Fedders Reports Delayed Form 10-K Filing
CONTACT:
Robert Laurent, Jr.
(908) 604-8686
investorrelations@fedders.com
LIBERTY
CORNER, New Jersey -- March 31, 2005 --
Fedders Corporation today announced that, primarily
as a result of the change in its fiscal year,
which has required two audits; the audit of
the results of the four-month stub period ended
December 31, 2003, and the related balance sheet,
as well as the audit of the year ended December
31, 2004 and the related balance sheet, including
additional procedures for completion of the
full-year audit because of the year end change,
the audit of its consolidated 2004 financial
statements is not yet complete. As a result,
the company's Annual Report on Form 10-K will
not be filed by March 31, 2005, the required
date in order for the Form 10-K to be timely
filed. The company previously reported that
it requested an extension of the filing date
from March 16, 2005 to March 31, 2005. The company
cannot, at this time, provide a specific date
for the completion of the audited financial
statements and the filing of the Form 10-K
Robert
L. Laurent, Jr., Fedders' chief financial officer,
commented that "the company's accounting
staff has been working diligently to complete
both the annual financial statements and the
procedures required by Sarbanes-Oxley Section
404. The delay in completion of the financial
statements and the audit is primarily the result
of auditing two periods, a stub period and the
full year, plus additional procedures for the
full-year audit and 404 requirements."
The
company previously reported a net loss of $15.6
million through the nine months ended September
30, 2004 compared to net income for the same
period of 2003 of $15.5 million. Sales for the
nine months of 2004 compared to the nine months
of 2003 showed a decline of $22.2 million. Sales
declined as a result of much cooler than normal
summer weather in key North American markets.
Net income was adversely affected by retirement
of debt, higher component and raw material costs
due to increases in commodity prices, a reduction
in the value added tax (VAT) rebate on goods
produced in China for export and unabsorbed
manufacturing costs associated with the transition
of production from several U.S. factories to
China. Because the company's business is seasonal
and, as a result, the company typically reports
a loss in the second half of its fiscal year,
the company anticipates the trends reflected
above will affect full year comparisons as well.
This
news release includes forward-looking statements
that are covered under the "Safe-Harbor"
clause of the Private Securities Litigation
Reform Act of 1995. Such statements are based
upon current expectations and assumptions. Actual
results could differ materially from those currently
anticipated as a result of known and unknown
risks and uncertainties including, but not limited
to, weather and economic, political, market
and industry conditions and reliance on key
customers. Such factors are described in Fedders'
SEC filings, including its most recently filed
annual report on Form 10-K. The company disclaims
any obligations to update any forward-looking
statements to incorporate developments occurring
after release of announcement. Visit the Fedders
investor information website at http://www.fedders.com
to access additional information on Fedders.
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