Polaris posts another record-setting quarter
July 20, 2011
Filed under Features
Polaris Industries' sales for the second quarter increased 41 percent to a record $607.9 million, company officials announced Tuesday. Quarterly sales surpassed $600 million for only the second time in company history, Polaris officials said on their second quarter earnings conference call.
Polaris had record net income of $48.7 million, representing an increase of 90 percent from the year-ago quarter.
“We’ve been talking for some time now about our commitment to make growth happen, and as we post our third straight quarter of record results for sales net income, it should be clear that the Polaris team is dedicated to meeting that growth challenge,” CEO Scott Wine said.
“Despite weak economic conditions and heightened competition, we were encouraged by the strong retail demand for Polaris products during the important spring selling season.”
Wine noted continued market share gains in the side-by-side business, with the new Ranger RZR XP 900 solidifying its place at the top of the market-leading Ranger portfolio. Polaris ATVs and motorcycles also increased market share in the second quarter.
The relaunch of Indian Motorcycles combined with the resurgence of the Victory line of motorcycles “gives us confidence that Polaris is on the way to creating the best heavyweight motorcycle portfolio in the industry,” Wine said.
Polaris international sales were up 28 percent in the first half of 2011.
“Polaris operational momentum accelerated in the second quarter and we are hitting on all cylinders,” president and COO Bennett Morgan said. “North American retail sales were up 19 percent on rising consumer demand for Polaris products across all Polaris businesses.”
Second quarter sales of Polaris off-road vehicles were up 41 percent, with year-to-date sales up 47 percent in the category that includes side-by-sides, ATVs, international, Bobcat and military.
“Polaris retail sales again significantly outperformed the industry, with North American ATV retail sales up mid-single digits, and side-by-side sales up well over 20 percent,” Morgan said. “In comparison, second quarter North American core ATV industry sales remained sluggish, down mid-teens percent, while the side-by-side industry sales appeared to grow nicely, around 10 percent.”
Bennett said Polaris continues to gain market share in both ATV and side-by-side.
“In its first six months, the new RZR XP 900 is turning faster than any previous ORV product in our history,” he said.
Polaris also saw second quarter wholesale sales to Bobcat and defense businesses each more than double the year-ago quarter results.
Snowmobile sales saw a dramatic increase to $6.8 million, compared to $2 million last year.
“Model year 2012 worldwide orders and snowcheck sales have been finalized, ending above our expectations,” Morgan said. “We are looking forward to the upcoming season to build further on our growth and competitive momentum.”
On-road second quarter revenue was up 99 percent, thanks to Victory’s surge in the 1400cc heavyweight motorcycle segment.
“Victory had the strongest retail quarter in its history, with sales up about 40 percent in the second quarter and over 20 percent year to date, driven by strong cross country and cruiser sales,” Morgan said.
In addition, Polaris second quarter sales were up 23 percent in the PG&A business at Polaris. Accessory sales had a particularly impressive quarter, up 35 percent.
Morgan said the company plans to launch more than 200 new products at its dealer show July 27 in Nashville.
International sales were up 35 percent in the second quarter, with revenue from side-by-sides up more than 50 percent.
Polaris also set new expectations for the full year 2011, compared to 2010. Sales of off-road vehicles are now expected to increase in the mid-20 percent range; snowmobiles sales are expected to increase about 40 percent; on-road vehicle sales are expected to be up 60 to 65 percent; PG&A sales are expected to rise in the mid-teens percent; and international sales are expected to increase 20 to 25 percent.