Kimball Electronics fourth quarter net sales down 10% YoY

Net sales during the company’s the fourth quarter of 2020 amounted to USD 286 million, down 10% YoY from USD 318.6 million. During the quarter the company recorded a net loss of USD 1.3 million (this includes an impairment charge of USD 6.9 million and after-tax non-operating charge of USD 2.9 million related to the GES acquisition), compared to a new income of 7.5 million during the same quarter last year. Adjusted net income (non-GAAP) was USD 8.5 million “In the fourth quarter of fiscal year 2020, sales in our medical vertical increased 23% compared to the fourth quarter of fiscal year 2019 and were up 42% sequentially. We expect the momentum in our medical vertical to continue during the first half of fiscal year 2021. I feel honored and privileged that our Company can play such an important role to help in the recovery of people infected by the virus,” says Mr. Charron in a press release, Mr. Charron continued to explain that while the decreasing sales in the company’s automotive vertical was disappointing, it was not surprising, given the extensive automotive plant shutdowns across North America and Europe during the months of April and May. “While the automotive industry restart has been slower than expected, we are encouraged to see our June-ending run rates start to approach pre-COVID-19 levels. Lastly, while changes to anticipated revenues for our GES reporting unit resulted in an impairment charge in the quarter, we remain optimistic about the long-term opportunities for GES and continue to make progress on our integration and diversification plans. During the quarter, GES realized its strongest net sales and operating performance since the acquisition in October 2018,” the CEO concludes.