JASPER, IN — Kimball International Inc. reported net sales of $310.6 million and a net income of $0.9 million for the second quarter of fiscal year 2011, which ended Dec. 31, 2010.
Consolidated net sales for the contract furniture manufacturer in the second quarter of fiscal year 2011 increased 13%. On a segment basis, sales increased 19% in the Furniture segment and 9% in the Electronic Manufacturing Services (EMS) segment. Sequentially, consolidated net sales in the second quarter of fiscal year 2011 increased 5% over the most recent first quarter on an 11% increase in net sales in the Furniture segment and a 2% increase in net sales in the EMS segment.
Kimball reported second quarter gross profit as a percent of net sales remained flat with the prior year.
In a released statement, James C. Thyen, CEO and president, stated, "Recovery in the Furniture segment has been gradual. We are seeing strength and stability in our quoting activity and order rates as evidenced by the double digit percentage increase in sales in our Furniture segment for the second quarter over both the prior year and the most recent first quarter. In the EMS segment, sales growth in our North American and Asian operations along with productivity improvements translated to higher profits in these regions in the second quarter when compared to the second quarter of last year. In our European operations, we continue with the restructuring efforts to consolidate all of our European manufacturing facilities into one recently constructed facility in Poland to reduce costs and gain efficiencies. The consolidation is expected to be complete in mid-fiscal year 2012. Until then, we will continue to experience higher operating costs with multiple facilities.
"We are cautiously optimistic about our markets and have made operational improvements which will serve us well moving forward," he added.
Posted by Karen Koenig
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