Polaris reports record first quarter results

Wednesday April 20, 2011

MINNEAPOLIS — Polaris Industries Inc. today reported record first quarter net income of $47.3 million for the quarter ended March 31. By comparison, 2010 first quarter net income was $19.8 million. Sales for the first quarter 2011 totaled $537.2 million, an increase of 49 percent from last year's first quarter sales of $361.7 million.

"We are extremely pleased with our first quarter results, as the momentum we built throughout 2010 continued into 2011," Scott Wine, Polaris' Chief Executive Officer, said in a statement. "Retail demand for Polaris products in North America remained strong throughout the first quarter and we continued to gain market share. Our international business also remained strong with sales increasing 21 percent and we celebrated the grand opening of our European headquarters in Switzerland during the quarter. As a result of continuous improvement efforts directed at cost reduction and profitability enhancements, we generated significant margin expansion."

Based on Polaris' performance during the 2011 first quarter and projections for the remainder of the year, the company is increasing its full year sales and earnings guidance for 2011. The Company now expects full year 2011 earnings to be in the range of $5.53 to $5.68 per diluted share, an increase of between 29 and 33 percent over earnings of $4.28 per diluted share for the full year 2010.

Hello other manufacturers.....

Another article. 70% of profits from Offroad vehicles.

Source: Reuters Off-roaders power Polaris results; shares hit new high

April 20 (Reuters) - Increased spending by Americans on rugged off-road vehicles used in farms and thrill-seeking sports helped Polaris Industries Inc report its highest ever first-quarter profit and raise its outlook for the year.
The strong results pushed shares of the company up as much as 27 percent to a new life-time high. The broader Dow Jones U.S. Recreational Products Index rose 9 percent, while shares of rival Arctic Cat Inc were up 8 percent.
Polaris, which is also known for its snowmobiles and heavyweight motorcycles, attributed the performance to strong pricing that boosted gross margins and a 55 percent jump in sales of its off-road vehicles.
Off-road vehicles, which comprise all-terrain and side-by-side vehicles, are used in recreational activities as well as on farms and construction sites. They account for about 70 percent of Polaris' total revenue.
"The side-by-side segment is doing well ... better than the traditional ATV segment. On top of that, Polaris is the leading player in that segment," Longbow Research analyst James Hardiman said.
Side-by-side vehicles, also known as utility task vehicles, are off-road, four-wheel drive vehicles that can carry up to six passengers in addition to cargo.
"It is an improving economy. People are a little bit more willing to put their discretionary dollars to work," Hardiman said.
The U.S. agricultural economy is the healthiest in years as rising farm income allows farmers to pay off debt and buy land and machinery to meet booming demand for crops and livestock.
For 2011, Polaris expects earnings of $5.53-$5.68 a share, up from its prior view of $4.65-$4.85 a share. It expects gross margins to increase by up to 90 basis points over last year's 26.6 percent.