Kimball Electronics(US:KE)2025-02-06 02:24Financial Performance - Net sales for the second quarter were $357 million, a 15% year-over-year decrease[11, 12, 22, 23] - Excluding AT&M, the net sales decrease was 13%[12, 23] - Gross margin rate in Q2 was 6.6%, a 160 bps decline compared to Q2 of fiscal year 2024[24, 25] - Adjusted selling & administrative expense was $10.1 million, a 34% reduction compared to $15.4 million in Q2 last year[28] - Borrowings at December 31, 2024, were $205 million, a $41 million reduction from the first quarter and down 30% from the beginning of the fiscal year[47] Segment Performance - Automotive net sales were $193 million, a 4% decrease compared to the second quarter last year, representing 54% of total company sales[14] - Medical net sales were $84 million, down 22% compared to the same period last year, representing 23% of total company sales[15, 16] - Industrial net sales were $81 million, down 20% year-over-year when excluding AT&M, representing 23% of total company sales[20, 21] Guidance and Outlook - Net sales for fiscal year 2025 are now expected to be in the range of $1.4 to $1.44 billion, revised from the previous guidance of $1.44 to $1.54 billion[53] - Adjusted operating income is expected to be 3.4% to 3.6% of net sales, revised from the previous guidance of 4% to 4.5% of net sales[53] - The company's Mexico facility exports approximately 25% to 30% of its production into the U S[55]