polaris091709
On the homepage
Thanksgiving
Out There
Video
Reusse's Turkey
Polaris expects its off-road sales to head upward soon
Print this story
E-mail this story
Save to del.icio.us
Share on Facebook
Share on Digg
Minnesota business by the numbers
See Minnesota's top earning companies, CEOs and non-profits
More from Business
After a year of slipping sales, Polaris Industries told investors Wednesday that it expects to regain some traction.
Shares of the Medina-based all-terrain-vehicle maker jumped nearly 11 percent after the company boosted its profit forecast for the year and declared that sales of ATVs and snowmobiles have finally bottomed out.
The company told investors that it expects sales to fall up to 25 percent to about $1.4 billion for 2009. However, Polaris predicted sales in its key North American market will soon rebound.
"It appears we have reached the bottom," the company said in its prepared presentation.
In addition, Polaris said profits would fall to $2.70 to $2.90 a share but that gross margins would rise up to 130 basis points because of cost cutting. The company laid off about 460 workers, or about 14 percent of its workforce, in the last year.
Polaris stock rose $4.11 to close Wednesday at $42.43. Compared with the same date last year, company shares have jumped 48 percent.
Like many manufacturers, Polaris has seen sales drop because of weak demand amid a severe recession. Sales of snowmobiles are expected to fall 15 to 20 percent this year while off-road vehicles will decline up to 25 percent.
But the company sees bright spots. Military sales will rise 50 to 100 percent this year because of strong demand from U.S. forces fighting in Iraq and Afghanistan. Last month, Polaris said it won a $6 million contract to supply ATVs to the U.S. Army in Afghanistan.
For the past five years, Polaris has had a team focused on supplying vehicles to the Department of Defense, federal government agencies and U.S. allies.
In this latest contract, the Army is buying MV700 all-terrain vehicles designed for military missions. Polaris said that the MV700 already has been used in military missions in urban, rural, mountain and desert regions around the world. The new Army contract covers ATVs, parts and accessories to be delivered later this year.
Thomas Lee • 612-673-7744
Recent Business stories
QLT to pay $20 million to Mass. General Hospital to settle royalties lawsuit over Visudyne - September 16, 2009
QLT to pay $20 million to Mass. General Hospital to settle royalties lawsuit over Visudyne - Canadian biotechnology company QLT Inc. said Wednesday it will pay Massachusetts General Hospital $20 million to settle a lawsuit over product royalties. More
- Ponzi scheme suspect liked cars -- and his submarine
- 2 charged with running $190M Ponzi scheme
- 3 state firms are accused of forging signatures
- 'Christmas creep' pushes shopping ever earlier
- Shoppers got a turkey deal
- Dubai debt fears hit world markets hard
- Tight economy forces some to stay home for holiday
Blog: Patent Pending
Lights out at U energy conference. Irony police notified.
Just as Lawrence Kazmerski, a top official at the National Renewable Energy Laboratory, was about to give the keynote address at the University of Minnesota's annual E3 conference at the RiverCentre in St. Paul, the lights went out, bathing the audience in darkness and a deep sense of irony.
Comment on this story | Be the first to comment | Hide reader comments