cats thirdquarter earnings exceeded expectations

Arctic Cat announced its results for the fiscal 2001 third-quarter and nine-months ended December 31, 2000.

Net sales increased 42 percent to $154.9 million for the 2001 third-quarter versus $109.0 million for the same period last year. Net earnings rose 71 percent to $7.4 million, or 30 cents per share on a diluted basis, compared to $4.3 million, or 17 cents per diluted share, earned in the third quarter of fiscal 2000.

"As expected, Arctic Cat's third-quarter sales growth reflects increased shipments of all-terrain vehicles and the timing of snowmobile shipments," said Christopher Twomey, president and CEO. "Our business mix continues to shift toward a larger percentage of ATV sales, as part of our strategic plan to lessen the impact of weather-related snowmobile demand. Industry sales of ATVs during the 2000 calendar year experienced double-digit growth for the eighth consecutive year."

"With normal snow levels throughout most of the snowbelt driving retail sales, we expect year-end inventories to be lower than they have been in any of the last three years," said Twomey.