April 23, 2007 – Polaris’ income rebounds
April 23, 2007
Filed under Features
Polaris Industries Inc. was able to overcome a decrease in ATV sales to post a larger net income in its 2007 first quarter compared to the previous year.
Company officials reported a first-quarter net income of $12.6 million — a 12 percent increase over 2006.
It’s the first time in at least three quarters that Polaris has reported an increase in its net income, as its 2006 third and fourth quarters were down compared to the previous year.
Aiding the improved net income for the 2007 first quarter were increased sales in snowmobiles (14 percent over last year’s first quarter), parts, garments and accessories (6 percent) and Victory motorcycles (5 percent).
“Our first-quarter results were solid,” Polaris’ CEO Tom Tiller said in a released statement.
Tiller said the company’s ATV sales were down because dealers are continuing to lower their inventories. “We are on track for dealer ATV inventory to be at acceptable levels by mid-year 2007 as we have previously indicated,” he said.
ATV sales, which made up 70 percent of Polaris’ first-quarter overall sales, were down 9 percent, to $222,487. Sales of Polaris’ Ranger UTV line, however, continued to experience solid sales, with double-digit growth in both shipments and sales.
Dealers will begin receiving limited quantities of the new Ranger, the RZR, in the second quarter.
In its snowmobile category, the Medina, Minn., based manufacturer reported increased first-quarter sales, but said overall season sales would be down. Polaris also anticipated that the overall industry’s snowmobile sales would be down for the season, which ended March 31.
Although Polaris expects its ATV shipments to again be down in the next quarter, the company does expect to see some sales growth for this fiscal year. Polaris is forecasting 1-3 percent sales growth for the full year.
More immediately, however, Polaris believes its ATV sales next quarter will be lower than last year’s second quarter by 3-5 percent. psB