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FEDDERS, ROOM AIR CONDITIONER MANUFACTURER, REPORTS NARROWER LOSS FOR 1992; RECEIVES COMMITMENT FOR REVOLVING CREDIT FACILITY

 PEAPACK, N.J., Nov. 25 ~PRNewswire~ -- Fedders Corporation (NYSE: FJQ) reported today that sales for the 12 months ended Aug. 31, 1992, totaled $192.4 million, a 5.8 percent drop from $204.3 million in sales in the prior 12-month period.
 For the fiscal year ended Aug. 31, 1992, the room air conditioner manufacturer had a net loss of $24.9 million, or $1.32 per share, approximately 37 percent less than its loss of $39.5 million, or $2.13 per share, in the 12 months ended Aug. 31, 1991. The 1992 results include a previously announced net restructuring charge of $3.3 million -- reflecting a provision of approximately $10.4 million in connection with the closing of two assembly plants offset, in part, by a $7.1 million profit on the sale of its Rotorex compressor plant.
 The company reported that, with the sale of Rotorex, it had reduced its long-term debt to $25 million, compared with $173 million in January 1991 and $95 million in August 1991.
 Fedders also announced it has received a commitment for a new revolving credit facility to fund its seasonal working capital requirements.
 Industry-wide sales of room air conditioners in 1992 have been adversely affected by the third coldest U.S. summer on record.
 As to prospects for 1993 and beyond, Fedders has significantly reduced its break-even point through the restructuring. Consequently, the company can be profitable on significantly lower sales volume than was required in the past. As an illustration, had the restructuring been in effect for fiscal 1992, the company's pro forma operating income would have been approximately $4.2 million, rather than an operating loss of $9.4 million.
 Additionally, the future break-even point is further reduced as a result of considerably less debt and significantly lower interest rates. The company expects to reduce its interest expense by $9 million in fiscal 1993.
 FEDDERS CORPORATION
 Results of Fiscal 1992 Fourth Quarter and 12 Months
 (Amounts in thousands, except per share data)
 Quarter ended Aug. 31 1992 1991(A)
 Net sales $ 34,829 $ 37,477
 Net loss $(18,291) $(14,127)
 Loss per share $ (0.97) $ (0.76)
 Weighted average shares 18,829 18,515
 Twelve months ended Aug. 31 1992 1991(A)
 Net sales $192,365 $204,266
 Net loss $(24,931) $(39,505)
 Loss per share $ (1.32) $ (2.13)
 Weighted average shares 18,875 18,515
 (A) -- Fedders changed to a fiscal year ending Aug. 31 in 1991. Prior-year data on the new fiscal-year basis is presented for comparative purposes but was not previously reported.
 -0- 11~25~92
 ~CONTACT: Robert Laurent of Fedders, 908-234-2100~
 (FJQ)


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

GK -- NY008 -- 1398 11~25~92 09:21 EST
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Publication:PR Newswire
Date:Nov 25, 1992
Words:458
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