JASPER, IN -- Kimball International's EMS sales fell 22% year-over-year in its fiscal third quarter to $140 million as the recession took its toll.

The segment's loss from continuing operations was %9.6 million, down from a loss of $2.2 million last year. Public safety industry sales were flat, while automotive and industrial control demand were down in the double-digits compared to the prior year. Medical sales declined slightly.

For the period ended March 31, the company's overall net sales were $268.9 million, down 19% from a year ago. Income from continuing operations of $4.1 million, including a $13.9 million after-tax gain related to land sales, a non-cash charge of $9.1 million after-tax for goodwill impairment, and $400,000 million of after-tax restructuring expense. During the quarter the company generated $23.7 million of cash flow from operations.

Consolidated third-quarter gross profit as a percent of net sales declined 1.1 points from the prior year on lower margins in the EMS and Furniture segments, primarily due to the lower sales volumes.

In a press release, chief executive and president James C. Thyen said, “Most of our markets continued the decline that started last fall, and we have responded with both increased emphasis on supporting our markets and supporting our customers and potential customers while implementing aggressive cost control. We had several encouraging new customer wins during the third quarter but these wins could not offset the general downdraft of the overall markets."

Thyen said the company would focus near-term efforts on cash and liquidity preservation.

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