Columbia Sportswear Plans Construction of European Distribution Facility

Columbia says it has reached an agreement of understanding to acquire the necessary property for the development. Once the appropriate agreements are finalized, Columbia expects the construction of the distribution center to begin in late Summer 2001, and anticipates the facility will be operational in Summer 2002.

Including land acquisition and development, the company anticipates that total costs for the project will be approximately $30 million. Much of the cost will be incurred during the first half of 2002.

Columbia's President and Chief Executive Officer Tim Boyle says the project underscores the company's commitment to Europe, which it has identified as one of the key international regions where outdoor activities are consistently popular, and where it can promote its American brand image.

Indeed, from 1995 to 2000, direct net sales for Columbia's products in Europe increased at a compound annual growth rate of 61%. Columbia's European business grew 42.5% in 2000, from revenues of $41 million in 1999 to revenues of $59 million in 2000. The Company sells products directly to approximately 4,200 retailers throughout Western Europe, while independent distributors are used to sell products in Greece, Norway, Switzerland, Russia and Eastern Europe.

Meanwhile, the company is expanding its 649,000-sf distribution center in Portland's Rivergate Industrial District by another 203,000 sf, making it the largest distribution center in the district. The company says it will be fully integrated into the existing automated distribution center sometime in 2002. The facility is located at 7000 N. Leadbetter Rd.

Columbia's Rivergate Distribution Center first opened in the spring of 1994 with 150,000 sf of space. In just over six years, the facility has more than quintupled in size to accommodate the company's rapid growth. The current expansion is being built on a portion of 20 acres the company acquired for $3.3 million in early 1998. The company had a 300,000 sf distribution center in Rivergate at the time, and was preparing to expand to its current size.

Founded in 1938 in Portland, Columbia is one of the largest outerwear manufacturers in the world and the leading seller of skiwear in the United States. For the year ended Dec. 31, revenues rose 31% to $614.8 million. Net income increased 78% to $58.6 million.

Columbia's share price was trading for $55.875 a share Wednesday afternoon, off 75 cents from Tuesday's close. It's 52-week high came at the beginning of this month, Feb. 2, when shares traded as high as $61.93. It's 52-week low came in March of 2000, when shares were trading below $19.