Johnson Outdoors Inc. has resumed manufacturing operations at its Binghamton, New York plant. Heavy rains caused massive flooding in parts of the Northeastern United States in late June, forcing the company to temporarily close the plant.
FACILITY UPDATE
The manufacturing facility and offices have been fully cleaned. No exterior structural damage has been found, and interior renovation plans are underway.
OPERATIONS UPDATE
All production employees have been called back to work, and military and commercial tent production has resumed. Shipments from the Company’s finished goods warehouse to consumer and commercial customer accounts were not affected by the temporary plant closure. Administrative offices will continue to operate from a temporary location until interior renovations are completed. The Company took a charge of $1.2 million in the 2006 third fiscal quarter; however, the full financial impact of the business interruption is not yet known. The Company will be able to make a determination near the end of the 2006 fiscal fourth quarter on the total amount of recoverable losses, and expects its insurance coverage will indemnify the balance of those losses.
MILITARY UPDATE
On August 21, 2006 the Company was awarded a $2.9 million order for the one-person combat tent with anticipated delivery from November 2006 through July 2007. This order was not issued under the multi-vendor, multi-product contract announced on September 7, 2005. The Company continues to expect fiscal 2006 military sales will be in the $30-$35 million range.
