Johnson Outdoors announces plan to enhance competitiveness and profit potential of watercraft unit
July 12, 2012
Filed under News
RACINE, Wis., July 11, 2012 (GLOBE NEWSWIRE) — Johnson Outdoors Inc. (Nasdaq:JOUT) today unveiled a comprehensive plan to improve the profit profile of its Watercraft business. The effort includes a restructuring of the unit’s U.S. and European operations and streamlining at its Old Town, Maine facility. Specifically:
— Watercraft will transition to a lower-cost local independent distributor business model in Europe by the end of July 2012.
— Watercraft R&D and marketing will move to Old Town, Maine from Bellingham, WA over the next year, consolidating all U.S. Watercraft personnel at one location to quicken the pace of new product development and speed-to-market.
— Streamlining at Old Town, Maine due to the capture of strategic synergies between Watercraft and Outdoor Gear, as well as position eliminations.
In total, 17 positions in the U.S. and 11 in Europe were impacted by the actions announced today.
“Last fall, we combined Watercraft and Outdoor Gear units to drive progress against a specialty channel growth platform and return Watercraft to profitability. Today’s actions are necessary to best position the business for future success and increase the velocity of meaningful innovation for paddling enthusiasts,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer. “We remain committed to building long-term value for our customers and our shareholders, and are confident today’s actions will help us do so.”
As a result of these actions, the Company anticipates annual cost-savings of $2.0 million by the end of Fiscal 2014. Total costs and charges associated with the actions are estimated between $2.0 – $2.5 million to be incurred over the next twelve months.
ABOUT JOHNSON OUTDOORS INC.
JOHNSON OUTDOORS is a leading global outdoor recreation company that turns ideas into adventure with innovative, top-quality products. The company designs, manufactures and markets a portfolio of winning, consumer-preferred brands across four categories: Watercraft, Marine Electronics, Diving and Outdoor Equipment. Johnson Outdoors’ familiar brands include, among others: Old Town(R) canoes and kayaks; Ocean Kayak(TM) and Necky(R) kayaks; Carlisle(R) paddles; Extrasport(R) personal flotation devices; Minn Kota(R) motors; Cannon(R) downriggers; Humminbird(R) fishfinders and marine electronics; Lake Master(R) electronic charts; SCUBAPRO(R) and SUBGEAR(R) dive equipment; Silva(R) compasses; Tech4O(R) digital instruments; and Eureka!(R) tents.