Minneapolis - Arctic Cat has reported its fourth quarter and fiscal year 2012 results, with overall company sales up 26% to $585.3 million, fueled by strong snowmobile and Wildcat ROV sales.
For the year, snowmobile sales were up 38% to $250.4 million while ATV sales grew 25% to $226.9 million. Cat’s earnings for the year were up 130% to $29.9 million.
“Snowmobile sales in fiscal 2012 benefitted from the tremendous enthusiasm generated by the largest introduction of new models in Arctic Cat’s history,” said Claude Jordan, Arctic Cat’s president and chief executive officer. Cat introduced its new ProCross and ProClimb chassis and revamped about 75% of its lineup for 2012 with a variety of technical improvements.
Cat reports it had 5 of the top 10 selling sleds for 2012. Traditionally Cat sales are slower in the first and fourth quarters and unfortunately Arctic announced snowmobile sales in the fourth quarter were negative $6.8 million compared with negative $4.5 million in the prior year. The company said sales incentives were the reason for the lower figure.
“We are continuing to build on our new chassis platforms with exciting new sleds for 2013 model year,” Jordan said. Cat is offering new RR (race replica) and CrossTour models for 2013. Jordan noted that Suzuki will continue to make engines for Cat through the 2014 model year and parts beyond that. Cat plans to begin snowmobile engine production at its St. Cloud, Minn., facility for its 2015 model year snowmobiles.
ATV sales increased 58% to $75.8 million from $48 million in the fourth quarter. This was due to strong dealer demand for Cat’s Wildcat V-Twin 1000i H.O. sport ROV. The 25% increase in ATV sales for the year was also driven by Wildcat sales and a healthy jump in international sales.
PG&A (parts, garments and accessories) sales were nearly flat for the fourth quarter at $29.5 million vs. $29.9 million in the prior year’s quarter. Full year sales grew 6% to $107.9 million.
The company ended the fiscal year with cash and short-term investments totaling $63.6 million vs. $125.1 million at the end of fiscal 2011. During the third quarter, Cat used $79.3 million in cash to purchase all of Suzuki’s 6.1 million shares of Arctic Cat Class B common stock.
Arctic Cat said it anticipates 2013 fiscal year sales in the range of $631 million to $650 million, an increase of 8% to 11% from 2012.
By American Snowmobiler, Christie Green