Textron To Indefinitely Pause Production at Arctic Cat in Thief River Falls & St. Cloud

[MP Kid]

I highly doubt Polaris will be next

Agreed…


After Trump imposes the 25% tariffs, SD will be hurting more than current.

Especially when you consider that most of their products are built in Mexico

 

[blastoff]

Exactly Trumpy will punish them

 

[snopro]

 

[pano-dude]

Lots of industry's are hurting. Rocky Mountain bike company has announced restructuring to prevent bankruptcy this week two.
Many more on the edge I've heard. Shits just getting started.

 

[vanislerev]

Lots of industry's are hurting. Rocky Mountain bike company has announced restructuring to prevent bankruptcy this week two.
Many more on the edge I've heard. Shits just getting started.

The greed shown during COVID on all this stuff coupled with the current recession gonna hurt alot of these groups. Price increases were out of control for a while and the party is over it seems

 

[mikermz250]

Got an email from KTM this morning stating that they are "HERE TO STAY" and "Navigating a shifting economic landscape" as well as "Making adjustments to gear up for a even stronger future"

Im guessing in response to all the talk of them being bankrupt

 

[FanaticalKilla]

Got an email from KTM this morning stating that they are "HERE TO STAY" and "Navigating a shifting economic landscape" as well as "Making adjustments to gear up for a even stronger future"

Im guessing in response to all the talk of them being bankrupt

AKA they are dumping MV Augusta.

 

[lilduke]

Problem with these large corperations is they operate a lot like the government. Lots of useless people on the pay roll, die hires, hr ext. Then you have people at the top funneling as much money as they can into thier own pockets.

If it wasnt for socialism bailing these pricks out dam near every time things would be different....

 

[moyiesledhead]

I personally believe all of these industries are suffering from self induced over pricing. I myself haven't been able to afford buying anything brand new for over a decade now, and I made pretty decent money before I retired. I also don't believe in financing my toys, so there's that.

 

[Dawizman]

I highly doubt Polaris will be next

Agreed. They have some decent defense contracts as well from my understanding.

 

[Modman]

I personally believe all of these industries are suffering from self induced over pricing. I myself haven't been able to afford buying anything brand new for over a decade now, and I made pretty decent money before I retired. I also don't believe in financing my toys, so there's that.

I tend to agree, post-Covid pricing has people just struggling to pay for the necessities, all other luxuries are being put on hold. This is cutting revenue for all OEMs.

The thing with these companies is its much more than what you see on the surface. Its not always about how many units you sell. Share price is driven by profit. Profit = revenue - expenses. It could be they are locked into a high cost supplier contract for a component and can't lower the price (revenue), so you cut the next biggest expense (which is often labour).

Textron stock is almost at an all time high, however they are not trading on the market at the same level as their peers. While Polaris stock is in the toilet currently, they have traded much higher for a lot longer (back as far as 2012ish), as have BRP (both well over $100 / share). In order to attract and retain investors, profits and stock price are fundamental. You're benchmarked against industry peers. Cat has never made it over $100 / share - EVER. I suspect this is a move to boost investor confidence and push the share price up. Possibly for a sale, or just possibly to try and hit that magic $100 mark?

ABMax always has good insight on these things, maybe he will chime in.

 

[Bnorth]

I tend to agree, post-Covid pricing has people just struggling to pay for the necessities, all other luxuries are being put on hold. This is cutting revenue for all OEMs.

The thing with these companies is its much more than what you see on the surface. Its not always about how many units you sell. Share price is driven by profit. Profit = revenue - expenses. It could be they are locked into a high cost supplier contract for a component and can't lower the price (revenue), so you cut the next biggest expense (which is often labour).

Textron stock is almost at an all time high, however they are not trading on the market at the same level as their peers. While Polaris stock is in the toilet currently, they have traded much higher for a lot longer (back as far as 2012ish), as have BRP (both well over $100 / share). In order to attract and retain investors, profits and stock price are fundamental. You're benchmarked against industry peers. Cat has never made it over $100 / share - EVER. I suspect this is a move to boost investor confidence and push the share price up. Possibly for a sale, or just possibly to try and hit that magic $100 mark?

ABMax always has good insight on these things, maybe he will chime in.

Textron (NYSE:TXT) is down 4.5% YTD in a year when the SP500 has advanced 25%. That is not acceptable to investors or the board of directors so they are slashing costs of which Arctic Cat is one of the victims. I guarantee they have more profitable product lines and those are where the company is investing it's time, energy, and dollars.

 

[lilduke]

 

[snoflake]

I think Polaris and BRP have dual season income with SXS market helping things. However, I'm sure sales in the SXS must be hurting as not many people can afford $50,000 units either. I still think Polaris and BRP are likely in OK shape as they had a few really strong years and only one poor year in the last 6 years. Guess we will see.

 

[Truebro]

I think Polaris and BRP have dual season income with SXS market helping things. However, I'm sure sales in the SXS must be hurting as not many people can afford $50,000 units either. I still think Polaris and BRP are likely in OK shape as they had a few really strong years and only one poor year in the last 6 years. Guess we will see.

BRP announced recently sales growth remains elusive in leisure durables however profitability is up in marine sales…

One division keeping the boat afloat for the other division…literally