Fedders Fiscal 3rd Qtr. Sales Increase 13.8%

By Staff On Jul 7 2003 - 6:00am

Pre-season demand for air conditioners, both in the United States and globally, helped boost fiscal third quarter sales 13.8 percent in the air treatment solutions segment at Fedders, hitting $194.2 million, up from $170.7 million in the year-ago period.

Net income for the air conditioners maker in the third quarter, ended May 31, climbed about 15 percent, reaching $15.9 million, compared with $13.6 million in the same three months a year earlier.

Fedders saw gross profit margin slide 80 basis points in the third quarter, down to 23.2 percent, from the year-ago 24 percent. Operating income for the three months, however, increased to $27.7 million, up from $24.4 million in the third quarter in 2002.

For the nine months, Fedders recorded sales of $304.8 million, an 8.1 percent jump over the $281.9 million reported a year ago. Net income for the first nine months more than doubled, reaching $5.1 million, compared with the $2.5 million registered in the same period the previous year.

Gross profit margin for the nine months dipped, to 22.3 percent, 60 basis points below the 22.9 percent for the same period in 2002. Operating income for the nine months hit $21.2 million, compared with $17.1 million a year earlier.

The company reported that sales in its Engineered Products segment continued to be adversely affected by week demand in the capital equipment market for commercial and industrial air filtration products.