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FEDDERS CORPORATION REPORTS SHARPLY REDUCED LOSSES, SUBSTANTIALLY STRENGTHENED BALANCE SHEET FOR SIX MONTHS ENDED FEB. 28, 1993

 PEAPACK, N.J., March 17 /PRNewswire/ -- Fedders Corporation (NYSE: FJQ), the room air conditioner manufacturer, today reported sharply reduced losses on lower sales for the six months ended Feb. 28, 1993, compared with the same period a year ago.
 The company also announced that its balance sheet had been substantially strengthened from the comparable 1992 period; gross margins have risen, and expenses substantially reduced.
 For the current six-month period, Fedders had sales of $49.9 million, a 21.6 percent decrease from sales of $63.7 million in the prior year. But the current six-month net loss, $3.4 million, or 18 cents per share, was 64 percent below the net loss a year ago of $9.5 million, or 52 cents per share.
 For the second quarter this year, net sales were $36.6 million, 26.4 percent below sales of $49.8 million for the second quarter in 1992. The net loss was down 72 percent-from $3.2 million, or 17 cents a share, in 1992, to $886,000, or 4 cents per share, in the second quarter of 1993.
 Company officials said lower industry-wide second-quarter sales were expected this year because of a widespread shift by many room air conditioner retailers to just-in-time purchasing during, rather than before, the season.
 Despite the lower sales, Fedders increased its gross margin to 15.8 percent of net sales for the current six months, compared with 11.2 percent a year ago. Selling, general and administrative expenses decreased by 26.1 percent for the six months from the comparable period last year, and interest expenses were reduced by 72 percent from the prior year.
 Fedders' balance sheet substantial improvement, with working capital now $15.3 million, compared with a negative $14.7 million a year ago. The company's total liabilities decreased by $121 million to $78.3 million at Feb. 28, 1993 compared with the prior year.
 The six-month results, according to the company, are an indicator of the benefits of a restructuring completed in September, 1992.
 FEDDERS CORPORATION
 Results of Fiscal 1993 Second Quarter Amounts
 (In Thousands, Except Per Share Data)
 Quarter ended Feb. 28 1993 1992
 Net sales 36,625 49,784
 Net loss (886) (3,199)
 Loss per share (0.04) (0.17)
 Weighted average shares 19,900 18,500
 Six months ended Feb. 28
 Net sales 49,902 63,671
 Net loss (3,447) (9,523)
 Loss per share (0.18) (0.52)
 Weighted average shares 19,600 18,500
 Selected Balance Sheet Information 2/28/93 2/28/92
 Working capital 15,335 (14,735)
 Total liabilities 78,327 199,342
 -0- 3/17/93
 /CONTACT: Robert L. Laurent, Jr., of Fedders Corporation, 908-234-2100/
 (FJQ)


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

LD-KW -- NY098 -- 7239 03/17/93 20:01 EST
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Publication:PR Newswire
Date:Mar 17, 1993
Words:468
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