Johnson Outdoors, Base-X Expedition Shelters, DHS Systems LLC, and Alaska Structures Inc. have been tapped for a single military contract covering a variety of shelters, trailers and other military supply components. Total combined orders under the new contract could range from $25,000 to $120 million across all four vendors combined. No orders have been placed with Johnson Outdoors under the newly announced contract.
“[It] is important to understand that the award of a contract in no way guarantees orders above the minimum value of the contract,” said Helen Johnson-Leipold, chairman and CEO of Johnson Outdoors Inc. “Further, unlike prior military contracts awarded the Company, the minimum and maximum value of the new contract is shared across four vendors, and does not specify a single tent variety. Our outlook for military tent sales this year and next remains unchanged until we have orders in hand.”
Johnson recently announced that the company would be down-sizing its tent manufacturing work force in its Binghamton, NY facility due to a significant decline in military tent sales. The company is anticipating military tent sales to decline at least 40% this year, and significantly more than that in fiscal 2006.