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Sept. 27, 2004 – Financial Digest

September 27, 2004
Filed under Features

BRP Completes Terms of Sale to Camoplast
Bombardier Recreational Products Inc. (BRP) and Camoplast Inc. have finalized the terms of the sale of BRP’s industrial vehicle division, after receiving all the required governmental approvals and other relevant consents and conditions.
Located in Granby, the facility produces snowgroomers for the majority of North America’s ski resorts as well as a line of tracked vehicles for the natural resources, energy and telecom industries around the world.
BRP is a leader in the design, development, manufacturing, distribution and marketing of Sea-Doo watercraft and sport boats, Ski-Doo and Lynx snowmobiles, Johnson and Evinrude outboard engines, direct injection technologies such as Evinrude E-TEC, Bombardier ATV, and Rotax engines and karts.
Camoplast Inc., headquartered in Sherbrooke, Quebec, Canada, has 1,850 employees in 12 manufacturing sites located in the United States, Canada, Mexico and Europe. Camoplast manufactures rubber tracks, composite and plastic components aimed at heavy vehicles, recreational, agricultural, transportation and industrial markets.


Diamond 2Q Revenues Up 71%
Diamond Powersports Inc. (OTC Bulletin Board: DPWS) posted revenues of $752,289 for the six months ended June 30, 2004, an increase of $290,466 or 63% compared to revenues for the same period of 2003. Company founder and CEO Pierre Elliott says gross profits through July were $558,719.86 compared to $252,349.95 for the same period last year.
The increases were primarily attributable to market penetration for newer parts, as well as a growing awareness of its products in the first two quarters of 2004, Elliott said.
He said Diamond’s sales include purchases by Tucker Rocky Distributing and Global Motorsport Group, owner of Motorcycle Stuff and Custom Chrome.
Founded in 1992, DPWS manufactures and distributes custom parts such as its Flame/frame sliders, lowering links, foot pegs, chain guards, kickstands and other miscellaneous sportbike accessories. The Diamond Powersports product line now includes nearly 400 aftermarket motorcycle parts for the sportbike enthusiast.


July Sales Climb at Cycle Country
Cycle Country Accessories Corp. (ATC) revenues for July 2004 were $1,509,416 versus $972,537 in July 2003, an increase of over 55%.
Rising demand for the company’s snowplows and OEM accessories as well as new product introductions boosted ATC’s sales, according to company officials. Snowplow revenues at the Milford, Iowa, manufacturer increased more than 80% from last year while OEM revenue climbed more than 250%.
“We continue to see the results of our quality and cost containment initiatives,” says Ron Hickman, president and CEO. “We are also working with our OEM partners to improve our efficiencies and to be able to meet the steadily increasing demand.”


Japan’s Cycle Production Slips
Japan’s motorcycle manufacturers produced a total of 134,351 units during July, 11.2% less than the 151,367 total units produced during July 2003, according to the Japan Automobile Manufacturers Association, Inc. (JAMA).
July production figures include 49,673 units from Yamaha; 49,584 units from Honda; 18,900 units from Suzuki; 16,169 units from Kawasaki; and 25 units from other manufacturers.
The four manufacturers posted a combined export total of 92,942 units during July 2004, up from the 85,214 units exported during July 2003. Yamaha exported 35,601 units; Honda, 29,948 units; Suzuki, 14,582 units; and Kawasaki, 12,811 units.
Of those totals, 48,236 units were shipped to the U.S., a drop of 6,000 units compared to the 42,238 units shipped to the U.S. during July 2003.


ASV Has Record Quarter
ASV, Inc. (NASDAQ: ASVI), Grand Rapids, Minn., has reported record net sales of $39.1 million for the second quarter of 2004, compared with $26.4 million for the second quarter of 2003. Net earnings increased to a record $4.2 million, or 32 cents per share, compared with $2.3 million, or 22 cents per share, for the second quarter of 2003, despite a 26% increase in the number of diluted shares outstanding in the second quarter of 2004.
For the six months ended June 30, 2004, net sales increased 76% to $72.1 million, compared with $41.0 million for the same period in 2003. Net earnings more than doubled to $7.8 million, or 58 cents per share, for the six months ended June 30, 2004, compared with $3.1 million, or 30 cents per share, for the same period in 2003, even with a 31% increase in the number of diluted shares outstanding for the six months ended June 30, 2004 compared with the similar period in 2003.
ASV designs, manufactures and sells rubber-tracked, all-purpose crawlers and related accessories and attachments. ASV also manufactures rubber-tracked undercarriages, which are a primary component on Caterpillar’s Multi Terrain Loaders.
“During the second quarter of 2004, ASV continued on its plan for sustained long-term growth with record sales and earnings levels during what has historically been our strongest quarter,” said ASV CEO Gary Lemke.
Sales of ASV’s R-Series Posi-Track products more than doubled in the second quarter of 2004 compared with the second quarter of 2003, due in part to a greater number of products offered and an increased dealer base in 2004, he said.
Sales of R-Series Posi-Track products accounted for 58% of sales for the second quarter of 2004 compared with 41% for the second quarter of 2003. Sales of ASV undercarriages to Caterpillar Inc. (NYSE: CAT) for use on their Multi-Terrain Loaders (MTL) represented 26% of our sales for the second quarter of 2004.
“MTL orders are at record levels and we anticipate our MTL undercarriage sales will increase during the second half of 2004 such that approximately 40% of our total revenue for fiscal 2004 will be from MTL undercarriage sales,” he said.
ASV’s gross profit percentage increased to 22.4% for the second quarter of 2004, compared with 20.2% for the second quarter of 2003. This increase in gross profit percentage was due primarily to a change in sales mix, with a greater percentage of R-Series Posi-Track products sold during the second quarter of 2004.
“As we reach the half way point in our fiscal year, we are pleased to have delivered increased sales of 76% and increased earnings per share of 93% over 2003,” Lemke said. Based upon this year’s sales growth, he said 2004 sales are expected to be within a range of $140 million-$155 million. He said 2004 diluted earnings per share are expected to be in the range of $1.12-$1.20.

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