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FEDDERS RESTRUCTURES TO IMPROVE PROFITABILITY

 FEDDERS RESTRUCTURES TO IMPROVE PROFITABILITY
 PEAPACK, N.J., Aug. 20 /PRNewswire/ -- The board of directors


of Fedders Corporation (NYSE: FJQ), the largest room air conditioner manufacturer in North America, today announced two actions it is taking to strengthen the company's balance and improve its manufacturing efficiency.
 The company will sell its Maryland compressor plant for approximately $76.6 million, or about $9 million more than its carrying value, to focus on its core room air conditioner business. The company also will close its New Jersey production facilities, in Woodbridge and Dover, permanently laying off approximately 600 employees and consolidating production at its plants in Illinois and Tennessee. The move will significantly reduce costs and increase operating profits. Fedders' financial results for the fourth fiscal quarter ending Aug. 31, 1992 will include a restructuring charge of approximately $10 million, or about 54 cents per share.
 Chief executive officer Sal Giordano, Jr. said, "The restructuring is designed to significantly lower break-even volume, in the face of continuing low U.S. demand, by reducing excess capacity and fixed costs." In the first six months of 1992, industrywide manufacturers' shipments of room air conditioners in the United States dropped to the lowest first-half volume since 1986. Giordano continued, "The combined effect of the board's actions improves our profitability, strengthens Fedders' leading position in the domestic room air conditioner industry, and positions the company to be a strong contender in the international marketplace."
 The board of directors has entered into a definitive agreement to sell the company's Rotorex compressor plant to NYCOR, Inc. (NASDAQ: NYCOA). Fedders will continue to purchase compressors under a long-term supply agreement with NYCOR. The sale was unanimously recommended by a special committee of the Fedders board that is comprised of outside directors. The special committee has received an opinion from the First Boston Corporation that the consideration to be received by the company is fair, from a financial point of view.
 -0- 8/20/92
 /CONTACT: Barbara VanBlarcum of Fedders, 908-234-2100/
 (FJQ) CO: Fedders Corporation ST: New Jersey IN: HOU SU: RCN


TS-SM -- NY039 -- 1707 08/20/92 12:24 EDT
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Publication:PR Newswire
Date:Aug 20, 1992
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