Corporate News Releases
Fedders Files Forms 10-Q for the First, Second and
Third Quarters of 2005
CONTACT:
Robert L. Laurent, Jr.
(908) 604-8686
investorrelations@fedders.com
LIBERTY CORNER, New Jersey -- December 30, 2005 -- Fedders Corporation (NYSE: FJC), a leading global manufacturer of air treatment products, including air conditioners, air cleaners, dehumidifiers and humidifiers, today announced that it filed its Forms 10-Q for its first, second and third quarters of 2005. The prior year has been reclassified to reflect the sale of the Company's Melcor subsidiary as a discontinued operation. Melcor was sold in October, 2005 for $17.4 million.
The filings had been delayed for two reasons. First, the Company filed its Form 10-K for 2004 on September 30, 2005, and the Forms 10-Q preparation needed to follow the Form 10-K filing. Second, the Company's external auditors did not stand for re-appointment, and new auditors needed to be engaged following the Form 10-K filing.
For the nine months, net sales decreased by 27.4% to $258.7 million compared with $356.5 million in the prior-year period. Net sales within the HVACR segment decreased by 30.2% during the period due primarily to increased inventory levels of room air conditioners at customers in key North American markets, caused by cooler-than-normal summer weather in 2004. The warm summer in 2005 significantly reduced inventory levels in distribution channels but did not result in additional sales to channel customers. As a result of the Company balancing its production and inventory with demand, inventory levels declined to $84.0 million at September 30, 2005 from $126.2 million one year earlier.
Partly offsetting this sales decrease were increased sales of commercial air conditioners from the Addison acquisition, sales from the Islandaire acquisition, and a 17.0% increase in sales within the Engineered Products segment.
The loss from continuing operations before income taxes was $29.5 million for the nine months in 2005. This compares with a loss of $20.0 million in the comparable prior-year period.
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.
FEDDERS CORPORATION
RESULTS FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2005
(amounts in thousands, except per share data)
(unaudited)
2005 2004
Net sales $258,740 $356,455
Operating income (loss) (13,423) 2,572
Net income (loss) from
continuing operations before
income taxes (29,472) (20,026)
Net income (loss) from
continuing operations (29,735) (13,473)
Net income (loss) from
discontinued operations 1,894 848
Net income (loss) $(27,841) $(12,625)
Net income (loss) applicable to
common stockholders $(31,135) $(15,640)
Basic/diluted (loss) income per
common share:
Net income (loss) per common
share from continuing
operations $(1.08) $(0.54)
Net income (loss) per common
share from discontinued
operations $0.06 $0.03
Net income (loss) per share
applicable to common
stockholders $(1.02) $(0.51)
Weighted average shares
outstanding:
Basic 30,608 30,454
Diluted 30,608 30,454
###
BUY 
OWNERS CENTRAL 
