Electronics Production | May 07, 2008
Kimball's profit drops in Q3
evertiq reported earlier that Kimball has announced the closure of their Welsh and Irish plants. A new statement verifies further details of the reorganisation. Kimball International is reporting net sales of $332 million for the third quarter of the company's fiscal year.
Last month, the EMS provider announced the closure of their production facilties in Wales and Ireland, as evertiq reported. Kimball plans to consolidate the European production in its facility in Poznán, Poland. This consolidation includes the transfer of products to the new facility. The transfer is planned to finnish 2012. Savings will be realised incrementally as the consolidation occurs. "We have confidence that our team will successfully execute these restructuring actions resulting in improvement in our profitability. We remain cautious about the potential future impact of the weakening economy”, states a company statement. Excluding restructuring costs, the Company recorded net income from continuing operations of $1.5 million, or $0.04 per Class B diluted share. Consolidated third quarter fiscal year 2008 net sales included $35.5 million of net sales from an acquisition in the Electronic Manufacturing Services (EMS) segment that was completed midway through the third quarter of the prior year. Prior year third quarter net sales include $18.9 million related to the acquisition. Third quarter fiscal year 2008 net sales increased 3% in the Furniture segment and 10% in the EMS segment when compared to the same quarter a year ago.