In the quarter ended last March 28, the group’s net sales declined slightly to $121.8 million from $122.0 million, while earnings from continuing operations plunged by 61.9 percent to $0.8 million from $2.1 million in the corresponding 2007 period. Operating profit for the quarter declined to $3.6 million from $4.6 million from the year previous.
Johnson Outdoors said this was because of lower margins in marine electronics, lower military sales, $0.6 million of charges related to the reorganization of its global diving unit, and foreign currency fluctuations. The results in paddle sports were particularly disappointing, leading the management reassess its whole watercraft business.
Net income was $0.5 million, down from $1.7 million for the second quarter 2007, but the largest part of the loss was attributed to a foreign exchange loss of $1.6 million before taxes in Switzerland. Some of it was attributed to economic uncertainty in the USA, as sales outside that country were strong.
For the six months ended March 28, net sales were up by 2.3 percent to $197.8 million. However, the company made an operating loss of $0.9 million, compared with a profit of $2.4 million in the six months of the year before.
Separately, two new sales agents have been named at Johnson Outdoors UK. Maurice McGlade will be the new agent for marine electronics for Ireland, and Chris King will be in charge of marine electronics for the south coast of England as well as watercraft in the southeast of the country.
