Johnson Outdoors returns to profitability; Kapco acquires Polaris metal stamping operations in Osceola; Patrick Cudahy to lay off 332 employees temporarily
Johnson Outdoors returns to profitability
Johnson Outdoors Inc. announced it has returned to profitability in fiscal 2010 after losing $9.7 million in the previous year.
The Racine company’s 2010 fiscal full year net income grew to $6.5 million, or 68 per share.
The company’s total net sales grew 7 percent to $382.4 million in fiscal 2010 vs. $356.5 million in fiscal 2009.
The company attributed the rebound to initial recovery of key outdoor recreational markets, double-digit growth in Minn Kota and Humminbird brand sales and double-digit growth in Eureka sales, as well as increased revenues in sales of diving equipment. Also, successful new products generated more than a third of total company revenues.
The company’s annual results overcame a traditionally sluggish fourth quarter.
"We have transformed Johnson Outdoors, taking aggressive, strategic action to enhance competitiveness and profitability now and in the future. We streamlined operations, simplified processes and kept working capital within target levels while investing strategically in innovative new products and programs to strengthen our market-leading positions. As a result, this year’s revenue growth outpaced our markets as we gained share and outperformed the competition. Importantly, significant improvement in operating efficiency enabled us to grow profits faster than sales, a key objective of our strategic plan. Continued industry recovery and focused, disciplined execution of our strategic plan are key to realizing ongoing marketplace success and sustained profitable growth in the year ahead," said Helen Johnson-Leipold, chairman and chief executive officer of Johnson Outdoors.
Kapco acquires Polaris metal stamping operations in Osceola
Grafton-based Kapco Inc. has acquired the metal stamping assets of Polaris Industries Inc.’s operations in Osceola, Wis.
Earlier this year, Polaris announced that it would close the Osceola plant to consolidate its operations, eliminating 515 jobs in the northwestern Wisconsin community.
After he heard the Polaris announcement, Kapco president Jim Kacmarcik decided to make an offer to acquire the Polaris metal stamping assets, consisting primarily of equipment, said Neil Willenson, vice president of community relations for Kapco.
The deal with Polaris includes an arrangement that Kapco will become a tier-one supplier for Polaris, supplying parts for all terrain vehicles, snowmobiles and motorcycles, Willenson said.
Kapco plans to lease 60,000 square feet of space in Polaris’ Osceola facility and will hire at least 50 to 60 employees for the metal stamping operations there, he said.
“As our business grows, we are hopeful we can hire even more people in the Osceola area,” Willenson said.
Many of those employees will likely be current Polaris employees, but the positions will be open to other applicants, as well. Kapco plans to have its Osceola operations up and running by March 1.
Kapco also plans to add another 30 employees to its 260-employee workforce in Grafton, Willenson said.
“Some of Polaris work will end up (in Grafton),” he said. “This is a very significant expansion of our business.”
Kacmarcik said the purchase of the Polaris metal stamping assets and equipment, “fits to a ‘T’ with the core strengths of Kapco and will provide future growth opportunities for our company. We are glad this purchase agreement has worked out and that we’re able to enter into a long-term agreement to supply Polaris with the parts that Kapco will manufacture at the Osceola facility. This is a significant growth opportunity for Kapco and allows us to further establish our company as a strong supplier in a new world marketplace. Polaris is a quality brand recognized worldwide for excellence, and we look forward to providing them with high-quality metal work and bringing Kapco’s values and community service efforts to the Osceola area. By creating these jobs, and keeping them in Wisconsin, we can make a positive contribution to the local economy and provide a boost to the job market. At the same time, Kapco will be strengthening its overall position and establishing a framework for future growth. We look forward to exploring any other opportunities to expand our relationship with Polaris, and we’re pleased to continue growing in Wisconsin by making further investments in our state.”
“We are pleased to confirm the sale of Polaris Industries’ steel stamping assets to Kapco, a strong company that will seamlessly integrate into our operations as a supplier,” said Bennett Morgan, president and chief operating officer of Polaris. “It was very important to Polaris to maintain as much job continuity and security as possible and Kapco is committed to Osceola and the State of Wisconsin.”
Patrick Cudahy to lay off 332 employees temporarily
Patrick Cudahy Inc. plans to temporarily lay off 332 employees and permanently eliminate 17 other positions at its plant in Cudahy.
The company told the Wisconsin Department of Workforce Development that the layoffs have begun at its plant at 1 Sweet Apple-Wood Lane, Cudahy.
Patrick Cudahy anticipates beginning to recall union-represented affected employees in February 2011, based on projected demand and normal attrition.
The DWD and its regional partner, the Milwaukee Area Workforce Development Board, will provide rapid response services as needed to the affected employees.
Patrick Cudahy is a subsidiary of Smithfield Foods Inc., which is based in Smithfield, Va.
