Polaris Industries Inc.'s first-quarter profit fell 13%. If it were not for a long winter boosting snowmobile sales, the results would have been worse.
Polaris saw sales declines for the quarter in its other main business lines — motorcycles, electric and military vehicles and North American off-road vehicles.
"Retail sales results were somewhat mixed, with greater than 20 percent snowmobile growth helping to offset modest weather-related declines in off-road vehicles, motorcycles and boats, although all three of these segments came on strong at the end of March," CEO Scott Wine said.
While select product price increases helped overall sales, higher operational costs and trade tariffs tugged at the bottom line, the company said. Additionally, the company saw ramped-up pricing competition from Harley-Davidson and other players in the midsize motorcycle market.
Still, the Medina-based company met investors' expectations, and Polaris raised its end-of-year guidance. But after a roller-coaster day for the stock, shares on Tuesday closed down about 1.2% at $97.75.
For the quarter ended March 31, the company's earnings were $48.4 million, or 78 cents a share. Excluding one-time items, it earned $1.08 per share, down 9%. Analysts expected adjusted per-share profit of 91 cents.
Sales rose 15% to $1.5 billion, with the company's newly acquired boat-manufacturing businesses contributing nearly $185 million to the quarter.
Polaris increased its full-year earnings guidance to be in the range of $6.05 to $6.30 a share. That's up from the previous range of $6 to $6.25 per share. The new outlook includes the absorption of $80 million to $90 million of additional tariff costs anticipated in 2019 over 2018.
Wine told analysts that projected trade-tariff costs are expected to lower in the future, especially as the United States and China continue trade negotiations and delay tariff increases on some products.
Executives reiterated their forecast for sales growth of 11% to 13% in 2019.
Dee DePass • 612-673-7725
