Johnson Outdoors reported net income of $13.7 million in the third quarter ended June 28, 2013, a 52 percent increase over the same quarter last year, reflecting changes in foreign tax valuation allowances that significantly reduced the company's effective tax rate year-on-year. Net sales in the quarter increased slightly to $129.8 million, as compared to $128.6 million in the third quarter of the previous year, with new products generating more than 40 percent of total revenues.
The outdoor equipment segment posted sales of $14.8 million in the quarter, up from $12.2 million in the same quarter a year ago. Increased sales in consumer camping by its Eureka subsidiary more than offset declines in big tents. The Jetboil brand, acquired in November 2012, added $3.5 million in sales during the quarter.
Marine Electronics registered quarterly sales of $73.6 million, up from $70.2 million. Diving sales declined by 6 percent against the previous year's quarter to $22.6 million despite revenue gains in the Asia region, primarily due to the challenging economic conditions in southern Europe. Watercraft sales went down to $19.1 million, as compared to $22.2 million in the third quarter a year ago, due to continued reduced emphasis on low-margin product lines and lower sales in Europe, where the company is closing its Watercraft operation at the end of the current fiscal year.
The company's operating profit during the quarter was $16.1 million, a 13 percent increase over the same quarter of the last fiscal year. Operating expenses declined by $1.8 million, due largely to lower restructuring charges and the benefit of a $0.5 million insurance settlement related to a flood in the company's Binghamton, NY operation in late fiscal 2011.
Johnson Outdoors' net income for the nine-month fiscal period to June 28, 2013 was $22.8 million, a 71 percent increase compared with the corresponding period a year ago, favored by a significant reduction in the company's effective tax rate. Operating profit was $30.3 million, a 24 percent increase against the nine-month period the previous year.
The company's net sales for the latest nine-month period were $349.1 million, a 3.5 percent increase over the same period in the previous fiscal year. Growth in Marine Electronics and Outdoor Gear more than offset declines in the Watercraft and Diving units. Jetboil added $7.8 million in sales during the nine-month period. Successful new products across all units delivered nearly half of total company sales in the latest nine-month period.