February 7, 2011-Sled sales boost Arctic Cat’s 3Q
February 9, 2011
Filed under Features
Significant snowmobile sale increases to dealers and distributors fueled Arctic Cat’s improved third quarter.
The Minnesota manufacturer reported gains in both overall revenue and profit in its most recent quarter.
New sled sales propelled that growth, as snowmobile sales in the quarter rose 33 percent to nearly $78 million.
Arctic Cat saw slighter increases in its other divisions, including in its ATV and UTV sales.
“Our results were fueled by higher sales across all product lines,” Arctic Cat CEO Claude Jordan said in a press release. “The combination of increased volume, product mix, product cost-reduction efforts, higher selling prices and a continued focus on efficiency led to another quarter of significantly improved gross margins and profitability.”
Arctic Cat’s quarterly profit of $9.3 million was substantially higher than a year ago — close to $7 million higher — and overall sales rose 16 percent to $151 million.
Arctic Cat also said its factory inventory position improved, with that inventory declining 27 percent compared to a year ago.
The company’s ATV and UTV sales rose 1 percent in the quarter, chiefly driven by sales of its new Prowler HDX.
Arctic Cat also provided a look at how it has fared in each of its divisions for the first nine months of its fiscal year:
“We remain confident that the company is on track to deliver improved operating results, increased profitability and enhanced shareholder value again this fiscal year,” Jordan said. PSB