JASPER, IN-- Kimball today reported fiscal fourth-quarter net sales in its EMS segment rose 1% over last year on higher demand in automotive and industrial.

Two events colored the company's EMS performance in the quarter. The decline in sales to the medical industry was due primarily to a previously announced expiration of a contract with one large customer (Bayer) late in fiscal 2011, which accounted for a $10.5 million reduction in net sales in the June quarter.

Also, last year's automotive sales were aided by a spike in demand following the Japan earthquake. Excluding sales to this customer, current year fourth quarter net sales in the EMS segment increased 8% compared to the prior year.

Operating income rose 840% to $5.93 million on revenue of $164.9 million.

Gross profit as a percent of net sales in the segment improved 220 basis points compared to last year primarily related to benefits realized related to restructuring activities in which two facilities were closed during the second quarter of fiscal year 2012, increased labor efficiencies, and a sales mix shift to higher margin product. The firm took restructuring charges of $900,000 related to wrap-up activities associated with the facility consolidation plans within the EMS segment and impairment on an idle manufacturing facility closed as part of a previous restructuring plan.

Kimball is the world's 19th largest contract assembler, according to the CIRCUITS ASSEMBLY Top 50.

Net sales for the period ended June 30 were $290.1 million, up 3% over last year. Net income was $6.1 million, up 2040% year-over-year.

In addition to providing EMS services, Kimball is a major manufacturer of furniture.

James C. Thyen, chief executive officer and president, said Kimball remains both optimistic and cautious about fiscal 2013.

Electronic Manufacturing Services Segment

*Non-GAAP.