Polaris Industries Inc., Medina, Minn., says net income for its third quarter 2005, ended September 30, was $51.1 million, or $1.17 per share, up from net income of $44.6 million, or $1.00 per diluted share, for the third quarter 2004. Sales during the third quarter 2005 were $543.1 million, up 6% from sales of $510.6 million during the same period last year.
For the nine months ended September 30, 2005, Polaris reported net income of $100.4 million, or $2.27 per diluted share, up from net income of $89.1 million, or $1.98 per share, for the nine months ended September 30, 2004. Sales were $1.343 billion, up 9% from sales of $1.234 billion for the nine-month period in 2004.
ATV sales for the third quarter 2005 increased 4% over the same period in 2004. For the nine-month 2005 period, ATV sales increased 9% compared to the comparable prior year period.
Still, ATV retail sales were below company expectations in the third quarter. Polaris said lower sales resulted in dealer and factory inventories too high for comfort, “given our view of economic conditions for the balance of the year.” Polaris plans to reduce its expected ATV shipments to dealers during the fourth quarter 2005.
Sales of Victory motorcycles increased 45% during the third quarter 2005 from the third quarter 2004. Polaris said increase is attributable to improved brand recognition, the success of the new Hammer and 8-Ball models, continued acceptance of the Vegas and Kingpin models, and improvement in the dealer network. Year to date through September 30, 2005, Victory motorcycle sales increased 24% compared to the same period in 2004.
Snowmobile sales increased 10% for the third quarter 2005 compared to last year's third quarter primarily due to timing of shipments and an increase in the average selling price per unit. For the nine-month 2005 period, snowmobile sales increased 4% compared to the prior year-to-date period.
Finally, Parts, Garments, and Accessories (PG&A) sales increased 8% for the third quarter and year-to-date periods ended September 30, 2005. Higher sales of ATV, Ranger and Victory PG&A offset somewhat lower sales of snowmobile PG&A, the company said.
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