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Earnings report
Whirlpool dismisses Maytag's cool response to buyout offer
Associated Press
Published July 23, 2005
DES MOINES, Iowa - Whirlpool Corp. appeared ready to take an aggressive approach in its attempt to buy rival appliance maker Maytag Corp. after receiving a cool reception from Maytag officials.
"We are evaluating all of our various options, and are prepared to pursue them in an expeditious manner," Whirlpool said in statement.
It followed remarks by Maytag officials a day earlier that they were uncertain whether Whirlpool's proposal was better than a previous bid submitted by Triton Acquisition Holding Co., an investment group led by New York-based Ripplewood Holdings.
Whirlpool, the nation's leading appliance manufacturer, has proposed paying $17 a share in a deal - half cash, half stock - valued at $1.37-billion, while Triton has signed an agreement to buy Maytag for $14 a share in cash, or about $1.13-billion.
Whirlpool has asked Maytag to open its books and enter negotiations.
Maytag chief executive officer Ralph Hake said in a Friday conference call with analysts that the company is evaluating the Whirlpool proposal but has been unable to determine whether it is better than Triton's offer and whether it will pass regulatory approval.
Maytag on Friday reported that it swung to a second-quarter profit from a year-ago loss, but its results failed to meet Wall Street expectations as higher steel, resin and fuel costs offset improved sales growth.
The latest quarter included charges of 3 cents per share, compared with 61 cents of items last year. Sales rose 6.7 percent.
Excluding charges, the company's 7 cents-per-share profit missed analysts' expectations for earnings of 10 cents per share, though sales came in above estimates of $1.15-billion, according to a Thomson Financial survey of analysts.
Outback Steakhouse Inc.
Though its revenues rose 13.8 percent year-over-year in the quarter ended June 30, Outback Steakhouse reported a 6.7 percent decline in profits. A key reason was an impairment charge related to one of the Tampa company's nonrestaurant assets. Same-store sales at company-owned Outback Steakhouse restaurants in the U.S. fell 0.9 percent during the quarter. The four other biggest Outback brands saw same-stores sales grow domestically.
Kimberly-Clark Corp.
The maker of Kleenex tissues and Huggies diapers said earnings fell slightly because of a tax expense for repatriating foreign profits. Sales rose 8 percent, helped by strong sales of tissue products in North America.
[Last modified July 23, 2005, 00:54:16]
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