JASPER, Ind. -- Kimball International, Inc. has announced results for the quarter and fiscal year ended June 30, 2019.
Fiscal year 2019 net sales of $768.1 million increased 9 percent or 7 percent on an organic basis, driven primarily by double-digit growth in commercial, healthcare, and hospitality.
Operating income margin of 6.4 or 6.9 percent on an adjusted basis was reported, a decrease of 50 basis points; price yield and cost savings initiatives were more than offset by transportation costs, inflation, tariffs, the impact of the David Edward acquisition, higher employee costs, CEO transition costs, and higher commissions on increased sales.
For the fourth quarter fiscal year 2019, net sales growth of 3.1 percent, including a 1.3 percent organic growth contribution, were driven by continued strong performance from the National and Kimball Hospitality Brands offset by a realignment of the company’s Kimball Brand.
Kimball announced a Transformation Plan that will generate approximately $16 million of savings in fiscal year 2020, driven by restructuring related savings of approximately $8 million and an incremental $8 million savings related to lean and continuous improvement initiatives. Restructuring costs will total approximately $8 million.
Kimball International CEO Kristie Juster said, “Results for the quarter were mixed as profits were relatively flat on 3 percent revenue growth. The National brand continued to deliver outstanding performance and our Kimball Hospitality brand had solid growth against strong double-digit prior year growth. Revenue in our Kimball brand was challenged for the quarter as we are realigning our selling organization and formalizing an operating rhythm to improve organizational effectiveness. While our short-term results did not meet expectations, our new Transformation Plan will allow a clearer line of sight to the ramp of our journey and a more consistent performance as we execute Kimball International Connect.” See http://www.kimballinternational.com.
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