Arctic Cat Inc. reported on Thursday that net earnings for the 2011 fiscal year ended March 31 increased to $13 million, up from prior-year net earnings of $1.9 million. Arctic Cat’s net sales for the fiscal year grew to $464.7 million versus $450.7 million last fiscal year.
“We are pleased with the continued improvement in Arctic Cat’s full-year profitability and revenue,” Claude Jordan, Arctic Cat’s president and CEO, said in an earnings release. “Contributing to our fiscal 2011 results were increased sales of snowmobiles and snow-related parts, garments and accessories. Our ongoing emphasis on controlling our cost structure led to higher gross margins and operating profits in fiscal 2011, while additional inventory reductions further strengthened the company’s balance sheet.”
Arctic Cat snowmobile sales were up 12 percent, and dealer inventory was lowered by 22 percent during the fiscal year compared to a year ago, positioning the company well for fiscal 2012, Jordan said.
ATV sales decreased by four percent compared to a year ago, and dealer inventory was lowered by 21 percent from a year ago. Industry-wide ATV retail sales fell by 17 percent last year, allowing Arctic Cat to improve market share. Jordan said Arctic Cat’s heavy-duty side-by-side Prowler HDX has performed well since its launch in July 2010, along with the recently launched 350 4x4 automatic and 425 EFI 4x4 automatic.