MYG Nets Ftse Cnbc 300

Maytag Announces Second Quarter 2005 Results NEWTON, Iowa, July 22 /PRNewswire-FirstCall/ -- Maytag Corporation (NYSE:MYG) today reported second quarter consolidated sales of $1.23 billion, up 6.7 percent from sales of $1.15 billion in the same period last year. Reported net income for the second quarter was $3.5 million or 4 cents per share, compared with a net loss of $41.1 million, or 52 cents per share, a year earlier. Diluted earnings per share for the second quarter included the following: Three Months Ended July 2 July 3 2005 2004 Diluted Earnings (Loss) Per Share $0.04 $(0.52) 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 0.02 0.11 Goodwill impairment-Commercial Products - 0.12 Front-load washer litigation - 0.16 Adverse judgment on pre-acquisition distributor lawsuit - 0.09 Second quarter sales were up year-over-year in all major categories of the home appliances segment -- refrigeration, laundry, cooking, dishwashing and floor care. Sales of Commercial Products declined versus a year ago, a result of continued weakness in the vending industry. Maytag Chairman and CEO Ralph Hake 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. 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." Hake noted that all floor care categories sold under the Hoover brand experienced significant year-over-year growth with market share gains in upright vacuums as the primary sales driver. Maytag Services and Maytag International continued to produce strong revenue growth compared to the second quarter of 2004. "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." Sales were up sequentially from the first quarter of 2005, benefiting from refrigeration sales beyond normal seasonal increases. Operating income was down sequentially from the first quarter of 2005, due to planned national advertising expenditure increases, which more than offset the benefit from increased sales. During the quarter, the company signed a commitment letter for a $500 million five-year, senior secured revolving credit facility. The new credit facility would be fully underwritten by J.P. Morgan Chase Bank, N.A. and Citigroup Global Markets, Inc. and secured by accounts receivable and inventory of certain Maytag subsidiaries. The company also announced that it has amended its current $300 million revolving credit facility, due March 2007. The current $300 million credit facility would be replaced upon the issuance of the $500 million credit facility. Six-Month Performance Maytag's sales in the first six months of 2005 were $2.40 billion, up one percent from sales of $2.37 billion in the first six months of 2004. Operating income was $43.8 million, up from $30.2 million reported in the year-earlier period. Reported net income for the first six months of 2005 was $11.2 million, or 14 cents per share. In the first six months of 2004, Maytag reported a net loss of $2.4 million, or 3 cents per share. For the first six months of 2005, cash flow used by operations was $47.4 million, approximately the same as the first six months of 2004. The use of cash flow in both periods is due primarily to seasonal increases in working capital. Cash flow was also impacted by lower pension contributions in the first half of 2005 compared to the same period in 2004. As of the end of the second quarter, cash and cash equivalents increased by $61.5 million to $69 million, compared to the same period in the prior year, and total debt levels declined by $118 million to $977 million. The earnings (loss) per share for the first six months of 2005 and 2004 included the following items: Six Months Ended July 2 July 3 2005 2004 Diluted Earnings (Loss) Per Share $0.14 $(0.03) Included in diluted earnings (loss) per share (net of tax) were the following items: Restructuring and related charges - Galesburg 0.02 0.20 Restructuring and related charges - reorganization 0.05 0.11 Goodwill impairment-Commercial Products - 0.12 Front-load washer litigation - 0.16 Adverse judgment on pre-acquisition distributor lawsuit - 0.09 Full-Year Projections Maytag reaffirmed that its earnings per share estimate for the full year 2005 are expected to be in the range of 45 to 55 cents, including approximately 10 cents in restructuring charges. About Maytag 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 for members of the financial community today at 8:30 a.m. CT (9:30 a.m. ET) to comment on its performance. Chairman & CEO Ralph Hake and CFO George Moore will participate in the call. The company will not conduct a question-and-answer session for this conference call. Persons wishing to listen should telephone 888-489-9488 at 8:20 a.m. CT (international participants should dial 415-537-1945). The conference call will be recorded and available by telephone from 10:30 a.m. CT July 22 until 10:30 a.m. CT July 26. Persons interested in listening to the conference call tape should call 800-633-8284 (or internationally 402-977-9140) and use access code number 21251588. 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 This document includes statements that do not directly or exclusively relate to historical facts. Such statements are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include statements regarding benefits of the proposed transactions, expected cost savings and anticipated future financial operating performance and results, including estimates of growth. These statements are based on the current expectations of management of Maytag. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements included in this document. For example, with respect to the transaction with a group led by Ripplewood Holdings L.L.C. (1) Maytag may be unable to obtain shareholder approval required for the transaction; (2) Maytag may be unable to obtain regulatory approvals required for the transaction, or required regulatory approvals may delay the transaction or result in the imposition of conditions that could have a material adverse effect on Maytag or cause the parties to abandon the transaction; (3) conditions to the closing of the transaction may not be satisfied or the merger agreement may be terminated prior to closing; (4) Maytag may be unable to achieve cost-cutting goals or it may take longer than expected to achieve those goals; (5) the transaction may involve unexpected costs or unexpected liabilities; (6) the credit ratings of Maytag or its subsidiaries may be different from what the parties expect; (7) the businesses of Maytag may suffer as a result of uncertainty surrounding the transaction; (8) the industry may be subject to future regulatory or legislative actions that could adversely affect Maytag; and (9) Maytag may be adversely affected by other economic, business, and/or competitive factors. Additional factors that may affect the future results of Maytag are set forth in its filings with the Securities and Exchange Commission ("SEC"), which are available at http://www.maytagcorp.com/. Maytag undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additional Information and Where to Find It In connection with the proposed transaction with an investor group led by private equity firm Ripplewood Holdings L.L.C., Maytag has filed a definitive proxy statement and may file other relevant documents concerning the proposed merger with SEC. WE URGE INVESTORS TO READ THE DEFINITIVE PROXY STATEMENT AND THE OTHER RELEVANT DOCUMENTS CAREFULLY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT MAYTAG AND THE PROPOSED TRANSACTION. Investors can obtain free copies of the definitive proxy statement as well as other filed documents containing information about Maytag at http://www.sec.gov/, SEC's Web site. Free copies of Maytag's SEC filings are also available on Maytag's Web site at http://www.maytagcorp.com/ . Participants in the Solicitation Maytag and its executive officers and directors and Ripplewood Holdings L.L.C., Triton Acquisition Holding and Triton Acquisition and their respective affiliates, executive officers and directors may be deemed, under SEC rules, to be participants in the solicitation of proxies from Maytag's stockholders with respect to the proposed transaction. Information regarding the officers and directors of Maytag is included in its definitive proxy statement for its 2005 annual meeting filed with SEC on April 4, 2005. More detailed information regarding the identity of potential participants, and their direct or indirect interests, by securities, holdings or otherwise, is set forth in the proxy statement and other materials filed or to be filed with SEC in connection with the proposed transaction. Media Contact: John Daggett Maytag Corporate Communications (641) 787-7711 SECOND QUARTER SALES AND EARNINGS COMPARISON (UNAUDITED) NET SALES (in thousands) 2005 2004 % Change Home Appliances $1,163,259 $1,077,643 7.9 Commercial Products 66,459 74,586 (10.9) Consolidated $1,229,718 $1,152,229 6.7 OPERATING INCOME (LOSS) (in thousands) 2005 2004 % Change Home Appliances $21,029 $(23,741) 188.6 Commercial Products (1,354) (9,697) 86.0 Reported $19,675 $(33,438) 158.8 Included in operating income (loss) Restructuring and related charges- Home Appliances $3,156 $27,783 Front-load washer litigation- Home Appliances - 18,500 Restructuring and related charges-Commercial Products 224 69 Goodwill impairment-Commercial Products - 9,600 NET INCOME (LOSS) (in thousands) 2005 2004 % Change Reported $3,481 $(41,084) 108.5 Included in net income (loss) (net of tax) Restructuring and related charges $2,092 $18,879 Goodwill impairment-Commercial Products - 9,600 Front-load washer litigation - 12,488 Adverse judgment on pre- acquisition distributor lawsuit - 7,091 BASIC EARNINGS (LOSS) PER SHARE 2005 2004 % Change Reported $0.04 $(0.52) 108.4 Included in basic earnings (loss) per share (net of tax) Restructuring and related charges $0.03 $0.24 Goodwill impairment-Commercial Products - 0.12 Front-load washer litigation - 0.16 Adverse judgment on pre- acquisition distributor lawsuit - 0.09 Basic weighted-average shares outstanding (thousands) 79,818 79,012 DILUTED EARNINGS (LOSS) PER SHARE 2005 2004 % Change Reported $0.04 $(0.52) 108.4 Included in diluted earnings (loss) per share (net of tax) Restructuring and related charges $0.03 $0.24 Goodwill impairment-Commercial Products - 0.12 Front-load washer litigation - 0.16 Adverse judgment on pre- acquisition distributor lawsuit - 0.09 Diluted weighted-average shares outstanding (thousands) 79,818 79,012 FIRST HALF SALES AND EARNINGS COMPARISON NET SALES (in thousands) 2005 2004 % Change Home Appliances $2,276,446 $2,222,429 2.4 Commercial Products 121,111 148,744 (18.6) Consolidated $2,397,557 $2,371,173 1.1 OPERATING INCOME (LOSS) (in thousands) 2005 2004 % Change Home Appliances $47,664 $36,604 30.2 Commercial Products (3,903) (6,410) 39.1 Reported $43,761 $30,194 44.9 Included in operating income (loss) Restructuring and related charges-Home Appliances $7,872 $35,778 Front-load washer litigation- Home Appliances - 18,500 Restructuring and related charges-Commercial Products 362 69 Goodwill impairment-Commercial Products - 9,600 NET INCOME (LOSS) (in thousands) 2005 2004 % Change Reported $11,213 $(2,360) 575.1 Included in net income (loss) (net of tax) Restructuring and related charges $5,393 $24,196 Goodwill impairment-Commercial Products - 9,600 Front-load washer litigation - 12,488 Adverse judgment on pre- acquisition distributor lawsuit - 7,091 BASIC EARNINGS (LOSS) PER SHARE 2005 2004 % Change Reported $0.14 $(0.03) 570.6 Included in basic earnings (loss) per share (net of tax) Restructuring and related charges $0.07 $0.31 Goodwill impairment-Commercial Products - 0.12 Front-load washer litigation - 0.16 Adverse judgment on pre- acquisition distributor lawsuit - 0.09 Basic weighted-average shares outstanding (thousands) 79,690 78,929 DILUTED EARNINGS (LOSS) PER SHARE 2005 2004 % Change Reported $0.14 $(0.03) 570.6 Included in diluted earnings (loss) per share (net of tax) Restructuring and related charges 0.07 $0.31 Goodwill impairment-Commercial Products - 0.12 Front-load washer litigation - 0.16 Adverse judgment on pre- acquisition distributor lawsuit - 0.09 Diluted weighted-average shares outstanding (thousands) 79,690 78,929 MAYTAG CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) (In thousands, except per share data) Second Quarter Ended Six Months Ended July 2 July 3 July 2 July 3 2005 2004 2005 2004 Net sales $1,229,718 $1,152,229 $2,397,557 $2,371,173 Cost of sales 1,093,858 1,003,726 2,132,627 2,011,549 Gross profit 135,860 148,503 264,930 359,624 Selling, general and administrative expenses 112,805 125,989 212,935 265,483 Restructuring and related charges 3,380 27,852 8,234 35,847 Goodwill impairment- Commercial Products - 9,600 - 9,600 Front-load washer litigation - 18,500 - 18,500 Operating income (loss) 19,675 (33,438) 43,761 30,194 Interest expense (16,278) (13,215) (32,053) (26,106) Adverse judgment on pre- acquisition distributor lawsuit - (10,505) - (10,505) Other-net 815 55 3,243 2,921 Income (loss) before income taxes 4,212 (57,103) 14,951 (3,496) Income tax expense (benefit) 731 (16,019) 3,738 (1,136) Net income (loss) $3,481 $(41,084) $11,213 $(2,360) Basic earnings (loss) per common share: Net income (loss) $0.04 $(0.52) $0.14 $(0.03) Basic weighted-average shares outstanding 79,818 79,012 79,690 78,929 Diluted earnings (loss) per common share: Net income (loss) $0.04 $(0.52) $0.14 $(0.03) Diluted weighted-average shares outstanding 79,818 79,012 79,690 78,929 MAYTAG CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) July 2 January 1 July 3 2005 2005 2004 ASSETS (Unaudited) (Unaudited) Current assets Cash and cash equivalents $69,015 $164,276 $7,492 Accounts receivable - net 724,544 629,901 636,929 Inventories 604,383 515,321 591,588 Deferred income taxes 52,973 55,862 61,335 Other current assets 45,419 80,137 89,329 Discontinued current assets - - 69,941 Total current assets 1,496,334 1,445,497 1,456,614 Noncurrent assets 653,626 653,365 574,949 Discontinued noncurrent assets - - 61,069 Total noncurrent assets 653,626 653,365 636,018 Property, plant and equipment 869,157 921,162 991,443 Total assets $3,019,117 $3,020,024 $3,084,075 LIABILITIES AND SHAREOWNERS' EQUITY (DEFICIT) Current liabilities Accounts payable $553,169 $545,901 $423,950 Accrued liabilities 356,623 358,119 334,507 Notes payable and current portion of long-term debt 188,977 6,043 223,982 Discontinued current liabilities - - 100,962 Total current liabilities 1,098,769 910,063 1,083,401 Long-term debt, less current portion 787,839 972,568 870,546 Postretirement benefit liability 528,436 531,995 541,380 Accrued pension cost 504,133 496,480 337,407 Other noncurrent liabilities 177,418 183,942 188,888 Total discontinued noncurrent liabilities - - 18,766 Shareowners' equity (deficit) (77,478) (75,024) 43,687 Total liabilities and shareowners' equity (deficit) $3,019,117 $3,020,024 $3,084,075 MAYTAG CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (In thousands) Six Months Ended July 2 July 3 2005 2004 Operating activities Net income (loss) $11,213 $(2,360) Depreciation and amortization 82,842 84,066 Deferred income taxes (8,707) 21,903 Restructuring and related charges, net of cash (14,735) 29,032 Goodwill impairment-Commercial Products - 9,600 Front-load washer litigation, net of cash paid (4,292) 18,500 Adverse judgment on pre-acquisition distributor lawsuit (12,250) 10,505 Change in working capital (178,445) (207,738) Pension expense 35,509 31,866 Pension contributions (27,849) (92,744) Postretirement benefit liability (3,559) 3,275 Other 72,849 45,133 Net cash used in operating activities (47,424) (48,962) Investing activities Proceeds from business disposition, net of transaction costs 11,123 - Capital expenditures (35,601) (48,872) Investing activities (24,478) (48,872) Financing activities Net proceeds of notes payable - 129,484 Dividends on common stock (21,490) (28,395) Repayment of long-term debt (2,518) (4,020) Stock options and employee stock 1,722 1,975 Other (1,025) (276) Financing activities (23,311) 98,768 Effect of exchange rates (48) (198) Increase (decrease) in cash and cash equivalents (95,261) 736 Cash and cash equivalents at beginning of period 164,276 6,756 Cash and cash equivalents at end of period $69,015 $7,492 http://www.newscom.com/cgi-bin/prnh/20000505/MYGLOGO http://photoarchive.ap.org/ DATASOURCE: Maytag Corporation CONTACT: John Daggett, Maytag Corporate Communications, +1-641-787-7711, Web site: http://www.maytagcorp.com/

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