Full-year profit drops for Kimball Electronics
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Jasper-based Kimball Electronics Inc. is reporting fiscal full-year net income of $20.5 million, down from $55.8 million the previous year. Despite the drop, the manufacturer said it achieved its second-highest year for net sales at $1.7 billion.
CEO Richard Phillips said in a news release that the operating environment for electronics manufacturing services remains challenged, and many contract manufacturing organizations like Kimball have adjusted expectations due to continued market weakness.
“In the verticals we serve, the pull back has been more significant than originally anticipated, and we continue to appropriately adjust our cost structure to maintain competitiveness with stable operating margins, improve working capital management with lower inventory levels, and generate positive cash flow,” Phillips said.
Kimball also reported fiscal fourth quarter net income of $7.5 million, down from $19.2 million during the same period last year.
Phillips described the quarter as one focused on “controlling what we can control.”
The earnings report came nearly two weeks after Kimball said it had completed the divestiture of its Automation, Test & Measurement (AT&M) business, which was first announced during the fourth quarter.
“Closure on the sale represents a significant milestone for our Company, and another important step toward sharpening our strategic focus and returning to profitable growth and stronger performance,” Phillips said in the release. “Proceeds from the sale, combined with actions taken to navigate the current environment, have strengthened our balance sheet with increased liquidity and financial flexibility.”
Chief Financial Officer Jana Croom said looking ahead to Fiscal Year 2025, the company expects macro headwinds to persist.
“We will balance these pressures with cost controls, a capital allocation strategy focused on longer-term growth, lasting customer relationships, and opportunistic share repurchases,” Croom said.
You can view the full earnings report by clicking here.