Kimball Electronics to close Tampa facility as it reports slow Q1 profits
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Following a 63% drop in its net income last fiscal year, Jasper-based Kimball Electronics has reported another drop for the first quarter of the new fiscal year and the closure of its manufacturing plant in Tampa, Florida.
The company reported net income fell 70% from $10.8 million to $3.2 million when compared to Q1 of the previous year.
As he did this summer when talking about last year’s Q4 earnings, CEO Richard Phillips said Kimball is focused on “controlling what we can control” amid “sustained end market weakness.”
“Our results for the quarter were in line with expectations, considering the difficult comparisons from a record-setting Q1 last year,” Kimball said in written remarks. “We continue to adjust costs, improve working capital management, and generate positive cash flow used to pay down debt.”
Reported sales were also down to start the fiscal year. The first three months of the 2024 fiscal year saw almost $375 million in sales compared to $438 million in 2023.
In its Q1 earnings report, Kimball announced it is closing its manufacturing plant in Tampa and production will stop there by the end of the year. In his statement, Phillips labeled the plant closing as a way to “streamline the operating structure.”
“We are grateful to the employees in Tampa and their accomplishments while part of Kimball, including supplying ventilators to those in need during the pandemic,” Phillips wrote. “This decision is based on the preferences of our customers, our outlook for US manufacturing, and an objective to improve the Company’s competitive positioning in the market, strengthen the balance sheet, increase liquidity, and improve financial flexibility.”
The work done in the Tampa plant will move to Kimball’s facilities in Jasper and Mexico. According to Kimball’s website, its Tampa facility had over 315 employees. An email to Kimball seeking information on those positions was not immediately returned.
Kimball’s first quarter report also comes around three months after the company announced it had completed the divestiture of its Automation, Test & Measurement (AT&M) business.
Kimball says its debt levels are at a two-year low in a large part due to shedding the AT&M business.
You can view the full earnings report here.