Wednesday, January 9, 2008

American ATV manufacturers struggling in current economy

Had mentioned some numbers for Honda and Kawasaki, and now a whole slew of news regarding Arctic Cat and Polaris woes.

During a recent conference call, Arctic Cat widened its third quarter loss forecast and said it would cut ATV production by about 10 percent during the current quarter. Now, shares of Arctic Cat Inc. have skidded to new 52-week lows, the latest slide triggered by less than optimistic comments from analysts.

Similarly, a national Polaris dealer survey focusing on the fourth quarter found Polaris Industries’ ATV sales were down 6-8 percent compared to a year ago. The survey, conducted by Wachovia Capital Markets, also reported it expects entire ATV industry sales to be down in the low double digits percentage-wise for the fourth quarter.

However, indications from the Arctic Cat call and the Polaris survey indicate side-by-sides have continued double-digit percentage growth.