Johnson Outdoors has been awarded a $15.9 million urgent need military tent order. The government order calls for delivery of 2,510 modular general purpose tent systems (MGPTS) over the next eight months. Urgent need orders are awarded based on a supplier's proven capability to ensure quality and quantity at an accelerated pace.
The MGPTS, first used by U.S. troops in 1999, resulted from a joint innovation effort by the U.S. military and Johnson Outdoors targeted at providing superior all-weather tent protection. Johnson Outdoors is one of only two U.S. manufacturers qualified to produce the MGPTS. The Company's Outdoor Equipment business, headquartered in Binghamton, New York, is preparing to begin production against the order as soon as possible.
“We are grateful for the support from Congress, particularly that of Senator Clinton and Senator Kohl, which will help assure our troops of having the tents they require, and our talented and dedicated employees of the jobs they need,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer, Johnson Outdoors Inc.
In March 2005, Johnson Outdoors announced to Binghamton employees a pending elimination of permanent positions due to the significant decline of new military tent orders and contracts over the past year. The new emergency tent order ensures production of MGPTS at the Binghamton operation through the calendar year.
“Obviously, we are very pleased to have received this order; which will slow the anticipated decline of military tent sales this year. Our primary focus continues to be on achieving greater balance in the performance of all segments of the Outdoor Equipment portfolio,” said Ms. Johnson-Leipold.
According to Jerry Perkins, President and Chief Operating Officer, Johnson Outdoors, “We now expect fiscal 2005 military tent sales to decline approximately 25% versus 2004. In fiscal 2006, absent further orders or awarding of new contracts, military sales could decline further to between $10 – $15 million. As we have stated previously, even if we are successful in winning all the military tent orders and contracts on which we have bid, they are neither of the size nor duration to bring us back to the record levels of military sales realized in either of the last two fiscal years.”
