RACINE, Wis. – Johnson Outdoors (Nasdaq: JOUT) experienced increased net sales, operating profit and earnings for the fiscal quarter ended July 2, due in part to strength in the company’s marine electronics division, the company reported in a statement today.
The company said it continues to take action to improve the efficiency and profitability of its watercraft business.
Increases in total company net sales (+11.6%) and operating profit (+53.5%) this quarter were driven by the marine electronics and outdoor equipment business units.
Marine electronics sales and profits were bolstered by the company's acquisition of the Humminbird brand in May. It added $7.8 million in net sales, $0.5 million in operating profit, and $0.04 in earnings per diluted share this quarter, according to Johnson Outdoors.
"The Humminbird brand is the perfect complement to our fishing motors business, providing us yet another technology base for future expansion and growth. This was the right acquisition at the right time for a business clearly on the upswing," said Helen Johnson-Leipold, Chairman and Chief Executive Officer, Johnson Outdoors.
Net income for the third quarter was $7.5 million or $0.85 per diluted share, which reflected a 48-percent improvement in net income over $5.1 million or $0.59 per diluted share earned in the comparable quarter last year.
A number of items unrelated to the company's operations had a net favorable impact of $0.09 on earnings per diluted share in the 2004 third quarter. These items included: settlement of litigation with a former employee (+$0.14); final accounting resolution of costs related to a dive computer recall (+$0.05); charges associated with the on-going review of a proposal to take the company private (-$0.07); and, obsolete product warranty and discontinued acquisition costs (-$0.03.)
"While we are benefiting from the diversity of our portfolio, we need a better balance of performance within it," observed Johnson-Leipold. "We must continue to drive innovation to minimize the impact of soft consumer markets. We must reduce cost and complexity, while investing appropriately to strengthen operations. We are seeing progress in Watercraft, but we are not there yet, and our work in Diving is just beginning. We continue to manage our businesses for the long-term, and to do what's right to ensure sustainable, profitable growth."
Johnson Outdoors designs, manufactures and markets a portfolio of consumer brands across four categories: Watercraft, Marine Electronics, Diving and Outdoor Equipment. Johnson Outdoors' brands include, among others: Old Town canoes and kayaks; Ocean Kayak, Necky and Dimension kayaks; Minn Kota motors; Humminbird fishfinders; SCUBAPRO and SnorkelPro; UWATEC dive equipment; and, Eureka! tents.
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