Arctic Cat 2Q Profit Falls On Lower Sales

MINNEAPOLIS (AP) — Arctic Cat Inc. said Thursday its fiscal second-quarter profit fell 13 percent as demand for its snowmobiles and all-terrain vehicles were hurt by tough economic conditions.

The results beat Wall Street predictions, however, and Arctic Cat shares jumped 75 cents, or 13 percent, to $6.51 in midday trading.

For the quarter ended Sept. 30, Arctic Cat earned $14.8 million, or 81 cents per share, down from $16.9 million, or 93 cents per share, in the same quarter last year.

Sales fell 19 percent to $166.3 million from $204.3 million as snowmobile and ATV sales dropped 19 percent to $137.5 million and sales of parts, garments and accessories fell 16 percent to $28.8 million.

Analysts polled by Thomson Reuters expected a profit of 62 cents per share on $155.8 million in sales.

While the company still expects lower worldwide snowmobile orders in fiscal 2010 as a result of the recession, it also said it expects to maintain or boost its North American market share by offering consumers new technologies such as its 800cc engine.

Arctic Cat said it expects its fiscal 2010 sales to total between $425 million and $460 million, while analysts, on average, expect sales of $445.9 million.

The company's prediction is based on expectations of ATV sales of $188 million to $203 million, snowmobile sales in the range of $140 million to $152 million and parts, garments and accessories sales of $97 million to $105 million.