Kimball Electronics quarterly income more than triples
Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
Jasper-based Kimball Electronics Inc. (Nasdaq: KE) is reporting fiscal first quarter net income of $9.5 million, up from $2.6 million during the same period last year. Chief Executive Officer Donald Charron says for the third consecutive quarter, the company’s net sales have surged to a record-breaking level, setting another all-time high for the company.
The company also reported operating income of $13.6 million, compared to $4.8 million during the same period last year.
“I am pleased with our results in Q1 and the strong start to the new fiscal year,” said Charron. “This was in line with our estimates as we ramp-up production on new and existing programs, and leverage our facility expansions in Thailand and Mexico. These investments, however, increased fixed costs that were not fully absorbed when comparing the operating margin rate to Q4 of fiscal 2022. New customers and product start-ups generally cause margin dilution early in the life cycle, which are recovered as the program matures. As a result, we expect sequential quarterly increases in a stair stepped fiscal 2023, and we are affirming our guidance for the full year with results expected at the high end of the range for sales and operating margin.”
Kimball Electronics provides engineering, design and manufacturing services, such as contract electronics manufacturing services, diversified contract manufacturing services, and automation, to customers in the automotive, medical, industrial, and public safety markets.
You can connect to the full earnings report by clicking here.