Johnson Outdoors has received an urgent need order from the U.S. Military for 2,510 modular general purpose tent systems worth $15.9 million. Previously, Johnson Outdoors management was anticipating a 40% decline in tent sales to the military, but now this decline is expected to improve to 25% below last year.
Jerry Perkins, president and COO of Johnson Outdoors said, “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 million to $15 million.”
In addition to boosting the top-line, this deal will also benefit many JOUT employees. In March, Johnson Outdoors announced to Binghamton employees a pending elimination of permanent positions due to the significant decline of military tent orders. This new emergency tent order ensures production of MGPTS at the Binghamton operation through the calendar year.
In other news, JOUT has decided to expand the role of its sales agency in the South and Midwest by adding the companys paddlesports brands to their mix. The agency, Dunkin-Lewis, first started with JOUT as the Minn Kota trolling motor sales rep and has since expanded into Eureka tents and Humminbird fishfinders.
