A Chat with the Real Maytag Repairman

You remember the routine about the lonely Maytag repairman: He sits all day with nothing to do because the company's appliances never need fixing. These days, Maytag Chairman and CEO Ralph F. Hake might wish the same could be said for the company. Less than three months after he took the top job, the September 11 terrorist attacks in New York and Washington plunged the nation's economy into what Hake believes is a full-blown recession. Retail sales of Maytag products fell 50% that week and, despite a comeback a week later, remain below preattack levels. Now, Hake fears a deeper slump as anxious Americans put off plans for new homes or remodeling projects.

Not that he didn't have his hands full already. Maytag's net income had been slipping every quarter since mid-1999. Its stock chart looks even bleaker: When Hake was hired on June 19, after losing out on the top spot at engineering firm Fluor Corp., Maytag shares were down 55% from their August, 1999, peak price of $68.25. They're lower still today, closing Oct. 9 at $25.82.