Maytag Earnings Slip, but Meet Estimates - TheStreet

Maytag Earnings Slip, but Meet Estimates

The company also offers full-year guidance that should top expectations.
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Maytag

(MYG)

reported second-quarter sales and earnings that fell from a year ago, but the results were in line with management's estimates and Wall Street's expectations.

The appliance maker posted earnings of $25.2 million, or 32 cents a share, in the quarter. Included in the results are charges of $18.8 million, or 24 cents a share, for the closing of the company's manufacturing plant in Galesburg, Ill., and a workforce reduction implemented during the quarter. Consolidated sales totaled $1.16 billion.

A year ago, the company earned $68 million, or 86 cents a share, on sales of $1.19 billion.

"Maytag achieved a respectable performance despite challenging second-quarter market conditions," the company said in a press release. "While major appliance industry unit sales were up about 1% in the quarter, the floor care industry was down nearly 9% in the April and May timeframe. We worked hard to reduce our costs, and those efforts should continue to pay off in the second half as we benefit from our restructuring savings, steel cost reductions and multiple product launches."

The company expects full-year earnings in the range of $1.80 to $1.90 a share, including pretax restructuring charges of around $60 million, or 50 cents a share.

Analysts polled by Thomson First Call were looking for earnings of 56 cents in the second quarter, in line with Maytag's results before the charge. For the full year, analysts are projecting a profit of $2.27, before charges.