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Continued: Ample snow returns Polaris to its roots

  • Article by: DEE DEPASS , Star Tribune
  • Last update: April 23, 2013 - 9:40 PM

“Just look at all the projects these guys have going on,” Smith said. “They doubled capital expenditures this year to $200 million. This company is just growing up by leaps and bounds, and it is setting them for future growth.”

However, Smith said that without the tax break, earnings would have been flat or lower than planned. Polaris’ income tax rate fell from 35 percent to 26 percent during the quarter, resulting in a one-time $8.2 million benefit. The big tax return resulted from Congress reinstating an R&D tax credit for 2012 and because Polaris had several favorable tax audits.

CEO Wine also acknowledged some sales softness.

“We saw a degree of timidity in some customer segments that corresponded with the [U.S.] payroll tax increases that took effect at the start of the year,’’ Wine said. “We remain cautious of the economic risks in both North America and Europe.”

Polaris shares rose 0.8 percent, or 72 cents, to close at $85.96.

Dee DePass • 612-673-7725

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