Johnson Outdoors marine electronics sales decline
RACINE, Wis. – Despite an increase in exports, Johnson Outdoors Inc.’s (NASDAQ:JOUT) marine electronics business took a hit during the second quarter ended March 28, dropping 4.6 percent compared to the same time last year, the company reported in a recent statement.
Watercraft sales increased 5.1 percent over the prior year quarter due primarily to growth in paddle sport accessories. And diving revenues rose 20.3 percent above last year’s second quarter due to growth in international markets. However, outdoor equipment revenues compared unfavorably to last year’s second quarter due to the expected slowdown of military sales. In addition, revenue gains in Consumer were unable to offset lower Commercial sales, according to the company.
Added together, this resulted in net sales of $121.8 million for the second quarter ended March 28, compared to net sales of $122.0 million for the prior year second quarter.
Earnings from continuing operations of $0.8 million compared unfavorably to earnings from continuing operations of $2.1 million in the prior year quarter.
Total company operating profit for the second quarter was $3.6 million compared to an operating profit of $4.6 million in the prior year quarter. Among the key drivers behind the unfavorable comparison were lower margins in marine electronics driven by lower domestic sales, unfavorable product and geographic mix and integration costs associated with the GEONAV acquisition, the company explained.
“Economic uncertainty in the U.S. is starting to have an effect on outdoor retailers, which are keeping inventory levels below last year until they can gauge consumer demand at shelf in the next few months. On the other hand, international sales continue to grow and orders among U.S. specialty retailers are solid,” said Helen Johnson-Leipold, chairman and CEO. “In addition to ongoing cost-savings initiatives, we have instituted strict company-wide cost-control measures and are working hard to manage inventory levels down in the face of a soft marketplace. At the same time, we will continue to protect the future by investing wisely and appropriately in innovation.”
Net sales in the first six months of fiscal 2008 were $197.8 million versus $193.4 million in the same six-month period last year, an increase of 2.3 percent. Excluding the anticipated $6.5 million decline in military sales, total company net sales would have increased 5.8 percent, according to Johnson Outdoors.
Total company operating loss was $0.9 million during the first six months of fiscal 2008 compared to an operating profit of $2.4 million during the prior year-to-date period. Loss from continuing operations for the first six months of the year was $2.8 million, or ($0.31) per diluted share, versus income from continuing operations of $0.8 million, or $0.08 per diluted share, in the first six months of the prior year.
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