Minneapolis, Minn. - Polaris continues to break quarterly sales and earnings records with a record second quarter. Sales grew 24% to $755.4 million from $607.9 million the last year, while income was up 43% to $69.8 million for the quarter, which ended June 30.
Polaris said snowmobiles sales were up 30% for the second quarter to $8.9 million. That was up from $6.8 million in last year’s second quarter. Second quarter sales were partially helped by a mix of higher priced products being shipped during this year’s second quarter compared to 2011. Sales for the first six months, however, were down 14% to $13.5 million from $15.8 million in 2011.
In addition to snowmobiles, Polaris reported strong sales in all of its other units.
"While the weak U.S. economy and likely recession in Europe are concerning, we continue to see strength in our core North American Powersports business," said Scott Wine, Polaris' Chief Executive Officer.
Off-Road vehicle sales were up 20% to $581.1 million from $482.3 million in the second quarter of 2011. Sector sales for the first six months were up 25% to $1.1 billion from $870 million. This was attributed to a strong demand for Polaris’ side-by-side vehicles.
On-Road vehicle sales, including motorcycles, were up 110% to $64.7 million from $30.9 million in the second compared to a year earlier. The 2011 acquisitions of Indian, GEM and Goupil contributed over a third of On-Road Vehicle's second quarter sales growth. Prior to releasing its financials, Polaris announced it was entering into a partnership with Eicher, a motorcycle and commercial vehicles brand, in India. Strategies are still under discussion.
Parts, Garments and Accessories sales increased 15% during the second quarter of 2012 to $100.6 million from $87.9 million in the previous year’s quarter. This was primarily driven by higher ORV and Victory motorcycle-related PG&A sales.
Polaris expects full year earnings to grow 27% to 30% over 2011 full-year earnings, while it expects full-year sales to grow 14% to 17%.