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LIBERTY CORNER, N.J., Dec. 30 /PRNewswire-FirstCall/ -- Fedders
Corporation (NYSE: FJC), a leading global manufacturer of air treatment
products, including air conditioners, air cleaners, dehumidifiers and
humidifiers, today announced that it filed its Forms 10-Q for its first,
second and third quarters of 2005. The prior year has been reclassified to
reflect the sale of the Companys Melcor subsidiary as a discontinued
operation. Melcor was sold in October, 2005 for $17.4 million.
The filings had been delayed for two reasons. First, the Company filed its
Form 10-K for 2004 on September 30, 2005, and the Forms 10-Q preparation
needed to follow the Form 10-K filing. Second, the Companys external auditors
did not stand for re-appointment, and new auditors needed to be engaged
following the Form 10-K filing.
For the nine months, net sales decreased by 27.4% to $258.7 million
compared with $356.5 million in the prior-year period. Net sales within the
HVACR segment decreased by 30.2% during the period due primarily to increased
inventory levels of room air conditioners at customers in key North American
markets, caused by cooler-than-normal summer weather in 2004. The warm summer
in 2005 significantly reduced inventory levels in distribution channels but
did not result in additional sales to channel customers. As a result of the
Company balancing its production and inventory with demand, inventory levels
declined to $84.0 million at September 30, 2005 from $126.2 million one year
earlier.
Partly offsetting this sales decrease were increased sales of commercial
air conditioners from the Addison acquisition, sales from the Islandaire
acquisition, and a 17.0% increase in sales within the Engineered Products
segment.
The loss from continuing operations before income taxes was $29.5 million
for the nine months in 2005. This compares with a loss of $20.0 million in the
comparable prior-year period.
This news release includes forward-looking statements that are covered
under the "Safe-Harbor" clause of the Private Securities Litigation Reform Act
of 1995. Such statements are based upon current expectations and assumptions.
Actual results could differ materially from those currently anticipated as a
result of known and unknown risks and uncertainties including, but not limited
to, weather and economic, political, market and industry conditions and
reliance on key customers. Such factors are described in Fedders SEC filings,
including its most recently filed annual report on Form 10-K. The company
disclaims any obligations to update any forward-looking statements to
incorporate developments occurring after release of announcement. Visit the
Fedders investor information website at http://www.fedders.com to access
additional information on Fedders.
FEDDERS CORPORATION
RESULTS FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2005
(amounts in thousands, except per share data)
(unaudited)
2005 2004
Net sales $258,740 $356,455
Operating income (loss) (13,423) 2,572
Net income (loss) from
continuing operations before
income taxes (29,472) (20,026)
Net income (loss) from
continuing operations (29,735) (13,473)
Net income (loss) from
discontinued operations 1,894 848
Net income (loss) $(27,841) $(12,625)
Net income (loss) applicable to
common stockholders $(31,135) $(15,640)
Basic/diluted (loss) income per
common share:
Net income (loss) per common
share from continuing
operations $(1.08) $(0.54)
Net income (loss) per common
share from discontinued
operations $0.06 $0.03
Net income (loss) per share
applicable to common
stockholders $(1.02) $(0.51)
Weighted average shares
outstanding:
Basic 30,608 30,454
Diluted 30,608 30,454
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