Improved snowmobile sales couldn’t offset negative foreign currency impacts and losses in key segments for Polaris Industries, resulting in an overall decrease in fourth-quarter sales and net income.
The Medina, Minn., manufacturer expects such sales decreases to continue throughout 2009, estimating its coming year’s sales to drop 15-23 percent compared to 2008.
“Despite the dampened outlook for the upcoming year, we will continue to leverage our innovation, speed to market and flexible manufacturing capability to gain market share while striving to improve our net margins,” Scott Wine, Polaris’ CEO, says in a press release.
Polaris did finish its fiscal year with percentage gains in net income and revenue, the latter being a record amount of $1.9 billion. Wine also said the company gained market share in each of its business segments.
“We maintained growth in several of our businesses in 2008,” Wine said, “including parts, garments and accessories, military, international and particularly in side-by-sides where we became the market share leader in the side-by-side industry during 2008.”
Overall for its 2008 fiscal year, Polaris reported:
Polaris reduced its overall dealer inventories for a second straight year and is now 40,000 units lower in dealer inventories than just two years ago, the company said. Wine said Polaris “assisted our dealers in the fourth quarter, deferring shipments out of the quarter as retail slowed. This cost us in factory inventory but it was the right overall business decision.” psb