Kimball Electronics sees drop in full-year profit

JASPER, Ind. (Inside INdiana Business) – Jasper-based Kimball Electronics Inc. (Nasdaq: KE) is reporting fiscal full-year net income of $18.1 million, down from $31.5 million the previous year. Chief Executive Officer Donald Charron says despite the global interruptions and challenges related to the COVID-19 pandemic, the company is pleased with its results.

The company is reporting a fiscal fourth quarter net loss of $1.2 million, compared to net income of $7.5 million during the same quarter in 2019.

“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,” stated Charron. “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.”

For the fiscal year, the company is reporting net sales increased 2%, setting a new annual record of $1.2 billion.

Charron noted the sales decline in the automotive market were disappointing, but not surprising given the plant shutdowns across North America and Europe during 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.”

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