Kimball Electronics(US:KE)2025-05-07 13:23Financial Performance - Net sales for Q3 totaled $374.6 million, a 12% year-over-year decrease, or a 10% decrease excluding AT&M[24, 26] - Medical net sales in Q3 were $115 million, up 2% compared to last year, representing 31% of total company sales[13, 15] - Automotive net sales were $173 million, a 14% decrease compared to last year, representing 46% of total company sales[17, 20] - Industrial net sales were $86 million, down 15% year-over-year excluding AT&M, representing 23% of total company sales[21, 23] - Adjusted selling & administrative expense totaled $11.2 million, a 24% reduction compared to last year, representing 3.0% of sales[33] - Adjusted operating income was $15.7 million, or 4.2% of net sales[37] Strategic Initiatives - The company is reiterating fiscal year 2025 guidance, expecting sales and operating income to be at the high-end of the range[8, 53] - A new manufacturing facility in Indianapolis focused on the medical industry is being added to expand presence as a medical CMO[8, 16] - Borrowings were reduced by $116 million, or 40%, from the beginning of the fiscal year, with short-term liquidity available totaling $304.6 million[50] Other - The gross margin rate in Q3 was 7.2%, a 70 bps decline compared to last year[27, 29]