By American Snowmobiler staff
Polaris Industries reports 25% sales growth in its second quarter with overall sales of $430.9 million, up from $345.9 million in the previous year’s quarter.
For the first six months Polaris reports sales of $792.6 million, up 20% from a year earlier.
The growth comes from sales in all its divisions, except snowmobiles.
Polaris snowmobile sales were $1.9 million compared with $7.4 million in last year’s second quarter and down 52% for the first six months to $7.5 million compared with $15.5 million in 2009, after its new Rush had been introduced. Polaris said timing of snowmobile shipments accounted for the decrease and noted deliveries ramp up in the second half of the year.
Polaris attributes its overall sales gains to product innovations, dealer inventory improvements and its go-to-market retail sales program called Max Velocity Program. It also noted that the company’s international sales rose 32% in the quarter.
“We expect the momentum we have generated in the first half of 2010 to continue throughout the remainder of the year,” said Scott Wine, Polaris’ chief executive officer.
Polaris projects a sales increase of 17% to 20% in the third quarter compared to last year.
Outside of the snowmobile division, its smallest unit by sales, Polaris saw sales in the off road division rise 31%, to $342.1 million, in the quarter and 24%, to $592.5 million, in the six months. North American dealer inventories of ATVs, side-by-side and utility vehicles decreased 37%. In addition, sales outside North America increased 33%.
Motorcycle sales increased 48%, to $15.5 million, in the quarter and 68%, to $40.8 million, for the year. Polaris attributes cycle sales growth to gains in the Cross Country and Cross Roads touring cycle segments. Inventories declined 32% and sales outside North America increased 25%.
The Parts, Garments and Accessories unit’s sales rose 8% in the second quarter to $71.4 million. For the year sales were up 8% to $151.7 million..
Polaris also said that a manufacturing realignment which is underway is a key to its growth strategy. This realignment includes the closure and sale of the Osceola, Wis., engine plant announced earlier this summer. Polaris expects to see a savings of $30 million annually after this transition is complete.