cat sales dip in first quarter

Arctic Cat's first quarter financial results show a better than expected scenario. Sales dipped 10.6% from the first quarter a year ago, with net sales of $96.4 million compared with $107.9 million last year.

ATV sales were up, but sled sales were down in the quarter, which ended June 30th.

Snowmobile sales plummeted to $20.9 million in the first quarter, down from $52 million in the period the prior year. This 60% drop was due in part to a planned shift in new 2007 model production, the company said. Arctic Cat still foresees sled sales exceeding last year because of its strong '07 lineup, of which 80% is brand new. This is the largest new sled lineup in the company's history.

Arctic's ATV sales grew to $60.2 million from $41.4 million for the same period last year. This 45% increase was helped by sales of the Prowler UTV and shipment timing.

"Our first quarter results were better than planned, primarily due to higher all-terrain vehicle sales to dealers," said Cat CEO Christopher A. Twomey. "We also are encouraged that retail sales of Arctic Cat ATVs grew at a much faster pace than the overall ATV industry during the quarter."

For Cat, the trend in parts, garments and accessories still seems to be climbing as sales increased 6% to $15.4 million. ATV accessories attributed to much of the gain.

Cat is continuing to shift its total product mix toward the ATV side and away from snowmobiles. ATVs are now Cat's leading product.