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KIMBALL INTERNATIONAL EARNINGS IMPROVE

 KIMBALL INTERNATIONAL EARNINGS IMPROVE
 JASPER, Ind., Jan. 20 /PRNewswire/ -- Kimball International


(NASDAQ: KBALB) reported today that net income was up slightly while sales increased 3 percent in the fiscal second quarter ended Dec. 31, 1991, compared to the same period of the prior year.
 Douglas A. Habig, president, said income was aided by a lower effective tax rate resulting from a reorganization of subsidiaries in England. However, operating income was again negatively impacted by an increasingly competitive marketplace. Habig said expensive marketing programs and heavy price discounting were required to maintain market share in a weak economy.
 Second quarter sales were $148,224,000, compared to the previous year's $144,198,000. Net income was $8,136,000, or 39 cents per share of Class B common stock, compared to the year-earlier $8,118,000, or 39 cents per Class B share.
 The recent sales trend has been improving, according to Habig. For the third consecutive quarter, sales were higher than the previous three-month period.
 For this fiscal year's first six months, sales were $286,784,000, a decrease of 1 percent from last year's $288,950,000. Net income, excluding the effect of a non-operating gain, was $16,079,000, or 76 cents per Class B share, a decline of 8 percent from last year's $17,443,000, or 83 cents per Class B share.
 The non-operating gain related to estimated insurance claims resulting from a fire that destroyed the company's Chandler Veneers plant last July. The gain increased income in this year's first quarter by $1,228,000, or 6 cents per Class B share. Including the gain, six months net income was $17,307,000, or 82 cents per Class B share.
 The performance of the Electronics Division was a bright spot in the quarter, Habig said. The division's sales increased 49 percent and operating income increased significantly from last year's depressed level. Habig said improved efficiency and productivity as well as higher capacity utilization contributed to the income improvement.
 Sales of hospitality furniture were up in the second quarter while income was down due to heavy price discounting in the highly competitive industry.
 Although sales declined in Kimball's U.S. piano operations, income improved, caused in part by improved efficiency and productivity along with increased contract business.
 Sales and income were lower or flat in all of the other operating divisions.
 Kimball remains financially strong with an excellent balance sheet, according to Habig. He said the company is being continuously strengthened through employee involvement programs that improve the efficiency and productivity of all operations.
 FINANCIAL HIGHLIGHTS
 (dollars in thousands)
 For the three months ended Dec. 31 1991 1990
 Net Sales $148,224 $144,198
 Cost of Sales 103,573 97,141
 Gross Profit 44,651 47,057
 Selling, Administrative & General
 Expenses 34,674 36,101
 Operating Income 9,977 10,956
 Other Income -- Net 2,602 2,292
 Income Before Taxes on Income 12,579 13,248
 Taxes on Income 4,443 5,130
 Net Income $8,136 $8,118
 Earnings Per Share:
 Class A $.39 $.39
 Class B $.39 $.39
 Average Shares Outstanding (in thousands) 21,145 21,172
 For the six months ended Dec. 31:
 Net Sales $286,784 $288,950
 Cost of Sales 199,482 193,832
 Gross Profit 87,302 95,118
 Selling, Administrative & General
 Expenses 66,580 70,987
 Operating Income 20,722 24,131
 Other Income -- Net 7,142 4,444
 Income Before Taxes on Income 27,864 28,575
 Taxes on Income 10,557 11,132
 Net Income $17,307 $17,443
 Earnings Per Share:
 Class A $.82 $.83
 Class B $.82 $.83
 Average Shares Outstanding (in thousands) 21,145 21,184
 -0- 1/20/92
 /CONTACT: Ken Sendelweck of Kimball International, 812-482-1600/
 (KBALB) CO: Kimball International, Inc. ST: Indiana IN: SU: ERN


KK -- CL001 -- 1314 01/20/92 09:14 EST
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Publication:PR Newswire
Date:Jan 20, 1992
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