As Reported By The Associated Press
Arctic Cat Inc., the snowmobile and all-terrain vehicle manufacturer founded and based in this northwestern Minnesota town, plans to relocate its headquarters and key corporate personnel to the Twin Cities area, the company announced. Manufacturing operations will remain in Thief River Falls.
The company on Tuesday said the move is part of a reorganization that will divide the company into three components: ATVs, snowmobiles and retail.
Arctic Cat also plans a one-time 30 percent reduction in snowmobile production to help dealers lower their snowmobile inventory levels to more closely match demand.
Officials said the steps are being taken to improve profitability and growth prospects.
The company said it sees full-year earnings between 89 cents and 95 cents per share and anticipates 2008 sales between $710 million and $736 million.
Analysts surveyed by Thomson Financial expect a full-year profit of 82 cents per share on revenue of $717.6 million.