Nolan’s Notes: Looking Deep Into the Future With X-ray
Knocking Down the Bone Pile: Basics of Component Lead Tinning
Standard of Excellence: Anticipating Customer Needs Early and Often
Kimball Electronics Reports Record Sales of $230M in Q2 FY2017
February 3, 2017 | Kimball ElectronicsEstimated reading time: 2 minutes
Kimball Electronics Inc. has reported net sales of $230 million for its second quarter ended December 31, 2016.
Donald D. Charron, Chairman and Chief Executive Officer, stated, "Continued strength in the automotive market combined with double-digit growth in our industrial end market vertical helped us set a new quarterly sales record for the fourth consecutive quarter. Our new program launch activity remains high as we continue to work diligently to achieve our goal of $1 billion in annual sales by fiscal year 2018."
Charron continued, "We made steady progress in our margin improvement efforts and converted well on the strong demand during the quarter; we continue to face margin pressure and have work to do to achieve our goal of 12.5% ROIC. Margin expansion and capital efficiency will continue to be priorities of focus for us. This is a pivotal year as we work through another year of significant new program launches, the continued ramp-up of our new Romania operation, and the integration of our Medivative and Aircom acquisitions."
Second Quarter Fiscal Year 2017 Overview:
- Consolidated net sales increased 11% compared to the second quarter of fiscal year 2016, the fourth consecutive quarterly sales record. Excluding sales from recent acquisitions, consolidated net sales were up 9% from the prior year quarter.
- The ramp-up of the company's Romania facility negatively impacted net income by $0.9 million during the quarter compared with the net income impact of $0.7 million from incremental start-up costs in the prior year.
- Return on invested capital (ROIC) is 10.7%, which has improved from 7.7% in the prior year (see reconciliation of non-GAAP financial measures for ROIC calculation).
- Cash flow from operating activities was $12.1 million for the quarter.
- Cash conversion days (CCD) for the quarter ended December 31, 2016 were 59 days, which were unchanged from the same quarter last year. CCD is calculated as the sum of days sales outstanding plus production days supply on hand less accounts payable days.
- Investments in capital expenditures were $9.4 million during the quarter.
- $7.4 million was returned to Share Owners during the quarter in the form of common stock repurchases.
- Cash and cash equivalents were $42.7 million and borrowings outstanding on credit facilities were $9.0 million at December 31, 2016.
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.
Share on:
Suggested Items
Tata Electronics Appoints KC Ang as President and Head of Tata Semiconductor Manufacturing
04/03/2025 | PRNewswireTata Electronics Private Limited, a pioneer in the Indian electronics and semiconductor manufacturing sector, announced the appointment of KC Ang as President and Head of its Foundry business - Tata Semiconductor Manufacturing Private Limited reporting to Dr. Randhir Thakur, CEO & MD of Tata Electronics.
Statement from IPC on ‘Liberation Day’ Pressing for Domestic Manufacturing Strategy
04/03/2025 | IPCIPC, a global electronics association dedicated to furthering the competitive excellence and financial success of more than 3,200 members, shared the following statement today on U.S. tariffs and their implications on the global electronics industry. It can be attributed to Richard Cappetto, IPC senior director of North American government affairs:
My Top 10 Highlights from IPC APEX EXPO 2025
04/03/2025 | Chris Mitchell, IPC VP, Global Government RelationsEvery year, I am reminded what an exciting and fast-paced whirlwind IPC APEX EXPO is—the friends you run into, the new people you meet, the innovations you encounter, and the fascinating discussions you dive into. It’s certainly true that our industry is driven by searchers and problem-solvers, creating endless opportunities at APEX EXPO to connect, collaborate, and shape the future.
IPC Releases March 2025 Global Sentiment of the Electronics Manufacturing Supply Chain Report
04/02/2025 | IPCThis past March, electronics industry demand strengthened to its highest level in nearly a year, indicating strong expansion in customer and manufacturing activity according to IPC’s [IPC-Current-Sentimen-Global-EMSChain0525.pdf] March Sentiment of the Global Electronics Manufacturing Supply Chain Report.
STMicroelectronics, Innoscience Sign GaN Technology Development and Manufacturing Agreement
04/02/2025 | STMicroelectronicsSTMicroelectronics, a global semiconductor leader serving customers across the spectrum of electronics applications, and Innoscience, the world leader in 8” GaN-on-Si (gallium nitride on silicon) high-performance low-cost manufacturing, announce the signature of an agreement on GaN technology development and manufacturing, leveraging the strengths of each company to enhance GaN power solutions and supply chain resilience.