Arctic Cat rebounds with record 2Q sales
November 13, 2006
Filed under Features
Arctic Cat rebounded from a sluggish first quarter to post net earnings of $20 million in its second quarter, a slight increase over the prior-year period.
That comes after Arctic Cat reported a net loss of $4.5 million in the first quarter.
“Our record sales and increased earnings for the second quarter were driven primarily by a 9 percent increase in snowmobile sales, continued strong demand for our Prowler utility ATV and higher ATV parts and accessories sales,” Arctic Cat CEO Christopher Twomey said in a released statement.
Arctic Cat’s net sales for its second quarter, which ended Sept. 30, was $285.3 million, a 3 percent increase from the same period last year.
“We are confident that we remain on track to post sales gains across all of our product lines for the fiscal year,” Twomey said.
The Thief River Falls, Minn.-based company expects full-year revenue growth to be in the 5 to 9 percent range for snowmobiles, a 3 to 5 percent increase for ATV sales and a 3 to 6 percent boost for PG&A sales.
However, for its six-month period, net sales and earnings decreased for Arctic Cat. Net sales were $381.7 million, down less than 1 percent from the first half of the last fiscal year. Net earnings were $15.4 million, a drop of nearly 22 percent from the same period in ’05.
Sales of ATVs were down slightly in the second quarter to $133.8 million, but year-to-date are up 9 percent at $194 million.
During the second quarter, Arctic Cat began shipping the new Diesel 700, the industry’s first twin cylinder diesel ATV. “This machine reflects our stewardship goal to be a leader in fuel efficiency,” Twomey said.
Sales of Arctic Cat snowmobiles increased 9 percent in the second quarter versus the prior-year quarter to $121.5 million. But the company’s year-to-date sled sales are still down almost 15 percent at $142.4 million. Arctic Cat, however, did say in its quarterly report that some of its snowmobile and ATV sales that were expected to occur in the second quarter will now occur in the third quarter. The company also said it expects its snowmobile revenues will exceed last year’s figures based on dealer orders. psb