Despite a modest increase in revenue for its third financial quarter to 31 December 2013, American ATV and snowmobile manufacturer Arctic Cat suffered a substantial drop in earnings during the period.
Sales revenue was up by 3.6 per cent to £136.5m. But operating profit fell by 33.6 per cent to £11.1m and net profit slumped by 32.4 per cent to £7.3m.
Arctic Cat chairman and chief executive Claude Jordan said the decline was due to a seasonal impact of lower margins on snowmobiles built for Yamaha under a new partnership agreement. However, revenue from Arctic Cat’s own-brand quadbike and side-by-side ATV ranges increased by 12 per cent in the quarter to £47.3m.
For the nine months of its current financial year to date, the company reported a 4.8 per cent rise in revenue to £353.8m. Net profit dropped by 8.5 per cent to £24.8m.