With reduction of excessive inventory still a work in progress through aggressively discounting old stock and production cutbacks, Minnesota-based ATV manufacturer Arctic Cat has reported loss-making results in the first quarter of its current financial year to the end of June.
Sales revenue for the three-month period slumped by 6% to £86.2m. An operating loss of £960,000 ensued, against an operating profit of £3.6m in the same quarter last year. Net loss was £705,000, against a net profit of £2.3m a year ago.
Commenting on this performance, Arctic Cat chief executive Christopher Metz said: “We made continued progress in the first quarter against our stated goals to reposition the business for growth and clean up the inventory overhang. In particular, we saw encouraging trends in the company’s core North America ATV dealer inventory levels and gained further market share. We remain focused on partnering with our dealers to aggressively reduce non-current inventory and provide marketing support, enabling a return to wholesale and retail growth of new, innovative products.”