Arctic Cat Lays Off Workers

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Minnesota-based Arctic Cat Inc. cut about 65 jobs in February in a move company officials say "reflects the realities" of the snowmobile market.

"We are rightsizing the business to lower our cost structure, strengthen our profitability and increase our long-term competitiveness," chairman and CEO Chris Twomey explains.

Arctic employs about 1,800 people, primarily in Thief River Falls, Minn.

Arctic Cat officials say the company is on track for a seventh consecutive year of record revenues but warned against a drop in profitability.

"Although we expect to post sales gains across all of our product lines this fiscal year, and will report our seventh consecutive year of record sales, challenging market conditions for our snow-related products could impact our full-year profitability," Twomey says.

Arctic Cat net sales for the 2007 fiscal year ending March 31 are estimated to grow 4 percent to 6 percent and be in the range of $760 million to $780 million, with ATV sales up 7 percent to 10 percent; sled sales up 1 percent to 3 percent; and PG&A sales to grow about 1 percent to 2 percent.