Johnson Outdoors has acquired Geonav, an Italian supplier of chart plotters, marine autopilots, fish finders and VHF radios based in Viareggio, for an undisclosed price. Its well-established distribution network should help the American group to expand more rapidly in Europe, where the American group has made other acquisitions lately.
Fueled in part by these acquisitions, the company’s European sales have enjoyed double-digit growth in the past five years, with particular strength in Northern and Eastern Europe. Along with new product introductions, European growth was one of the key drivers for a 9.2 percent increase in its net sales to $432.1 million in the fiscal year ended Sept. 28. Acquisitions were responsible for one-third of the increase. Because of extraordinary charges, net income rose by only 6.0 percent to $9.2 million.
The biggest annual sales boost occurred in marine electronics, up by 20.4 percent to $198.1 million. Diving equipment came next with a 13.0 percent increase to $88.7 million. Watercraft sales improved by 3.4 percent to $90.3 million, but the outdoor business, represented mainly by Eureka tents and Silva compasses, went down by 15.3 percent to $55.9 million due to lower orders from the U.S. Military.
In the fourth quarter, Johnson posted net income of $1,485,000 against a loss of $0.9 million in the year-ago period, with sales up by 9 percent to $87.7 million and gross margins down by 200 basis points to 40.4 percent. Marine electronics contributed 58 percent more operating profit of $1.4 million on 30 percent sales growth to $33.0 million. The watercraft and outdoor equipment categories saw their sales go down by 3 percent and 25 percent, respectively.
The diving segment grew by 15 percent to $26.8 million in the quarter, thanks in part to the successful launch of the Uwatec Galileo diving computer and to favorable exchange rates. Another factor was the acquisition last April of Seeman Sub in Germany, which contributed sales of $2.3 million for the three months. The operating margin of the division rose by 1.39 percentage points to 11.8 percent.
