"...rising costs of steel, resins and fuel were challenges in the first quarter, and will continue to demand aggressive management"
Ralph Hake, Maytag chairman and CEO

Maytag Corporation (MYG) today reported first quarter consolidated sales of $1.219 billion, up 7.3 percent from $1.136 billion in the same period of 2003. Earnings for the quarter met the company's expectations.

Commenting on first quarter performance, Maytag chairman and CEO Ralph Hake stated, "Our results reflect steady progress on many fronts. The company's multiple product launch strategy is being well-executed, with new models entering the marketplace on schedule. This successful implementation resulted in strong overall sales growth and market share improvement in Major Appliances. Results in our Major Appliances segment offset declines in the Housewares segment attributable to a reduction in sales of Hoover floor care products."

Hake cited the Maytag Neptune TL top-loading washer, the Neptune Drying Center, Maytag and Amana ranges and dishwashers as new products that are contributing to results. Hake added, "We are pleased to see the excellent reception to products outside our traditional categories, most notably the SkyBox home vender. The SpinSweep outdoor cleaner introduced by Hoover has also been well-received. Both products are tangible results of our diversification efforts."

Hoover continues its recovery strategy of becoming cost competitive and launching multiple new products. "While compelling mid-line products are expected to build sales volume starting in the second quarter of this year, Hoover's high-end, distinctly innovative product introductions are scheduled to enter the marketplace in 2005," Hake said. Hoover's new EmPower upright, in the mid-price range, began shipping late in the first quarter.

In the first quarter of 2004 versus the prior year, Maytag experienced higher advertising expenses to support product introductions. Additionally, rising costs of steel, resins and fuel were challenges in the first quarter, and will continue to demand aggressive management, Hake noted.

"Competitive challenges will continue in the major appliance and floor care industries, coupled with rising steel, resin and fuel costs. We plan to offset these pressures with continuing successful execution of planned product launches, aggressive cost reduction efforts and efficiencies gained through LeanSigma implementation," Hake said. He reaffirmed that for the full year 2004, excluding restructuring charges of approximately 40 cents per share related primarily to the planned closing of the Galesburg, Ill. plant, the corporation expects earnings of $2.30 to $2.40 per share.