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www.PowersportsBusiness.com SNOWMOBILE Powersports Business • February 17, 2014 • 41 SNOWMOBILE Polaris and Arctic Cat both reported wholesale snowmobile sales decreased in the last three months of the year compared to the same time in 2012, but the retail sales of sleds were prov- ing strong thanks to their products on dealer- ship floors. Claude Jordan and Scott Wine, chairmen and CEOs of Arctic Cat and Polaris, respectively, provided a look at the snowmobile segment during their January earnings calls with analysts. BRP will reports its fourth quar- ter results in February. Here's a look at how the snowmobile divi- sions of each Minnesota-based OEM fared: ARCTIC CAT SALES DROP 4 PERCENT IN QUARTER Snowmobile sales in the fiscal 2014 third quar- ter decreased 4 percent to $118.1 million ver- sus $122.4 million in the prior-year quarter. "We remain pleased with consumers' retail response to our 2014 model year snowmo- bile line-up and engine choices. Year to date, we have gained the most market share in the industry and lowered dealer inventory by 14 percent, which positions us well for future snowmobile sales," chairman and CEO Claude Jordan said. "For the 2014 model year, Arctic Cat introduced 10 snowmobiles, including the all-new ZR 6000 El Tigre performance sled, and new snowmobile engine options from Arctic Cat and Yamaha through an engine sup- ply agreement. Arctic Cat also introduced its first designed and built snowmobile engine, the 6000 C-TEC2. This powerful, lightweight and fuel-efficient 2-stroke engine enables the company to enter the large 600cc snowmobile market segment that now accounts for 18 per- cent of the snowmobile industry. "Our strategic partnership with Yamaha continues to proceed smoothly. As part of our expanded relationship, Yamaha supplies Arctic Cat with their industry leading four-stroke engine, and we build snowmobiles for Yamaha with our industry leading chassis. This agree- ment provides Arctic Cat with the opportunity to expand our engine line-up and offer best- in-class snowmobiles, without investing in additional research and developments costs." POLARIS SEES 13 PERCENT DIP IN Q4 SALES Snowmobile sales decreased 13 percent to $134.9 million for the fourth quarter of 2013 as compared to $154.6 million for the fourth quarter of 2012, as expected. This decrease is the result of the company's deliberate action to build and ship a greater number of snowmo- biles earlier in the season during the 2013 third quarter, compared to the fourth quarter, to free up plant capacity. For the full year 2013, sales of Polaris snow- mobiles increased 7 percent compared to 2012. Due to the early snowfall and colder weather in most of the snowbelt of North America, the snowmobile selling season has started strong with industry retail sales increasing in the high-teens percent range for the season-to-date period ended Dec. 31, 2013. Polaris' retail sales for the same season-to- date period were also strong, increasing nearly 10 percent, including low double-digits percent growth in the fourth quarter of 2013. Sales of snowmobiles outside of North America, increased 9 percent and 18 percent for the fourth quarter and full year 2013, respectively, when compared to the same peri- ods a year ago. PSB Sled retail growth at nearly 20 percent in Q4 40 • February 17, 2014 • Powersports Business www.PowersportsBusiness.com The 2014 Polaris 800 Indy SP Limited Edition is among those that helped industry snow- mobile sales rise nearly 20 percent at the retail level in the fourth quarter of 2013. The Arctic Cat TZ1 LXR is popular among touring riders. Melting snow puts freeze on snowmobile season After starting strong with snow blanketing much of the northern U.S. and southern Canada in early December, warmer-than- average temperatures degraded snowmobile conditions in many key riding areas in North America by mid-January. Oregon, California, South Dakota's Black Hills, central Minnesota, eastern Wisconsin, portions of Michigan, New York and many New England states have seen snowmobile trails closing as the local powersports and tourism industries await snowfall that could quickly reignite the snowmobile season in their areas.The lack of snowfall may be most pronounced in New York, which recently launched a winter tourism campaign to pro- mote snowmobile opportunities throughout the Empire State. Although a significant blizzard struck much of the Northeast in early December, warming temperatures and a lack of second- ary snowfall has put the brakes on riding in many rural areas. In Wisconsin, the Kewaunee County Promotions & Recreation Department closed all snowmobile trails in mid-January in Kewaunee County, which is part of the Door Peninsula northeast of Green Bay. The same goes for much of the trails in the southern half of the Badger State. Across the border in Canada, parts of eastern Ontario as well as southern Sas- katchewan and Alberta, have also reported DIGEST P40x41-PSB3-Snow.indd 40 2/5/14 11:25 AM