Fedders Provides Preliminary Second Quarter 2005 Financial Information
12 Août 2005 - 1:08AM
PR Newswire (US)
LIBERTY CORNER, N.J., Aug. 11 /PRNewswire-FirstCall/ -- Fedders
Corporation (NYSE:FJC), a leading global manufacturer of air
treatment products, including air conditioners, air cleaners,
dehumidifiers and humidifiers and thermal technology products,
today reiterates that as has been previously reported, the company
has not yet filed its Annual Report on Form 10-K for 2004 or its
Quarterly Report on Form 10-Q for the first quarter of 2005. Until
those two filings are completed, the company will not be able to
file its report for the second quarter and six months of 2005. The
Company anticipates that, as a result of increased inventory of
room air conditioners in key North American markets carried over
from 2004, which was caused by cooler than normal weather in 2004,
net sales in the second quarter ended June 30, 2005 will decrease
29% to approximately $127 million from net sales of $178.1 million
in the second quarter of 2004. It is anticipated that this
inventory has also caused a reduction in net sales for the six
months ended June 30, 2005 of 31% to approximately $205 million
from net sales of $297.4 million in the six months ended June 30,
2004. The more favorable weather in key North American markets
during 2005 is having the effect of clearing inventories through
distribution channels and positioning the industry well going into
2006. During the second quarter and six months ended June 30, 2005,
the company manufactured fewer room air conditioners than in the
prior year in order to reduce inventories. Reduced production has
the effect of increasing costs as a result of lower overhead
absorption. The company anticipates that, despite increased costs
related to lower overhead absorption and inflationary pressures on
raw materials, its gross profit margin as a percentage of net sales
has increased as a result of more favorable product mix and price
increases initiated to offset material cost increases realized
during 2004. It is anticipated that the gross margin for the 2005
second quarter increased to approximately 20% versus 16.2% in the
prior year period and for the 2005 six-month period to
approximately 20% versus 17.0% in the prior year period. The
company anticipates a net loss of approximately $0.6 million during
the quarter ended June 30, 2005, compared to net income of $2.3
million in the quarter ended June 30, 2004. For the six-month
period ended June 30, 2005, the company anticipates a loss of $5.4
million versus a loss of $2.9 in the six months ended June 30,
2004, which included a charge related to the extinguishment of debt
of $8.1 million. 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
obligation to update any forward-looking statements to incorporate
developments occurring after release of this announcement. Visit
the Fedders investor information website at http://www.fedders.com/
to access additional information on Fedders. DATASOURCE: Fedders
Corporation CONTACT: Robert Laurent, Jr., +1-908-604-8686, Web
site: http://www.fedders.com/
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