Nov. 10, 2008 – Polaris: Strong UTV sales lead to record quarter
November 10, 2008
Filed under Features
Strong continued side-by-side sales helped Polaris Industries break a record in third-quarter revenue, the company recently announced.
Polaris’ UTV retail sales and wholesale shipments were up more than 20 percent compared to the year-ago period, company President Bennett Morgan said in a conference call explaining the company’s third-quarter performance.
Overall, Polaris reported sales of $580.3 million, a 7 percent increase over the year-ago period. The company’s net income dropped slightly, down 3.5 percent to $37.7 million.
Three of the company’s four product lines saw increased sales, with ATV, snowmobile and PG&A all having gains over the year-ago period. Polaris’ Victory sales were down slightly (2 percent), although that doesn’t reflect retail sales. Victory’s retail sales were up slightly and the brand actually increased market share during the quarter, which ended Sept. 30.
The increased UTV sales were one of the key reasons why Polaris’ ATV segment sales were up 5 percent to $371 million. Morgan said the company expects continued strong performance in the side-by-side segment, noting Polaris’ summer dealer meeting “was a home run for side-by-side business” and that dealer orders exceeded expectations.
The company’s core U.S. ATV sales, which now only account for about 20 percent of the company’s gross margin in the ATV segment, followed the industry as a whole, with sales down at least 28 percent.Outside of the U.S., core ATV sales in Canada were “much stronger with Polaris winning market share,” Morgan said, while European sales were down.
Inventory is a mixed bag for Polaris, with factory inventory down 4 percent from the previous quarter but it remains 4 percent above the year-ago period. Morgan noted the company remains on track to reduce factory inventory by year-end. Dealer inventory remains down compared to a year ago.
In other quarterly news, Polaris reported: