JASPER, IN – Kimball International today reported EMS net income fell 71% year-over-year to nearly $3.2 million for the period ended March 31.

Net sales increased 5% to $199.9 million in the electronic manufacturing services segment. Sequentially, net sales went up 10% in the segment.

“Our EMS segment enjoyed record sales in the third quarter. The record sales translated to significant improvement in our EMS segment third quarter operating profit over the first half of this fiscal year,” said CEO and president James C. Thyen.

Overall net sales were $314.5 million for the company’s fiscal third quarter of 2011, up 11% year-over-year. Net income was $3.3 million, down 48% compared to the same period in 2010.

The company warned that shortages of certain parts could lead to temporary slowdown in orders in the near term. “We are closely monitoring our EMS customers and suppliers affected by the tragic earthquake and tsunami in Japan,” Thyen said. “While we have experienced minimal disruption in our supply chain to this point, we have been informed by some suppliers of possible component shortages in the near future. On the customer side, we are seeing some reduction in our order requirements over the next quarter. Once suppliers regain full capacity and capability, we anticipate there will be increased demand to recover the lost production.”

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