JASPER, IN – Furniture maker Kimball International Inc.'s overall net sales increased 6% in the third quarter, but sales in the furniture segment declined. Growth in several market verticals within the furniture segment was offset by a double-digit decline in both office furniture sales to the federal government and in hospitality furniture sales - due to two big orders, said Kimball CEO Jame Thyen.
"The comparison to the prior year third quarter was a difficult one in the furniture segment as we shipped two unusually large hospitality furniture projects last year,” Thyen said. “Orders in this segment were soft during the quarter, particularly within certain areas of office furniture. Within the hospitality market, the high end of the market appears to be recovering while there is continued price sensitivity and discounting in the lower end of the market.”
For fiscal Q3, the furniture segment recorded net sales of $119.4 million, down 3% compared to the same period last year. Overall, Kimball posted net sales of $301.5 million and a net income of $3.7 million for the quarter which ended March 31, 2013.
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