polaris reports second quarter 2003 earnings per share up 13 percent

Polaris Industries, based in Medina, Minnesota, reported its fiscal Second Quarter Highlights which include:

21st consecutive quarter of increased sales and earnings
ATV sales grew 24% and international sales grew 80%
Gross margins continued to expand
Repurchased 242,000 shares of common stock during the second quarter

Polaris Industries Inc. reported record net income for the second quarter ended June 30, 2003, a 13 percent increase over prior year second quarter net income.

Higher sales volume from all-terrain vehicles (ATVs), personal watercraft, Victory motorcycles and parts, garments and accessories (PG&A) along with positive currency fluctuations and expanded gross margins contributed to the second quarter earnings increase. Reported net income for the second quarter 2003 was a record $21.0 million, a six percent increase over prior year second quarter net income of $19.9 million. Sales for the second quarter 2003 totaled a record $377.1 million, up four percent from the prior year's second quarter sales of $362.6 million.

"The results for this quarter exceeded our expectations, and mark our 21st consecutive quarter of increased sales and earnings, a very gratifying accomplishment. Our largest business, ATVs, continued to show resilience during the quarter in an economy that is slowly recovering," said Tom Tiller, President and Chief Executive Officer. "In fact, all of our businesses showed good growth during the quarter with the exception of the anticipated reduction in snowmobiles. Our investments in new products and productivity gains are paying off. Going forward we expect ongoing improvement in the overall business."