XCR1250 Posted December 9, 2018 Share Posted December 9, 2018 Textron, owner of Arctic Cat snowmobiles, filed this report this week with the U.S. Securities & Exchange Commission. On December 4, 2018, our Board of Directors approved a plan to restructure the Textron Specialized Vehicles businesses within our Industrial segment. We expect to incur pre-tax charges in the range of $60 million to $85 million under this plan, which will be recorded in the fourth quarter of 2018. Textron Specialized Vehicles has undergone significant changes since the acquisition of Arctic Cat as we have expanded the product portfolio and integrated manufacturing operations and retail distribution. As disclosed in our Form 10-Q filed for the third quarter of 2018, the operating results for these businesses were significantly below our expectations as dealer sell-through lagged despite the introduction of new products into our dealer network. Management conducted a strategic review of the Textron Specialized Vehicles businesses, which included an assessment of the acquired dealer network and go-to-market strategy for the Textron Off Road and Arctic Cat brands, as well as cost reduction initiatives throughout the Textron Specialized Vehicles businesses. The restructuring plan will result in the impairment of intangible assets, primarily related to product rationalization, the elimination of approximately 400 positions, representing approximately 10% of Textron Specialized Vehicles’ workforce, and closure of several factory-direct turf-care branch locations and a manufacturing facility. The restructuring actions under this plan are expected to result in improved operating results for these businesses. Severance and related costs for this plan are estimated to be in the range of $10 million to $15 million. Contract termination and other facility closure charges are estimated to be in the range of $5 million to $15 million. Impairment charges are estimated to be in the range of $45 million to $55 million and largely relate to acquired intangible assets. Expected cash outlays in connection with this plan are estimated to be in the range of $15 million to $30 million, with up to $10 million in the fourth quarter of 2018 and the remainder in 2019. We anticipate that this plan will be substantially completed by the end of 2018. Quote Link to comment Share on other sites More sharing options...
Angry ginger Posted December 10, 2018 Share Posted December 10, 2018 shocking that cat sales are soft NOT Quote Link to comment Share on other sites More sharing options...
Sal Rosenberg Posted December 10, 2018 Share Posted December 10, 2018 53 minutes ago, Angry ginger said: shocking that cat sales are soft NOT Don't pout this close to Christmas Quote Link to comment Share on other sites More sharing options...
AKIQPilot Posted December 10, 2018 Share Posted December 10, 2018 Sad news for sure. Not positive exactly what this means but it can’t be good for the sport. Yamaha buyout of the snowmobile division maybe? Quote Link to comment Share on other sites More sharing options...
Zambroski Posted December 10, 2018 Share Posted December 10, 2018 It’s a consolidation of intangible waste. They are going to lean things up. Sleds aren’t in any danger. They are dumping big $$$ into it. Quote Link to comment Share on other sites More sharing options...
Mileage Psycho Posted December 10, 2018 Share Posted December 10, 2018 31 minutes ago, AKIQPilot said: Sad news for sure. Not positive exactly what this means but it can’t be good for the sport. Yamaha buyout of the snowmobile division maybe? I've heard that rumor. Quote Link to comment Share on other sites More sharing options...
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