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    | Jan-04-2008 Arctic Cat Revises Fiscal 2008 Third-Quarter and Full-Year Outlook(topic overview)CONTENTS:
SOURCES
Arctic Cat Inc. reduced its fiscal third-quarter and full-year outlooks on weaker-than-projected sales of its all-terrain vehicles. The company also announced plans to cut its annual ATV production by about 10% in current quarter due to the poor industry environment. The Thief River Falls, Minn., company, known for its all-terrain vehicles and snowmobiles, lowered its net sales estimate for the quarter ended Dec. 31 to $155 million to $160 million, down from its earlier forecast of $170 million to $180 million, and sharply below the year. [1] CHICAGO, Jan 4 (Reuters) - Arctic Cat Inc (ACAT.O: Quote, Profile, Research ) on Friday warned of a wider-than-expected quarterly loss and a drop in full-year earnings, citing a shortfall in sales of all-terrain vehicles (ATV), sending shares to their lowest level since 1999. Arctic Cat already expected a net loss in its third quarter ended Dec. 31 mainly due to reduced production of snowmobiles and widened that expected loss, citing an industrywide decline in ATV sales. The Thief River Falls, Minnesota-based company plans to cut annual ATV production by about 10 percent in its fiscal fourth quarter ending March 31 reflecting weaker demand.[2] According to the company, the industry-wide retail ATV sales slowdown has hit all segments of the market, except the large-displacement engine segment, which reported modest gains. Arctic Cat's results are reflective of these trends, showing lower sales of ATVs with engines under 650cc's but sustained demand for large-displacement ATVs and Prowler utility vehicles. Looking ahead, Arctic Cat said that keeping the difficult industry conditions in mind, it has decided to produce lesser ATV units in its fourth March quarter. The company also plans to cut its annual ATV production by approximately 10% during the fourth quarter. Twomey said, 'This action is in keeping with our aim to vigilantly align production and inventory with consumer demand.' Arctic Cat remains in a strong financial position, with no long-term debt, the chief executive officer added. Separately, the company said that its Board of Directors authorized a new share repurchase program of up to $10 million of its common stock.[3] "Arctic Cat remains in a strong financial position, with no long-term debt," Twomey said. The company expects to report its actual fiscal 2008 third-quarter results on January 23, 2008. Arctic Cat's board of directors has authorized a new share repurchase program of up to $10 million of its common stock.[4] Snowmobile and all-terrain vehicle maker Arctic Cat Inc. lowered its fiscal third-quarter outlook Friday, citing lower-than-expected sales of its vehicles. For the quarter ended Dec. 31, the company now expects a loss of 55 cents to 60 cents per share, down from its prior outlook of a loss of 30 cents to 37 cents per share. Arctic Cat (nasdaq: ACAT - news - people ) also lowered its sales outlook to between $155 million and $160 million from its earlier forecast of $170 million to $180 million. This is well below the year-ago quarter's $228.1 million revenue.[5] Thief River falls-based Arctic Cat (NYSE: ACAT) which makes snowmobile and all-terrain vehicles, said that for the third quarter it expects a loss of 55 cents to 60 cents per share. That's down from its previous outlook of a loss of 30 cents to 37 cents per share. The company also lowered its sales outlook to $155 million and $160 million, down from an earlier estimate of $170 million to $180 million.[6] Arctic Cat, which expects to report results on Jan. 23, said ATV retail sales were in line with the market overall, which has seen sales slow down in all segments except for modest gains on large-displacement engines. The company expects a third-quarter net loss of 55 cents to 60 cents per share, compared with its prior net loss view of 30 cents to 37 cents per share. Third-quarter net sales are estimated at $155 million to $160 million, down from its earlier forecast of $170 million to $180 million, Arctic Cat said.[2] The company previously estimated net sales for the current fiscal year to be in the range of $710 million to $736 million, with full-year diluted earnings per share in the range of $0.89 to $0.95. "After reporting seven consecutive years of record sales, we are disappointed with these results and the sluggish ATV environment," said Christopher A. Twomey, Arctic Cat's chairman and chief executive officer.[4] Analysts on average were looking for a third-quarter loss of 31 cents per share on sales of $176 million, according to Reuters Estimates. Arctic Cat expects full-year earnings of 1 cent to 7 cents per share, versus its earlier forecast of 89 cents to 95 cents per share and Wall Street's estimate of 67 cent.[2] The consensus of four analysts polled by Thomson Financial was for revenue of $174.78 million. For it's bottom line, Arctic Cat said it now expects a net loss of $0.55 to $0.60 per share, down from the previous forecast of a net loss of between $0.30 and $0.37 per share, primarily due to a reduction in snowmobile production during the current fiscal year.[7] Arctic Cat ( ACAT - Cramer's Take - Stockpickr ) hits the skids as all-terrain vehicle sales tumble down a rough path. The Thief River Falls, Minn., snowmobile giant warned that its net loss for the quarter ended last week would be between 55 cents and 60 cents a share. That range is a much greater loss than the prior forecast for 30 cents to 37 cents.[8] Arctic Cat Inc. (Nasdaq: ACAT ) lowers Q3 and full-year outlook due to lower than anticipated sales of all-terrain vehicles. Arctic Cat sees Q3 sales of $155 million to $160 million, versus its earlier forecast of $170 million to $180 million.[9] For the three months ended Dec. 31, 2007, the manufacturer of all-terrain vehicles said it anticipates net sales of $155 million to $160 million, down from the company's previous forecast of $170 million to $180 million.[7] Third-quarter net sales are now estimated at $155 million to $160 million compared to a record $228.1 million in the prior-year third quarter, and versus the company's earlier forecast of $170 million to $180 million.[4] Arctic Cat now anticipates 2008 third-quarter net sales in the range of $155-$160 million compared to the earlier forecast of $170-$180 million.[3] Arctic Cat now anticipates sales for the full year ending March 31, 2008, to be in the range of $645 million to $665 million, compared with record net sales in fiscal 2007 of $782.4 million.[4] For the full year, Arctic Cat is expecting a profit of 1 cents to 7 cents per share on sales between $645 million to $665 million. Its prior outlook was for a profit of 89 cents to 95 cents per share, on sales of $710 million to $736 million.[6] Analysts, on average, are predicting a profit of 71 cents per share on sales of $703.1 million. Arctic Cat expects to report its results on Jan. 23.[5] Analysts, on average, are expecting a loss of 32 cents per share on sales of $174.8 million, according to a poll by Thomson Financial. The company is working on scaling back its snowmobile production, and had said in October it expected to post a third-quarter loss as a result. It had a profit of 43 cents per share in the year-ago quarter.[5] Analysts are predicting a profit of 71 cents per share on sales of $703.1 million. The company also said its board authorized a share repurchase program for up to $10 million of its common stock.[6] The consensus is $703 million and $0.71. Arctic Cat'''s board of directors has authorized a new share repurchase program of up to $10 million of its common stock.[9] The company also lowered its outlook for 2008. Arctic Cat announced additional share repurchase program for up to $10 million of its common shares.[3] For the fiscal year ending in March, Arctic Cat expects earnings of between a penny and 7 cents a share. That compares with a profit of $1.15 a share in fiscal 2007.[8] During the third quarter of last year, Arctic Cat reported earnings per share of $0.43, which included an income tax benefit of $0.03 per share.[3] THIEF RIVER FALLS, Minn., Jan 04, 2008 (BUSINESS WIRE) -- Arctic Cat Inc. (Nasdaq:ACAT) today revised its sales and earnings outlook for the fiscal 2008 third quarter ended December 31, 2007, due to lower than anticipated sales of all-terrain vehicles (ATVs).[4] Arctic Cat Inc. (Nasdaq: ACAT ) this morning said it is lowering its sales and earnings outlook for its fiscal 2008 third quarter on account of lower-than-anticipated sales of all-terrain vehicles.[7] Arctic Cat said while the ATV market has been sluggish, sales of snowmobiles "remain on plan." Because of the weak market for all-terrain vehicles, the company added it plans to cut its annual ATV production by about 10 percent during the current quarter.[5] Commenting on the decision to revise third quarter and full-year outlook, Christopher Twomey, Arctic Cat chairman and chief executive officer, said, 'Our preliminary third-quarter results indicate that while retail sales of Arctic Cat ATVs were in line with the overall ATV marketplace, retail sales of ATVs industry-wide continued a year-long decline.[3] Sales for the quarter will be somewhere between $155 million and $160 million, well below the $175 million the company had predicted and a big drop from the $228 million sales level in the year-ago quarter. "After reporting seven consecutive years of record sales, we are disappointed with these results and the sluggish ATV environment," CEO Chris Twomey said in a press release. The third-quarter shortfall caused the company to cut its fiscal 2008 guidance.[8] The company had earlier estimated a 2008 third-quarter net loss of between $0.30 and $0.37 per diluted share, primarily due to the previously disclosed reduction in snowmobile production during the current fiscal year.[4] The company had earlier projected a net loss of $0.30-$0.37 per share, mainly due to an earlier announced reduction in snowmobile production during the current year.[3] The Thief River Falls, Minnesota-based company now expects a net loss of $0.55 to $0.60 per share for the third quarter.[3] Arctic Cat expects a third-quarter net loss of $0.55 to $0.60 per diluted share.[4] Arctic Cat has bought back more than 12 million shares since 1996. In its second quarter, Arctic Cat reported earnings of $13.9 million or $0.76 per share, compared to $20.0 million or $1.03 per share in the corresponding quarter a year ago.[3] Last year, Artic Cat reported earnings per share of $1.15 and sales of $782.4 million.[3] Earlier, the company had projected full-year 2008 net sales in the range on earnings per share between $0.89 and $0.95.[3] Earnings from continuing operations are now expected in the range of $1.01-$1.06 per share, a 9% to 14% increase from last year, the company added. For full year 2007, Polaris now expects sales to grow in the 5%-6% range over the prior year and raised its earnings per share from continuing operations to $3.05- $3.10 per share from the earlier guidance of 2.95 - $3.05 per share.[3] For the full year, the company expects to post a profit of 1 cents to 7 cents per share on sales between $645 million to $665 million. Its prior outlook was for a profit of 89 cents to 95 cents per share.[5] Fiscal year net income is projected between $0.01 - $0.07 a share and sales of $645 million - $665 million.[10] Analysts polled by Thomson Financial were expecting, on average, a loss of 32 cents per share on sales of $174.8 million.[6] On average, 6 analysts polled by First Call/Thomson Financial expect the company to report loss of $0.32 per share in the quarter.[3] Analysts, on average, expect the company to report earnings per share of $0.71 on revenues of $703.11 million in fiscal 2008.[3] For the full-year ended March 31, 2008, the company now looks forward to earnings per share in the range of $0.01 and $0.07, compared to $0.89-$0.95 projected earlier.[3] The company's 4Q net loss is projected at $0.55 - $0.60 a share compared to an earlier estimate of $0.30 - $0.37 a share.[10] The consensus of six analysts polled by Thomson Financial was for a net loss of $0.32 per share.[7]  Earnings per diluted share for the 2008 fiscal year are now estimated to be between $0.01 and $0.07 versus year-ago diluted earnings per share of $1.15. [4] Arctic Cat sees 2008 sales of $645 million to $665 million, versus prior guidance $710 million to $736 million.[9] CEO Christopher Twomey, said in a statement that sales of ATVs industry-wide continued a year-long decline. He added that sales of Arctic Cat's snowmobiles remained "on plan," while sales of its snow-related parts, garments and accessories were "above plan, due to December snow accumulations in key regions." He also noted that the large-displacement engine segment of the ATV market has shown modest gains.[6] Arctic Cat Inc. designs, engineers, manufactures and markets all-terrain vehicles (ATVs) and snowmobiles under the Arctic Cat(R) brand name, as well as related parts, garments and accessories. Its common stock is traded on the Nasdaq Global Select Market under the ticker symbol "ACAT."[4] Arctic Cat has approximately 17.9 million common and Class B common shares outstanding.[4] More information about Arctic Cat and its products is available at www.arcticcat.com. Actual future results and trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to: product mix and volume; competitive pressure on sales and pricing; increase in material or production cost which cannot be recouped in product pricing; changes in the sourcing of engines from Suzuki; warranty expenses; foreign currency exchange rate fluctuations; product liability claims and other legal proceedings in excess of insured amounts; environmental and product safety regulatory activity; effects of the weather; overall economic conditions; and consumer demand and confidence.[4] Sales came in at $268.5 million, versus the consensus of $259.9 million. The company said product shipments in their Texas markets recovered nicely in the November quarter as weather returned to more normal patterns.[9] The company recorded sales of $228.1 million in the prior year third quarter.[3] The company says full year sales are now expected to be about $655 million, a big drop from the $782.4 million last year, and well below the $703 million analysts had been looking for. Automakers GM Sales Sink; Toyota Drives Past Ford 1/3/2008 2:36 PM EST Detroit's companies show more declines for December, as Toyota becomes the nation's No. 2 auto seller.[8] The revised sales figures are in the range of $645- $665 million, compared to the earlier expected range of $710-$736 million.[3] Sales for the 4Q are projected at $155 million - $160 million down from an earlier estimate of $170 million - $180 million, compared to the same time last year sales of $228.1 million.[10] Net sales for the quarter were $205.2 million, down from $285.3 million in the previous-year quarter.[3] Millennium sees 2008 VELCADE U.S. net sales up 20 to 30 percent, resulting in $320 million to $345 million.[9] Non-GAAP net income is expected to be in the range of $80 million to $95 million. [9] Four Wall Street analysts have a consensus revenue estimate of $174.78 million for the third quarter.[3] Revenues came in at $86.6 million, versus the consensus of $78 million.[9] The company sees a Q3 loss of $0.55 to $0.60, versus prior guidance of $0.30-$0.37 loss.[9] The company's stock dropped by 25 percent in late-morning trading after the news, to $9.15 from closing the previous day at $12.19.[6] The company has bought back more than 12 million common shares since 1996. "This share repurchase program supports the company's commitment to increase shareholder value and reflects our belief that the stock represents a good investment," said Twomey. Share repurchases under this program may be made through open market and privately negotiated transactions from time to time and in such amounts as management deems appropriate.[4] ACAT is currently trading at $9.75 on the Nasdaq, down $2.44 or 20.02%, on a volume of 18,292 shares.[3] A. Schulman, Inc. (Nasdaq: SHLM ) reports Q1 EPS of $0.39, above the consensus of $0.26.[9] The company will cut annual ATV production by about 10 percent during the current quarter. [6] A. Schulman expects challenging market conditions throughout the remainder of the fiscal year as a result of high and volatile oil prices and a slow automobile market. To offset these pressures, the Company expects to see continued benefits from both its ongoing savings initiatives and its newly reorganized, focused North America business units.[9] In October 2007, one of the company's competitors Polaris Industries, Inc. (PII) revised fourth-quarter sales growth to the range of 12%-15%.[3] SOURCES 1. Free Preview - WSJ.com 2. UPDATE 2-Arctic Cat sees wider quarterly loss, stock drops | Industries | Consumer Goods & Retail | Reuters 3. Arctic Cat Cuts Q3, FY08 View; To Buyback Additional $10 Mln Shares - Update [ACAT] - RTTNews, Today's Top Stories, Global Newswires, ToDay's Top News,Global Business news . 4. Arctic Cat Revises Fiscal 2008 Third-Quarter and Full-Year Outlook 5. Arctic Cat Lowers 3Q Outlook - Forbes.com 6. Arctic Cat lowers Q3 outlook; stock plummets - Minneapolis / St. Paul Business Journal: 7. SmallCapInvestor.com: Arctic Cat lowers outlook for Q3 on lackluster ATV sales 8. Arctic Cat Mauled by Shortfall - News & Analysis - Automakers - ACAT - PII 9. StreetInsider.com 10. SmarTrend(R) News Watch: Arctic Cat Lowers 4Q and Fiscal Year Outlook |
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