This morning April 20,2011, Polaris Industries Inc. (NYSE:PII) today reported record first quarter net income of $47.3 million, or $1.34 per diluted share, for the quarter ended March 31, 2011. By comparison, 2010 first quarter net income was $19.8 million, or $0.59 per diluted share. Off-road vehicle sales rose 55 percent to $388 million. On-Road Vehicles/Victory Motorcycles sales rose 77% to 44.9 million. Snowmobiles sales rose 61% to 8.9 million Gross margin percentage increased 210 basis points to 28.3 percent.
“We are extremely pleased with our first quarter results, as the momentum we built throughout 2010 continued into 2011. Retail demand for Polaris products in North America remained strong throughout the first quarter and we continued to gain market share. Our International business also remained strong with sales increasing 21 percent and we celebrated the grand opening of our European headquarters in Switzerland during the quarter. In the first quarter, gross margin improved by 210 basis points and net income margin increased 330 basis points to 8.8 percent of sales,” commented Scott Wine, Polaris’ Chief Executive Officer.
“In addition to our strong first quarter results, we are excited to announce the completion of the purchase of Indian Motorcycle Company, the maker of America’s first motorcycle. This transaction will complement and enhance our on-road product portfolio, and afford Polaris the opportunity to bring our world-class engineering, manufacturing, and distribution capabilities to an iconic American brand in the heavyweight motorcycle market.”
Based on Polaris’ performance during the 2011 first quarter and projections for the remainder of the year, the Company is increasing its full year sales and earnings guidance for 2011. The Company now expects full year 2011 earnings to be in the range of $5.53 to $5.68 per diluted share, an increase of between 29 and 33 percent over earnings of $4.28 per diluted share for the full year 2010. 2011 full year sales are now expected to grow in the range of 17 to 20 percent. Revised full year 2011 expectations include the dilutive impact of integrating the Indian Motorcycle acquisition and transition costs related to ongoing manufacturing realignment.
Added Wednesday April 20, 2011. At 12.45 pm est. Polaris stock up 25% for the day, 48% year to date.