Fedders Sales Rise 17%; Stock Buyback Plan Set
May 17, 2011
LIBERTY CORNER, N.J. -- Fedders Corp. said fiscal 2011 sales jumped 17% because of its ``strong relationships'' with retailers and increased sales overseas. The company also said it will buy back as much as $25 million, or about 10%, of its 41 million Class A and common shares outstanding. The air-conditioner maker's common shares jumped 50 cents to close at $6.375 in New York Stock Exchange trading following the company's announcement. Fedders Class A shares rose 12.5 cents to close at $5.25. The company said sales rose to about $370 million for the year ended May 13, 2011 $316.5 million in fiscal 2010. The company expects to report full results later this month. A Fedders spokesman said sales improved despite mild summer weather, but high retail inventories at the end of summer will hurt demand in North America industrywide in fiscal 2012. The company also said it expects to have a first-quarter loss, compared with year-earlier net income of $343,000, or one cent a share. The company said it often posts a first-quarter loss because of weak seasonal demand. Fedders also said it expects sales from international operations and recent acquisitions to offset some effects of higher inventories in the first quarter. Fedders wouldn't say when the buyback would be conducted. The company said it previously considered paying an additional year-end dividend, but decided to authorize the buyback instead.
