Arctic Cat annual sales set record
Slow sled sales hurt fourth quarter figures though
Published: May 12, 2006
|Arctic Cat, the Thief River Falls, Minn. sled and ATV maker announced record sales of $732.8 million for fiscal 2006.|
That was up from $689.1 million last year. Fourth quarter results, ending March 31, were less pleasant though as sales dropped to $153.3 million from $157 million in the same quarter last year. Low snow conditions, a lack of new snowmobile product in 2006, and increased incentive programs contributed to the lackluster quarter.
Fortunately, ATV sales continue to grow and Arctic has shown a continuing commitment to its snowmobile line by announcing the largest new model introduction in the company's history for 2007. Total ATV sales were $394.9 million for 2006 compared to $341 million last year. Fourth quarter ATV sales were up $9.7 million.
Final snowmobile sales for the year were $238.1 million compared to $252.5 million a year earlier. Fourth quarter sled sales were a staggering $140,000 vs. $10.9 million for the same period last year. Fewer shipments of machines and greater customer incentives attributed to the low figure. However, Cat's parts and garments sales were up, hitting $99.8 million as opposed to $95.7 million last year.
Cat also confirmed that construction of its new ATV engine manufacturing facility in St. Cloud, Minn. is on track and the facility should be operational by October. The new plant will be the manufacturing hub of its 650 H1 ATV engine.
Cat plans to rely on several factors this year to boost sales and adjusted earnings per share including: continually climbing ATV sales, a completely re-designed snowmobile line-up and a new strategic partnership with the Piaggo Group to sell motorcycles and scooters via Cat dealers.
Because of a production shift affecting snowmobile shipments, Arctic projects a loss in the first quarter of 2007, but expects to rebound. The firm projects sales growth of 3%-6% for 2007.