Electronics Production | August 05, 2009
Kimball EMS net sales declined 20%
Kimball International reported net sales of $271.5 million and income from continuing operations of $2.8 million for the 4Q/2009 (ended June 30, 2009). 4Q/2009 net sales declined 20% in the Electronic Manufacturing Services (EMS) segment when compared with the prior year.
Consolidated fourth quarter gross profit as a percent of net sales declined 0.4 percentage points when compared to the fourth quarter of the prior year on lower margins in the EMS segment due in part to the loss of volume leverage. Gross profit as a percent of net sales increased in the Furniture segment in the fourth quarter compared to the prior year. Consolidated fourth quarter selling and administrative expenses declined 18% compared to the prior year primarily due to benefits realized from restructuring actions, comprehensive cost reduction efforts throughout the Company and lower incentive compensation and employee benefit costs which are linked to Company profitability. Other income/expense for the fourth quarter increased $3.1 million from the prior year partially related to a $1.3 million gain in Other income/expense due to an increase in the Company’s Supplemental Employee Retirement Plan (SERP) investments resulting from the normal revaluation of the investments to fair value in the current year fourth quarter compared to $0.2 million loss that was recorded in the prior year fourth quarter which resulted in a favorable $1.5 million variance quarter over quarter in Other income/expense. The gain resulting from the increase of the SERP investment that was recognized in Other income/expense was exactly offset by an increase in the SERP liability which was recorded in selling and administrative expense as compensation expense; therefore there was no effect on net earnings. In addition, Other income/expense in the fourth quarter of fiscal year 2009 included a $0.9 million pre-tax gain on the sale of short-term investments and was favorably impacted by foreign currency movements. The Company recorded $0.9 million of net tax accrual adjustments during the fourth quarter of fiscal year 2009 resulting in an overall tax benefit recorded for the current year fourth quarter in spite of generating pre-tax income. Operating cash flow for the fourth quarter of fiscal year 2009 was $47.5 million compared to $10.4 million in the fourth quarter of the prior year. The increase over the prior year is primarily related to the Company’s effort on managing working capital. Fiscal year 2009 annual consolidated net sales of $1.2 billion declined 11% from fiscal year 2008 annual net sales of $1.4 billion. Income from continuing operations for fiscal year 2009 was $17.3 million, or $0.47 per Class B diluted share, inclusive of a $18.9 million after-tax gain, or $0.51 per Class B diluted share, related to the sale of the Company’s undeveloped land holdings and timberland; a non-cash charge of $9.1 million after-tax for goodwill impairment, or $0.24 per Class B diluted share; and after-tax restructuring charges of $1.8 million, or $0.04 per Class B diluted share. Fiscal year 2008 income from continuing operations was $0.1 million, or less than $0.01 per Class B diluted share, inclusive of after-tax restructuring charges of $14.6 million, or $0.39 per Class B diluted share. Fiscal year 2008 also included results from discontinued operations which generated a loss of $0.1 million during the year. Including discontinued operations, fiscal year 2008 net income was breakeven. Operating cash flow for fiscal year 2009 was $84.2 million compared to $43.4 million in the prior fiscal year. The Company’s net cash position, an aggregate of cash and short-term investments less short-term borrowings, totaled $88.6 million at June 30, 2009 compared to $29.8 million at June 30, 2008. The increase was primarily due to the Company’s sale of its land holdings and timberlands and cash generated from a reduction in working capital due to lower sales and improved working capital management. The increase was partially offset by construction costs of a new EMS facility in Poland. Long-Term Debt, Less Current Maturities is less than $0.4 million. James C. Thyen, Chief Executive Officer and President, stated, “The vertical markets in which our EMS segment competes began to show signs of stabilization during our fiscal year 2009 fourth quarter. While fourth quarter net sales in this segment fell 20% from the fourth quarter of last year, EMS segment net sales increased 8% from the most recent third quarter. In the Furniture segment, order demand has been more volatile, but we have seen hints of stabilization in select areas, particularly with our mid-market office furniture line. Our cost reduction efforts had a positive impact on our fourth quarter earnings and are enabling us to navigate through these tough economic times. Our management team has responded to the challenges by managing operations more efficiently and focusing on cash generation by reducing working capital as evidenced by our operating cash flow of $47.5 million during the fourth quarter.” Mr. Thyen concluded, “There are pockets of growth in the economy, but uncertainty remains high on when we will see a sustained stability take hold in each of our markets. We remain committed to creating a leaner operating environment and investing prudently in product development and innovation, providing an opportunity for growth and improved profitability as the economy recovers.” Electronic Manufacturing Services Segment Fourth quarter net sales in the EMS segment declined 20% from the fourth quarter of the prior year as sales to customers in the medical, automotive, industrial control and public safety industries were all down compared to last year. When compared to the most recent third quarter of fiscal year 2009, fourth quarter fiscal year 2009 net sales in this segment increased 8% over the third quarter due to increased sales in the automotive and industrial control industries. Gross profit as a percent of net sales in the EMS segment for the fourth quarter of fiscal year 2009 declined when compared to the prior year primarily due to the loss of volume leverage and contractual customer price reductions on select product. Selling and administrative costs in this segment declined 26% in the fourth quarter when compared to the prior year primarily related to benefits realized from restructuring actions, lower incentive compensation and employee benefit costs which are linked to Company profitability, and overall cost reduction efforts.
AMTE Power and Britishvolt sign MoU for GigaFactory AMTE Power and Britishvolt plans to investigate collaborating to build the UK’s first full cycle battery cell GigaPlant, servicing the automotive and energy storage markets.
ALLPCB’s new SMT factory has launched production On May 10 2020, ALLPCB’s new – self-operated – SMT factory in Guangde, Anhui Province, China was officially put into production.
Schweizer starts production at its new location in China Following a construction period of one and a half years, production has now started at the company’s new high-tech printed circuit board plant in Jiangsu, China.
Jenoptik supplies generators to a US customer Through its Vincorion investment, Jenoptik received a long-term order for generators that an unnamed US customer is integrating into military vehicles.
Rolls-Royce takes heavy hit from COVID-19 – reduces workforce by 9000 The impact of COVID-19 on Rolls-Royce and the whole of the aviation industry is unprecedented. RR has already taken action to strengthen the financial resilience of its business and to reduce cash expenditure in 2020. However, this will not be enough.
Data Link Solutions to provide MIDS cabinet terminals to US Navy The U.S. Navy has awarded a USD 3.2 million production contract to Data Link Solutions (DLS), a joint venture between BAE Systems and Collins Aerospace, for new Multifunctional Information Distribution System (MIDS) cabinet terminals.
Incap restarts production in India In a move to contain the COVID-19 pandemic, the government of India instructed all state governments to introduce a lockdown in March. As a consequence, Incap had to close its factory in Karnataka, India on 23 March.
NAND Flash Revenue Undergoes 8.3% QoQ Growth in 1Q20 NAND Flash bit shipment in 1Q20 was relatively on par with 4Q19, says the DRAMeXchange research division of TrendForce. The overall ASP of NAND Flash products also climbed during the period. As a result, the global NAND Flash revenue for the quarter went up by 8.3% QoQ to USD 13.6 billion.
Gorenje reduces the number of layoffs At the end of April, due to a sharp drop in orders and revenues as a result of the COVID-19 pandemic, the Hisense Europe Group launched a redundancy program in four companies in Slovenia.
NA semiconductor equipment industry posts April 2020 billings North America-based manufacturers of semiconductor equipment posted USD 2.26 billion in billings worldwide in April 2020 (three-month average basis), according to SEMI.
AWS Electronics to wear the Incap name Following the acquisition of AWS Electronics Group by Incap Corporation in January 2020, the company's units in the UK and Slovakia will now be trading as Incap Electronics UK Ltd. and Incap Electronics Slovakia s.r.o.
PCB manufacturer SQP invests in new plasma treatment system As part of the continuous upgrade of the PCB manufacturing processes the Slovakian PCB manufacturer SQP International has invested in a new plasma treatment system.
Nordson delivers solid quarter considering COVID-19's impact on global end markets Nordson Corporation reported second quarter sales of USD 529 million, a 4% decrease compared to the prior year’s second quarter sales of USD 551 million.
Cicor expands its clean room set up in Bronschhofen Swiss EMS provider Cicor Group is currently expanding its site in Bronschhofen with a 60 square metre ISO Class 6 clean room.
Senate Dems to Trump: Release details of TSMC plant deal Democratic lawmakers are pressuring the Trump administration to respond to serious questions about Taiwan Semiconductor Manufacturing Co Ltd’s (TSMC) plans to build a USD 12 billion plant in Arizona, which the company announced last week.
SOS LAB completes series A+, inks MOU with ON Semi LiDAR sensor maker SOS LAB has secured series A+ investment funding of USD 8 million as of April.
Expanded US rules sanctioning Huawei to have little impact on memory industry TrendForce believes that the latest updates to the sanctions will have a relatively low impact, in the short term, on Huawei’s shipment of smartphones, notebook computers, and servers – products for which Huawei is relatively well stocked on components.
PCB Connect expands with new office Due to the PCB suppliers’ successful growth in Denmark, the company has now decided to invest further in the Danish Market.
Panasonic, Tesla discuss beefing up Nevada battery plant Panasonic Corporation this week said strong demand for battery cells from its U.S. partner, Tesla, has led to negotiations on the expansion of their joint plant in Storey County, Nevada.
Flex taps new leadership for automotive business Flex has named Mike Thoeny, president, Automotive Business Group, effective June 1, 2020.
Current pandemic slows down business development in German component distribution German distribution of electronic components (according to FBDi e.V.) continues to decline in the first quarter of 2020. The order situation improves slightly, at a low level. The FBDi calls for future-oriented course-setting and investments in infrastructure.
Progress is being made for BMW’s new plant in Hungary Preparations for the future BMW Group plant in Debrecen, Hungary, have reached important milestone. Following successful preparation of the land by the City, the official handover process has now started.Load more news