Electronics Production | August 05, 2010
Kimball increase sales 22%
Net sales in the fourth quarter of fiscal year 2010 increased 22% in the Electronic Manufacturing Services (EMS) segment while net sales in the Furniture segment declined 13% when compared with the prior year fourth quarter.
The Company's sales mix shifted in the current fiscal year as the EMS segment represented 64% of consolidated net sales in the fourth quarter of fiscal year 2010 compared to 56% in the same quarter of the prior year. Sequentially, consolidated net sales in the fourth quarter of fiscal year 2010 increased 3% over the most recent third quarter as a 13% increase in net sales in the Furniture segment was partially offset by a 2% reduction in net sales in the EMS segment. Fourth quarter gross profit as a percent of net sales declined in comparison to the prior year primarily due to the sales mix shift toward the EMS segment which operates at a lower gross profit percentage than the Furniture segment. At the segment level, gross profit as a percent of net sales improved in the EMS segment while gross profit as a percent of net sales declined in the Furniture segment.