Reading time ( words)
Kimball Electronics Inc., a global electronic manufacturing services provider of high-quality, durable electronic products, has announced financial results for its first quarter of fiscal year 2016 which ended September 30, 2015. Net sales reached $200.4 million, down from last year's $203.8 million, due, in part, to a $12.9 million reduction related to the exit of Johnson ControIs Inc. compared to the same quarter last year.
Spin-off expenses in the current year first quarter were $0.1 million, while prior year first quarter spin-off costs were $1.0 million.
Incremental costs associated with the start-up of the company’s new Romania facility reduced net income by $0.3 million in the fiscal year 2016 first quarter.
Donald D. Charron, Chairman and Chief Executive Officer, stated, "The softness that we felt in the fourth quarter of fiscal year 2015 continued into the first quarter of fiscal year 2016. We were, however, encouraged by the firmer demand that we began to see at the end of the quarter. We are focused on the successful launch of a number of new business awards with both existing and new customers. Our new business opportunities pipeline remains healthy, and we continue to work diligently to achieve our medium range goal of $1 billion in annual sales by fiscal year 2018."
He continued, "This has been a challenging quarter for us. In addition to the slowing China automotive market, incremental costs related to the Romania greenfield start-up, the ramp up of a significant new product introduction, and foreign exchange headwinds impacted our results. We remain committed to our four percent operating income goal and are responding with the appropriate short-term actions while maintaining alignment with our long-term strategic plan.
Investments in capital expenditures were $11.3 million during the three months ended September 30, 2015. Cash and cash equivalents, meanwhile, were $52.7 million.