Following a flood that effectively halted all operations at its Binghamton, NY tent manufacturing facility, Johnson Outdoors Inc. was able to resume manufacturing operations at the facility this week. According to reports issued by the company, the manufacturing facility and offices have been fully cleaned. No exterior structural damage has been found, and interior renovation plans are underway.
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. As a result of the closure and subsequent clean-up, the company took a charge of $1.2 million in the third fiscal quarter, as reported in BOSS_0632; however, the full impact of the business interruption is not yet known.
In addition, the company was awarded a $2.9 million order for one-person combat tent with delivery from November 2006 through July 2007. This order was not issued under the multi-vendor, multi-product contract announced in September. The company expects 2006 military sales from $30-$35 million.