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FEDDERS SHARPLY IMPROVES 1993 BOTTOM LINE; FOURTH QUARTER PROFITABLE ON SALES INCREASE OF 67 PERCENT

 PEAPACK, N.J., Oct. 11 /PRNewswire/ -- Fedders Corporation (NYSE: FJQ), the room air conditioner manufacturer, today reported sharply reduced losses for fiscal 1993, a 93 percent improvement from the previous year.
 For the 12-month period ended Aug. 31, 1993, the company lost $1.8 million, or 9 cents per share, on sales of $158.6 million, compared with a loss of $24.9 million, or $1.32 per share, on sales of $192.4 million a year earlier.
 In the fourth quarter of fiscal 1993, Fedders reported sales of $58.2 million, a 67 percent increase over $34.8 million a year earlier, and net income of $1.2 million or $.06 per share, compared with a loss of $18.3 million or $.97 per share, which included a restructuring charge of $3.3 million, in the same quarter in fiscal 1992.
 Even though the summer was hot, Fedders total 1993 sales were lower than in 1992 because the industry's inventory pipeline was adjusting, and inventories dropped by 1.2 million units, year to year, to approximately 750,000 at the end of August. A large portion of the decline in inventories is considered permanent as the new leaders in room air conditioner retailing do not carry extensive inventories as was industry practice in the past.
 Company officials attribute the improvement in Fedders' 1993 bottom line to last year's restructuring that sharply reduced expenses, despite lower sales. The success of the restructuring is also evident in the strength of the current balance sheet. Total debt decreased 72 percent to $25.6 million at year end from $89.6 million at Aug. 31, 1992.
 FEDDERS CORPORATION
 Results of 1993 Fiscal Year End
 (Amounts in Thousands, Except Per Share Data)
 Quarter ended Aug. 31 1993 1992
 Net sales $ 58,236 $ 34,829
 Net income (loss) $ 1,192 $(18,291)
 Income (loss) per share $ 0.06 $ (0.97)
 Weighted average shares 20,235 18,829
 Twelve months ended Aug. 31
 Net sales $158,602 $192,365
 Net loss $ (1,775) $(24,931)
 Loss per share $ (0.09) $ (1.32)
 Weighted average shares 19,898 18,875
 Selected Financial Information
 Balance as of Aug. 31:
 Working capital $ 16,959 $(27,156)
 Total debt $ 25,590 $ 89,588
 Year Ended Aug. 31:
 Interest expense $ 4,247 $ 15,573
 Selling, general & administrative expense $ 25,837 $ 31,699
 Gross profit margin (percent) 17.5 13.3
 -0- 10/11/93
 /CONTACT: Robert L. Laurent, Jr. of Fedders Corporation, 908-234-2100/
 (FJQ)


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

PS -- NY006 -- 0508 10/11/93 07:20 EDT
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Publication:PR Newswire
Date:Oct 11, 1993
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