Kimball third quarter net sales drops 6% YoY

EMS provider, Kimball Electronics, recorded third quarter net sales of USD 294 million, a YoY decrease of 6% from USD 313.4 million. Operating income for the third quarter of 2020 amounted to USD 10.58 million, a decrease from USD 14.49 million during the third quarter of 2019. Net income for the quarter amounted to USD 6.3 million, down from USD 11.8 million during the same period last year. “We are making every effort to keep our facilities safe, following current guidelines suggested by applicable country authorities. Because of the variety of critical medical device assemblies we manufacture around the world, our facilities are classified as “essential businesses” and so all are currently operational, but have been affected to varying degrees by COVID-19,” explains Donald D. Charron in a press release. Mr. Charron continues to explain that during the company’s third quarter, Kimball experienced a double-digit decline in sales to customers within its medical vertical, which was primarily unrelated to COVID-19. “However, we are seeing a significant increase in demand for medical assemblies for the near future, specifically those related to respiratory care and patient monitoring products. We have customers whose products are essential to the health and safety of people around the globe,” Mr. Charron says. Within the company’s automotive vertical, Kimball started to see the impact of COVID-19 in its third quarter results, although the company says that the severity of the impact from the extensive automotive plant shutdowns in North America and Europe will not be reflected in its results until the fourth quarter. However, based on what is known today, the company is confident that they’re in a solid financial position and expect to be able to weather the impact of COVID-19.