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FEDDERS REPORTS THIRD-QUARTER PROFIT DESPITE SHARP REDUCTION IN SALES FROM A YEAR AGO

 PEAPACK, N.J., June 23 /PRNewswire/ -- Fedders Corporation (NYSE: FJQ), the room air conditioner manufacturer, today reported profits of $480,000, or 2 cents per share, for the third quarter ended May 31, 1993, although sales were down 46 percent from the same period a year ago.
 The profits for the 1993 quarter compare with profits of $2.9 million or 16 cents per share, for the third quarter of 1992. Sales for the third quarter this year were $50.5 million, compared with $93.9 million a year earlier.
 Fedders attributed the sales decline, in part, to retailers' preference for product deliveries during the peak room air conditioner season and to Fedders' new build-and-ship program that encourages in- season deliveries. Further evidence of the changing pattern of shipments, company officials noted, is that sales this June will approach total sales for the entire fiscal fourth quarter (June, July, August) a year ago, when they were $34.8 million. The company cautioned, however, that results in July and August will depend on the heat and humidity experienced during those months.
 The company said the fact that it was profitable during a quarter in which sales were substantially reduced is a reflection of its restructuring last fall, which has significantly lowered the firm's break-even point. Selling, general and administrative expense has been reduced by 21 percent, and interest expense was reduced by 73 percent during the quarter from the previous year.
 The company reported a much improved balance sheet at May 31, 1993. Inventory has been reduced by $22.3 million from the prior year to $36.6 million, and working capital increased by $22.8 million from the prior- year level. Accounts payable were reduced by $22.6 million from the prior-year, even though the company is operating on two shifts. Total debt is down by $60.1 million.
 For the nine months ended May 31, 1993, sales were down 36 percent, from $157.5 million to $100.4 million, while losses were reduced by 55 percent, from $6.6 million a year ago, to $3.0 million for the current nine months. Selling, general and administrative expenses were cut by 24 percent, from $23.7 million for the first nine months of 1992 to $17.9 million for the first nine months of the current year, and interest expenses were reduced by 72 percent, from $11.4 million to $3.2 million.
 FEDDERS CORPORATION
 Results of Fiscal 1993 Third Quarter
 (Amounts in Thousands, Except Per Share Data)
 Quarter ended May 31 1993 1992
 Net sales $ 50,604 $ 93,865
 Net income $ 480 $ 2,883
 Income per share $ 0.02 $ 0.16
 Weighted average shares 20,972 18,463
 Nine months ended May 31
 Net sales $100,366 $157,536
 Net loss $ (2,967) $ (6,640)
 Loss per share $ (0.15) $ (0.36)
 Weighted average shares 19,892 18,454
 Selected Balance Sheet Information 5/31/93 5/31/92
 Working capital $ 14,555 $ (8,245)
 Inventories $ 36,572 $ 58,830
 Total liabilities $ 92,094 $179,350
 -0- 6/23/93
 /CONTACT: Robert L. Laurent, Jr. of Fedders Corporation, 201-234-2100/
 (FJQ)


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

TM-MG -- NY072 -- 5183 06/23/93 17:11 EDT
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Publication:PR Newswire
Date:Jun 23, 1993
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