Fedders (NYSE:FJC)
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Fedders Reports Delayed Form 10-K Filing
LIBERTY CORNER, N.J., March 31 /PRNewswire-FirstCall/ -- Fedders Corporation
today announced that, primarily as a result of the change in its fiscal year,
which has required two audits; the audit of the results of the four-month stub
period ended December 31, 2003, and the related balance sheet, as well as the
audit of the year ended December 31, 2004 and the related balance sheet,
including additional procedures for completion of the full-year audit because
of the year end change, the audit of its consolidated 2004 financial statements
is not yet complete. As a result, the company's Annual Report on Form 10-K
will not be filed by March 31, 2005, the required date in order for the Form
10-K to be timely filed. The company previously reported that it requested an
extension of the filing date from March 16, 2005 to March 31, 2005. The
company cannot, at this time, provide a specific date for the completion of the
audited financial statements and the filing of the Form 10-K
Robert L. Laurent, Jr., Fedders' chief financial officer, commented that "the
company's accounting staff has been working diligently to complete both the
annual financial statements and the procedures required by Sarbanes-Oxley
Section 404. The delay in completion of the financial statements and the audit
is primarily the result of auditing two periods, a stub period and the full
year, plus additional procedures for the full-year audit and 404 requirements."
The company previously reported a net loss of $15.6 million through the nine
months ended September 30, 2004 compared to net income for the same period of
2003 of $15.5 million. Sales for the nine months of 2004 compared to the nine
months of 2003 showed a decline of $22.2 million. Sales declined as a result
of much cooler than normal summer weather in key North American markets. Net
income was adversely affected by retirement of debt, higher component and raw
material costs due to increases in commodity prices, a reduction in the value
added tax (VAT) rebate on goods produced in China for export and unabsorbed
manufacturing costs associated with the transition of production from several
U.S. factories to China. Because the company's business is seasonal and, as a
result, the company typically reports a loss in the second half of its fiscal
year, the company anticipates the trends reflected above will affect full year
comparisons as well.
This news release includes forward-looking statements that are covered under
the "Safe-Harbor" clause of the Private Securities Litigation Reform Act of
1995. Such statements are based upon current expectations and assumptions.
Actual results could differ materially from those currently anticipated as a
result of known and unknown risks and uncertainties including, but not limited
to, weather and economic, political, market and industry conditions and
reliance on key customers. Such factors are described in Fedders' SEC filings,
including its most recently filed annual report on Form 10-K. The company
disclaims any obligations to update any forward-looking statements to
incorporate developments occurring after release of announcement. Visit the
Fedders investor information website at http://www.fedders.com/ to access
additional information on Fedders.
DATASOURCE: Fedders Corporation
CONTACT: Robert L. Laurent, Jr., +1-908-604-8686,
Web site: http://www.fedders.com/