and refrigeration, Jenn-
Air(TM) small appliances, additions to the popular SkyBox(TM) by Maytag line,
Hoover(R) extractors, hard surface cleaners and high-end vacuum cleaners.
Other Maytag executives appeared at the conference to discuss the
company's progress and strategies including Annette Bravard, senior vice
president - marketing, Maytag; Dave Baker, vice president and general manager
- Hoover floor care; Bob Hardin, senior vice president - research and
development, Maytag; Steve Ingham, senior vice president - manufacturing,
Maytag; Craig Breese, president - Maytag International; Art Learmonth,
president - Maytag Services; and Doug Huffer, president - Dixie-Narco.
Maytag's investment community conference was webcast over the Internet. A
replay of the conference will remain available online through Nov. 23 on the
Corporate News Center of Maytag's Web site, http://www.maytagcorp.com , under
"CEO Presentations."
Maytag Corporation is a $4.8 billion home and commercial appliance company
focused in North America and in targeted international markets. The
corporation's primary brands are Maytag(R), Hoover(R), Jenn-Air(R), Amana(R),
Dixie-Narco(R) and Jade(R).
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.
Media Contact: Lynne Dragomier
Maytag Corporate Communications
(641) 787-7711
ldragomier@maytag.com
SOURCE Maytag Corporation
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Related links:
http://www.maytagcorp.com
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AP Archive: http://photoarchive.ap.org
PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840
CONTACT:
Lynne Dragomier of Maytag Corporate
Communications, +1-641-787-7711, ldragomier@maytag.com
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