Arctic Cat CEO Claude Jordan is out

[christopher]

http://www.bizjournals.com/twinciti...at-ceo-claude-jordan-is-out-former-chief.html

Jun 2, 2014, 6:57am CDT Updated: Jun 2, 2014, 9:11am CDT
Arctic Cat CEO Claude Jordan is out, former chief Chris Twomey steps in

Enlarge Photo

Arctic Cat
Claude Jordan, former CEO of Arctic Cat




Mark ReillyManaging Editor- Minneapolis / St. Paul Business Journal Email

Claude Jordan, the chairman and CEO of Arctic Cat Inc., has resigned from the snowmobile and ATV maker after a pair of difficult quarters and a slumping stock price that's lost one-third of its value since January.

Former CEO Chris Twomey is taking over as interim chief.

Plymouth-based Arctic Cat (Nasdaq: ACAT) announced Jordan's departure Monday morning. Jordan had spent six years at the company, first as president and then as successor to Twomey, who led Arctic Cat for more than two decades. Jordan's departure was described as a mutual decision by Jordan and the board.

Shares of Arctic Cat are diving on the news; the stock is down more than 10 percent, to $33.54 in morning trading.

The company missed its earnings estimates in its fiscal third quarter— despite a cold, snowy winter in much of the country — and then again in the fourth quarter, when the Star Tribune reported that it also lowered its outlook for the coming year on weak Canadian business and a poor product mix.

Twomey will lead the company on an interim basis while a permanent CEO is sought. The company also is seeking a new chief financial officer; CFO Tim Delmore had previously announced he'd retire this year, but has put that off while a search continues.

It's not known when the decision was made for Jordan to leave; just three days ago the company filed its proxy statement to shareholders, noting that Jordan would be officiating at its annual meeting Aug. 7.

In that filing, the company reported that Jordan earned $1.9 million in fiscal 2014, down from $2.2 million the year before. Most of the decline was attributed to lower incentive pay.


Manufacturing

 

[Snowmow]

Thank god

 

[christopher]

Thank god

Question is.

WHO will the Board choose as his permanent replacement?

 

[backcountryislife]

Question is.

WHO will the Board choose as his permanent replacement?

Hence the plunge based on the news. The devil you know is less scary than the one you haven't met yet!


I feel that a product lineup based off innovation before cost savings would result in increased revenue... not that the current lineup is in bad shape, but there really should have been more improvements since 2012. In 3 years, more innovation should have happened to justify newer purchases by previous customers. (the reality of the sled world imo... we don't have THAT many new customers, but it's mostly about talking someone out of their old machine & into a new one) They've been claiming the same weight loss that the 2012 HCR had for 3 years now... they really need to actually make some more solid changes to sell folks on a new sled. That guy with a 13 LE has essentially ZERO reason to step up & get a 15 right now.

Excited to see what a change in leadership does in the company.

 

[Reeb]

Na this is only a ploy to keep the stock from going lower and subduing shareholders.
Make it look like something is happening to keep the wheels pointed in the right direction.
In reality, nothing that any board member does is done solo. It's the collective board that makes every single decision. Jordan is just the latest fall guy.
If they want to make sweeping changes and actually move the company in another direction, the board would collectively resign and make way for fresh faces. Not re-instate the old guard. Twomey was in the drivers seat for long enough and with ridiculously close ties to the company since he stepped down. This is on him just as much as it's on Jordan.

 

[boondocker97]

At least SOMETHING changed. There's been more than one of their decisions I haven't agreed with in the past couple years.