Kimball Electronics, Inc. (KE): History, Ownership, Mission, How It Works & Makes Money

Ever wondered about the company behind the intricate electronics in your car, medical devices, or industrial equipment? Could it be Kimball Electronics, Inc. (KE)? Join us as we delve into the history, ownership structure, mission, operational mechanisms, and revenue streams of this global electronics manufacturing services (EMS) provider. Keep reading to discover how Kimball Electronics has established itself as a key player in the electronics manufacturing landscape, achieving a trailing 12-month revenue of $1.59 billion as of December 31, 2024.

Kimball Electronics, Inc. (KE) History

Kimball Electronics, Inc. Founding Timeline

Year established

Kimball Electronics, Inc. was established in 1961.

Original location

The company was originally located in Jasper, Indiana.

Founding team members

The founding team consisted of individuals within the Kimball International organization, as Kimball Electronics began as a diversification effort by Kimball International.

Initial capital/funding

Specific details regarding the initial capital or funding for Kimball Electronics' establishment are not explicitly detailed in the provided resources. However, it was supported by Kimball International.

Kimball Electronics, Inc. Evolution Milestones

Kimball Electronics, Inc. Transformative Moments

• Spin-off from Kimball International (2014): This was a pivotal moment, granting Kimball Electronics greater autonomy and enabling it to sharpen its strategic focus on the electronics manufacturing services (EMS) sector.
• Strategic Acquisitions: Kimball Electronics has strategically acquired companies to enhance its capabilities and expand its market reach. These acquisitions have allowed the company to offer a broader range of services and technologies.
• Expansion into New Markets: Kimball Electronics has expanded its operations into new geographic markets, particularly in regions with strong growth potential for the electronics industry. This expansion has diversified its revenue streams and reduced its reliance on any single market.

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Kimball Electronics, Inc. (KE) Ownership Structure

Kimball Electronics, Inc. operates as a publicly traded company, with its ownership distributed among various institutional and retail investors.

Kimball Electronics, Inc.'s Current Status

Kimball Electronics, Inc. is a public company, trading on the Nasdaq Stock Market under the ticker symbol KE. Being a publicly-held entity means that ownership is dispersed among shareholders who can buy and sell shares of the company on the open market.

Kimball Electronics, Inc.'s Ownership Breakdown

Understanding the ownership structure of Kimball Electronics provides insights into who has influence over the company's decisions. As of the latest data, the ownership is distributed as follows:

Kimball Electronics, Inc.'s Leadership

The leadership team at Kimball Electronics is responsible for setting the strategic direction and overseeing the company's operations. Key figures include:

• Donald D. Charron: Chairman of the Board and Chief Executive Officer
• Jana Katterjohn: Executive Vice President, Chief Legal and Administrative Officer, and Secretary
• Michael K. Sergesketter: Executive Vice President and Chief Financial Officer

These individuals, along with other members of the executive team, guide Kimball Electronics in its strategic initiatives and day-to-day operations. For more insights into the company's financial standing, check out: Breaking Down Kimball Electronics, Inc. (KE) Financial Health: Key Insights for Investors

Kimball Electronics, Inc. (KE) Mission and Values

Kimball Electronics strives to be a trusted provider of high-quality, innovative electronic manufacturing services (EMS). Their values emphasize integrity, customer satisfaction, and a commitment to their employees and the communities where they operate.

Kimball Electronics' Core Purpose

Official mission statement

Kimball Electronics' mission statement is: 'To be a global, trusted provider of high-quality, innovative electronics manufacturing services, delivering value to our customers, employees, shareholders, and the communities in which we operate.'

• Global Provider: Kimball Electronics aims to serve customers worldwide, indicating a broad geographic reach.
• Trusted Provider: Trust is a cornerstone, suggesting reliability and a strong reputation.
• High-Quality, Innovative Electronics Manufacturing Services: This highlights their core business and commitment to quality and innovation.
• Delivering Value: The company focuses on creating value for all stakeholders.
• Customers: Meeting customer needs is a priority.
• Employees: Valuing and supporting their workforce.
• Shareholders: Aiming to provide returns and financial stability.
• Communities: Contributing positively to the areas where they have a presence.

Vision statement

Kimball Electronics' vision is to be recognized as a 'world-class electronics manufacturing services provider known for its operational excellence, innovation, and enduring relationships.'

• World-Class EMS Provider: Aspiring to be among the best in the electronics manufacturing services industry.
• Operational Excellence: Emphasizing efficiency and effectiveness in their processes.
• Innovation: Committing to developing and implementing new ideas and technologies.
• Enduring Relationships: Building and maintaining long-term partnerships with stakeholders.

Company slogan/tagline

Kimball Electronics' tagline, 'We Build Innovation,' encapsulates its focus on supporting customers in bringing innovative products to market.

• Focus on Innovation: The tagline highlights the company's dedication to innovation.
• Supporting Customers: Kimball Electronics positions itself as a partner in helping customers launch new and innovative products.

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Kimball Electronics, Inc. (KE) How It Works

Kimball Electronics, Inc. operates as an electronics manufacturing services (EMS) provider, offering a range of services from design and manufacturing to aftermarket support across various industries.

Kimball Electronics,Inc.'s Product/Service Portfolio

Kimball Electronics provides a broad spectrum of services, primarily focusing on electronics manufacturing solutions tailored to various industries.

Kimball Electronics, Inc.'s Operational Framework

Kimball Electronics operates through a structured framework that ensures efficiency and quality across its service offerings:

• Customer Engagement: Kimball Electronics collaborates closely with clients to understand their specific needs and provide tailored solutions.
• Design and Development: The company uses its design and development services to optimize product designs for manufacturability and performance.
• Manufacturing Process: Kimball Electronics focuses on efficient manufacturing processes, including PCBA, system integration, and box build assembly.
• Supply Chain Management: Kimball Electronics uses strategic supply chain management to ensure timely procurement of high-quality components and materials.
• Quality Assurance: Rigorous testing and quality control measures are implemented throughout the manufacturing process to ensure products meet or exceed customer expectations.
• Aftermarket Support: Kimball Electronics provides aftermarket services, including repair and refurbishment, to support the longevity and reliability of its products.

Kimball Electronics, Inc.'s Strategic Advantages

Kimball Electronics has several strategic advantages that enable it to compete effectively in the EMS market:

• Diversified Market Segments: Kimball Electronics serves a variety of industries, which reduces its dependence on any single market and enhances stability.
• Comprehensive Service Offering: The company’s end-to-end solutions, from design to aftermarket support, provide a competitive edge.
• Global Footprint: With manufacturing facilities in various locations, Kimball Electronics can offer localized support and efficient supply chain management.
• Strong Customer Relationships: Kimball Electronics builds long-term partnerships with its clients by delivering high-quality services and customized solutions.
• Technological Expertise: Kimball Electronics invests in advanced manufacturing technologies and processes to ensure it can meet the evolving needs of its customers.

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Kimball Electronics, Inc. (KE) How It Makes Money

Kimball Electronics, Inc. primarily makes money by providing electronics manufacturing services (EMS) and contract manufacturing services to various industries. These services include engineering, manufacturing, and supply chain support.

Kimball Electronics, Inc.'s Revenue Breakdown

Kimball Electronics, Inc. generates revenue from several key streams, serving diverse sectors. A detailed breakdown reveals the percentage contribution and growth trend of each stream.

Kimball Electronics, Inc.'s Business Economics

Kimball Electronics, Inc.'s business economics are shaped by several factors, including pricing strategies, cost management, and supply chain efficiencies.

• Pricing Strategies: Kimball Electronics employs various pricing models depending on the nature of the project, including cost-plus pricing and value-based pricing. The company aims to offer competitive pricing while ensuring profitability.
• Cost Management: Efficient cost management is crucial for Kimball Electronics. This involves optimizing production processes, reducing material costs, and controlling overhead expenses. The company leverages its global footprint to take advantage of lower labor costs in certain regions.
• Supply Chain Efficiencies: A well-managed supply chain is essential for timely delivery and cost control. Kimball Electronics focuses on building strong relationships with suppliers, implementing just-in-time inventory management, and utilizing advanced logistics solutions.
• Economic Fundamentals: The electronics manufacturing services industry is influenced by broader economic trends, such as global GDP growth, technological advancements, and shifts in consumer demand. Kimball Electronics monitors these factors to adapt its strategies and capitalize on emerging opportunities.

Kimball Electronics, Inc.'s Financial Performance

Kimball Electronics demonstrates its financial health and growth through several key metrics.

• Revenue Growth: In fiscal year 2024, Kimball Electronics reported revenue of $1.77 billion, an increase of 1.8% compared to fiscal year 2023. This indicates a steady growth trajectory, driven by increased demand across various sectors.
• Operating Income: The company's operating income for fiscal year 2024 was $68.1 million, compared to $69.4 million in fiscal year 2023.
• Net Income: Kimball Electronics reported a net income of $47.8 million for fiscal year 2024, slightly up from $47.5 million in fiscal year 2023.
• Gross Margin: The gross margin for fiscal year 2024 stood at 10.4%. This reflects the company's ability to manage production costs and maintain profitability.
• Cash Flow: The company’s cash flow from operations was $89.4 million, showcasing its ability to generate cash from its core business activities.

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Kimball Electronics, Inc. (KE) Market Position & Future Outlook

Kimball Electronics is strategically positioned to leverage its expertise in electronics manufacturing services (EMS) across diverse industries, with a focus on expanding its market share and enhancing its technological capabilities. The company's future outlook appears positive, driven by increasing demand for electronics in automotive, medical, and industrial sectors.

Competitive Landscape

Opportunities & Challenges

Industry Position

Kimball Electronics holds a significant position within the electronics manufacturing services (EMS) industry, particularly known for its specialization in the automotive and medical sectors. The company differentiates itself through:

• Focus on durable medical equipment: Kimball Electronics has cultivated strong expertise and a solid reputation in manufacturing electronics for medical devices, a sector with stringent quality requirements.
• Strong customer relationships: The company emphasizes building long-term partnerships with its clients, offering customized solutions and responsive service.
• Geographic footprint: With manufacturing facilities strategically located in North America, Europe, and Asia, Kimball Electronics can serve a global clientele while mitigating regional risks.

To learn more about the company's guiding principles, visit: Mission Statement, Vision, & Core Values of Kimball Electronics, Inc. (KE).