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SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report February 13, 1996
(Date of earliest event reported)
KIMBALL INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
INDIANA
(State or other jurisdiction of incorporation)
0-3279 35-0514506
(Commission File Number) (IRS Employee Identification Number)
1600 Royal Street, Jasper, Indiana 47549-1001
(Address of principal executive offices) (Zip Code)
Registrants telephone number, including area code: (812) 482-1600
Not Applicable
(Former name or former address, if changed since last report)
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ITEM 5. Other Events
The Registrant issued the following press release on February 13,
1996:
KIMBALL TO DISCONTINUE DOMESTIC WHOLESALE
PIANO SALES AND ASSEMBLY
Jasper, IN (February 13, 1996) - The Kimball International, Inc. Board
of Directors today approved the company's intentions to cease domestic
piano operations and formally align those capacities into the
contract furniture and cabinets group.
Kimball indicated that domestic piano sales and assembly will be
gradually phased out in the coming months. Employee redeployment and
dealership support will be at the forefront during the transition.
All ongoing commitments will be honored as the company strives to
maximize asset utilization and minimize go-forward contingencies.
"Our Piano Group has done a commendable job in 'right sizing'
themselves to parallel the dramatic decline in the domestic piano
market over the last fifteen years," said John B. Habig, Senior
Executive Vice President, Operations Officer, Kimball International,
Inc. "Since the industry's peak in the late 1970's, our West Baden
and French Lick, IN business units have continuously refocused their
strategies to a variety of furniture-related and contract electronics
manufacturing capabilities, including piano cabinets themselves. We
remain committed as a high value cabinet supplier to the piano market.
As part of the realignment, the West Baden facility will be renamed
Springs Valley Manufacturing."
The company anticipates establishing a reserve for discontinuing the
piano product line in the current fiscal year. A charge, expected to
range between $.09 and $.11 per Class B share, will be recorded in
March to cover the incremental costs related to exiting this product
line.
"This realignment is a direct result of the domestic piano market's
evaporation to less than 25% of its peak volume levels," said Douglas
A. Habig, President and Chief Executive Officer, Kimball
International, Inc. "The Piano Group's evolvement into a viable
contract supplier is a testament to their flexibility and willingness
to redirect their core competencies. Realizing pianos have been a
large part of our company's heritage, sensitivities to employees,
community, customers and suppliers have complicated our shorter term
'fixes' over the past few years. This strategic repositioning will
now allow us to eliminate the financial under performance experienced
in this division as they become better linked with our overall
corporate business plan. It is consistent with our longer term
pursuit of growing Share Owner return."
Kimball International, Inc. is a diversified furniture and electronics
manufacturer with fiscal year 1995 Sales of $900 million.
Headquartered in Jasper, IN, the company's Class B common stock is
traded on the NASDAQ National Market under the symbol KBALB.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
Kimball International, Inc.
By: Gary P. Critser
GARY P. CRITSER
Senior Exec. Vice President
Chief Accounting Officer
and Secretary
Date: February 14, 1996
