Minneapolis, Min. - Polaris Industries has reported record 2012 fourth quarter and full year results.
Fourth quarter income was up 38% to $88.1 million from $63.9 million, and sales increased 15% to $900.6 million from $782 million in the previous year's quarter. The fourth quarter ended Dec. 31.
Full year sales grew to a record $3.2 billion an increase of 21% from $2.6 billion in 2011. Last quarter Polaris had said it expected full year sales to grow 19% to 20%, so it slightly beat expectations.
Snowmobile sales decreased 9% in the quarter to $154.6 million compared to $169.2 million a year earlier. The decline was attributed to Polaris' decision to escalate early season snowmobile shipments into 2012. Its market share through December increased and sales of sleds outside of North America increased 15% in the quarter.
The OEM reported sales growth in all its other key divisions.
Off-Road Vehicles sales rose 22% from the previous fourth quarter to $567.1 million. This included North American market share gains for both ATVs and side-by-side vehicles. For the full year 2012, Polaris ORV sales also were up 22% compared to the prior year.
On-Road Vehicle sales grew 36% in the quarter to $47.4 million. Consumer demand for Victory motorcycles was strong in the global markets. Full year sales increased 64% compared to the prior year.
Parts, Garments and Accessories sales increased 17% during the quarter. All product lines experienced sales increases. Full year Polaris PG&A sales grew 13%. During this quarter, Polaris purchased outdoor clothing maker Klim. Polaris has said the Klim brand will continue as a separate brand in the snowmobile and motorcycle gear market.
For the full 2013 fiscal year, Polaris expects net income to increase 10% to 15% from 2012. Sales are expected to increase 7% to 10%.
"Our product development and investment activity will remain high, as indicated by our decision to approve the construction of a new European plant that will provide significant future cost production and growth opportunities," said Scott Wine, Polaris’ Chief Executive Officer.