Although powersports remains a relatively small market for the diversified manufacturing company that deals in aircraft and defense parts, the company reported that its finance segment revenues and profit were both “flat with last year’s second quarter.”
Last year, Textron bought Arctic Cat for $24.7 million, and the OEM is still in the midst of retooling its lineup and decreasing excess inventory.
“We are seeing profit improvement in Arctic Cat and we would continue to expect to see incremental margins frankly overall in our industrial segment improving as the year goes on,” Textron Chief Executive Scott Donnelly said on an earnings call this week. “Look, the snow [vehicles] are obviously not in a retail phase right now, we are kind of in the production side of that, and the stocking, which I think is quite favorable for us. We feel really good about where that business is and what the stocking orders look like. On the dirt side of the business, we are seeing improvements [as well].”
He added that the company’s market share in snowmobiles is increasing, and hopes this coming season will prove that out.
The company grew net income to $224 million in the second quarter, up 46% from the same period last year. The company beat analysts expectations of 70 cents a share climbing to 87 cents a share.