Claude Jordan, the chairman and CEO of Arctic Cat Inc., has resigned from the snowmobile and ATV maker after a pair of difficult quarters and a slumping stock price that's lost one-third of its value since January. Former CEO Chris Twomey is taking over as interim chief.
Plymouth-based Arctic Cat (Nasdaq: ACAT) announced Jordan's departure Monday morning. Jordan had spent six years at the company, first as president and then as successor to Twomey, who led Arctic Cat for more than two decades. Jordan's departure was described as a mutual decision by Jordan and the board.
Shares of Arctic Cat are diving on the news; the stock is down more than 10 percent, to $33.54 in morning trading.
The company missed its earnings estimates in its fiscal third quarter—despite a cold, snowy winter in much of the country—and then again in the fourth quarter, when the Star Tribune reported that it also lowered its outlook for the coming year on weak Canadian business and a poor product mix.
Twomey will lead the company on an interim basis while a permanent CEO is sought. The company also is seeking a new chief financial officer; CFO Tim Delmore had previously announced he'd retire this year, but has put that off while a search continues.
It's not known when the decision was made for Jordan to leave; just three days ago the company filed its proxy statement to shareholders, noting that Jordan would be officiating at its annual meeting Aug. 7.
In that filing, the company reported that Jordan earned $1.9 million in fiscal 2014, down from $2.2 million the year before. Most of the decline was attributed to lower incentive pay.