Polaris Posts 14% Sales Growth for 2004
Polaris Industries, Inc. (NYSE:PII)(PSE:PII) says net income from continuing operations for the fourth quarter ended Dec. 31, 2004, was $47.7 million, or $1.05 per diluted share, a 21% increase over the prior year’s fourth quarter net income from continuing operations of $39.5 million, or $0.87 per diluted share. For the full year ended December 31, Polaris reported record net income from continuing operations of $136.8 million or $3.04 per diluted share, a 14% increase over net income from continuing operations of $119.8 million, or $2.66 per diluted share for the prior year.
Polaris says higher sales volume from all businesses, improved gross margins, and higher financial services income contributed to the fourth quarter earnings increase. Sales from continuing operations for the fourth quarter 2004 increased 18% to a record $539.0 million, compared to last year’s fourth quarter sales from continuing operations of $455.4 million. Sales from continuing operations for the full year ended December 31, 2004, totaled a record $1.773 billion, up 14% compared to sales from continuing operations of $1.552 billion for the full year 2003.
Polaris ceased to manufacture marine products on September 2. The marine products division’s financial results are being reported separately as discontinued operations for all periods presented.
During the third quarter 2004, the company recorded a loss on disposal of discontinued operations of $35.6 million before tax or $23.9 million after tax. This loss includes the estimated costs to support the dealers in selling their remaining inventory, additional incentives and discounts to encourage consumers to purchase remaining products, the disposal of factory inventory, tooling and other physical assets, and the cancellation of supplier arrangements.
The manufacturer’s fourth quarter 2004 loss from discontinued operations was $0.5 million, net of tax, or $0.01 per diluted share, compared to a loss of $1.5 million, net of tax, or $0.03 per diluted share in the fourth quarter 2003. Reported net income for the fourth quarter 2004, including both continuing and discontinued operations, was $47.2 million, or $1.04 per diluted share compared to $38.0 million, or $0.84 per diluted share in the fourth quarter of 2003.
For the full year 2004, the loss from discontinued operations was $8.5 million, after tax, or $0.19 per diluted share, compared to a loss of $8.9 million or $0.20 per diluted share in 2003. Full year 2004 reported net income, including both continuing and discontinued operations and the loss on disposal of discontinued operations, was $104.5 million or $2.32 per diluted share, compared to $110.9 million, or $2.46 per diluted share for the full year 2003.
