JASPER, IN - Net income at Kimball International, Inc. (NASDAQ: KBALB) furniture operations rose 74% to $2.9 million as sales rose 14% to $148 million.

Overall Kimball International reported net sales of $317.4 million and net income of $9.2 million. Just over half the company revenues come from electronics, but furniture turned more profitable. Kimball Office, natinoal office and Kimball Hospitality are the three units in Kimball International's furniture business.

Kimball says a slight decline in the gross profit percentage in both its major segments was more than offset by the favorable impact of a sales mix shift towards the Furniture segment, which carries a higher margin. Net sales increased in both office and hospitality furniture. All vertical markets within the office furniture industry increased over the prior year, Kimball said, except for a slight decline in the federal and state governments.

"Our focus on accelerating top-line growth in the Furniture segment was evident in the first quarter as the orders received during the quarter increased 18% over the prior year first quartert," said James C. Thyen, CEO, in an earnings announcement. "Our operating performance in the Furniture segment in the first quarter reflects increased demand."  

The Furniture segment returned to profitability in the first quarter, after recording losses for the second half of last fiscal year. That also led to higher commissions related to increased sales in the Furniture segment. 

Kimball Furniture Segment

Fiscal year 2014 first quarter net sales in the Furniture segment increased 14% compared to the prior year on increased net sales of both office and hospitality furniture. All vertical markets within the office furniture industry increased over the prior year except for a slight decline in the federal and state governments.