Important Arctic Cat HALTING PRODUCTION

[christopher]

https://finance.yahoo.com/news/textron-hits-brakes-powersports-strategic-170634769.html

Textron Hits The Brakes On Powersports: Strategic Shift Amid Soft Demand
Nabaparna Bhattacharya
2 min read

Textron Hits The Brakes On Powersports: Strategic Shift Amid Soft Demand

Textron Inc. (NYSE:TXT) shares are trading lower on Wednesday following the announcement that it is pursuing strategic alternatives for its Powersports product line within its Industrial segment.

The decision comes as the consumer demand for powersports products continues to remain soft, per an exchange filing.

In response, Textron’s Textron Specialized Vehicles business will begin pausing production of its powersports products after completing limited production runs to fulfill customer commitments.

Production is expected to be paused indefinitely in the first half of 2025.

As part of this restructuring effort, Textron has increased its expected pre-tax special charges for its 2023 restructuring plan.

Originally expected to range between $165 million and $170 million, these charges will now range from $190 million to $205 million, reflecting contract termination costs related to the production pause.

Additionally, the company anticipates incurring an inventory valuation charge of $30 million to $40 million to write down powersports inventory to its net realizable value.

This charge will reduce adjusted earnings per share for 2024 by approximately $0.12 to $0.16.

While announcing its third quarter results, Textron revised its 2024 adjusted earnings per share from continuing operations outlook to $5.40 to $5.60, down from its previous outlook of $6.20 to $6.40. Textron exited its third quarter with cash and equivalents of $1.289 billion and inventories worth $4.410 billion.

This article Textron Hits The Brakes On Powersports: Strategic Shift Amid Soft Demand originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

 

[christopher]

Textron weighs options for off-road vehicles business, pauses production

World's largest air show for business jets opens, in Henderson · Reuters
Reuters
Updated 1 min read

(Reuters) - Textron is exploring strategic alternatives for its Powersports product line due to persistent weak demand, the Cessna jet maker said on Wednesday.

The Powersports unit, which is part of the Textron Specialized Vehicles business under the Industrial segment, manufactures snowmobiles and recreational off-road vehicles, as well as parts and accessories for those vehicles, under the Arctic Cat brand.

"TSV has begun to pause production of its powersports products as management reviews strategic alternatives for the business," Textron said in a filing.

The Providence, Rhode Island-based company announced a restructuring plan in November 2023 to reduce operating expenses.

This plan includes, among other measures, reducing the headcount at TSV, where the company anticipates that demand for certain powersports products will remain low.

As a result of the production pause and contract termination costs, Textron now expects total pretax special charges from the restructuring plan to range between $190 million and $205 million, up from the previously announced range of $165 million to $170 million.

The inventory valuation charge is expected to reduce adjusted profit for 2024 by approximately 12 cents to 16 cents per share. These charges will be recorded in the fourth quarter of 2024.

In October, Textron forecast full-year 2024 adjusted profit to range between $5.40 and $5.60 per share.

(This story has been corrected to fix the adjusted profit forecast to between $5.40 and $5.60 per share, not $1.40 and $1.49, in paragraph 8)

(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Tasim Zahid)

https://finance.yahoo.com/news/textron-weighs-options-off-road-153344558.html

 

[Powderboy]

Not super surprised. Although I never rode cats, it's sad to see such an iconic brand disappear. But also not the first time they ran themselves out of business and came back. Maybe they have some more lives left lol.

 

[christopher]

Not super surprised. Although I never rode cats, it's sad to see such an iconic brand disappear. But also not the first time they ran themselves out of business and came back. Maybe they have some more lives left lol.

Don't think they are going to vanish.
More likely you are going to hear that Cat was Acquired once again..

 

[Powderboy]

Certainly possible. Ideally, though, you have a buyer lined up versus letting all the manufacturing and engineering talent go and halting production. Makes it a tougher sale in my opinion.

 

[mattymac]

if this news surprises anyone they havent been paying attention.

I have been saying that cat will be done for the last couple years. I have even told my die hard cat buddies dont buy a cat, not only because of how they screwed their dealers (dealer network) but what about future support?

I thought it would have come later only because I thought the 858 would buy them a couple years. A brand new engine offering for MY 2024 and then announce theyre going to be closing up next year right when winter hits did surprise me a little bit.

I also said last year that if they didnt have an 858 boosted option theyre done.

I used to work at a cat dealer in the late 90's early 2000's. One thing is cat guys always wanted power, Suzuki provided it. Cats were more geared towards the muscle/power clientele IMO.

 

[2002ws6]

I saw this coming the day Textron announced the take over of Cat. They were not a good fit when Polaris was a Textron company in the 70;s.

 

[caper11]

Textron has not done Arctic Cat any justice, I am actually glad they are looking for a buyer.