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FEDDERS REPORTS IMPROVED RESULTS ON LOWER SALES IN OFF-SEASON FIRST QUARTER OF FISCAL 1994

 PEAPACK, N.J., Dec. 13 /PRNewswire/ -- Fedders Corporation (NYSE: FJQ), the room air conditioner manufacturer, today reported lower sales in the first quarter of fiscal 1994, compared with the same period a year earlier, despite a higher order rate for the 1994 season.
 New leaders in room air conditioner retailing require "just-in-time" delivery during the peak season (April through July), rather than pre- season. Therefore, the results of the increased orders for Fedders products will not be reflected in sales until later in fiscal 1994.
 The Company reported an increase in the gross profit margin in the first fiscal quarter to 19.7 percent from 18.0 percent in the comparable period a year ago, and reduced operating and interest expenses.
 Losses are normally anticipated for the three months ended Nov. 30, an "off-season" period for the room air conditioner industry.
 First-quarter sales for fiscal 1994 were $10.5 million, $2.8 million below that of the first quarter of 1993. Pre-tax loss for the period was $4.0 million, compared with $4.2 million a year ago. Net loss was $2.1 million, or 10 cents per share, compared with $2.6 million, or 13 cents per share, a year earlier.
 As a result of lower industrywide inventories, the increase in orders and reduction in expenses, the company considers itself well- positioned for a successful year.
 In the first quarter, Fedders adopted Statement of Financial Accounting Standards ("SFAS") No. 109, "Accounting for Income Taxes." This results in a decrease in the effective tax rate from 38 percent in the fiscal 1993 quarter to 3 percent in fiscal 1994, reducing the first quarter tax benefit. The adoption of SFAS No. 109 also resulted in a one-time favorable cumulative effect of an accounting change for prior periods amounting to $1.8 million, or 9 cents per share.
 FEDDERS CORPORATION
 Results of Fiscal 1994 First Quarter
 Amounts in Thousands, Except Per Share Data
 Quarter ended Nov. 30, 1993 1992
 Net sales $ 10,527 $ 13,277
 Pre-tax loss (4,011) (4,153)
 Loss before cumulative effect of
 accounting change (3,891) (2,561)
 Cumulative effect of accounting change 1,780 ---
 Net loss $ (2,111) $ (2,561)
 Earnings per share:
 Loss per share before cumulative effect
 of accounting change $ (0.19) $ (0.13)
 Cumulative effect of accounting change 0.09 ---
 Net loss per share $ (0.10) $ (0.13)
 Weighted average shares 20,376 19,379
 -0- 12/13/93
 /CONTACT: Robert L. Laurent Jr. of Fedders Corporation, 908-234-2100/
 (FJQ)


CO: Fedders Corporation ST: New Jersey IN: SU: ERN

MP -- NY061 -- 3153 12/13/93 12:07 EST
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Publication:PR Newswire
Date:Dec 13, 1993
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