Kimball International, Inc. Reports Third Quarter Fiscal Year 2018 Results

JASPER, Ind., May 01, 2018 (GLOBE NEWSWIRE) — Kimball International, Inc. (NASDAQ:KBAL) today announced the following results for the quarter ended March 31, 2018:

  • Revenue was $157.9 million, a 3% increase over the prior year, inclusive of the recent D’style acquisition. Excluding D’style, organic net sales were flat compared to the prior year.
  • Operating income was $8.5 million or 5.4% of net sales, compared to $10.9 million or 7.2% of net sales in the prior year.
  • Net income was $5.9 million and diluted earnings per share was $0.16, while prior year net income was $7.2 million and diluted earnings per share was $0.19.

Bob Schneider, Chairman and CEO, stated, “I was pleased to see continued strength in the hospitality market in our third quarter; however, increased sales in this vertical market were unfortunately offset by lower sales in other market verticals, resulting in flat organic sales for the third quarter. Encouragingly, we saw a pick up in orders late in the quarter continuing into April. Consolidated organic orders increased approximately 30% in April over the prior year, and specifically in the hospitality vertical, April orders were the strongest of any month we have seen since 2014. As I look to the future, I am very excited about the many new products we’ve recently introduced to the market that are starting to gain traction, and also the ones we will be introducing at the office industry trade show in June. Our product portfolio is filling out very nicely with creative products resonating with the design community and end-users. While we are pushing hard on new product introductions, other teams are also actively working on continuous improvement and cost reduction projects to offset the increased inflation we are experiencing in transportation, steel and other commodities. Our teams have several productivity and lean initiatives that have been in the works for several months, with anticipated savings of approximately $7 million in fiscal year 2019. In addition, our National brand recently implemented a price increase that was effective on April 6, 2018, while our Kimball brand announced a price increase that will be effective in July 2018, which will help in offsetting the heavier than usual commodity inflation we are experiencing. We estimate that higher transportation and commodity costs reduced our operating income by approximately $1.9 million in our third quarter.”

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