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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 March 20, 2000
(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
Kimball International Expects Lower Third Quarter Results
March 16, 2000 - (Jasper, IN) - Kimball International, Inc. (Nasdaq: KBALB)
today announced that its earnings for the third quarter of fiscal 2000 ending
March 31, 2000 would not meet analysts' estimates of $0.35 to $0.39 per diluted
share of Class B common stock. Kimball expects sales in the third quarter to
approximate the record level set in the second quarter of fiscal 2000, and
earnings of $0.27 to $0.30 per diluted share of Class B common stock, flat to
down 10% from the second quarter.
"In the Furniture and Cabinets Segment, we now expect sales of our office
furniture during the third quarter of fiscal 2000 to decline slightly from the
second quarter, after two successive quarterly sales increases. The lower sales
coupled with higher promotional costs associated with our continued aggressive
sales efforts will contribute to the anticipated decline in net income in the
third quarter of fiscal 2000," stated Kimball International, Inc. Chairman and
Chief Executive Officer, Douglas A. Habig. "Within our Electronic Contract
Assemblies Segment, sales in the third quarter are expected to near record
levels; however, start-up costs for a new production facility in Laem Chebang,
Thailand and a new high-flexibility production facility in Jasper, Indiana, both
strategically aligned with expanding our capabilities and our global footprint,
will negatively impact our third quarter earnings. Earnings also will be
impacted by the ramp down of sales volume for a telecommunications customer
whose end product is being discontinued. Lastly, labor inefficiencies and
separation costs related to the subsequent release of approximately 250
employees from our Reynosa, Mexico manufacturing facility will result in lower
net income for the third quarter of fiscal 2000 as compared to the second
quarter," noted Habig.
"We are very excited about our markets; and our outstanding products, services
and employees are second to none. And while we come from a strong heritage in
Kimball, many changes have been made in our organization over the last three
years, including several acquisitions and the two new facilities in the
electronics segment, all of which are laying the foundation for solid, long-term
growth in both sales and earnings. While we would like to see earnings improve
much faster, we recognize the changes to the Company we are making are very
significant, and do not always impact the bottom line immediately. Our view
remains long-term, and we are confident the foundation we are laying, along with
our products, services and employees, will increase earnings in the future,"
concluded Habig.
Certain statements contained within this release could be considered
forward-looking under the Private Securities Litigation Reform Act of 1995, and
are subject to risks and uncertainties including, but not limited to, loss of
key customers or suppliers within specific industries, availability or cost of
raw materials, increased competitive pricing pressures reflecting excess
industry capacities, and the compounding effect the above-mentioned risks may
have on the Company's increased investments to provide an infrastructure for
accelerated growth.
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Kimball International, Inc. provides a vast array of products from its two
business segments: the Furniture and Cabinets Segment and the Electronic
Contract Assemblies Segment. The Furniture and Cabinets Segment manufactures
furniture for the office, residential, lodging and healthcare industries and
store display fixtures, all sold under the Company's family of brand names.
Other products produced by Kimball on an original equipment manufactured basis
include store fixtures, television cabinets and stands, audio speaker systems,
residential furniture and furniture components. The Electronic Contract
Assemblies Segment is a global provider of design engineering, manufacturing,
packaging and distribution of electronic assemblies, circuit boards, multi-chip
modules and semiconductor components on a contract basis to customers in the
transportation, industrial controls, telecommunications, computer and medical
industries.
For more information about Kimball International, Inc., visit the Company's web
site on the Internet at www.kimball.com.
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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: Robert F. Schneider
ROBERT F. SCHNEIDER
Executive Vice President,
Chief Financial Officer,
Assistant Treasurer
Date: March 20, 2000
