Electronics Production |
Net sales increased 5% seq. for Kimball EMS
Fiscal year 2011 third quarter net sales in the EMS segment increased 5% over the third quarter of the prior year with increased net sales to customers in the medical and industrial control industries partially offset by declines in net sales to customers in the automotive and public safety industries.
James C. Thyen, Chief Executive Officer and President, stated, “[...] Our EMS segment enjoyed record sales in the third quarter, as our long-term customer relationships and our ability to execute to the highest quality and reliability expectations in the industry continues to drive our success. The record sales translated to significant improvement in our EMS segment third quarter operating profit over the first half of this fiscal year. Winning new projects in all markets remains intensely competitive, and as expected continues to put pressure on our margins.”
Mr. Thyen concluded, “Looking forward, we are closely monitoring our EMS customers and suppliers affected by the tragic earthquake and tsunami in Japan. While we have experienced minimal disruption in our supply chain to this point, we have been informed by some suppliers of possible component shortages in the near future. On the customer side, we are seeing some reduction in our order requirements over the next quarter. The short-term outlook is very fluid. Once suppliers regain full capacity and capability, we anticipate there will be increased demand to recover the lost production.”
© Kimball International
- Fiscal year 2011 third quarter net sales in the EMS segment increased 5% over the third quarter of the prior year with increased net sales to customers in the medical and industrial control industries partially offset by declines in net sales to customers in the automotive and public safety industries. Compared to the fiscal year 2011 second quarter, current year third quarter net sales increased 10% on growth in the medical, automotive and industrial control markets.
- Gross profit as a percent of net sales in the EMS segment for the third quarter of fiscal year 2011 increased 0.3 percentage points when compared to the third quarter of the prior year.
- Selling and administrative costs in this segment increased 8% in the fiscal year 2011 third quarter when compared to the prior year partly related to increased labor costs. As a percent of net sales, selling and administrative costs increased slightly in the current year third quarter when compared to the prior year.
- The previously mentioned fiscal year 2010 third quarter $6.7 million pre-tax gain and associated tax benefit resulting from the sale of the Company's Poland land and facility was recorded in the EMS segment.
- Operating income excluding the Poland land/facility gain and restructuring charges in the EMS segment increased from $4.3 million in the third quarter of fiscal year 2010 to $4.5 million in the third quarter of fiscal year 2011 on the higher sales volume and improved gross margins.
© Kimball International
- Fiscal year 2011 third quarter net sales in the EMS segment increased 5% over the third quarter of the prior year with increased net sales to customers in the medical and industrial control industries partially offset by declines in net sales to customers in the automotive and public safety industries. Compared to the fiscal year 2011 second quarter, current year third quarter net sales increased 10% on growth in the medical, automotive and industrial control markets.
- Gross profit as a percent of net sales in the EMS segment for the third quarter of fiscal year 2011 increased 0.3 percentage points when compared to the third quarter of the prior year.
- Selling and administrative costs in this segment increased 8% in the fiscal year 2011 third quarter when compared to the prior year partly related to increased labor costs. As a percent of net sales, selling and administrative costs increased slightly in the current year third quarter when compared to the prior year.
- The previously mentioned fiscal year 2010 third quarter $6.7 million pre-tax gain and associated tax benefit resulting from the sale of the Company's Poland land and facility was recorded in the EMS segment.
- Operating income excluding the Poland land/facility gain and restructuring charges in the EMS segment increased from $4.3 million in the third quarter of fiscal year 2010 to $4.5 million in the third quarter of fiscal year 2011 on the higher sales volume and improved gross margins.
