AC ouch, not good for minnesota and american companies

[Kodiak]

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.

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 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.

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 shares were down $3.01, or 25 percent, at $9.18 in late trading on the Nasdaq.

Wedbush Morgan Securities analyst Rommel Dionisio cut his price target on the stock to $10 from $15.

"We believe market share gains from key competitor Polaris Industries, the No. 2 player in the ATV market behind Honda, was also an important reason for Arctic Cat's disappointing performance," Dionisio wrote in a research note.

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.

The company, which said it has no long-term debt and remains in strong financial condition, also plans a new $10 million stock buyback. (Reporting by David Bailey and Nick Zieminski in New York; Editing by Derek Caney, Leslie Gevirtz)

[Roofer]

Looks like the almighty Tcat didn't help much. Maybe too much R&D. They should have stuck with the Kawi engines.

[Dave S]

I posted something about this a while back that AC was having some financial troubles. It's unfortunate and I don't want to see them filing for bankruptcy again.

It's good to see they don't have any debt though.

Roofer, you know the Tcat came out too late to make a difference. But at over $10K, I'm not so sure that there will be an abundance of people lining up to buy one.

[Roofer]

I was poking fun, but really it did probably make a difference....Like I said, with the R&D for the last several years on the 950.

[Dave S]

I thought so. There was a lot of hype over this machine but i had read that the hp numbers really aren't what people were expecting. Actually less than the 800 Canned-Ham. Torque is where the 950 is supposed to really shine.

[Roofer]

Ya, there isn't much difference between the BF750 and the canam 800(except the much better suspension, pre-08), but people still spent the 9K for them.

I have read that the 950 AC's suspension is nothing to brag about though.

The Hp doesn't seem to mean much at the crank. With the canam at 62 and the BF at 51, there isn't much difference in power. All it's good for is wide open on a road anyhow. Most of the bigger machines now have good low end power for trail riding, but the 950 is probably much better for the bigger 31" and 32" mud tires now.

I heard about it first back in '05 and it was supposed to be the first 800. Then the 750 came out. After that the 800 Rotax, so they must have bumped it up in order to make sure it is the baddest thing out.

[Kodiak]

the 800 rotax is the best motor known to man LOL

[Kodiak]

it is very unfortunate that another american company is in the verge of going under or getting bought by a foreign company. I do not want to see that.

I guess i didnt do my part by supporting the usa by buying a canadian wheeler.

[Roofer]

800 stock, yes, Very good, but it's maxed out.

I didn't do my part either.......but still wouldn't change my mind for an AC.

[Kodiak]

naa, if i could get the race ecu update i could pack on a ton more ponies.

[Lip_Ripper Guy]

 Originally Posted By: LEP7MM

I posted something about this a while back that AC was having some financial troubles. It's unfortunate and I don't want to see them filing for bankruptcy again.

It's good to see they don't have any debt though.

Roofer, you know the Tcat came out too late to make a difference. But at over $10K, I'm not so sure that there will be an abundance of people lining up to buy one.

They would have no reason to file for bankruptcy unless their debt/liabilities are greater than their assets, and they have no debt and a ton of cash on hand.

[Kodiak]

maybe polaris could buy them.

call the new company "twiceasslowandtwiceasheavy"

haha, j/k.

[Roofer]

 Originally Posted By: Kodiak

naa, if i could get the race ecu update i could pack on a ton more ponies.

That's a myth. Otherwise I meant they can only be bored out to a 840 as far as I know. Great engine though, it just doesn't have any potential other than stock or bolt ons. Not that it matters to me, because I don't do anything much over stock.

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This is mainly due to low snowmobile sales, isn't it?

[Kodiak]

yeah it is not smart to tear apart your quad. i have a friend that has an old 454 cat and he is tearing that thing apart doing stuff internally...why????

I have a HMF,dynojet pc3 usb, uni, and i cannot stand the sound of the loud pipe so i take it off for half the year and put back on when i need some noise.

[Dave S]

 Originally Posted By: Lip_Ripper Guy

It's good to see they don't have any debt though.

They would have no reason to file for bankruptcy unless their debt/liabilities are greater than their assets, and they have no debt and a ton of cash on hand.

[Kodiak]

you think with all the snow this year, sled sales would have went up from previous 5 years.

[Roofer]

 Originally Posted By: Kodiak

you think with all the snow this year, sled sales would have went up from previous 5 years.

You would think so, but what I have seen is alot of them in for repair, which keeps the dealerships open, but doesn't help sales. I haven't been in dealerships alot, but I haven't noticed very many newly purchased sleds anywhere.