JASPER, IN -- Top 20 EMS firm Kimball International today reported net sales in its contract assembly operations rose 9% to $181.4 million in its fiscal second-quarter.

The net loss for the segment was $109,000, down from profits of $2.7 million in December 2009. The operating profit was $179,000.

For the quarter ended Dec. 31, sales in the electronics manufacturing services segment increased 2% sequentially on strength in medical and industrial markets, offset by a drop in automotive.

Overall, the company reported net sales rose 13% to $310.6 million and net income dropped 54% to $900,000. The net income included $200,000 of after-tax restructuring expenses related to consolidation of its EMS factories in Europe.

"In the EMS segment, sales growth in our North American and Asian operations along with productivity improvements translated to higher profits in these regions in the second quarter when compared to the second quarter of last year," Chief executive James C. Thyen said. "In our European operations, we continue with the restructuring efforts to consolidate all of our European manufacturing facilities into one recently constructed facility in Poland to reduce costs and gain efficiencies. The consolidation is expected to be complete in mid-fiscal year 2012. Until then, we will continue to experience higher operating costs with multiple facilities.”

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