Fedders Reports Delayed Form 10-K Filing
01 April 2005 - 2:22AM
PR Newswire (US)
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/
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