Polaris Industries 1Q Earnings Falls 56 Percent

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.