All terrain vehicle, snowmobile, and motorcycle maker Polaris Industries Inc. reported an increase in first quarter profit and revenue. Earnings were able to top Wall Street views, but revenue missed.
The Medina, Minnesota-based company posted a first quarter net income of $75.5 million, or $1.07 per share, up 26% from $60.1 million, or 85 cents per share, in the same period last year. Analysts, according to Thomson Reuters, were expecting the company to earn $1.01 per share in the quarter.
The company’s quarterly net sales rose to $745.9 million from $673.8 million a year ago. Analysts were expecting the company to see revenues of $751.46 million in the quarter.
Looking ahead, the company increased its 2013 outlook. Polaris now expects full year earnings to be between $5.05 and $5.20 per share on 12% to 15% growth in sales. Analysts are expecting the company to earn $5.15 per share on revenue of $3.63 billion for 2013.
“We remain cautious of the economic risks in both North America and Europe, but believe our strong team and commercial plans, along with our near term product pipeline, headed by the new Indian motorcycle, will enhance growth in the second half of 2013,” says Scott Wine, Polaris Industries chair and chief executive officer. “With our solid start to the year, we feel confident in raising our 2013 full year sales and earnings guidance.”
Driven by Side-by-Side Sales
The big winner at Polaris continues to be its side-by-side models. Vehicles like the Polaris RANGER and Polaris RZR are lumped into the Off-Road Vehicle (ORV) segment and the portion of Polaris’ business grew 7% year-over-year. Polaris ORV sales accounted for $541.3 million of the $745.9 million in total Q1 sales.
During the first quarter of 2013, Polaris introduced two new side-by-sides that they hope will extend their reach even further into new segments. The Polaris RZR is already the No. 1 line of recreational side-by-sides on the market with a diverse line up including trail, high performance and multi-passenger options with the ultimate combination of power, suspension and agility. Polaris extended the product line by introducing the new, limited edition RZR XP 900 H.O. Jagged X Edition.
Second up Polaris unveiled the Polaris BRUTUS, the company’s first purpose-built commercial vehicle line and the first side-by-side utility vehicle in the market to deliver front-end power take-off (PTO) capability.
|Polaris BRUTUS with PTO Snow Blower|
The BRUTUS product line is an outcome of the strategic alliance formed between Polaris and Bobcat in 2009. The co-developed vehicles leverage the strengths of both companies with Polaris’ expertise in utility vehicles and the powersports market, and Bobcat’s experience in work vehicle technology and attachments.
Polaris is a recognized leader in the powersports industry with annual 2012 sales of $3.2 billion. Polaris designs, engineers, manufactures and markets innovative, high quality off-road vehicles, including all-terrain vehicles (ATVs) and the Polaris RANGER®and RZR® side-by-side vehicles, snowmobiles, motorcycles and on-road electric/hybrid powered vehicles.
Polaris is among the global sales leaders for both snowmobiles and off-road vehicles and has established a presence in the heavyweight cruiser and touring motorcycle market with the Victory and Indian motorcycle brands. Additionally, Polaris continues to invest in the global on-road small vehicle industry with Global Electric Motorcars (GEM), Goupil Industrie SA, Aixam Mega S.A.S., and internally developed vehicles. Polaris enhances the riding experience with a complete line of Polaris and Klim branded apparel and Polaris accessories and parts.
Polaris Industries Inc. trades on the New York Stock Exchange under the symbol “PII”, and the Company is included in the S&P Mid-Cap 400 stock price index.
Information about the complete line of Polaris products, apparel and vehicle accessories are available from authorized Polaris dealers or anytime at www.polaris.com.
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