ICS Magazine

Maytag Profit Boosted by Luxury Items

July 15, 2002
NEWTON, Iowa (Reuters) - Maytag Corp., the third-biggest U.S. home appliance maker, on Monday said second-quarter earnings rose due to strong demand for products like its new Hoover hard-floor cleaner.

The Newton, Iowa-based manufacturer of Jenn-Air, Amana and other brand-name appliances posted a profit of $68.3 million, or 86 cents per share, compared with $27.7 million, or 35 cents per share, a year ago. Analysts' earnings estimates ranged from 85 cents to 86 cents per share, with a mean of 85 cents, according to research firm Thomson First Call.

Low interest rates have boosted new and existing home sales and spurred home owners to take out second mortgages to pay for renovations and appliances. The Sept. 11 attacks also spurred a nesting trend, with people staying at home and spending on household goods rather than traveling.