Polaris Industries has posted its third consecutive year with record sales. The Minnesota-based company on Tuesday reported $3.2 billion in sales for 2012, the first time it has surpassed the $3 billion mark.
Total year sales were up 21 percent compared to sales of $2.7 billion in 2011. Fourth quarter sales rose 15 percent to a record $901 million. Net income for the year was $312 million, up 37 percent year-over-year, and fourth quarter net income was $88.1 million, an increase of 38 percent from the year-ago quarter.
“Our outstanding fourth quarter results concluded another successful year for Polaris, from both financial and strategic perspectives. In 2012, Polaris exceeded $3 billion in sales for the first time and operational improvements drove net income margin above 9.7 percent, even as we continued to invest in numerous diversification and growth opportunities,” Polaris CEO Scott Wine said.
Off-road vehicle sales again led the charge for Polaris, up 22 percent for both the year and the quarter. Fourth quarter ORV sales rose to $567 million, while full-year sales totaled $2.2 billion.
During Polaris’ earnings call, the company announced it sold out of its allotment of limited edition Jagged X RZR side-by-sides in just 24 hours. The vehicle was unveiled in late December, and deliveries began this month. Polaris also became North America’s ATV market share leader in 2012.
As the ORV leader in Europe, Polaris announced its plan to build a 325,000-square-foot ATV and side-by-side paint and assembly facility in Central Eastern Europe. The facility’s location has yet to be named, but groundbreaking is set for the first half of 2013, with production beginning in the second half of 2014. The plant is expected to cost about $50 million in operating and capital, with $8 million to $10 million in start-up P&L costs in 2013.
The on-road division, comprised mostly of Victory Motorcycles, but including Indian Motorcycles and GEM and Goupil electric vehicles, also saw success, with fourth quarter sales up 36 percent to $47.4 million. The on-road division’s 2012 sales rose 64 percent to $240 million.
Snowmobile sales for the quarter decreased 9 percent to $155 million, as Polaris escalated early season shipments in the third quarter. For the year, snowmobile sales were up 1 percent to $283 million.
Quarterly PG&A sales rose 17 percent to $132 million, as increases were experience across all product lines and categories. Sales for the year were also up, with a 13 percent increase to $461 million.
For 2013, the company expects net income to jump 10-15 percent, and sales to rise 7-10 percent, with increases expected in off-road and on-road vehicles and PG&A.