earnings reports mixed
Amsnow
Two of the Big 4 reported quarterly sales figures recently, with mixed results - Polaris was up while Arctic Cat declined.
Polaris:
Polaris reported sales and earnings up in the fourth quarter and for the year. Fourth quarter sales hit $541.4 million, a 21% increase from the same quarter last year. Net income was $38 million, a 5% increase.
For the full year, Polaris posted sales of $1.7 billion, up 7% from a year earlier. Income grew 4% to $112.6 million for 2007.
Compared to a year earlier Polaris saw snowmobile sales grow 14%, while ATV sales edged up 7% and parts, garments and accessories grew 9%.
Polaris says it sold $179.2 million worth of snowmobiles in 2007, up from $156.9 million in 2006. In the fourth quarter, snowmobile sales grew 30% to $80.2 million.
Company officials said the results met their expectations in a challenging economy. Polaris says it anticipates sales growth of 3% to 5% in 2008.
Arctic Cat:
The Thief River Falls, Minn., maker of snowmobiles and all-terrain vehicles posted sales of $159.6 million in its third quarter, down from a record $228.1 million a year earlier, about a 30% decrease.
In addition, it reported a net loss of $10.5 million as opposed to an $8.2 million profit in the third quarter the year before.
For the first nine months of the year, Arctic Cat said sales declined about 25% to $452.7 million. Likewise, for the 9 months, the company reports a net loss of $3.7 million vs. $23.6 million in profits in the period last year.
Snowmobile sales were $60 million in the third quarter, down from $106.4 million in the period last year. For the first 9 months, snowmobile sales were $168.9 million, down from $248.8 million. ATV sales were $70.1 million in the quarter, down from $91.8 million. For the first nine months, ATV sales were $207.4 million, a decrease from $285.8 million.
Planned production cutbacks continue on both product lines to help dealers balance inventory.
Arctic Cat said it had expected a difficult year and took action to reduce dealers' snowmobile inventories. It said a deteriorating ATV market in the quarter added to the firm's difficulties. It expects stronger fourth quarter sales of $192 to $212 million, up from $172.6 million a year earlier.