Now I will turn it over to Scott. Scott?
Good morning and thank you for joining us. With the second quarter and first half of 2012 in the books, I am encouraged by the performance of the team and the results of the business. While weak U.S. GDP growth and a likely recession in Europe are concerning, we continue to enjoy surprising strength in our core North American Power Sports business. We are capturing healthy market share gains in both off-road vehicles and motorcycles, in a climate of increasing competition, and the entire Polaris team is executing at a high level. I am more than comfortable betting on them to successfully lead us through this period of economic uncertainty.
Sales for the second quarter increased 24%, to a record $755.4 million, as robust North American retail demand and corresponding dealer orders counterbalanced a 7% growth rate for international business. Slowing off-road vehicle sales in Europe were offset by the addition of Goupil revenue, while our Asia Pacific Latin America business grew over 20% again this quarter. Overall, off-road vehicle revenue was up 20%, with our Ranger and RZR side-by-sides carrying most of the load. On-road sales were up 110%, fueled by substantial motorcycle gains and purely incremental GEM and Goupil sales from our small vehicle business.
Second quarter net income rose 43% to 69.8 million, yielding record earnings per share of $.98, a 44% improvement over the prior year period. Much of the earnings growth resulted from higher volumes, although our manufacturing and product-related cost reduction efforts continue to pay dividends. These gains were not enough to overcome reduced, but still present, commodity headwinds, and a dramatic shift in currencies, which alone cost well over 100 basis points hit to gross margins. For the quarter, overall gross profit margins were down 50 basis points, however as we have emphasized now for the past few years, our ultimate goal is to expand net income margins, which climbed 120 basis points in the second quarter to 9.2%.
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