Gross profit and profit percentage increased on cost savings from product cost reduction efforts, production efficiencies on increased volumes, higher selling prices and ongoing cost saving from the manufacturing realignment project, partially offset by higher sales promotions.
Income from financial services increased 48 percent to $10.3 million during fourth quarter 2012 as compared to $7 million in the fourth quarter of 2011. The results were primarily a consequence of increased profitability generated from retail credit portfolios with Sheffield, GE, and Capital One, and higher income from dealer inventory financing through the Polaris Acceptance joint venture.
Sales for 2013 are projected to increase 7 to 10 percent over full year 2012 sales, with sales increases projected in off-road vehicles, on-road vehicles and PG&A. Nonetheless, the company is bracing for the challenging world economy.
“We are keenly aware of the uncertainty surrounding the overall U.S. and European economic environment and increasing competitive pressure, most notably in our core off-road vehicles business,” Wine said. “We are prepared with countermeasures if economic conditions worsen and we are confident that our unparalleled product line of RANGER and RZR products, bolstered by a robust multi-year product pipeline of new ATV and side-by-side products, will emphatically answer these competitive threats, continuing our solid growth and market share gains."
Posted by Holly Wagner