Kimball International CEO Encouraged, 'Not Satisfied'

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(Bob Schneider photo courtesy of Kimball International Inc.) (Bob Schneider photo courtesy of Kimball International Inc.)
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Jasper-based Kimball International Inc. (Nasdaq: KBAL) Chief Executive Officer Bob Schneider says he is not satisfied with the furniture manufacturer's fiscal year results. The company is reporting fiscal full-year net income of $34.4 million, compared to $37.5 million during the same period a year earlier. Net sales for Fiscal 2018 increased two percent to $685.6 million.

Net income for the fiscal fourth quarter came in at $10.3 million, compared to $10.6 million the previous year.

Schneider says "we ended fiscal year 2018 on a strong note with fourth quarter organic revenue growth of 4% throughout most of our market verticals. While we were encouraged with the growth, our margins in the quarter experienced pressure from higher transportation, steel and other commodity costs, which lowered profits. We are progressing with our cost reduction initiatives announced last quarter, which will save approximately $7 million in fiscal year 2019, and we will begin to realize the benefits of our recent price increases within our National and Kimball brands as those price increases begin to take hold over the next couple quarters and positively impact earnings. We anticipate these actions once fully ramped-up will offset the higher costs in the second quarter of fiscal year 2019. Comparing profits to the prior year gets challenging because in the prior year fourth quarter, we sold some idle land at a $1.2 million pre-tax gain. Had we not realized that gain last year, our fourth quarter operating income would have been $0.4 million higher than last year, although we are not satisfied with these results."

Schneider added the company is encouraged by strong growth in orders during the final quarter of the fiscal year and Kimball International is continuing to evaluate potential effects of tariff battles between the U.S. and other countries. "I am encouraged by our results in the fourth quarter and the order momentum going into fiscal year 2019," he said.

You can read the full Fiscal 2018 and fourth quarter earnings report by clicking here.

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