Kimball Electronics Faces a 15% Decline in Q1 Sales
- Kimball Electronics reported Q1 fiscal 2025 net sales of $374.3 million, a 15% decrease from Q1 2024.
- The company's operating income fell to $9.1 million, highlighting ongoing financial challenges.
- Strategic decisions include closing the Tampa manufacturing facility to enhance competitiveness and financial flexibility.
In its financial results for the first quarter ended September 30, 2024, Kimball Electronics reported net sales of $374.3 million, reflecting a 15% decline from $438.1 million in Q1 2023. The operating income dropped to $9.1 million, or 2.4%, significantly lower than the previous year’s 4.4%. The company generated $45.5 million from operating activities, supporting a two-year low in borrowings. Kimball Electronics is also shifting its strategic focus by closing its Tampa, Florida manufacturing facility by the end of the fiscal year. CEO Richard D. Phillips noted that this decision aimed to enhance competitiveness, improve liquidity, and strengthen the balance sheet amid a challenging operating environment. The closure signals a notable shift in operations, as the company adapts to evolving customer preferences and aims for better financial flexibility. Despite these challenges, Kimball Electronics confirmed its guidance for fiscal year 2025, aiming for net sales between $1.440 billion and $1.540 billion, with expectations of an 8% to 14% year-over-year decline when excluding its divested Automation, Test, and Measurement business.