-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TUYK+Jv4tyiNCa6gqghoTYBAQjJy/C5ap48xzx41RjNeHou4XHDVzIXb1n5mm8ko ae/zy9xhtnKyBL6p2E9ihA== 0000063541-95-000023.txt : 19951202 0000063541-95-000023.hdr.sgml : 19951202 ACCESSION NUMBER: 0000063541-95-000023 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951113 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MAYTAG CORP CENTRAL INDEX KEY: 0000063541 STANDARD INDUSTRIAL CLASSIFICATION: 3630 IRS NUMBER: 420401785 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-00655 FILM NUMBER: 95590972 BUSINESS ADDRESS: STREET 1: 403 W 4TH ST N CITY: NEWTON STATE: IA ZIP: 50208 BUSINESS PHONE: 5157928000 MAIL ADDRESS: STREET 1: 403 W. 4TH STREET NW CITY: NEWTON STATE: IA ZIP: 50208 FORMER COMPANY: FORMER CONFORMED NAME: MAYTAG CO DATE OF NAME CHANGE: 19870602 10-Q 1 10-Q FILING UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) (X) Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the period ended September 30, 1995 or ( ) Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number: 1-655 Maytag Corporation (Exact name of registrant as specified in its charter) Delaware 42-0401785 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 403 West 4th Street North, Newton, Iowa 50208 (Address of principal executive offices) (Zip Code) 515-792-8000 (Registrant's telephone number, including area code) (Former name, former address and former fiscal year, if changed since last report.) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No___ Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of September 30, 1995: Common Stock, $1.25 Par Value - 107,949,443 Page 1 of 17 FORM 10-Q MAYTAG CORPORATION Quarter Ended September 30, 1995 I N D E X Page PART I FINANCIAL INFORMATION Item 1. Financial Statements Condensed Statements of Consolidated Income 3 Condensed Statements of Consolidated Financial Condition 4 Condensed Statements of Consolidated Cash Flows 6 Notes to Condensed Consolidated Financial Statements 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7 PART II OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K 12 Computation of Per Share Earnings 14 Computation of Ratio of Earnings to Fixed Charges 16 Financial Data Schedule 17 2 Part I FINANCIAL INFORMATION Item 1. Financial Statements MAYTAG CORPORATION Condensed Statements of Consolidated Income (Unaudited) (Thousands of dollars except per share data) Third Quarter Ended Nine Months Ended September 30 September 30 1995 1994 1995 1994 Net sales $ 726,371 $ 848,930 $2,349,983 $2,509,880 Cost of sales 538,741 618,360 1,740,796 1,845,204 Gross profit 187,630 230,570 609,187 664,676 Selling, general and administrative expenses 113,248 144,307 382,573 417,621 Operating income 74,382 86,263 226,614 247,055 Interest expense (11,355) (18,355) (40,891) (55,830) Loss on business disposition (140,792) Settlement of lawsuit (16,500) (16,500) Other - net 3,477 2,833 3,679 3,895 Income before income taxes, extraordinary item and cumulative effect of accounting change 50,004 70,741 32,110 195,120 Income taxes 20,001 9,711 63,722 61,950 Income (loss) before extraordinary item and cumulative effect of accounting change 30,003 61,030 (31,612) 133,170 Extraordinary item - loss on early retirement of debt (2,057) (5,480) Cumulative effect of accounting change (3,190) Net income (loss) $ 27,946 $ 61,030 $ (37,092) $ 129,980 Income (loss) per average share of Common stock: Income (loss) before extraordinary item and cumulative effect of accounting change $ 0.28 $ 0.57 $ (0.30) $ 1.25 Extraordinary item - loss on early retirement of debt (0.02) (0.05) Cumulative effect of accounting change (0.03) Net income (loss) $ 0.26 $ 0.57 $ (0.35) $ 1.22 Dividends per Common share $ 0.125 $ 0.125 $ 0.375 $ 0.375 Average shares outstanding 107,312 106,878 107,053 106,772 See notes to condensed consolidated financial statements. 3 MAYTAG CORPORATION Condensed Statements of Consolidated Financial Condition September 30 December 31 1995 1994 (Unaudited) (Thousands of dollars) ASSETS Current Assets Cash and cash equivalents $ 134,671 $ 110,403 Accounts receivable 502,738 567,531 Inventories: Finished products 181,857 254,345 Work in process, raw materials and supplies 111,475 132,924 293,332 387,269 Deferred income taxes 48,206 45,589 Other current assets 25,572 19,345 Total current assets 1,004,519 1,130,137 Noncurrent Assets Deferred income taxes 80,020 72,394 Pension investments 1,497 112,522 Intangible pension asset 84,653 84,653 Other intangibles 302,800 310,343 Other noncurrent assets 33,072 44,979 502,042 624,891 Property, Plant and Equipment 1,381,039 1,456,755 Less allowance for depreciation 702,192 707,456 Total property, plant and equipment 678,847 749,299 Total Assets $ 2,185,408 $ 2,504,327 See notes to condensed consolidated financial statements. 4 MAYTAG CORPORATION Condensed Statements of Consolidated Financial Condition - Continued September 30 December 31 1995 1994 (Unaudited) (Thousands of dollars) LIABILITIES AND SHAREOWNERS' EQUITY Current Liabilities Notes payable $ $ 45,148 Accounts payable 146,168 212,441 Compensation to employees 54,952 61,311 Accrued liabilities 146,544 146,086 Income taxes payable 8,310 26,037 Current maturities of long-term debt 3,300 43,411 Total current liabilities 359,274 534,434 Noncurrent liabilities Deferred income taxes 32,638 38,375 Long-term debt 536,759 663,205 Postretirement benefits other than pensions 424,313 412,832 Pension liability 70,868 59,363 Other noncurrent liabilities 66,895 64,406 Total noncurrent liabilities 1,131,473 1,238,181 Shareowners' Equity Common stock Authorized - 200,000,000 shares (par value $1.25) Issued - 117,150,593 shares, including shares in treasury 146,438 146,438 Additional paid-in capital 473,251 477,153 Retained earnings 342,711 420,174 Cost of Common stock in treasury (1995 - 9,201,150 shares; 1994 - 9,836,447 shares) (205,080) (218,745) Employee stock plans (58,327) (60,816) Foreign currency translation (4,332) (32,492) Total shareowners' equity 694,661 731,712 Total Liabilities and Shareowners' Equity $ 2,185,408 $ 2,504,327 See notes to condensed consolidated financial statements. 5 MAYTAG CORPORATION Condensed Statements of Consolidated Cash Flows (Unaudited) Nine Months Ended September 30 1995 1994 (Thousands of Dollars) Operating Activities Net income (loss) $ (37,092) $ 129,980 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Loss on business disposition 140,792 --- Depreciation and amortization 85,215 88,614 Deferred income taxes (18,558) (1,265) Changes in selected working capital items: Inventories (9,445) (1,639) Receivables (27,111) (113,467) Other current assets 23,887 (1,194) Reorganization reserve (903) (23,489) "Free flights" reserve (388) (25,622) Other current liabilities (2,167) 24,665 Net change in pension assets and liabilities 12,439 10,652 Postretirement benefits 11,481 16,045 Other - net 13,126 (4,632) Net cash provided by operating activities 191,276 98,648 Investing Activities Cash received from disposition ($164,280), net of cash in business sold ($15,783) 148,497 --- Capital expenditures - net (98,458) (50,753) Net cash provided by (used in) investing activities 50,039 (50,753) Financing Activities Decrease in long-term debt (163,330) (4,480) Decrease in notes payable (29,808) (39,001) Stock options exercised and other common stock transactions 12,686 10,941 Dividends (40,386) (40,178) Net cash used in financing activities (220,838) (72,718) Effect of exchange rates on cash 3,791 6,907 Increase (decrease) in cash and cash equivalents 24,268 (17,916) Cash and cash equivalents at beginning of year 110,403 31,730 Cash and cash equivalents at end of period $ 134,671 $ 13,814 See notes to condensed consolidated financial statements. 6 MAYTAG CORPORATION Notes to Condensed Consolidated Financial Statements September 30, 1995 (Unaudited) Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the nine month period ended September 30, 1995 are not necessarily indicative of the results that may be expected for the year ended December 31, 1995. For further information, refer to the consolidated financial statements and footnotes included in the Maytag Corporation annual report on Form 10-K for the year ended December 31, 1994. Certain reclassifications have been made to prior years' financial statements to conform with the 1995 presentation. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. COMPARISON OF 1995 WITH 1994 NET SALES Net sales in the third quarter of 1995 decreased 14.4 percent from the third quarter of 1994 as reported; however, after excluding combined sales totaling $122.6 million in the third quarter of 1994 of Hoover Australia and Hoover Europe, which were sold in December 1994 and June 1995, respectively, sales in the third quarter of 1995 were approximately the same as in the comparable quarter of 1994. The North American Appliance Group had third quarter sales of $685.7 million, up 1.1 percent from sales of $678.3 million in the 1994 period. The Group's performance in 1995 is consistent with the overall U.S. industry performance for comparable major product categories. The U.S. appliance industry for the remainder of 1995 is expected to be below the record shipment levels which occurred in 1994 due to downward inventory adjustments by dealers and a slowdown in general economic conditions. The 1996 appliance industry in the U.S. is expected to be consistent with or up slightly compared to 1995. Dixie-Narco's sales in the third quarter were down 15.2 percent to $40.7 million, compared to $48.0 million in the third quarter of 1994. The decrease in Dixie-Narco's sales resulted from decreased bottler demand for venders in both the U.S. and foreign markets and for glass door coolers sold domestically. Net sales for the first nine months of 1995 were down 6.4 percent from the first nine months of 1994 as reported, but up 1.1 percent after excluding combined sales of Hoover Australia and Hoover Europe of $181.2 million in 1995 and $364.9 million in 1994. The North American Appliance Group had sales for the first nine months of 1995 of $2.01 billion, up 0.9 percent from sales of $2 billion in 7 the same 1994 period. Dixie-Narco's sales for the first nine months of 1995 were up 3.5 percent to $154.5 million, compared to $149.3 million in the first nine months of 1994. GROSS PROFIT Gross margin as a percent of sales decreased 1.4 percentage points from the third quarter and 0.6 percentage points from the first nine months of 1994 primarily due to an increase in material costs. The Company continues to experience cost increases in many commodities, particularly steel, plastics and corrugated materials. A portion of these increases is expected to be offset with internal cost reduction initiatives. Through these initiatives, the overall commodity cost escalation is expected to be contained to the low single-digit percent range. This will cause pressure on operating margins during the remainder of 1995 as compared to 1994. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Third quarter selling, general and administrative expenses (SG&A) decreased as a percent of sales over 1994 due to slightly lower advertising and sales promotion activities and other cost control efforts. In the third quarter, SG&A expenses decreased to 15.6 percent of sales from 17.0 percent in 1994. For the first nine months of 1995, SG&A expenses decreased to 16.3 percent of sales from 16.6 percent in 1994. OPERATING INCOME Operating income in the third quarter of 1995 decreased 13.8 percent from 1994, or 12.2 percent excluding the combined operating profit of $1.6 million reported by Hoover Australia and Hoover Europe in the third quarter of 1994. The decrease in operating income was caused primarily by the decline in gross margin mentioned above. Operating income in the North American Appliance Group decreased 10.2 percent to $77.9 million in the third quarter of 1995 from $86.8 million in the third quarter of 1994. Vending equipment operating income decreased 25.9 percent to $4.1 million from $5.5 million in 1994. For the first nine months of 1995, operating income decreased 8.3 percent from 1994, or 2.9 percent excluding Hoover Australia and Hoover Europe's combined results from both 1995 and 1994. The North American Appliance Group's operating income decreased 4.2 percent to $235.5 million from $245.7 million in the same period in 1994. Dixie-Narco's operating income increased 7.8 percent to $19.9 million from $18.4 million in the first nine months of 1994. Hoover Australia and Hoover Europe reported a combined operating profit of $6.2 million year-to- date in 1994, compared to an operating loss of $7.2 million for Hoover Europe in 1995. INTEREST EXPENSE Interest expense decreased 38.1 percent in the third quarter and 26.8 percent year-to-date due to application of proceeds from the sale of Hoover Australia and Hoover Europe and cash provided by continuing operations to reduce debt. 8 OTHER INCOME AND EXPENSE In the third quarter of 1995, the Company recorded a $16.5 million charge to settle a lawsuit relating to the closing of the former Dixie-Narco plant in Ranson, West Virginia. The after tax charge was $9.9 million or $.09 per share. In the second quarter of 1995, the Company sold its Hoover Europe division for approximately $180 million, subject to a post closing adjustment to the price which is further described below. The pretax loss from the sale was $140.8 million and resulted in an after-tax loss of $135.4 million or $1.27 per share. INCOME TAXES The significant fluctuation in the effective tax rate is due largely to the impact of the sale of Hoover Europe. Excluding amounts relating to the loss on the sale of Hoover Europe, the effective tax rate decreased to 40 percent in the third quarter and first nine months of 1995 from 42 percent in 1994. The decrease is primarily due to tax benefits from an increase in export sales from the United States. EXTRAORDINARY ITEM During the third quarter of 1995, the Company retired $26.6 million of long-term debt at a cost of $2.1 million after-tax. Year-to-date, early retirements of debt totaled $116.5 million at a cost of $5.5 million after-tax. NET INCOME Excluding the $9.9 million after-tax charge relating to the lawsuit settlement mentioned above and the $2.1 million extraordinary item from early debt retirement, net income for the third quarter would have been $39.9 million, or $.37 per share in 1995 compared to $41.0 million, or $.38 per share in 1994. Special items year-to-date in 1995 include the $9.9 million after-tax lawsuit settlement charge, the $135.4 million after-tax loss on the sale of Hoover Europe and the $5.5 million extraordinary item from the early retirement of debt. Excluding these special items as well as the 1994 special items which include a $3.2 million cumulative effect of accounting change and a $.19 per share tax benefit associated with the funding of operating losses and reorganization costs in Europe over the last several years, net income for the first nine months of 1995 was $113.6 million, or $1.06 per share, compared to net income of $113.2 million, or $1.06 per share in the comparable 1994 period. LIQUIDITY AND CAPITAL RESOURCES The Company's primary sources of liquidity are cash provided by operating activities and external debt. Detailed information on the Company's cash flows is presented in the Statements of Consolidated Cash Flows. Cash Flow From Operating Activities: Cash flow generated from operating activities consists of net income adjusted for certain non-cash income and expenses and changes in working capital. Non-cash income and expenses include 9 items such as depreciation, amortization and deferred income taxes. Working capital consists primarily of accounts receivable, inventory and other current liabilities. Cash flow from operating activities in the first nine months of 1995 improved significantly over the same period in 1994. This was driven by a lower increase in the selected working capital items mentioned above. Included in the working capital improvement was the sale of $43 million of accounts receivable relating to the operations of Maytag Financial Services which ceased in 1994. In addition, cash outflows for 1994 included $49 million of payments for the 1992 reorganization of the European operations and the 1992/1993 European "free flights" promotional programs. The funding of these events was substantially completed in 1994. Cash Flow From Investing Activities: The $148.5 million proceeds from business disposition represents the $164.3 cash received from the sale of Hoover Europe in the third quarter of 1995, net of $15.8 million cash in business sold. The terms of the contract provide for a post closing adjustment to the price under which the Company believes an additional amount of approximately $19 million is owed by the buyer. The post closing adjustment is in dispute and may ultimately depend on the decision of an independent third party. The Company continually invests in its businesses to improve product design and manufacturing processes and to increase capacity when needed. Capital expenditures for the first nine months of 1995 were $98.5 million compared to $50.8 million in the first nine months of 1994. The higher capital expenditures are a result of several capital projects that the Company will be implementing over the next several years. This includes totals of $50 million for a new high efficiency clothes washer and $180 million for a complete redesign of the Company's refrigerator product lines. The new clothes washer will be designed to comply with anticipated government regulations dealing with energy usage and will use water more efficiently. The refrigeration project will incorporate changes expected to be required by 1998 Department of Energy refrigeration standards and the upcoming ban on chlorofluorocarbons ("CFCs"). Planned capital expenditures for 1995 and 1996 approximate $150 million and $200 million, respectively, and relate to these new projects as well as other ongoing production improvements and product enhancements. The Company announced on November 1, 1995 that it has entered into a letter of intent to sell the business and assets of a Dixie-Narco, Inc. manufacturing operation in Eastlake, Ohio, to a private investor for an undisclosed amount. This business involves the design and manufacture of currency validators and electronic components used in the gaming and vending industries. Dixie-Narco's headquarters and vending machine manufacturing facility in Williston, SC, are not affected by this asset sale at Eastlake. The Company will record a non-cash book loss of approximately $6-$7 million pretax upon closing the sale, which is expected in the fourth quarter of 1995. Cash Flow From Financing Activities: Dividend payments for the first nine months of 1995 amounted to $40.4 million and were $40.2 million in the same period in 1994, or $.375 per share for both periods. In October, 1995, the Board of Directors authorized an increase in the quarterly dividend payable in December from $.125 to $.14 per share. 10 The Company used a portion of the cash flow generated from operations, $82.1 million of proceeds from the sale of Hoover Australia in 1994 and $148.5 million of proceeds from the sale of Hoover Europe in July 1995 to reduce long-term debt by $163.3 million in the first nine months of 1995. Included in the debt reduction is $116.5 million for the early retirement of a portion of the Company's outstanding long-term debt at December 31, 1994. The Company's ratio of debt to total capitalization decreased from 50.7 percent at December 31, 1994 to 43.7 percent at September 30, 1995. In October 1995, the Company announced a stock repurchase program to buy up to 10.8 million shares of the Company's outstanding Common stock. The buyback program commenced in the fourth quarter of 1995 and will continue for an unspecified period of time. CONTINGENCIES/OTHER The Company is contingently liable for guarantees of indebtedness owed by a third party ("the borrower") of $24 million relating to the sale of one of its manufacturing facilities in 1992. The borrower is performing under the payment terms of the loan agreement; however, it is currently in default of certain financial covenants. The indebtedness is collateralized by the assets of the borrower; however, in the event of a liquidation, it is likely the liquidation value would be substantially less than indebtedness. The Company also has other commitments to the borrower totaling $2.5 million. In connection with the sale of Hoover Europe mentioned above, the Company has made various warranties to the buyer, including the accuracy of tax net operating losses in the United Kingdom, and has agreed to indemnify the buyer for liability resulting from customer claims under the "free flights" promotions in excess of the reserve balance at the time of sale. The Company has limited liability in the event the buyer incurs a loss as a result of breach of the warranties. The Company recently announced that it will conduct an in-home inspection program to eliminate a potential problem with a small electrical component in Maytag brand dishwashers. Although the ultimate cost of the repair will not be known until the inspection program is complete, it is not expected to have a material impact on the Company's results. The Company is also seeking reimbursement from a supplier involved. A 1992 alliance to jointly explore mutually beneficial business opportunities with Bosch-Siemens Hausgate (BSHG) of Munich, Germany recently has been terminated by mutual agreement of the parties. The alliance termination will not have a material impact on the Company's financial results. 11 MAYTAG CORPORATION Exhibits and Reports on Form 8-K September 30, 1995 PART II OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits (11) Computation of Per Share Earnings (12) Computation of Ratio of Earnings to Fixed Charges (27) Financial Data Schedule (b) Reports on Form 8-K The Company filed a Form 8-K dated October 20, 1995 relating to an in-home product inspection program to eliminate a potential problem with a small electrical component on Maytag brand dishwashers manufactured between March 28, 1994 and January 31, 1995. The Company filed a Form 8-K dated October 20, 1995 relating to an announced repurchase of up to 10.8 million shares of the Company's stock and a 12 percent increase in its December dividend. The Company filed a Form 8-K dated November 7, 1995 relating to signing a letter of intent to sell the business and assets of its Dixie-Narco, Inc. manufacturing operation in Eastlake, Ohio. Except as reflected in the Company's Form 10-Q for the second quarter ended June 30, 1995, there were no other reports on Form 8-K filed during the quarter ended September 30, 1995. 12 MAYTAG CORPORATION Signatures September 30, 1995 Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. MAYTAG CORPORATION Date November 13, 1995 By s/s E. J. Bennett E. James Bennett Secretary and Assistant General Counsel 13 MAYTAG CORPORATION Exhibit 11 Computation of Per Share Earnings (Amounts in thousands except per share data) Third Quarter Ended Nine Months Ended September 30 September 30 1995 1994 1995 1994 PRIMARY Average shares outstanding 107,107 106,522 106,854 106,385 Net effect of dilutive stock options--based on the treasury stock method using average market price 151 283 149 300 Employee stock ownership plans 54 73 50 87 TOTAL 107,312 106,878 107,053 106,772 Income (loss) before extraordinary item and cumulative effect of accounting change $ 30,003 $ 61,030 $ (31,612) $ 133,170 Extraordinary item - loss on early retirement of debt (2,057) (5,480) Cumulative effect of accounting change (3,190) Net income (loss) $ 27,946 $ 61,030 $ (37,092) $ 129,980 Per share amounts: Income (loss) before extraordinary item and cumulative effect of accounting change $ 0.28 $ 0.57 $ (0.30) $ 1.25 Extraordinary item - loss on early retirement of debt (0.02) (0.05) Cumulative effect of accounting change (0.03) Net income (loss) $ 0.26 $ 0.57 $ (0.35) $ 1.22 FULLY DILUTED Average shares outstanding 107,107 106,522 106,854 106,385 Net effect of dilutive stock options--based on the treasury stock method using average market price 276 283 236 328 Employee stock ownership plans 54 73 50 87 Assumed conversion of 6.5% convertible debentures 273 273 TOTAL 107,437 107,151 107,140 107,073 Income (loss) before extraordinary item and cumulative effect of accounting changes $ 30,003 $ 61,030 $ (31,612) $ 133,170 14 Add 6.5% convertible debenture interest net of income tax effect 20 138 Extraordinary item - loss on early retirement of debt (2,057) (5,480) Cumulative effect of accounting change (3,190) Net income (loss) $ 27,946 $ 61,050 $ (37,092) $ 130,118 Per share amounts: Income (loss)before extraordinary item and cumulative effect of accounting change $ 0.28 $ 0.57 $ (0.30) $ 1.25 Extraordinary item - loss on early retirement of debt (0.02) (0.05) Cumulative effect of accounting change (0.03) Net income (loss) $ 0.26 $ 0.57 $ (0.35) $ 1.22 15 MAYTAG CORPORATION Exhibit 12 Computation of Ratio of Earnings to Fixed Charges (Amounts in thousands of dollars except ratios) Nine Months Ended Year Ended December 31 9-30-95 1994 1993 1992 1991 1990 Consolidated pretax income from continuing operations before extraordinary item and cumulative effect of accounting change $ 32,110 $241,337 $ 89,870 $ 7,546 $123,417 $159,405 Interest expense 40,891 74,077 75,364 75,004 75,159 81,966 Depreciation of capitalized interest 1,302 1,772 1,546 933 348 57 Interest portion of rental expense 6,887 10,722 10,480 11,264 11,177 9,183 Earnings $ 81,190 $327,908 $177,260 $ 94,747 $210,101 $250,611 Interest expense $ 40,891 $ 74,077 $ 75,364 $ 75,004 $ 75,159 $ 81,966 Interest capitalized 1,340 547 1,484 3,886 6,329 5,348 Interest portion of rental expense 6,887 10,722 10,480 11,264 11,177 9,183 Fixed Charges $ 49,118 $ 85,346 $ 87,328 $ 90,154 $ 92,665 $ 96,497 Ratio of earnings to fixed charges 1.65 3.84 2.03 1.05 2.27 2.60 16 EX-27 2 EXHIBIT 27 FDS
5 1000 9-MOS DEC-31-1995 SEP-30-1995 134,671 0 524,994 22,256 293,332 1,004,519 1,381,039 702,192 2,185,408 359,274 536,759 146,438 0 0 548,223 2,185,408 2,349,983 2,349,983 1,740,796 1,740,796 157,292 0 40,891 32,110 63,722 (31,612) 0 (5,480) 0 (37,092) (0.350) (0.350)
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