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® canoes and kayaks; Ocean Kayak™ and Necky® kayaks; Carlisle® paddles; Extrasport® personal flotation devices; Minn Kota® motors; Cannon® downriggers; Humminbird® fishfinders and marine electronics; Lake Master® electronic charts; SCUBAPRO® and SUBGEAR® dive equipment; Silva® compasses; Tech4O® digital instruments; and Eureka!® tents.
Visit Johnson Outdoors at http://www.johnsonoutdoors.com/">http://www.johnsonoutdoors.com
SAFE HARBOR STATEMENT
Certain matters discussed in this press release are "forward-looking statements," intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical fact are considered forward-looking statements. These statements may be identified by the use of forward-looking words or phrases such as "anticipate,'' "believe,'' "could,'' "expect,'' "intend,'' "may,'' "planned,'' "potential,'' "should,'' "will,'' "would'' or the negative of those terms or other words of similar meaning.Such forward-looking statements are subject to certain risks and uncertainties, which could cause actual results or outcomes to differ materially from those currently anticipated. Factors that could affect actual results or outcomes include changes in economic conditions, consumer confidence levels and discretionary spending patterns in key markets; the Company's continued success in implementing its strategic plan, including its targeted sales growth platforms and focus on innovation; litigation costs related to actions of and disputes with third parties, including competitors; the Company's continued success in working capital management and cost-structure reductions; the Company's ongoing success in meeting financial covenants in its credit agreements with lenders; risk of future write-downs of goodwill or other intangible assets; ability of the Company's customers to meet payment obligations; movements in foreign currencies, interest rates and commodity costs; the success of suppliers and customers; the ability of the Company to deploy its capital successfully; adverse weather conditions; and other risks and uncertainties identified in the Company's filings with the Securities and Exchange Commission. Shareholders, potential investors and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.