Without much snow this winter, Arctic Cat lost more money - Bring Me The News

Without much snow this winter, Arctic Cat lost more money

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When your company is named after the Arctic, a mild winter without much snow can't be good for business.

That's the case for Twin Cities-based Arctic Cat, which reported Thursday that it lost nearly $17 million in the first three months of this year.

The maker of snowmobiles and ATVs saw its stock price drop 7.8 percent after the earnings report.

Snowfall totals are not the whole picture. CEO Christoper Metz told investors demand in the "power sports" corner of the economy has been softening. Metz says foreign currency exchange rates are also hurting Arctic Cat.

Metz noted that the economy, exchange rates, and snowfall totals are all outside Arctic Cat's control. He's optimistic about a rebound in 2017, when some new product lines will launch.

The Associated Press says Arctic Cat's stock price has fallen 59 percent in 12 months.

Things have also slowed down for the company's rival, Polaris Industries. The Star Tribune notes that Minnesota company has seen its profits shrink in the last two quarters.

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