Arctic Cat Reports Strong Q2, CEO to Retire

In addition to announcing strong second-quarter results, Arctic Cat said Thursday that CEO Christopher Twomey will retire at the end of the year; Claude Jordan has been named his successor.

Thief River Falls-based Arctic Cat, Inc., announced Thursday that CEO Christopher Twomey will retire at the end of the year and will be replaced by Claude Jordan, who has most recently led the company's ATV business.

Twomey, who will remain executive board chair, has served as the company's CEO for 24 years. He became president and CEO in 1986, was named a director of the company in 1987, and assumed the board chair position in 2003.

He led Arctic Cat through its initial public offering in 1990, increased the number of employees from 99 to more than 1,300, and has grown revenues from $7.5 million to more than $450 million.

Jordan will take over the CEO position on January 1. He joined Arctic Cat as president and chief operating officer in 2008, and was elected to the company's board of directors in August. During that time, Jordan has been responsible for Arctic Cat's operations and has led the company's ATV business for the past two years.

“During the past two years, Claude played a significant role in the company's return to profitability, despite a recession that hit the power sports industry hard,” Twomey said in a statement. “His understanding, energy, and passion for this business will serve Arctic Cat well.”

Before joining Arctic Cat, Jordan served in executive positions with The Home Depot and General Electric, including vice president of The Home Depot and president and general manager of its THD At-Home Services, Inc., business from 2003 until 2008.

Arctic Cat also announced on Thursday increased second-quarter earnings and revenue. Net earnings for the quarter that ended September 30 totaled $17.8 million, or 97 cents per share, up 20 percent from $14.8 million, or 81 cents per share, in the same period last year.

Second-quarter revenue increased 5.7 percent to $175.8 million from $166.3 million in last year's second quarter.

The company raised its full-year sales and earnings guidance for its 2011 fiscal year. It now estimates net sales to be in the range of $453 million to $463 million and earnings to be between 40 cents per share and 55 cents per share. Previously, the company anticipated earnings of 18 cents per share to 33 cents per share on net sales of $447 million to $460 million.

Arctic Cat designs, manufactures, and markets ATVs, snowmobiles, and related parts, garments, and accessories. It is among Minnesota's 50-largest public companies based on revenue, which totaled $450.7 million during the fiscal year that ended in March.