Kimball EMS shows Q1 net loss

Compared to the fiscal year 2011 fourth quarter, current year first quarter net sales in the EMS segment decreased 12% on a decline in net sales to the medical and industrial control markets. ”In the EMS segment, lower sales volumes resulted in inefficiencies during the quarter. As a result, we incurred a loss in this segment in the first quarter,” stated James C. Thyen, CEO. ”The second quarter will see the completion of the European consolidation and the closing of the Wales facility. We will also complete the closing of the Fremont, California facility. Both will lessen the burden of excess capacity costs." Gross profit as a percent of net sales in the EMS segment for the first quarter of fiscal year 2012 decreased 0.2 percentage points when compared to the first quarter of the prior year as excess capacity and inefficiency costs related to the lower sales volumes and the European consolidation restructuring activities had an unfavorable impact to earnings in the current quarter. © Kimball