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Maytag Posts $3.3 Million Profit

January 22, 2003

NEWTON, Iowa (AP) _ Maytag Corp. reported fourth-quarter earnings Wednesday of $3.3 million, including a one-time restructuring charge of $67.1 million from the closing of its refrigerator factory in western Illinois.

Fourth-quarter earnings were 4 cents per share, compared to a loss of $20.7 million, or 27 cents per share, a year earlier.

Excluding the restructuring charge, Maytag earned $48.3 million, or 62 cents per share, up 29 percent from a year ago. On that basis, the 62 cent profit was in line with Wall Street expectations, according to a survey of analysts by Thomson First Call.

``This is more evidence that our strategy of innovative products, supported by preferred brands, is succeeding,″ said Ralph Hake, chairman and chief executive of the Newton, Iowa-based appliance maker.

Maytag’s home appliances segment, which includes such brands as Maytag, Hoover, Amana and Jenn-Air, reported sales of $1.085 billion, up 2.2 percent from $1.061 billion in the final quarter of 2001.

Commercial appliance sales _ Jade Products and Dixie-Narco _ were $42.7 million, up 13.5 percent from $37.7 million the previous year.

``We were looking for consistency of earnings rather than flashiness of earnings,″ said Efraim Levy, an analyst with Standard & Poors in New York.

The 1,600-employee Galesburg, Ill., plant will close by the end of 2004, with production shifting to Amana, which Maytag acquired in August 2001, and to a new factory in Mexico.

For 2002, Maytag reported net income of $188.8 million, or $2.40 per share, compared with $47.7 million, or $1.41 per share, the previous year, which included goodwill amortization of 13 cents per share.

Sales for the year were $4.7 billion, compared to $4.2 billion in 2001.

Maytag shares fell 96 cents to close at $27.34 Wednesday on the New York Stock Exchange.


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