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Ran across this article today, not good news..
“Unfortunately, overall demand for recreational products remains weak, due to the year-long deterioration in global economic conditions, higher unemployment, historically low consumer confidence and the continued credit crisis,” says Arctic Cat CEO Christopher A. Twomey.
“As a result, industry-wide ATV retail sales declined further in the December quarter and we do not see a quick recovery. Retail sales of Arctic Cat’s ATVs fared somewhat better than the industry as a whole for the quarter and year to date. However, because of the weak retail environment, we are now planning significantly lower ATV sales to our dealers in the fourth quarter versus the prior-year period, in order to better align dealer inventories with consumer demand.
“This action will negatively impact our revenue and profitability this fiscal year, but it is necessary given prevailing market conditions. Given this situation, we are implementing several profitability initiatives aimed at improving our margins, reducing operating expenses and achieving profitability in our next fiscal year 2010.”
Sales of Arctic Cat’s ATVs were down 18 percent to $57.8 million versus $70.1 million in the prior-year third quarter. Arctic Cat’s 2009 third quarter results benefitted from sales of the Prowler utility vehicle and large-displacement engine models, such as the launch of the new two-rider TRV 1000 and Prowler 1000 XTZ, as well as the Thundercat 1000 ATV.
“Unfortunately, overall demand for recreational products remains weak, due to the year-long deterioration in global economic conditions, higher unemployment, historically low consumer confidence and the continued credit crisis,” says Arctic Cat CEO Christopher A. Twomey.
“As a result, industry-wide ATV retail sales declined further in the December quarter and we do not see a quick recovery. Retail sales of Arctic Cat’s ATVs fared somewhat better than the industry as a whole for the quarter and year to date. However, because of the weak retail environment, we are now planning significantly lower ATV sales to our dealers in the fourth quarter versus the prior-year period, in order to better align dealer inventories with consumer demand.
“This action will negatively impact our revenue and profitability this fiscal year, but it is necessary given prevailing market conditions. Given this situation, we are implementing several profitability initiatives aimed at improving our margins, reducing operating expenses and achieving profitability in our next fiscal year 2010.”
Sales of Arctic Cat’s ATVs were down 18 percent to $57.8 million versus $70.1 million in the prior-year third quarter. Arctic Cat’s 2009 third quarter results benefitted from sales of the Prowler utility vehicle and large-displacement engine models, such as the launch of the new two-rider TRV 1000 and Prowler 1000 XTZ, as well as the Thundercat 1000 ATV.
