Johnson Outdoors Inc. raised its guidance after saying it had been granted exclusions for some of its products’ components subject to Section 301 tariffs.
These granted exclusions concern components currently sourced from China for products manufactured in the company’s North American production facilities and sold worldwide.
As a result of the exclusions announced today, the company is reducing the estimated impact of Section 301 tariffs on fiscal 2019 profits from $5-7 million to approximately $3 million. The exclusions are effective for one year from the date they were approved and allow the Company to be reimbursed for tariffs assessed and paid on components covered by the exclusions before they were approved.
The exclusion requests were reviewed and approved by both the United States Trade Representative (USTR) and the U.S. Customs and Border Protection (CBP).
“We appreciate that USTR and CBP have granted these exclusions, and we continue to pursue a range of tariff mitigation efforts to strengthen U.S. manufacturing,” said David W. Johnson, chief financial officer. “We remain hopeful that trade negotiations successfully and fairly resolve disputes and eliminate tariffs for the benefit of American manufacturers and workers.”
Johnson Outdoors’ iconic brands include: Old Town canoes and kayaks; Ocean Kayak; Carlisle paddles; Minn Kota fishing motors, batteries and anchors; Cannon downriggers; Humminbird marine electronics and charts; SCUBAPRO dive equipment; Jetboil outdoor cooking systems; and, Eureka! camping and hiking equipment.
