Fedders Reports Declined Q2 Sales, Profit Aug 9, 2006

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HVAC maker Fedders Corporation reported second quarter net sales declined 22.1 percent to U.S. $95.6 million compared to $122.7 million in the second quarter of 2005.

Sales of $195.3 million in the first 6 months of 2006 were essentially even with sales of $195.6 million in the prior-year period. Sales in the Heating, Ventilating, Air Conditioning, and Refrigeration (HVAC/R) segment declined 23 percent during the second quarter. For the 6 months, HVAC/R sales were essentially flat as a slight decline in appliance sales was offset by growth in commercial and residential unitary air conditioner sales.

Gross profit for the second quarter of 2006 declined to $13.7 million, or 14.3 percent of net sales, compared with $23.1 million, or 18.8 percent of net sales, in the prior-year quarter. For the 6-month period, gross profit declined to $26.4 million, or 13.5 percent of net sales, compared with $36.7 million, or 18.8 percent of net sales, in the prior-year period.

Subsequent to the second quarter, the company announced it was exploring the possible sale of its global indoor air quality (IAQ) businesses, which are not core to the company's principal residential and commercial HVAC businesses and amount to approximately $50 million in sales.

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