RACINE - Outdoor recreation company Johnson Outdoors Tuesday announced it will consolidate operations for its paddle sport brands in Old Town, Maine, by the end of September.

The Racine-based company said the move is part of an effort to improve profitability of its watercraft business unit. The decision will close the company's plant in Ferndale, Wash., and eliminate about 90 positions there. The company said it will provide severance and other support to those employees.

Johnson Outdoors said it selected Old Town as the watercraft hub of operations because of its depth of manufacturing capability and capacity for efficient expansion. The company maintains two sites in Old Town but will transfer all operations into one location after conversion of its distribution and warehouse center is finished later this year.

An estimated additional 48 jobs will be created in Old Town when consolidation is completed.

Consolidation is expected to result in annual savings of more than $4 million beginning in fiscal 2010.

Costs and charges associated with the action are estimated to reduce earnings by 16-20 cents per diluted share in the fourth fiscal quarter of 2009.