"We are encouraged by a strong third quarter for major appliances. Maytag Appliances witnessed solid gains in market share...
Ralph F. Hake
Maytag CEO

Maytag Corporation reported third quarter consolidated sales of $1.221 billion and operating income of $61.4 million. Reported net income for the period was $36.6 million, or 46 cents per share, consistent with previously announced management expectations.

"We are encouraged by a strong third quarter for major appliances," said Ralph F. Hake, Maytag Chairman and Chief Executive Officer. "Maytag Appliances witnessed solid gains in market share as a result of new product introductions within an environment of strong industry shipments."

Hake also noted that Maytag Appliances achieved a record quarter for unit sales. However, as compared to the second quarter 2003, increases in advertising spend to correspond with the introduction of several new products and burden absorption tied to lower production levels reduced profitability.

Hake added that the introduction of new, innovative product lines from across the company is proceeding very well. "This has been an exciting quarter for the company in terms of new product launches," Hake said. "In September, we introduced the Neptune Drying Center (DC) and we have high expectations for this category-defining product. The Neptune DC, coupled with the new top-load Neptune washer, continues our refreshed suite of home laundry products."

Maytag's strong cash flow this year has enabled the company to reduce its debt by $85 million to date and is well on track to meet the $100 million target in 2003. In addition, Maytag has already met its 2003 goal of contributing $135 million to the company's pension plan.

The company expects fourth quarter earnings to be in the range of 40 to 45 cents per share, which includes after-tax restructuring charges of approximately $8.5 million or 11 cents per share.