Kimball Electronics sees dip in quarterly profit
JASPER, Ind. (Inside INdiana Business) — Jasper-based Kimball Electronics Inc. (Nasdaq: KE) is reporting fiscal second quarter net income of $6.6 million, down from $7.1 million during the same period last year. Chief Executive Officer Donald Charron says, despite the dip, the company is pleased with growth in other metrics for the quarter, including an 8% increase in net sales.
Charron says Kimball faced “significant headwinds” during the quarter, including the impact from the General Motors strike and what he calls continued softness in the market.
“We expect softness and fluctuations in the overall demand to continue near term as our customers revise their outlook over the next few quarters, however, we remain cautiously optimistic that we will achieve our goal of 8% organic growth for fiscal year 2020,” said Charron. “We are also pleased with our efforts to minimize the operating margin impact of the strike at GM and we are working diligently to respond to the volatility in demand and change in the mix of our overall business. The signing of the phase one China trade agreement and USMCA provide us with renewed optimism as we further develop our long-term business plans for those geographies.”
The company manufactures what it calls “durable goods electronics” for a variety of industries worldwide, including automotive, industrial, medical and public safety.
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