Kimball reports 70% drop in Q1 profit, Tampa plant to be shut

Kimball Electronics has reported a 70% drop in profit for the first quarter of the new fiscal year and announced the closure of its manufacturing plant in Tampa, Florida. 

The company’s net income dropped from USD 10.8 million to USD 3.2 million.  The Jasper, Indiana-based company posted a Q1 revenue of USD 374.3 million. 

Kimball offers electronics and diversified contract manufacturing services across various industries, with operations in the United States, China, Mexico, Poland, Romania and Thailand.

“Q1 represents another chapter of ‘controlling what we can control’ while navigating the challenging operating environment stemming from sustained end market weakness. Our results for the quarter were in line with expectations, considering the difficult comparisons from a record-setting Q1 last year,” Richard D. Phillips, Chief Executive Officer, Kimball, said. “We continue to adjust costs, improve working capital management, and generate positive cash flow used to pay down debt. We made meaningful progress in the quarter with debt levels at a 2-year low, a result of the cash generated from operating activities and the proceeds from the disposition of the Automation, Test, and Measurement business, with its divestiture closing in July.”

Speaking about the shutting down of the Tampa plant, Phillips said: “This decision is based on the preferences of our customers, our outlook for US manufacturing, and an objective to improve the Company’s competitive positioning in the market, strengthen the balance sheet, increase liquidity, and improve financial flexibility.”

The work done in the Tampa plant will move to Kimball’s facilities in Jasper and Mexico.  

The company ended the first quarter of fiscal 2025 with cash and cash equivalents of USD 76.6 million and borrowings outstanding on credit facilities of USD 245.9 million, including USD 200 million classified as long term.

Looking ahead, Kimball Electronics said it remains committed to its strategic initiatives, with management expressing confidence in achieving the outlined guidance for fiscal year 2025, including projected net sales in the range of USD 1.44 to USD 1.54 billion and adjusted operating income between 4.0% and 4.5% of net sales.