Polaris profit rises 7% after sales of off-road vehicles surge
- Article by: Patrick Kennedy
- Star Tribune
- April 23, 2014 - 8:41 PM
Motorcycle and off-road vehicle sales roared ahead in the first quarter, leading Polaris Industries Inc. to another record profit.
But the company’s stock puttered along Wednesday, shifting gears throughout the day as the broader market also seesawed. Polaris shares closed down 74 cents, about a half-percent, at $139.57.
The Medina-based maker of off-road vehicles, motorcycles, and snowmobiles earned $80.9 million, or $1.19 per share. That was above the $1.16-per-share profit forecast by analysts and up from $75.5 million, or $1.07 per share, in the same period a year ago.
Revenue was $888.3 million, a 19 percent increase from a year ago, but slightly below analysts’ expectations of $893 million.
The data “represents the 18th consecutive quarter of record earnings performance,” Polaris CEO Scott Wine said in a statement.
Sales of the Sportsman Ace, a sit-in off-road vehicle introduced in January, were stronger than expected, the company said. Overall, Polaris sold $602.8 million worth of off-road vehicles in the quarter, an 11 percent increase over last year.
Sales of Polaris and Indian motorcycles were $78.9 million, up 52 percent. Snowmobile sales grew 6 percent to $15.6 million. Sales of small vehicles were up 248 percent to $38.5 million, much of it due to the acquisition in April 2013 of France-based Aixam Mega, a maker of a line of quadricycles and light commercial vehicles sold in Europe.
The company raised its 2014 outlook, saying it expects earnings in the range of $6.30 to $6.45 per share, above its earlier forecast of $6.17 to $6.37.
Patrick Kennedy • 612-673-7926
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