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<P><center><B>SECURITIES AND EXCHANGE COMMISSION<BR>
WASHINGTON, D.C. &nbsp;20549<BR>
<BR>
FORM 8-K
</B><P ALIGN="CENTER">CURRENT REPORT<BR>

<P ALIGN="CENTER">Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
<P Align="center"><BR>
Date of Report (Date of earliest event reported) &nbsp;&nbsp;&nbsp;<U>June 14, 2001</U><BR>
<BR>
<BR>


<P ALIGN="CENTER"><B><FONT SIZE=5>KIMBALL INTERNATIONAL, INC.</FONT></B>
<HR size="1" WIDTH="66%" noshade>
<center><FONT SIZE=2>(Exact name of registrant as specified in its charter) </FONT></center>

<P ALIGN="CENTER"><CENTER>

<TABLE CELLSPACING=0 BORDER=0 WIDTH=624>
<TR><TD WIDTH="33%" VALIGN="MIDDLE">
<P>&nbsp;</TD>
<TD WIDTH="33%" VALIGN="MIDDLE">
<P>&nbsp;</TD>
<TD WIDTH="33%" VALIGN="MIDDLE">
<P>&nbsp;</TD>
</TR>

<TR><TD VALIGN="TOP"><P ALIGN="CENTER">Indiana</TD>
<TD VALIGN="TOP"><P ALIGN="CENTER">0-3279</TD>
<TD VALIGN="TOP"><P ALIGN="CENTER">35-0514506</TD>
</TR>

<TR><TD VALIGN="MIDDLE">
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<TD VALIGN="MIDDLE">
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<TD VALIGN="MIDDLE">
<P ALIGN="CENTER"><HR size="1" WIDTH="90%" noshade></TD>
</TR>

<TR><TD VALIGN="TOP" align=center><FONT SIZE=2>(State or other jurisdiction of</FONT></TD>
<TD VALIGN="TOP" align=center><FONT SIZE=2>(Commission File</FONT></TD>
<TD VALIGN="TOP" align=center><FONT SIZE=2>(IRS Employer Identification No.)</FONT></TD>
</TR>

<TR><TD VALIGN="TOP" align=center><FONT SIZE=2>incorporation)</FONT></TD>
<TD VALIGN="TOP" align=center><FONT SIZE=2>Number)</FONT></TD>
<TD VALIGN="MIDDLE">&nbsp;</TD>
</TR>
</TABLE>

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<TR><TD WIDTH="55%" VALIGN="MIDDLE">
<P>&nbsp;</TD>
<TD WIDTH="4%" VALIGN="MIDDLE">
<P>&nbsp;</TD>
<TD WIDTH="41%" VALIGN="MIDDLE">
<P>&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP"><P ALIGN="CENTER">&nbsp;</TD>
<TD VALIGN="MIDDLE">&nbsp;</TD>
<TD VALIGN="TOP"><P ALIGN="CENTER">&nbsp;</TD>
</TR>

<TR><TD VALIGN="TOP">
<P ALIGN="CENTER">1600 Royal Street, Jasper, Indiana</TD>
<TD VALIGN="MIDDLE">&nbsp;</TD>
<TD VALIGN="TOP">
<P ALIGN="CENTER">47549-1001</TD>
</TR>
<TR><TD VALIGN="MIDDLE">
<P ALIGN="CENTER"><HR size="1" WIDTH="64%" noshade></TD>
<TD VALIGN="MIDDLE">&nbsp;</TD>
<TD VALIGN="MIDDLE">
<P ALIGN="CENTER"><HR size="1" WIDTH="48%" noshade></TD>
</TR>


<TR><TD VALIGN="TOP" align=center>
<FONT SIZE=2>(Address of principal executive offices)</FONT></TD>
<TD VALIGN="MIDDLE">&nbsp;</TD>
<TD VALIGN="TOP" align=center>
<FONT SIZE=2>(Zip Code)</FONT></TD>
</TR>
</TABLE>
</CENTER>

<P ALIGN="CENTER">
Registrant's telephone number, including area code &nbsp;&nbsp;<U>(812) 482-1600</U>
<P ALIGN="CENTER">Not Applicable
<HR size="1" WIDTH="80%" noshade>
<CENTER><FONT SIZE=2>(Former name or former address, if changed since last report.)</FONT>
</CENTER></center>

<P ALIGN="CENTER">1
<!-- PAGEBREAK -->
<HR size="1" noshade>

<P><b>Item 9. Regulation FD Disclosure<br><br>
Kimball International, Inc. Announces Restructuring Plan and Fourth Quarter Outlook</B>
<P>Jasper, IN (June 14, 2001) - Kimball International, Inc. (NASDAQ: KBALB) today announced a restructuring plan designed to more closely align its operating capabilities and capacities with changing customer and market requirements and current economic
conditions.  The Company also announced its earnings outlook for its fourth quarter fiscal 2001 ending June 30, 2001. This information is intended to comply with Kimball's obligation under the SEC's Regulation FD.


<P>"As previously communicated, we have been actively scaling our production capacities and
 overhead structures to align with the slow-down in the economy, and more specifically, slower
 sales volumes in several of our principal markets," stated Kimball International Chairman and
 Chief Executive Officer, Douglas A. Habig.  "Actions we took during our third quarter ending
 March 31 included reductions in non-essential spending, operating with shorter work weeks, and
 reducing our worldwide workforce by approximately 9%. These actions significantly improved our
 cost structure.  However, upon recently updating our strategic plans and capacity studies, it
 became apparent that the investments we made over the past several years in information and
 manufacturing technologies, have, in fact, enabled the Company to produce more product within
 a given amount of capacity.  Additionally, required changes in capabilities and capacities to
 support the needs of our customers on a global basis, and the economic downturn, increased the
 urgency and degree of action required to further address excess operating capacities and
costs," stated Habig.



<P>"Our plan announced today will scale our capacity based upon the best long-term cost and
 performance structure on an  overall global basis, including regionally in the U.S., and
 will significantly improve our competitive position in our markets.  Once the plan is executed,
 I am confident the remaining capabilities and capacities will be sufficient to support our
ambitious long-term growth goals.  While the length and depth of the current economic downturn
 requires some caution, I have never been more optimistic about the future growth of Kimball,
 given both this restructuring plan and the management depth brought into Kimball the last few
 years to lead our office furniture, our cabinet and our electronics businesses.  We are
 positioned very well for the future," noted Habig.



<P>"While the actions taken to reduce our organizational and operating capacities are required
 to position Kimball with a competitive cost structure, which is vital to our overall long-term
 success, we regret the impact of these actions on affected employees.  We are working with our
 employees to offer other opportunities within Kimball where possible, or are assisting in their
 transition from the Company," concluded Habig.

<P>The restructuring plan, which is primarily related to activities within the Furniture and
 Cabinets Segment, is expected to cost approximately $25 to $30 million pre-tax and should be
 substantially completed in about 12 - 15 months. The Company will expense approximately  $23
 to $26 million pre-tax in its fiscal 2001 fourth quarter and estimates an additional $2 to $4
 million of incremental pre-tax, one-time costs associated with the restructuring plan will be
 expensed as incurred during Fiscal 2002. Actions taken in the fourth quarter, including the
 approximate 200 employees who have been notified of their separation resulting from this plan,
 increased the total worldwide workforce reduction from January 1, 2001 to approximately 1,600
 employees or 14%.  Approximately 70% of the total restructuring costs will be non-cash.  The
 company estimates that once the plan is executed, these actions, along with the cost reduction
 actions taken in the fiscal 2001 third quarter, will reduce its total cost structure by
 approximately $35 to $40 million pre-tax on an annualized basis. A portion of these cost
 savings will be redeployed into strategic initiatives designed to accelerate sales growth,
 and improve quality and efficiencies.

<P>Costs Included in the Fourth Quarter Fiscal 2001 Restructuring Charge:
<ul>
<li>The approximate $23 to $26 million relates to manufacturing facility and process consolidation
 and other scaling activities.  The Company will exit an electronics manufacturing facility in
 France and will close 4 furniture & cabinet manufacturing facilities in the U.S. (1 in North
 Carolina, 1 in Kentucky and 2 in Indiana), an administrative office location and a company-owned
 energy center which serves select manufacturing locations impacted by the scaling actions, both
 in Indiana.  Several other manufacturing locations will scale capacity to allow for
consolidation and/or to align with current volume and growth projections.  Other associated
 costs in the charge include certain asset writedowns relating to production equipment,
 redundant software and impaired goodwill, along with employee transition assistance for
 separated employees and operating costs of facilities idled through consolidation awaiting sale.
</ul>

<P>One-time Costs Associated With the Restructuring Plan:<ul type=disc>
<li>The approximate $2 to $4 million which will be expensed as incurred during fiscal 2002
 includes relocation of manufacturing equipment, stay bonuses for employees assisting with
facility consolidations, and other costs including employee training and redeployment costs
 to assist employees who are relocating to a consolidated operation.
</ul>


<P>In addition to the restructuring charge and other associated restructuring costs,
 the Company will also incur other charges in the fourth quarter of fiscal 2001 totaling
 approximately $4 million pre-tax related to the writedown of custom production equipment
 and inventory and bad debt expense associated with a financially unstable contract customer
 in the Electronic Contract Assemblies Segment and impaired goodwill unrelated to the
 restructuring.

<P ALIGN="CENTER">2
<!-- PAGEBREAK -->
<HR size="1" noshade>

<P>Kimball International expects its earnings for the fourth quarter of fiscal 2001, exclusive
 of the restructuring and other charges outlined above, to be $.16 to $.20 per diluted share of
 Class B common stock.  The projected earnings per share for the fourth quarter would be a
reduction from earnings of $0.33 per diluted share of Class B common stock reported during the
 same period one year ago.   During the third quarter conference call on April 19, 2001, the
 company indicated it did not expect its fourth quarter earnings to be much improved over its
 $.18 per diluted Class B share performance in the third quarter, given continual signs of a
 slowing economy and a resulting softening in demand in several of its major markets.  When
 compared to the prior year, the Company is currently projecting lower fourth quarter sales
 volumes in both the Furniture and Cabinets Segment and the Electronic Contract Assemblies
 Segment.

<P>Kimball International will conduct a conference call on Thursday, August 2, 2001 following
 the release of its fourth quarter and fiscal 2001 results. A webcast of the conference call
 will take place simultaneously.  Details of the conference call and webcast will be released
 on or about July 26, 2001.

<P>The above restructuring announcement and fourth quarter fiscal 2001 earnings guidance is
 considered forward-looking under the Private Securities Litigation Reform Act of 1995, and
 is subject to risks and uncertainties including, but not limited to, successful execution of
 the restructuring plan within the cost ranges disclosed above, significant volume reductions
 from key contract customers, loss of key customers or suppliers within specific industries,
 availability or cost of raw materials, and increased competitive pricing pressures reflecting
 excess industry capacities.  Additional cautionary statements regarding other risk factors that
 could have an effect on the future performance of the Company are contained in the Company's
 Form 10-K filing for the period ending June 30, 2000.


<P>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 a contract basis include store fixtures,
 television cabinets and stands, residential furniture and furniture components.  The Electronic
 Contract Assemblies Segment provides design engineering, manufacturing, packaging and
 distribution of electronic assemblies, circuit boards, multi-chip modules and semiconductor
 components on a contract basis to a variety of industries on a global scale.


<P>For more information about Kimball International, Inc., visit the Company's web site on the
 Internet at www.kimball.com.


<P align=center><B>"We Build Success"</B>

<P ALIGN="CENTER">3
<!-- PAGEBREAK -->
<HR size="1" noshade>

<CENTER><B>SIGNATURES</B></CENTER>
<P>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 hereto duly authorized.

<TABLE CELLSPACING=0 BORDER=0 WIDTH=561>
<TR><TD WIDTH="50%" VALIGN="MIDDLE">
<P>&nbsp;</TD>
<TD WIDTH="5%" VALIGN="MIDDLE">
<P>&nbsp;</TD>
<TD WIDTH="45%" VALIGN="MIDDLE">
<P>&nbsp;</TD>
</TR>
<TR><TD VALIGN="MIDDLE">
<P>&nbsp;</TD>
<TD VALIGN="MIDDLE">
<P>&nbsp;</TD>
<TD VALIGN="MIDDLE">
<P>KIMBALL INTERNATIONAL, INC.</TD>
</TR>
<TR><TD VALIGN="MIDDLE">
<P>&nbsp;</TD>
<TD VALIGN="MIDDLE">
<P>&nbsp;</TD>
<TD VALIGN="MIDDLE">
<P>&nbsp;</TD>
</TR>
<TR><TD VALIGN="MIDDLE">
<P>&nbsp;</TD>
<TD VALIGN="MIDDLE">
<P>&nbsp;</TD>
<TD VALIGN="MIDDLE">
<P>&nbsp;</TD>
</TR>
<TR><TD VALIGN="MIDDLE">
<P>&nbsp;</TD>
<TD VALIGN="MIDDLE">
<P ALIGN="CENTER">By:</TD>
<TD VALIGN="MIDDLE">
<P>/s/ Robert F. Schneider</TD>
</TR>
<TR><TD VALIGN="MIDDLE">&nbsp;</TD>
<TD VALIGN="MIDDLE">&nbsp;</TD>
<TD VALIGN="MIDDLE">
<P><HR size="1" ALIGN="LEFT" WIDTH="70%" noshade></TD>
</TR>
<TR><TD VALIGN="MIDDLE">
<P>&nbsp;</TD>
<TD VALIGN="MIDDLE">
<P>&nbsp;</TD>
<TD VALIGN="MIDDLE">
<P>ROBERT F. SCHNEIDER<BR>
Executive Vice President, <BR>
Chief Financial Officer<BR>
Treasurer</TD>
</TR>
</TABLE>

<P><BR>
<BR>
Date: June 15, 2001
<P ALIGN="CENTER">4
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<HR size="1" noshade>

</BODY>
</HTML>
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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 (Date of earliest event reported)
June 14, 2001
KIMBALL INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
Indiana
0-3279
35-0514506
(State or other jurisdiction of
(Commission File
(IRS Employer Identification No.)
incorporation)
Number)
1600 Royal Street, Jasper, Indiana
47549-1001
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code
(812) 482-1600
Not Applicable
(Former name or former address, if changed since last report.)
1
Item 9. Regulation FD Disclosure
Kimball International, Inc. Announces Restructuring Plan and Fourth Quarter Outlook
Jasper, IN (June 14, 2001) - Kimball International, Inc. (NASDAQ: KBALB) today announced a restructuring plan designed to more closely align its operating capabilities and capacities with changing customer and market requirements and current economic
conditions.  The Company also announced its earnings outlook for its fourth quarter fiscal 2001 ending June 30, 2001. This information is intended to comply with Kimball's obligation under the SEC's Regulation FD.
"As previously communicated, we have been actively scaling our production capacities and
 overhead structures to align with the slow-down in the economy, and more specifically, slower
 sales volumes in several of our principal markets," stated Kimball International Chairman and
 Chief Executive Officer, Douglas A. Habig.  "Actions we took during our third quarter ending
 March 31 included reductions in non-essential spending, operating with shorter work weeks, and
 reducing our worldwide workforce by approximately 9%. These actions significantly improved our
 cost structure.  However, upon recently updating our strategic plans and capacity studies, it
 became apparent that the investments we made over the past several years in information and
 manufacturing technologies, have, in fact, enabled the Company to produce more product within
 a given amount of capacity.  Additionally, required changes in capabilities and capacities to
 support the needs of our customers on a global basis, and the economic downturn, increased the
 urgency and degree of action required to further address excess operating capacities and
costs," stated Habig.
"Our plan announced today will scale our capacity based upon the best long-term cost and
 performance structure on an  overall global basis, including regionally in the U.S., and
 will significantly improve our competitive position in our markets.  Once the plan is executed,
 I am confident the remaining capabilities and capacities will be sufficient to support our
ambitious long-term growth goals.  While the length and depth of the current economic downturn
 requires some caution, I have never been more optimistic about the future growth of Kimball,
 given both this restructuring plan and the management depth brought into Kimball the last few
 years to lead our office furniture, our cabinet and our electronics businesses.  We are
 positioned very well for the future," noted Habig.
"While the actions taken to reduce our organizational and operating capacities are required
 to position Kimball with a competitive cost structure, which is vital to our overall long-term
 success, we regret the impact of these actions on affected employees.  We are working with our
 employees to offer other opportunities within Kimball where possible, or are assisting in their
 transition from the Company," concluded Habig.
The restructuring plan, which is primarily related to activities within the Furniture and
 Cabinets Segment, is expected to cost approximately $25 to $30 million pre-tax and should be
 substantially completed in about 12 - 15 months. The Company will expense approximately  $23
 to $26 million pre-tax in its fiscal 2001 fourth quarter and estimates an additional $2 to $4
 million of incremental pre-tax, one-time costs associated with the restructuring plan will be
 expensed as incurred during Fiscal 2002. Actions taken in the fourth quarter, including the
 approximate 200 employees who have been notified of their separation resulting from this plan,
 increased the total worldwide workforce reduction from January 1, 2001 to approximately 1,600
 employees or 14%.  Approximately 70% of the total restructuring costs will be non-cash.  The
 company estimates that once the plan is executed, these actions, along with the cost reduction
 actions taken in the fiscal 2001 third quarter, will reduce its total cost structure by
 approximately $35 to $40 million pre-tax on an annualized basis. A portion of these cost
 savings will be redeployed into strategic initiatives designed to accelerate sales growth,
 and improve quality and efficiencies.
Costs Included in the Fourth Quarter Fiscal 2001 Restructuring Charge:
The approximate $23 to $26 million relates to manufacturing facility and process consolidation
 and other scaling activities.  The Company will exit an electronics manufacturing facility in
 France and will close 4 furniture & cabinet manufacturing facilities in the U.S. (1 in North
 Carolina, 1 in Kentucky and 2 in Indiana), an administrative office location and a company-owned
 energy center which serves select manufacturing locations impacted by the scaling actions, both
 in Indiana.  Several other manufacturing locations will scale capacity to allow for
consolidation and/or to align with current volume and growth projections.  Other associated
 costs in the charge include certain asset writedowns relating to production equipment,
 redundant software and impaired goodwill, along with employee transition assistance for
 separated employees and operating costs of facilities idled through consolidation awaiting sale.
One-time Costs Associated With the Restructuring Plan:
The approximate $2 to $4 million which will be expensed as incurred during fiscal 2002
 includes relocation of manufacturing equipment, stay bonuses for employees assisting with
facility consolidations, and other costs including employee training and redeployment costs
 to assist employees who are relocating to a consolidated operation.
In addition to the restructuring charge and other associated restructuring costs,
 the Company will also incur other charges in the fourth quarter of fiscal 2001 totaling
 approximately $4 million pre-tax related to the writedown of custom production equipment
 and inventory and bad debt expense associated with a financially unstable contract customer
 in the Electronic Contract Assemblies Segment and impaired goodwill unrelated to the
 restructuring.
2
Kimball International expects its earnings for the fourth quarter of fiscal 2001, exclusive
 of the restructuring and other charges outlined above, to be $.16 to $.20 per diluted share of
 Class B common stock.  The projected earnings per share for the fourth quarter would be a
reduction from earnings of $0.33 per diluted share of Class B common stock reported during the
 same period one year ago.   During the third quarter conference call on April 19, 2001, the
 company indicated it did not expect its fourth quarter earnings to be much improved over its
 $.18 per diluted Class B share performance in the third quarter, given continual signs of a
 slowing economy and a resulting softening in demand in several of its major markets.  When
 compared to the prior year, the Company is currently projecting lower fourth quarter sales
 volumes in both the Furniture and Cabinets Segment and the Electronic Contract Assemblies
 Segment.
Kimball International will conduct a conference call on Thursday, August 2, 2001 following
 the release of its fourth quarter and fiscal 2001 results. A webcast of the conference call
 will take place simultaneously.  Details of the conference call and webcast will be released
 on or about July 26, 2001.
The above restructuring announcement and fourth quarter fiscal 2001 earnings guidance is
 considered forward-looking under the Private Securities Litigation Reform Act of 1995, and
 is subject to risks and uncertainties including, but not limited to, successful execution of
 the restructuring plan within the cost ranges disclosed above, significant volume reductions
 from key contract customers, loss of key customers or suppliers within specific industries,
 availability or cost of raw materials, and increased competitive pricing pressures reflecting
 excess industry capacities.  Additional cautionary statements regarding other risk factors that
 could have an effect on the future performance of the Company are contained in the Company's
 Form 10-K filing for the period ending June 30, 2000.
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 a contract basis include store fixtures,
 television cabinets and stands, residential furniture and furniture components.  The Electronic
 Contract Assemblies Segment provides design engineering, manufacturing, packaging and
 distribution of electronic assemblies, circuit boards, multi-chip modules and semiconductor
 components on a contract basis to a variety of industries on a global scale.
For more information about Kimball International, Inc., visit the Company's web site on the
 Internet at www.kimball.com.
"We Build Success"
3
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 hereto duly authorized.
KIMBALL INTERNATIONAL, INC.
By:
/s/ Robert F. Schneider
ROBERT F. SCHNEIDER
Executive Vice President,
Chief Financial Officer
Treasurer
Date: June 15, 2001
4