Polaris Industries has for the first time released a forecast of its expected 2009 earnings, believing its total sales will decline by 20-25 percent compared to 2008.
The manufacturer said it expects its largest division, off-road vehicles, to decline by 21-25 percent over a year ago. It expects similar declines in its snowmobile sales (down 15-20 percent) and in PG&A (down 13-17 percent).
Polaris believes its biggest percentage sales decline will come in Victory Motorcycles, which is expected to decrease by 40-50 percent. The company has noted previously that it has reduced its Victory build this year to improve dealer inventory levels. In a recent investor presentation, Polaris noted its Victory dealer inventory is 24 percent lower than the 2008 second quarter.
Polaris also noted in the presentation that its dealer closures have remained stable through the second quarter of this year. Polaris had 12 dealer closures in the second quarter, a number similar to the first quarter (13) of this year and actually a decrease from the fourth quarter of 2008 (20).