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Polaris gets Army ATV contract
Polaris' heavy-duty Army ATVs carry extra fuel and equipment.
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Medina-based Polaris Industries has won a $16 million contract to make more all-terrain vehicles for the Army, Polaris announced Monday.
Deliveries are to begin before year's end. The three-year contract is for more than 1,000 vehicles and "is the largest military award we have had," said spokeswoman Marlys Knutson.
The contract builds on previous orders in which Polaris built thousands of militarized ATVs for the Army's use in Afghanistan and Southwest Asia.
Polaris, a $1.7 billion manufacturer best known for making ATVs, snowmobiles and utility mobiles for civilian use, began enhancing its ATVs and six-wheel Ranger vehicles for the armed forces in 2002. Polaris' military products have additional safety features to endure extremely harsh terrain.
The vehicles come with two fuel tanks, front and rear winches, a tow bar, an underbody plate to protect against explosions and tires that can ride over sharp objects without going flat. "They can be dropped out of a helicopter or an airplane to land on the ground" and be ready to go, Knutson said.
While small, the military market has worked well for Polaris, which has been seeking new ways to boost revenues since leaving the personal watercraft business in 2006. Industry-wide snowmobile sales have slowed because of a lack of snow. Even once fast-growing ATV sales have began to taper off in the past year.
The latest military contract will average about $5.3 million in annual sales over the next three years. That compares with the $1.1 billion in total ATV sales last year. But it's a growing niche, officials said.
CEO Tom Tiller said the new "contract and the continued relationship with the U.S. Army represents a major step for our overall business as we drive to achieve growth in adjacent market segments" like the military. This "has become a great focus for new business for the company."
Dee DePass • 612-673-7725
Dee DePass • ddepass@startribune.com
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