Kimball International up on 73% Q3 profit surge
Kimball International (Nasdaq: KBALB) shares are up after the furniture provider reported third-quarter net sales of $333.9 million, above analyst estimates of $331.9 million and up 8% from $309.8 million a year earlier.
The Jasper, Ind.-based company’s quarterly net income rose 73% to $6.4 million, or $0.17 per share, beating Wall Street projections of $0.09 per share and from $3.7 million, or $0.10 per share, last year.
Kimball’s third-quarter gross profit grew 5% to $67.8 million, from $64.7 million a year earlier. The company’s selling, general and administrative expenses increased 6% to $59.5 million, from $56.2 million during the same period of 2006.
“Our operating income in the first quarter improved compared to the most recent fourth quarter on the expected decline in our SG&A costs from the elevated level in the fourth quarter,” CEO James Thyen said in a statement. “We have new products in the pipeline and are regularly evaluating potential acquisitions to aggressively grow our sales. We are working on improving our profits by reducing our total operating costs through targeted lean and other productivity initiatives.”
In afternoon trading, KBALB shares are up 8.18%, or $1.02, at $13.49. Over the last 52 weeks, shares have ranged from $10.94 to $25.95.
