Thursday, November 21, 2024
spot_img
HomeBusinessKimball Electronics reports Q1 earnings, announces Florida plant closure

Kimball Electronics reports Q1 earnings, announces Florida plant closure

Southern Indiana Business Report

JASPER – Amid a first quarter drop in sales and net income, Kimball Electronics announced it is closing its manufacturing plant in Tampa, Florida.

The announcement from the Jasper-based company came as it reported the results of its Q1 earnings. According to the latest report, Q1 net sales were $374.5 million, compared to $438 million in Q1 2023.

The company’s net income fell from $10.8 million to $3.2 million when compared to the first quarter of 2023. 

The drop in sales follows a strong run of robust sales and net income for the company. 

In fiscal year 2023 the company reported a 79% increase in net income and improved return on invested capital. Also, Q4 2023 represented the sixth consecutive quarter with record sales, and operating income.

Kimball Chief Executive Officer Richard D. Phillips said the current report reflects the company having to navigate a “challenging operating environment stemming from sustained end market weakness.”

In the press release, Phillips said Kimball is focused on “controlling what we can control.”

“Our results for the quarter were in line with expectations, considering the difficult comparisons from a record-setting Q1 last year. We continue to adjust costs, improve working capital management, and generate positive cash flow used to pay down debt,” Phillips said. “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.”

Production at the Tampa facility will be transferred to facilities in Mexico and Jasper, Phillips said. Operations in Tampa are expected to wrap up by the end of the fiscal year and it is anticipated the facility will close in the first quarter of fiscal year 2026.

“We are grateful to the employees in Tampa and their accomplishments while part of Kimball, including supplying ventilators to those in need during the pandemic,” he 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. We are confirming our guidance for the full fiscal year and look forward to the future.”

RELATED ARTICLES

Most Popular

Recent Comments