sled sales earnings up at polaris

Like most financial reports out of our industry these days, Polaris Industries Inc.'s first quarter numbers were a mix, although mostly upbeat. Overall sales were down, but income was up, as were sled sales.

Polaris reported first quarter income from continuing operations up 12.5% at $12.6 million compared with $11.2 million a year earlier. That translates to 34 cents per diluted share as opposed to 26 cents per diluted share in last year's first quarter.

But overall sales dipped 5% in the quarter from $333.5 million a year ago to $317.7 million. Snowmobile sales were up 16% to $2.9 million from $2.5 million in last year's first quarter. Polaris notes that the first quarter is traditionally the lowest season for sled sales to dealers but that sales were helped by late season snow this year. The quarter ended March 31st.

Meanwhile, ATV sales declined 9% from a year earlier, while Victory motorcycles and parts, garments and accessories were up 5% and 6%, respectively. Polaris also saw income from its financial services business increase 35% to $12.6 million in the quarter. The company reported a gain of $4.8 million too on the 1.11 million shares of KTM Power Sports stock that it sold during the quarter.

Polaris CEO Tom Tiller called the first quarter results "solid," noting that the declining ATV sales were part of the company's progress in lowering dealer inventory.

The company said it still expects earnings from continuing operations to be in the range of $2.91 to $3.03 per diluted share for the year, up from $2.72 a year ago. Overall sales growth is expected in the 1% to 3% range, mostly due to new Victory products and the new Ranger RZR ATV.