Fedders Reports Record Sales for Fiscal Year 2003
Oct 9, 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 record sales of U.S. $421.7 million for the fiscal year ended Aug. 31, 2003, compared to $373.7 million in the prior fiscal year. The 12.8-increase increase in revenue was the result of increased sales of air-conditioning products globally.
Sales in the HVAC/R reporting segment grew 14.9 percent for the 2003 fiscal year to $382.2 million from $332.7 million in the prior-year period. Sales in the Engineered Products reporting segment decreased 3.6 percent for the 2003 fiscal year to $39.5 million from $41.0 million in fiscal 2002 due to weak demand in the capital equipment market for commercial and industrial air filtration products.
For the full 2003 fiscal year, consolidated gross profit was $92.6 million or 22.0 percent of sales, compared to $83.0 million or 22.2 percent of sales in fiscal 2002. Gross profit and margin percentage in 2003 were affected by the loss of overhead absorption in Engineered Products production facilities due to lower production and sales and by costs within the HVACR segment related to the movement of additional high-volume production to Asia and start-up expenses related to supporting the introduction of new products globally.
Sales in the 2003 fourth quarter grew 27.3 percent to $116.9 million from $91.8 million in the prior-year quarter. Worldwide HVACR sales in the fourth quarter grew 31.1 percent to $107.5 million from $82.0 million in the prior-year quarter. Engineered Products sales in the fourth quarter were $9.4 million compared to $9.8 million in the prior-year quarter.
Gross profit in the 2003 fourth quarter was $24.8 million or 21.2 percent of sales, compared to $18.6 million or 20.3 percent of sales in the prior-year period. Operating income for the quarter was $9.7 million compared to $3.3 million in the prior year.
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