Maytag Sales Up From Last Year

Maytag reported its financial results for the second quarter today, with consolidated sales of $1.23 billion. That’s a 6.7% increase from last year’s second quarter.

The company’s net income for the quarter was $3.5 million or 4 cents per share. Last year, the company took a net loss of $41.1 million for the second quarter.

“Compared to last year, operations benefited from sales growth, a positive mix in major appliances, and savings from our ‘One Company’ restructuring and the Galesburg plant closing,” said Hake. “However, these improvements were offset by rising raw material costs including steel and resins, higher fuel and transportation costs and lower floor care pricing.”

Ralph Hake, Maytag’s Chairman and CEO said that sales of major appliances showed solid improvement during the quarter with refrigeration and cooking product sales up appreciably.

“Sales of our French-Door bottom-freezers under the Jenn-Air, Maytag and Amana brand names are strong,” said Hake. “In cooking, all Jenn- Air products, including cook tops and wall ovens generated positive gains for the company. Also, Jenn-Air stainless steel dishwashers and Maytag’s new Neptune front-load washers have generated encouraging consumer interest this quarter.”

Profits from Maytag’s Hoover unit have declined this year, and Best Buy stopped selling their washing machines and refrigerators, but the company doesn’t seem to be hurting too bad.

In fact, there are three parties looking to acquire the company. Whirlpool and China’s Haier Group have shown interest, but Maytag’s board of directors is currently backing the offer made by Ripplewood.

Whirlpool says that it will still fight for a deal with Maytag. At $17 a share, the company’s bid was higher than that of Ripplewood. Jeff M. Fettig, Whirlpool’s chairman, president and CEO said, “This transaction will provide Maytag shareholders with superior value compared to the current offer.”

Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.