Autos Drive Higher Kimball EMS Sales PDF Print E-mail
Written by Mike Buetow   
Monday, 04 February 2013 09:43

JASPER, IN -- Kimball International reported fiscal second quarter net EMS sales rose 11% from last year on growth in the automotive, industrial and public safety industries.

Net sales for the segment reached $164.2 million, up despite lower demand from the medical industry.

Net income for the period ended Dec. 31 rose 1148% to $3.93 million.

Gross profit as a percent of net sales improved 210 basis points from a year ago on higher revenue, consolidated global purchasing efforts and operating efficiencies, offset in part by a $1.1 million inventory reserve relating to a customer that is going out of business. Sales to the customer were immaterial, Kimball said.

Overall net sales for the period were $295.1 million, down 1%, and net income was $4.2 million, up 31%.

"We were very pleased with the strong second quarter results in spite of the earnings charges for the customer that notified us they are going out of business and the impaired investment in a startup company," chief executive and president James Thyen said. "During the second quarter, our EMS segment continued its trend of gaining traction with double-digit sales growth and improved margins. We again saw sales growth to customers in the automotive market during the quarter as the overall US automotive industry experienced steady growth in calendar year 2012. Sales to the industrial and public safety vertical markets also increased compared to last year partially resulting from the ramp up of sales to new customers. Quote activity in this segment has been strong, and we are optimistic in this segment going into the second half of our fiscal year."

 

 

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