cat financials look optimistic

Arctic Cat released second quarter financials today with reason for optimism. Net sales for the quarter grew 3% from $276.3 million for last year's second quarter to $285.3 for this year's second quarter. "Our record sales and increased earnings for the second quarter were driven primarily by a 9% increase in snowmobile sales, continued strong demand for our Prowler utility ATV, and higher ATV parts and accessories sales," said Cat's CEO Christopher A. Twomey.

Timing of several shipments and sales of snowmobile and ATVs to dealers were pushed from the second to the third quarter so momentum for big sled sales in the third quarter is strong. A full-year revenue growth of 5-9% in the snowmobile market is expected by Arctic.

Company wide year-to-date net sales were slightly down from $384.2 million last year at this time to $381.7 so far this year. ATV year-to-date sales grew 9% but third quarter sales were down a very small 1.5%.

Snowmobile sales were up 9% compared to the same period last year from $111.4 to $121.5 million. The huge new model lineup from Cat contributed to the up tick. Year-to-date sled sales were still down from $163.5 million last year to $142.4 this year. But remember that shipments were pushed back to the third quarter, so the thinking is that we should see much stronger sales in the next quarter.

Future earnings for Arctic are optimistic with third quarter sales estimated to be up to $210-230 million from $195.3 last year. Cat also expects fiscal year ending growth of 3-6% to give Cat a 7th consecutive year of record sales.