Global Warming Melts Arctic Cat's Earnings? (snowmobile manufacturer)

[jpak]

http://www.forbes.com/markets/2007/10/24/arctic-cat-closer-markets-equities-cx_cg_1024markets46.html

In what may be a sign of things to come, Arctic Cat says it is having to adapt to the new realities brought on by global warming.

On Wednesday, Arctic Cat (nasdaq: ACAT - news - people ), an all-terrain vehicle and snowmobile maker based in Three River Falls, Minn., announced a 30.5% drop in second quarter earnings to $13.9 million, or 76 cents per share, from $20.0 million, or $1.03 cents per share, reported last year during the same time last year.

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Nonetheless, changing climate conditions may have led the company to institute a 30% reduction in snowmobile production in its current fiscal year, as well as shift its ATV shipments to future quarters, in order to better match dealer inventory levels with expected demand.

For the quarter, the company reported a 20.2% reduction in snowmobile sales to $97.0 million from $121.5 million reported last year. Although the company said that the quarter’s decline was primarily due to the reduction initiative, Arctic Cat noted that the action was taken because of lack of snowfall for 10 consecutive years in various regions of North America resulted in lower industrywide, retail snowmobile sales and slight higher dealer inventories.

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[kestrel91316]

1. Finally I can see an up-side to global warming: no more noisy,

polluting, wildlife-disturbing snowmobiles racing around national parks in winter for the hell of it.

[prole_for_peace]

2. cause and effect

snowmobiles pollute..pollution leads to global warming..global warming melts snow..snowmobile sales drop.

[jpak]

3. at last...a negative climate feedback!

:evilgrin:

[Viking12]

5. Unfortunately, they're making up for lack of snowmobile sales by selling more ATVs

[Kolesar]

4. Could have been drunk-driving enforcement, too...eom