cat firstquarter results beat expectations

Net earnings for the 2002 first quarter were $1,957,000, or 8 cents per diluted share. Net sales for the quarter were $79,234,000 compared to $87,965,000 for the same period last year.

Chris Twomey, Cat's president and chief executive officer commented, "Net sales and earnings slightly declined in the first quarter due to the timing of shipments of ATVs. As planned, we moved some first-quarter shipments into our second quarter to better match the retail selling season for 2002 models. Based on orders already received from our dealers, we expect full-year ATV sales to increase 5 to 10 percent and surpass last year's record sales.

In the first quarter, Arctic Cat snowmobile revenues continued to grow, posting a 4 percent net sales increase over the same period last year. Based on orders received from dealers, the company expects full-year snowmobile sales to increase 10 to 15 percent.

Cat's fiscal 2002 outlook:
Twomey stated, "We continue to expect that ATV revenues will increase during this fiscal year and that our retail sales will again outpace the industry. We also anticipate that fiscal 2002 revenues will increase 10 to 15 percent based on orders already received and low dealer inventories. As a result, we expect to report continued record-breaking revenues and increased earnings in the year ahead."