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EMS firm Kimball Electronics Inc. has released its financial results for the fourth quarter and fiscal year ended June 30, 2018. Consolidated net sales for the fourth quarter increased by 15% compared to the same period in fiscal year 2017.
Net sales increased by 15% from the prior fiscal year, setting a new annual net sales record of $1.072 billion, which includes a 4% favorable impact from foreign currency movements compared to fiscal year 2017.
Costs incurred and included in operating income during the quarter related to the pending acquisition of GES were approximately $0.6 million, $0.4 million net of tax, or $0.01 per diluted share. The current quarter results include non-operating expense of $1.1 million related to pre-tax net losses from foreign currency movements, which was a fluctuation of $2.1 million from pre-tax net gains related to foreign currency movements of $1.0 million recognized in the same quarter of the prior year.
Operating activities provided cash flow of $19.3 million during the quarter, which compares to cash flow provided by operating activities of $12.0 million in the fourth quarter of fiscal year 2017.
"Very strong growth in our automotive and medical end market verticals helped us achieve double-digit year-over-year growth for the fourth consecutive quarter and exceed our long-time stated goal of $1 billion in annual sales in fiscal year 2018," Donald D. Charron, Chairman and Chief Executive Officer, stated. "We are pleased to have improved our operating income margin by 60 basis points from the prior year quarter and 20 basis points sequentially when compared to the third quarter. Partially offsetting the improved operating performance in the fourth quarter were expenses directly associated with our pending acquisition of GES, which we believe is still on track to close in this first quarter of fiscal year 2019. The much-anticipated progress in Romania came through in the fourth quarter helping to drive the improved overall performance, and we look forward to their continued growth and positive contributions in fiscal year 2019. We remain focused on achieving our mid-range goal of 4.5% operating income."
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.
To learn more about Kimball Electronics, visit: www.kimballelectronics.com.