Financial Turnarounds: Preserving Value

Chapter 7. Manufacturing Sector

Maytag Corporation

In 1980, Maytag was a high-end niche manufacturer of clothes washers, dryers, and dishwashers. The company grew by acquisition through the mid-1980s, becoming a full-line manufacturer of major appliances. Late in the decade, Maytag added overseas acquisitions for international growth. While that strategy helped diversify the corporation’s product lines, the overseas businesses did not meet its internal profitability standards. Maytag subsequently sold off its poorly performing European and Australian operations. Maytag used the proceeds to pay down debt and strengthen its balance sheet, reinvest in its core North American business, and initiate a share-repurchase program. Maytag once again performed ...