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Maytag issues 2Q warning
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June 13, 2001: 9:06 a.m. ET
Appliance maker cites delays in rollout of new Hoover products, soft economy
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NEW YORK (CNNfn) - Home appliance maker Maytag Corp. warned Wednesday that second-quarter results will fall 25 percent short of the company's previously-lowered guidance for the period, due primarily to disappointing sales in its Hoover vacuum cleaner unit.
The Newton, Iowa-based company, which will report results July 17, said it now anticipates second-quarter earnings of about 32 cents a share.
Analysts surveyed by earnings tracker First Call anticipated earnings of 46 cents a share, and the company said as recently as April 17 that it expected to earn at least 43 cents a share in the period. At that time First Call's EPS forecasts for the second quarter stood at 61 cents. The company earned 92 cents a share in the year-ago quarter.
Shares of Maytag (MYG: down $0.69 to $31.79, Research, Estimates) were off in morning trading following the pre-market announcement.
Wednesday's announcement marked the fourth consecutive quarter in which Maytag warned about results.
The company said a slow roll-out of a new line of Hoover vacuum cleaners has delayed wholesale purchases of those products, which in turn led to lower manufacturing volume and higher costs. But it also is seeing a slowdown in consumer purchases and an industry-wide trend of consumers buying lower-priced models.
"Hoover's performance is expected to outpace the industry," said a statement from CEO Leonard Hadley. "Nonetheless, the operating environment is much weaker than we had anticipated."
In addition to its floor care division shortfalls, the company said industry-wide sales of laundry equipment, dishwashers, refrigerators and cooking appliances were off 7 percent during the first five months of the year from year-ago levels. The company said that is resulting in pricing pressure as well as increased spending on brand building and product development.
Maytag said its appliance business is gaining market share and it anticipates further gains from its integration of the recently-purchased Amana Appliances. 
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Maytag Corp.
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