May 24, 2010 – Arctic Cat gains ATV, sled market share

Arctic Cat finished its fiscal year in the black and with a higher market share in its two key vehicle categories despite declining sales.
The Minnesota manufacturer reported net earnings of $1.9 million for its fiscal year after a prior-yet net loss of $9.5 million.
“Despite facing a challenging recreational vehicles market throughout the year, Arctic Cat delivered greatly improved operating results,” Arctic Cat CEO Christopher Twomey said in a press release. “Despite facing a challenging recreational vehicles market throughout the year, Arctic Cat delivered greatly improved operating results. We continued to lower the company’s cost structure through aggressive expense controls, manufacturing efficiencies and low-cost sourcing, which led to higher gross margins and operating profits in fiscal 2010. We continued to lower the company’s cost structure through aggressive expense controls, manufacturing efficiencies and low-cost sourcing, which led to higher gross margins and operating profits in fiscal 2010.” Twomey noted the company expects its full-year sales of $450 million to be nearly repeated in its fiscal 2011 year.
For its fiscal 2010 year, Arctic Cat reported a 24 percent decline in sales in its largest category, ATVs. Quad sales, which include UTVs, totaled $187 million. The company’s snowmobile sales also declined, falling 21 percent compared to the year-ago period to $162 million. Even with those declines, the company noted it picked up North American market share in both the ATV and snowmobile markets. PSB