Arctic Cat announces layoffs
February 9, 2007
Filed under Features
Arctic Cat is reducing its workforce by nearly 4 percent in an effort to lower the company’s cost structure and align resources with current business conditions, the company said yesterday.
Approximately 65 positions are being eliminated, mostly from the company’s Thief River Falls, Minn., facility.
“This was not an easy decision, but it reflects the realities of the current industry-wide market conditions, particularly for sales of snow-related products,” said Chris Twomey, Artic Cat CEO, in a news release.
Arctic Cat reported a mixed bag in its third quarter financial report, showing net sales on the rise but overall earnings continuing to drag behind last year. The company’s net sales grew to $228.1 million in its fiscal third quarter, which ended Dec. 31. In its press release, Arctic Cat said it doesn’t expect any material financial impact related to the layoffs in its fiscal fourth quarter, which ends March 31. Arctic previously stated it expected fourth quarter net sales to hover between $150 million to $170 million, which could be a drop from last year’s $153.3 million fourth quarter result.
For more on this story, read the March 12 edition of Powersports Business.