Dramatic Q3 decline for aftermarket company
August 28, 2009
Filed under Features
Cycle Country Accessories Corp. had a nearly 65 percent decrease in revenue for its third quarter compared to the prior-year period, the company announced.
Cycle Country had revenues of approximately $1.2 million for its quarter, which ended June 30. The company said the third quarter decrease affected three of its four business segments, including a decrease of 76.5 percent in its ATV accessories, and a 47.5 percent decrease in its Plazco brand, which manufactures specialty products for golf carts, lawn and garden equipment and motor sports vehicles.
The only segment that had an increase in the third quarter was the Perf-Form brand, which manufactures and distributes a line of high-performance oil filters for motorcycles, ATVs and PWC. Perf-Form had an 19 percent increase.
For the first nine months of Cycle Country’s fiscal year, the company had a decline in its ATV accessories revenue of 39 percent. Perf-Form decreased 18 percent.
The company said it expects to return to profitability in 2010. Management has reduced its operating overhead and is currently reducing all costs of manufacturing to widen margins. Additionally, management is projecting a slight rebound in its fourth quarter.