Textron Inc. grew its industrial business, Textron Specialized Vehicles, 19.6% year over year to about $4.7 billion in revenue, the OEM reported in fourth-quarter earnings.
The growth was due, in part, to Arctic Cat Inc., which the company acquired last March.
“We saw improved demand in the snow[mobile] retail channel, allowing dealers to clear older inventory and drive 2018 model sales, including our new introductions in the youth and mountain categories,” Scott Donnelly, Textron’s chairman and chief executive, said on the earnings call last week. “We also saw higher sales in our E-Z-GO product line, led by our new lithium-powered Elite golf cart.”
Notably, Arctic Cat launched a financial incentive in mid-January for select 2015-2017 snowmobiles in order to help dealers move out carryover inventory, according to the company’s website.
“The challenge that we have on [Arctic Cat], as we acquired it, was — frankly — they have too much inventory,” Donnelly previously said on the OEM’s first-quarter 2017 earnings call. “The first step out of the gate here has been to put together these [incentive] programs [and rebates] … to help the dealers move [carryover inventory] out. I think that’s been very well received, and we’re already starting to see the impact of that.”
The promotion includes rebates up to $3,000, plus as low as 0% financing for 60 months. Alternatively, consumers can opt for a two-year factory warranty instead of the low APR financing. The incentive is valid through Feb. 25. The OEM is also offering a 3.9% APR option for 36 months, valid on 2018 models.
