JASPER, IN -- Kimball International today reported net sales of $339.5 million and income from continuing operations of $2.2 million for its first quarter of fiscal 2009.

For the period ended Sept. 30, net income from continuing operations fell 67% while sales rose 2% year-over-year.

The Electronic Manufacturing Services business’s net sales rose 3% over the prior year, but margins dropped. It also is moving its Longford, Ireland, operations to its Poland facility.

Operating cash flow for the first quarter was $14 million compared to $17.4 million a year ago. Kimball took $600,000 in charges for restructuring during the quarter.

Chief executive and president James Thyen said, “Our strategic diversification into four primary market verticals within the EMS segment has also proven to be a sound decision given the current state of the automotive industry. In addition, we realized approximately $2.7 million of pretax benefits in the first quarter related to the workforce reduction restructuring actions announced in fiscal 2008 in both of our segments. And we will see further benefit from the additional efficiencies and cost savings we will be realizing in the future as our European restructuring actions are completed. We remain cautious on the near-term business outlook given the uncertainty in the world markets.”

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