Arctic Cat cuts 60 jobs
Arctic Cat, Inc. said it has cut 60 jobs following a three-month period in which the company suffered a net loss of more than $16.7 million.
The jobs represent about 5 percent of Arctic Cat’s 1,200-person workforce.
Sales for the Plymouth-based maker of ATVs and snowmobiles totalled $90.7 million in its most recent quarter, down from $168.9 million during the same quarter last year.
Arctic Cat lost 93 cents per share in its fiscal 2009 fourth quarter, compared to a 2 cent per share gain in the fourth quarter of last year.
Not including a 10 cent per share one-time charge, the fourth quarter loss would have only been 83 cents per share and beat the 89 cents per share loss predicted by analysts polled by Thomson Reuters.
Chairman and CEO Christopher Twomey said in a statement the company has reduced product inventories and braced for a difficult fiscal 2010.
“We do not expect any meaningful recover in the recreational products market in the year ahead,” he said.
Arctic Cat projects sales in the range of $425 million to $460 million for its fiscal year ending March 31, 2010, significantly less than the $563.6 million it had in its fiscal 2009.
Shares of Arctic Cat (Nasdaq: ACAT) were down 20 cents per share, or 4.4 percent, to $4.34 per share in afternoon trading.