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Polaris Industries 1Q Earnings Falls 56 Percent

The Associated Press

MINNEAPOLIS (AP) — Polaris Industries Inc., which makes snowmobiles, off-road vehicles and motorcycles, said Thursday its first-quarter income plunged 56 percent as consumers put off purchases of its discretionary vehicles.

But the results beat Wall Street estimates and the company stood by its full-year outlook, sending shares higher in premarket trading.

Polaris said it earned $8.5 million, or 26 cents per share, compared with $19.1 million, or 55 cents per share, in the same quarter last year. Sales fell 20 percent to $312 million.

The Minneapolis company said a pretax noncash impairment charge of 18 cents per share related to an investment weighed on quarterly results.

Analysts surveyed by Thomson Reuters expected a profit of 20 cents per share on $298.2 million in sales, on average. These estimates typically exclude one-time items.

Polaris reported a decline in sales across all three of its business segments. Sales at its off-road vehicles division, which generates more than half of the company's revenue, fell 19 percent. Its Victory line of motorcycles saw revenue fall by nearly half.

The company, however, stood by its full-year financial outlook. It said it continues to expect earnings between $2.50 per share and $3 per share, on a sales decline of 15 percent to 23 percent. Analysts expect $2.66 per share on sales of $1.57 billion.

For the second quarter, the company anticipates earnings between 40 cents and 50 cents per share, while Wall Street expects 51 cents per share. Quarterly sales are expected to drop 31 percent to 44 percent from the same period in 2008, when it reported sales of $455.7 million.

The company said retail sales for the 2009 second quarter are expected to remain weak for all product lines.

Shares of Polaris jumped $2.47, or 9.1 percent, to $29.59 at the opening bell Thursday morning. The stock has traded between $14.53 and $54.26 in the past 52 weeks.