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EMS provider Kimball Electronics Inc. has reported net sales of $241 million and net income of $8.1 million for the fourth quarter of fiscal year ended June 30, 2017. Consolidated net sales for the quarter increased by 9% compared to the fourth quarter of fiscal year 2016—the sixth consecutive quarterly sales record.
For fiscal year 2017, the company posted net sales of $930.9 million, up by 11% year-on-year—a new annual net sales record—and net income of $34.18 million.
"Growth in all four of our end market verticals, including double-digit growth in two of our end market verticals, helped us set a new quarterly sales record for the sixth consecutive quarter and provided a strong finish to a record setting fiscal year 2017. New program launch and ramp-up activity combined with successes of our recent acquisitions have created significant momentum and positioned us well to achieve our goal of $1 billion in annual sales in fiscal year 2018," says Donald D. Charron, chairman and CEO. "We continue to face margin pressure as we absorb the costs associated with the next phase of the ramp-up in our new Romania operation and another large wave of new program launches. In our fiscal fourth quarter, we experienced higher than expected healthcare costs in the U.S. that negatively impacted our margins while favorable foreign exchange tailwinds assisted the bottom line. Although we made good progress in fiscal year 2017, we still have some work to do to achieve our goal of 12.5% ROIC. Margin improvement and capital efficiency will continue to be priorities of focus for us in fiscal year 2018."
The automotive segment posted net sales of $95.9 million for the fiscal fourth quarter, up by 11% from the same period in the previous fiscal year. Strong growth was seen in the company’s public safety division, which posted Q4 sales of $20.5 million, up by 39% year-on-year. The medical segment was up by 5%, while the industrial vertical increased by 7% year-on-year.
About Kimball Electronics Inc.
Recognized with a reputation for excellence, Kimball Electronics is committed to a high-performance culture that values personal and organizational commitment to quality, reliability, value, speed, and ethical behavior. Kimball Electronics employees know they are part of a company culture that builds lasting relationships and global success for customers while enabling employees to share in the Company’s success through personal, professional, and financial growth.
Kimball Electronics trades under the symbol “KE” on The NASDAQ Stock Market. Kimball Electronics is a global contract electronic manufacturing services (EMS) company that specializes in durable electronics for the automotive, medical, industrial, and public safety end markets. Kimball Electronics is well recognized by customers and industry trade publications for its excellent quality, reliability, and innovative service. From its manufacturing operations in the United States, China, Mexico, Poland, Romania, and Thailand, Kimball Electronics provides electronic manufacturing services, including engineering and supply chain support, which utilize common production and support capabilities to a variety of industries globally. Kimball Electronics is headquartered in Jasper, Indiana. For more information, visit www.kimballelectronics.com.