Maytag posts losses, considers selling off Hoover

Maytag posts losses, considers selling off Hoover

Maytag Corporation is already in the process of being acquired by rivals Whirlpool Corporation. However, there is not much good news from their side as they have reported a wider fourth-quarter loss on Friday. The company is further considering selling off their underperforming Hoover vacuum unit and commercial businesses.

Maytag reported that the sales of Hoover appliances were down by almost 20% in the most recent quarter. This division is already responsible for bringing down revenue and profit figures for the parent company in the past couple of years.

Maytag Chief Executive Ralph Hake said in a statement to the analysts and investors: “We can no longer carry the burden of this underperforming product line.” He further added that selling off Hoover would let them focus on controlling costs in the core appliance operation.

The company overall posted losses of $75 million, or 93 cents a share in the fourth quarter of last year. This is worse from their previous year’s performance of loss of $14 million, or 18 cents a share.