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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

For the quarterly period ended July 3, 2004

OR

For the transition period from              to             

Commission file number 1-655

MAYTAG CORPORATION

403 West Fourth Street North, Newton, Iowa 50208

Registrant’s telephone number: 641-792-7000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2 of the Exchange Act).    Yes  x    No  ¨

The number of shares outstanding of each of the issuer’s classes of common stock, as of July 3, 2004:

Common Stock, $1.25 par value – 78,924,550

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MAYTAG CORPORATION

Quarterly Report on Form 10-Q

Quarter Ended July 3, 2004

INDEX

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Part I FINANCIAL INFORMATION

Item 1. Financial Statements

Maytag Corporation

Consolidated Statements of Income

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Maytag Corporation

Consolidated Balance Sheets

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Maytag Corporation

Consolidated Balance Sheets - Continued

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Maytag Corporation

Consolidated Statements of Cash Flows

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MAYTAG CORPORATION

Notes to Consolidated Financial Statements

July 3, 2004

NOTE A – BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal and recurring nature. Operating results for the six-month period ended July 3, 2004 are not necessarily indicative of the results that are expected for the fiscal year ending January 1, 2005. For further information, refer to the consolidated financial statements and footnotes included in the Maytag Corporation annual report on Form 10-K for the year ended January 3, 2004.

NOTE B – COMPREHENSIVE INCOME

Total comprehensive income and its components, net of related tax are as follows:

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The components of accumulated other comprehensive loss, net of related tax are as follows:

NOTE C – INVENTORIES

Inventories consisted of the following:

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NOTE D – EARNINGS (LOSS) PER SHARE

The following table sets forth the components for computing basic and diluted earnings (loss) per share:

NOTE E—CONTINGENCIES

In 2003, a $12.1 million judgment (composed of $2.1 million compensatory and $10 million punitive damages) was entered against Amana Company, LP, the entity from which Maytag purchased the Amana business in 2001. The case involved the termination of a commercial distributorship prior to Maytag’s acquisition of the Amana business. In May 2004, the 8th Circuit Court of Appeals upheld the earlier judgment. As a result, Maytag has recorded a charge of $10.5 million in the second quarter, bringing its reserve to cover this matter to $12.8 million. The charge is disclosed as a separate line item on the Consolidated Statements of Income. Maytag is pursuing an appeal of this decision.

A charge of $18.5 million was recorded in the second quarter for the anticipated resolution of product related litigation. This litigation related primarily to early generation front-load washers. The charge was recorded in the Major Appliances segment on a separate line on the Consolidated Statements of Income.

Maytag has contingent liabilities arising in the normal course of business, including: guarantees, repurchase agreements, pending litigation, environmental remediation, taxes and other claims which are not considered to be significant in relation to Maytag’s consolidated financial position, results of operations or cash flows.

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NOTE F – SEGMENT REPORTING

Maytag’s reporting segments are Major Appliances, Housewares, and Commercial Products. The Major Appliances segment includes those business units that manufacture, sell and service major appliances such as laundry, dishwasher, cooking and refrigeration products. The Housewares segment is predominately comprised of floor care products manufactured and sold under the Hoover brand name but also includes sales of small appliances. The Commercial Products segment includes manufacture and sale of vending, commercial laundry, and commercial and luxury residential cooking products. Segment information in this report with respect to 2003 has been reclassified for comparative purposes to reflect a first quarter 2004 reporting change.

In the second quarter of 2004, Maytag announced a major restructuring plan to consolidate the Hoover Floor Care, Maytag Appliances and Corporate Headquarters organizations. In light of this plan, Maytag is evaluating its segment reporting requirements for future filings.

Financial information for reportable segments consisted of the following:

The reconciliation of segment profit (loss) to consolidated income (loss) from continuing operations before income taxes consisted of the following:

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Asset information for Maytag’s reportable segments consisted of the following:

NOTE G – RESTRUCTURING AND RELATED CHARGES

Restructuring and related charges reserve activity for the six months ended July 3, 2004 consisted of the following:

In the fourth quarter of 2002, Maytag announced that it would close its refrigeration manufacturing facility in Galesburg, Illinois and that it planned to cease production there in the third quarter of 2004. In connection therewith, the Company recorded $48.4 million and $67.1 million in pre-tax restructuring and related charges in 2003 and 2002, respectively, including $48.4 million and $32.8 million for asset impairments, accelerated depreciation and severance and related costs. The remaining $34.3 million charge in 2002 involved pension and postretirement health care benefit curtailments that were charged to Accrued pension cost and Postretirement benefit liability on the Consolidated Balance Sheets. Pre-tax restructuring and related charges of $14.9 million and $24.4 million were recorded in the second quarter and first six months of 2004, respectively. Cash expenditures for the three and six months ended July 3, 2004 were $0.9 million and $2.6 million, respectively. It is anticipated that the closure of the facility will result in a workforce reduction of approximately 1,600 positions with the majority of it occurring by the end of the third quarter of 2004. Hourly production workers hold the majority of these positions. Approximately 600 positions have been eliminated through July 3, 2004.

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In the first quarter of 2004, the Company sold a former cooking appliance manufacturing facility in Indianapolis, Indiana. In 1996 the Company had ceased production at the facility, classified the net assets as held-for-sale and reduced the property’s carrying value to its estimated realizable value. The ultimate amount realized resulted in a $1.6 million reversal of the reserve recorded against those net assets. This reversal was netted against the pre-tax restructuring and related charges within the Major Appliances segment.

In the second quarter of 2004, the Company announced a comprehensive restructuring plan to consolidate the Hoover Floor Care, Maytag Appliances, and Corporate Headquarters organizations. A total charge of $13 million was recorded in the second quarter in connection with this plan with the majority of the charge involving severance and related costs. Cash expenditures for salaried reductions in force were $4.0 million in the second quarter. It is anticipated that the restructuring plan will result in a workforce reduction of approximately 1,100 positions by the end of 2004. Approximately 400 positions have been eliminated through July 3, 2004. Of the $13 million, $8.6 million, $3.5 million and $0.9 million were recorded in the Major Appliances, Housewares and General Corporate segments, respectively.

NOTE H – STOCK PLANS

The Company has elected to follow Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees” (APB 25), and related interpretations in accounting for its employee stock options and awards. Under APB 25, employee stock options are valued using the intrinsic method, and no compensation expense is recorded when the exercise price of options equals or is greater than the fair market value of the underlying stock on the date of grant. The following table shows the effect on net income and earnings per share if the Company had applied the fair value recognition provision of FASB Statement No. 123, “Accounting for Stock-Based Compensation.”

The fair value of stock options is estimated at the date of grant using the Black-Scholes option pricing model. The Company’s weighted-average assumptions used in this model have not changed from January 3, 2004.

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NOTE I – WARRANTY RESERVE

Maytag provides a basic limited warranty for all of its major appliance, floor care and commercial products. The specific terms and conditions of those warranties vary depending upon the product sold. Maytag estimates the costs that may be incurred and records a liability in the amount of such costs at the time product revenue is recognized. Factors that affect Maytag’s warranty liability include the number of units shipped to customers, historical and anticipated rates of warranty claims and cost per claim. Maytag periodically assesses the adequacy of its recorded warranty liability and adjusts the amount as necessary.

Changes in the basic limited warranty liability for the six months ended July 3, 2004 were as follows:

In addition to the basic limited warranty, an optional extended warranty is offered to retail purchasers of the Company’s major appliances. Sales of extended warranties are recorded as deferred revenue within accrued liabilities on the Consolidated Balance Sheet. Deferred revenue is amortized into income on a straight-line basis over the length of the extended warranty contracts. Payments on extended warranty contracts are expensed as incurred.

NOTE J – PROPOSED SALE OF RONGSHIDA-MAYTAG

During 2001, the Company committed to a plan to dispose of its interest in Rongshida-Maytag, a joint venture in China. Total charges of $45.6 million have been recorded to write down the Company’s interest in the net assets of Rongshida-Maytag to its estimated fair value less costs to dispose. No tax benefit was recorded on the $45.6 million capital loss as the recognition of a future tax benefit from this loss is uncertain. Due to the Company’s inability to finalize a definitive agreement with a prior prospective buyer, the Company reinitiated efforts to dispose of its interest. Negotiations are proceeding with an identified interested buyer. Based on these discussions, the Company believes that Rongshida-Maytag’s net assets are recorded at fair value less costs to dispose as of July 3, 2004.

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NOTE K – PENSION AND POSTRETIREMENT MEDICAL BENEFIT EXPENSES

The components of net periodic pension cost consisted of the following: