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Arctic Cat sales, earnings flat on drop in ATV sales

Arctic Cat Inc. reported flat sales and earnings for its fiscal 2003 first quarter. Significantly higher sales of parts, clothing and accessories and a slight increase in sales of snowmobiles were offset by a 20 percent drop of sales of all terrain vehicles.

The Thief River Falls maker of snowmobiles, ATVs and other outdoor products reported net sales for the quarter ended June 30 were flat at $78.3 million compared to $77.8 million for the same period last year. Net earnings for the quarter were $1.97 million, or 8 cents per diluted share, compared to net earnings of $1.96 million, also 8 cents per share for the first quarter of fiscal 2002.

Sales of parts, garments and accessories jumped 37 percent in the quarter, to $10.4 million, compared to $7.5 million last year. Snowmobile sales were up 6 percent, to $48.8 million versus $46.2 million last year. Sales of ATVs were down 20.7 percent, to $19.1 million compared to sales of $24.1 million in the same period last year. The company moved some ATV sales from the first quarter to the second quarter, resulting in the sales drop.

CEO Christopher Twomey predicted sales of ATVs, parts, garments and accessories will each rise about 10 percent during the year, but snowmobile sales are expected to decline. Dealers will probably be conservative when ordering new machines, Twomey said, because of last winter's lack of snow.

For full fiscal 2003 ending March 31 next year, Arctic Cat expects net sales in the $556 million to $570 million range. The company estimates full fiscal year earnings per share will be up 10 percent, in the $1.30 to $1.34 range. The two analysts who follow Arctic Cat and report to Thomson Financial/First Call expect per share earnings of $1.32 for the year.
 

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It surprises me, that in a somewhat unstable economy,that people are buying new sleds at all. I'm not sure how people are feeling the economic crunch elsewhere, but here in east central Wisconsin jobs are being eliminated,and lay-offs are common place. A NEW sled would be one of the last things I would purchase right now !! I work at a lawn & garden/used snowmobile retailer and there is NOTHING selling currently. Hopefully the economy is healthier in other areas.   RB
 

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I think it has to do with personal finances not being THAT bad in general, and LOW interest rates available.
 

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could have something to do with less distance travel and more local travel. go to the mnts for the winter rather than fly to columbia?
the safe feeling of being in the middle of  ( fill in your spot ) no crowds no b/s flying ect.
 

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Personally I think this "economy crunch" is just an excuse for owners to ditch there companies for a huge profit, and get govt. assistance, then blame it on the consumer, I along w/ alot of my friends have spent alot more money this year than EVER before!
 

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probably :( right snow freak lol i got some freinds that blame the gov't for the reason their broke cause of the US gettin involved with the terrorist actions and talks of going after Iraq. it's their own fault there poor why blame others. :cussing:
 

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i agree with performance ex,it's the low interest rates and the fact that nowadays they will finance anyone.lots of people don't ask how much does it cost,just what's the monthly payment going to be
 

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low interest rates are very good for new sales right now, but really hurting the used market. for example its almost imposiible to sell a car that is 2000 and new in my area because its so easy to borrow money fro new vehicles and who wouldnt with the low interest rates. This 0% enterest is really good in a way but hurting the used vehicles sales. :(
 

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Originally posted by paul yarek@Jun 27 2003, 07:06 PM
as for the economy here right now it seems robust.
Same here Paul. Except the canadian Government keeps taxing us more and more. I guess we have to pay for Jean Poutines retirement somehow. What surprised me was how much of an increase in parts and accessories Cat has had. Must be a whole lot of people fixing up there old machines. Another sign of the times. Cant afford new lets fix up the old one.
 
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