Arctic Cat Posts Fiscal 4th-quarter Loss

MINNEAPOLIS (AP) — Arctic Cat Inc. said Thursday it posted a loss in its fiscal fourth quarter as retail demand for the company's snowmobiles and all-terrain vehicles plunged.

For the three months ended March 31, the company lost $16.7 million, or 93 cents per share, compared with a profit in the year-earlier period of $424,000, or 2 cents per share.

Excluding a one-time goodwill impairment charge, Arctic Cat lost 83 cents per share in the latest quarter.

Analysts polled by Thomson Reuters expected a loss of 89 cents per share. Analyst estimates typically exclude one-time charges and benefits.

Sales dropped to $90.7 million from $168.9 million. Wall Street forecast revenue of $95 million.

"In light of the difficult retail environment, we continued our plan to further reduce dealer inventories during the quarter, resulting in lower inventory levels across all product lines," Chief Executive Christopher A. Twomey said in a statement.

"However, this necessary action negatively impacted the company's revenue and profitability for the fourth quarter and full year."

For the 12 months ended March 31, the company lost $9.5 million, or 53 cents per share, compared with a loss of $3.3 million, or 18 cents per share, in the previous fiscal year.

In midday trading, shares fell 10 cents, or 2.2 percent, to $4.44 in midday trading.