Jul. 21, 2008 – Cycle Country reports hefty raise in orders
July 21, 2008
Filed under Features
Cycle Country has seen an order increase of 200 percent for its third fiscal quarter, stated a company press release.
Part of the increase is because of advanced orders for its fourth quarter. The heightened orders are in nearly every business segment, including contract manufacturing, OEM business and ATV accessories.
The company’s stock prices climbed after the announcement, going from under $1.40 to more than $1.70.
Cycle Country President Jeff Tetzlaff says the advanced orders will allow the company to secure pricing for some time. “We have been able to create a benefit for both our customers and ourselves by locking in the majority of our steel requirements now and thus, creating a known and stable product price for the months ahead,” Tetzlaff said in the release. “With steel prices projected to continue to increase in the near to mid term, it just made sense that we should act now to buy as much steel as we will need for the rest of the fiscal year, plus some.”
In a recent shareholders meeting, Cycle Country also discussed a bit of a change in terms of product strategy.?The company says it is reducing its emphasis on quantity of new products, and concentrating its efforts on getting the right new products out to the market more quickly and more efficiently.
It also has introduced a new product introduction process that strenuously tests and validates new product concepts so that weak product ideas are killed early in the process, according to an online report of the shareholders’ meeting. psb