Kimball Electronics Details Q2 Profit, Expansion in Poland
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Jasper-based Kimball Electronics Inc. (Nasdaq: KE) is reporting fiscal second quarter net income of $5.1 million, down from $15.1 million during the same period in 2020. The company also announced plans for an $8 million expansion of its operations in Poland.
“Similar to Thailand and Mexico, the additional capacity is needed for programs with new and existing customers,” said Chief Executive Officer Donald Charron. “We expect the expansion in Poznan to add approximately 40% to existing production square footage, and will leverage our team in Poland to support our customers based in Europe when the expansion is complete in early fiscal 2024.”
Charron said global supply chain issues due to the COVID-19 pandemic created challenges for the company. Last year, the company said it was struggling to source microchips.
“Component shortages continued to make it extremely challenging to obtain the materials needed to support customer demand,” said Charron. “While conditions improved modestly in December with sales accelerating, the lost absorption was significant once again this quarter, as we remained committed to retaining our highly skilled workforce in anticipation of a strong second half to the fiscal year. We continue to be well positioned with record levels of backlog, and we are reiterating our sales guidance for fiscal 2022, although we expect to finish the year at the lower end of the range.”
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