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Fedders Q2 Sales Drop 14%

3/22/2002 09:09:00 AM Eastern

Liberty Corner, N.J. - A trio of scenarios caused problems for Fedders during its fiscal second quarter.

Namely, economic conditions in overseas markets that lessened demand for air conditioners, the telecom market for cooling products used in wireless and fiber optic applications and the semiconductor cleanroom market for air filtration products.

Fedders posted $73.1 million in sales for its second fiscal quarter, down about 14 percent from the $84.7 million reported in the year-ago period.

Operating income for the second quarter, ended Feb. 28, was $1.4 million, down from $5.1 million in the year-ago period. Net loss for the three months was $1.9 million, compared with a loss of $0.2 million in the second quarter of 2001.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) in the second quarter was $5.6 million, down from $8.2 million year over year.

For the six months, Fedders reported a net loss of $9.3 million, compared with a $7.7 million loss in the same six months the previous year. Fedders, a global manufacturer of air treatment products, said it normally reports a loss in the first half of the fiscal year due to the seasonality of its business.

Sales in the six months hit $111.2 million, down about 12 percent from the $125.6 million recorded in the same period the prior year. Adjusted EBITDA for the six months was $2.4 million, down from $5.3 million year over year. The operating loss climbed to $4.6 million, up from a loss of $2.3 million in the same six months in 2001.