Polaris reports record Q4, full-year sales
Polaris Industries Inc. on Wednesday reported record fourth-quarter sales of $782 million based on a 26 percent sales increase from the year-ago quarter. Polaris reported that all product lines experienced increased sales and market share for the full year 2011.
International sales increased 43 percent in the fourth quarter 2011 and 39 percent for full year 2011 despite a volatile European economic environment.
Full year 2011 earnings per diluted share increased 50 percent to a record $3.20, with record sales of $2,656.9 million, an increase of 33 percent from the 2010 full year. Full year 2011 gross profit margins improved 130 basis points over 2010.
Net income for the fourth quarter 2011 was a record $63.9 million, an increase of 17 percent over the same period in 2010. Record sales of $782 million for the fourth quarter 2011 increased 26 percent over 2010 fourth quarter sales of $618.4 million.
For the full year ended Dec. 31, 2011, Polaris reported record net income of $227.6 million, compared to $147.1 million for the year ended Dec. 31, 2010.
"Our record fourth quarter results were a fitting ending to a year in which we generated record annual sales and earnings and significantly exceeded our initial expectations. Our top and bottom-line expansion, and the momentum we are sustaining throughout our business, directly results from our focus on driving innovation, enhancing our product offering, reducing costs, and growth through new global markets and adjacencies," Polaris CEO Scott Wine said. "Specifically, during the year we furthered our leading market share position in off-road vehicles while continuing to gain market share in motorcycles and snowmobiles. Moreover, we introduced over 20 new vehicles, including award-winning products like the RANGER RZR 570 value recreational off-road vehicle, the 800 Pro-RMK snowmobile, and the Victory Cross Country Tour motorcycle. ..."
Sales for full year 2012 are expected to increase five to eight percent over full year 2011 sales, with sales increases projected in each product line and geographic region with the exception of snowmobiles.
Off-road vehicles sales increased 18 percent during the fourth quarter 2011 compared to the fourth quarter 2010. This increase reflects continued market share gains for both ATVs and side-by-side vehicles, driven by industry-leading product offerings and the continued success of the MVP retail go-to-market process. Polaris' North American ORV unit retail sales to consumers increased mid-teens percent for the 2011 fourth quarter compared to the 2010 fourth quarter, with ATV unit retail sales growing upper single digits percent and side-by-side vehicle unit retail sales increasing about 20 percent over the prior year. North American dealer inventories of ATVs continued to decline, decreasing eight percent from the 2010 fourth quarter and sequentially decreasing six percent from the third quarter of 2011. Side-by-side North American dealer inventories for both the 2011 fourth quarter and sequentially from the 2011 third quarter were up to accommodate the continued strong retail demand. ORV sales outside of North America increased 42 percent in the fourth quarter of 2011 compared to a year ago. For the full year 2011, Polaris ORV sales increased 32 percent compared to the prior year.
Snowmobile sales increased 63 percent during the 2011 fourth quarter compared to the prior year's fourth quarter. The fourth quarter 2011 increase in sales reflects significantly reduced snowmobile dealer inventory levels entering the 2011-12 selling season compared to the prior year, resulting in increased orders from dealers, as well as the impact of a shift in shipments of snowmobiles later in the year as the company chose to ship its snowmobiles closer to expected consumer demand compared to last year.
Polaris' North American snowmobile retail sales to consumers in the 2011 season-to-date period were up high single digits percent over the 2010 season-to-date period despite the lack of snowfall in many parts of the snowbelt regions of the United States. North American dealer inventories of snowmobiles at December 2011 were seven percent higher than the very low levels a year ago. Sales of snowmobiles outside of North America, principally the Scandinavian region, increased 52 percent in the fourth quarter of 2011 compared to a year ago. For the full year 2011, sales of Polaris snowmobiles increased 48 percent compared to the prior year.
Sales of On-Road Vehicles increased 69 percent during the fourth quarter of 2011 when compared to the same period in 2010. On-Road Vehicle sales are comprised of Victory and Indian brand motorcycles, as well as the Company's small electric vehicles sales of GEM and Goupil. Victory motorcycle North American unit retail sales to consumers increased about 20 percent during the 2011 fourth quarter when compared to a strong 2010 fourth quarter, resulting in continued market share gains. North American dealer inventory of Victory motorcycles increased five percent at December 2011 compared to last year levels as the company added Victory dealers in 2011. Sales of On-Road Vehicles to customers outside of North America increased 111 percent compared to the prior year's fourth quarter. The increase in On-Road Vehicle sales outside North America is primarily due to increased sales from Victory motorcycles and the addition of sales from the acquisition of Goupil in the 2011 fourth quarter. For the full year 2011, Polaris On-Road Vehicle sales increased 79 percent compared to the prior year.
PG&A sales increased 13 percent during the fourth quarter 2011 compared to the same period last year primarily due to increased ORV, Victory motorcycle and international related PG&A sales. For the full year 2011, Polaris PG&A sales increased 19 percent compared to the prior year.