MINNEAPOLIS, Minn. – Polaris Industries Inc. saw double-digit percentage growth in sales across product lines during the quarter ended Sept. 30, with Victory and SSVs leading the charge.
"We began the third quarter with significant momentum, and thanks to broad-based consumer demand and market share gains for our Ranger and RZR side-by-side vehicles, we positioned the company for a strong finish to the year,” said CEO Scott Wine.
“This Polaris team again demonstrated the power of our combined focus on product innovation and execution by driving a greater than 10 percent increase in Polaris North American unit retail sales in the third quarter," Wine continued. "The growth in retail sales, along with increased market share, drove double-digit sales growth in each of our product lines during the quarter.”
Off-road vehicle sales increased 18 percent from the third quarter 2011 to $573 million. This increase reflects continued North American market share gains for ATVs and side-by-side vehicles.
Polaris North American ORV unit retail sales were up low double digits percent from the third quarter last year, with consumer purchases of side-by-side vehicles climbing more than 15 percent and ATV retail sales up mid-single digits percent. The company estimates North American industry ORV retail sales in the third quarter 2012 rose mid-single digits percent from the third quarter of 2011. Sales of ORVs outside of North America decreased 19 percent in the third quarter, primarily due to weak demand in Europe.
Snowmobile sales increased 21 percent to $114.9 million for the 2012 third quarter, compared to $95.1 million for the third quarter of 2011. The company attributed the bump to a decision to escalate early season snowmobile shipments to better coincide with the start of the consumer retail snowmobile selling period. Sales of snowmobiles outside of North America, principally in Scandinavia and Russia, increased 20 percent in the third quarter of 2012 compared to a year ago.
Sales in the On-Road Vehicles division – primarily Victory Motorcycles, but also including Indian motorcycles and GEM and Goupil electric vehicles – increased 78 percent from the same period last year to $63.4 million.
Polaris estimates third quarter North American industry heavyweight cruiser and touring motorcycle retail sales were down single digits percent from 2011, while over the same period, Victory North American consumer unit retail sales increased more than 25 percent. Sales of On-Road Vehicles to customers outside of North America increased more than 150 percent during the 2012 third quarter.
“Our Retail Flow Management pull process for motorcycles and enhanced MVP process for ORV has dramatically improved product availability and delivery for our dealers. Our ongoing operational excellence initiatives helped to ensure this growth was even more profitable, as the manufacturing realignment, along with numerous cost management programs, led to significant gross profit and net income margin improvements over the prior year period,” Wine said. “These strong earnings enabled us to continue strategically spending in support of future growth across our portfolio." (continued)