NEWTON, IOWA”” Maytag has set Dec. 16 as the date for shareholders to either endorse or vote down the company’s proposed acquisition by Whirlpool.
In a conference call, Ralph Hake, chairman/CEO, said he expects both shareholders and the Justice Department to approve the merger agreement, and anticipates that the transaction will close as early as the first quarter.
Regardless of the outcome, Maytag must “significantly improve our overall performance,” Hake said, and is working to “fix the business” by reducing excess manufacturing capacity stemming from increased outsourcing.
Sourced products represented about 20 percent of Maytag’s major appliance sales during the third quarter, primarily in laundry and top-mount refrigerators, while over 30 percent of the company’s floor-care unit volume came from sourced merchandise, he said. Outsourcing permits growth and rapid innovation with reduced R&D and capital commitments, he noted, but the resulting underutilization at Maytag’s four laundry and three floor-care factories negatively impacts profitability.
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