JASPER, IN -- Kimball International today reported net sales fell 6% from a year ago to $327.6 million and income from continuing operations rose 93% to $8.2 million for its December quarter.

For the quarter, sales at its electronics manufacturing services unit dropped declined 6% year-over-year to $166.9 million. The net loss in EMS was $700,000, versus a net loss of $2.1 million last year. The EMS segment benefitted from a $1.9 million pre-tax gain as result of a real estate deal.

The company reported a net drop in cash from operations of $1.1 million and had cash and short-term investments of $7.6 million as of Dec. 31.

In a press release, chief executive and president James C. Thyen said, “The automotive market in our EMS segment,[is] experiencing the most volatility and stress. Open orders at Dec. 31 are down significantly from the beginning of our fiscal second quarter levels, a key indicator of forward operating levels.” He indicated the company would institute a series of measures including additional cost reductions and process improvements, tighter controls on capital spending and increased oversight risk assessment of working capital, customers and suppliers.

Net sales to public safety industry customers were higher in the second quarter compared to last year while net sales to automotive and industrial control customers experienced double-digit percentage declines. Medical customers declined slightly. Despite the lower sales volumes and reduction in gross margins, the EMS segment reduced its net loss due to a 26% reduction in selling and administrative expenses.