Arctic Cat Blames 4Q Net Loss On Seasonal Business
THIEF RIVER FALLS, Minn. (AP) — Snowmobile and all-terrain vehicle maker Arctic Cat Inc. on Thursday posted a net loss in its fiscal fourth quarter that was flat with the previous year, attributing the red ink to the seasonal nature of the business.
The Thief River Falls, Minn., company said it lost $9.6 million, or 52 cents per share, in the quarter ending March 31, the same amount it lost in the same period of 2010. Revenue for the quarter fell 13 percent to $73.5 million, from $84 million.
The company said in a statement that it typically reports lower results in its fiscal first and fourth quarters because they are the slow selling seasons for snowmobiles and ATVs.
Arctic Cat also said it expects sales to rise 5 to 8 percent in the coming fiscal year to a range of $488 million to $502 million. Earnings are expected to rise 7 percent to 17 percent to a range of 75 cents to 82 cents per share, the company said. It predicted a decline in ATV industry sales but an increase in snowmobile industry sales.
For the full fiscal year, Arctic Cat reported a net profit of $13 million, or 70 cents per share, up from $1.9 million, or 10 cents per share, from fiscal 2010. Revenue was $464.7 million, up 3 percent from $450.7 million in the previous year.
CEO Claude Jordan said in a statement that the full-year earnings increase came from increased snowmobile and snow-related parts and clothing sales.
“In fiscal 2011, we were pleased to see snowmobile sales rebound from their recessionary levels a year ago,” Jordan said. He said the company unveiled a new line of snowmobiles in March, which should boost 2012 sales.
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