Fedders Announces Second Quarter Fiscal 2003 Results
Mar 28, 2003
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Fedders Corporation, a leading global
manufacturer of air treatment products, including air-conditioners, air cleaners, dehumidifiers and humidifiers,
and thermal technology products, reported sales of U.S. $71.5 million for the second quarter of fiscal year
2003 ended February 28, 2003 compared to sales of $73.1 million in the second quarter of fiscal year 2002.
In the first 6 months of fiscal 2003, sales were $110.7 million compared to sales of $111.2 million in the
comparable fiscal 2002 period.
Second quarter and fiscal year-to-date sales were essentially flat compared to prior year periods, primarily as
a result of continued weak demand in the capital equipment market for commercial and industrial air filtration
The company is amending its quarterly financial information for each of the four quarters in fiscal 2001 and
2002 to eliminate inter-company profit and certain manufacturing variances included in ending inventory. The
amendments affect quarterly results only and have no effect on previously reported full fiscal year results for
2001 and 2002.
Gross profit margins for the fiscal 2003 second quarter were 20.9 percent. In the fiscal 2002 second quarter, the
amended gross margins were 22.2 percent. For the fiscal 2003 year-to-date, gross margins were 20.6% compared
to amended gross margins of 21.1 percent for fiscal 2002 year-to-date. The decline in gross profit percentage was
primarily the result of a decrease in sales of higher margin engineered products and start-up costs associated
with the transfer of production to Asia.
The company said it normally reports a loss in the first half of the fiscal year due to the seasonality of its business.
Operating income for the quarter was $0.5 million compared to $0.2 million in operating income, as
amended, in the prior year quarter. The net loss applicable to common shareholders for the quarter was $3.4
million or $0.11 per diluted share, compared to a net loss of $2.7 million or $0.9 per diluted share, as
amended, in the second quarter of fiscal 2002.
The net loss attributable to common shareholders for the first 6 months of fiscal 2003 of $11.0 million or
$0.35 per diluted share compared to a net loss of $11.1 million or $0.36 per diluted share, as
amended, in the prior year period.
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