Cycle Country Accessories Corp. Announces Q 2, 09 EPS Loss of 14 Cents per Share

SPENCER, Iowa--Cycle Country Accessories Corp. (AMEX:ATC - News), the recognized leader in development, sales, marketing, and manufacturing of a variety of products for all terrain vehicles (ATV), garden tractors, and golf cars, announces a net loss of 14 cents per share for the three months ended March 31, 2009, versus a gain of four cents per share for the three months ended March 31, 2008. Total revenue declined by 58.8% from $3,911,684 to $1,611,252.

For the first half of the year, the company has a loss of 7 cents per share versus a gain of 15 cents per share earnings for last year at this time.

The decline in revenue for the 2nd Quarter was across all four business segments, with a decrease of 61.5% in ATV Accessories, and a 55% decrease in Plastic Wheel Covers, a further decline in the Weekend Warrior of 32.3% and in Contract Manufacturing, a decline of 58%.

For the 6-month the company reports a decline in their ATV Accessories of 27.6%, Plastic Wheel Covers of 64.8%, Weekend Warrior of 15.6%, and Contract Manufacturing of 48.6%

Management has and will continue to take actions to reduce its workforce, and furthermore is embarking on major cost reduction programs to maximize its profitability. It is clear that in this challenging time, major changes in business strategies are required, and management will continue to meet each of those challenges head on. Management also expects Fiscal 2010, (which starts October 1, 2009), to return to profitability-as had been the case for nearly the totality of the company’s existence.

Management has already reduced its operating overhead and is currently reducing its material costs through extensive vendor reviews. Additionally, management processes have been reviewed to reduce cost consistent with the current business environment.