Polaris Lays Off More Than 70 Employees
November 9, 2006
Filed under Uncategorized
Polaris Industries laid-off more than 70 employees November 8 in what company leaders described as “targeted organizational changes.”
The staff reductions affect two percent of Polaris' total workforce of 3,500 employees and include 53 salaried positions and 24 temporary, intern and contractor positions worldwide.
Polaris says the move was part of an overall plan to improve business over the next 12 to 15 months. Company officials say they believe the changes will 1) strengthen performance in what they describe as an increasingly competitive ATV category, and 2) allow Polaris to realign resources across the organization in an effort to lower the cost structure and pursue additional growth initiatives, ultimately making the company more competitive.
“This is part of a three-pronged initiative designed to make Polaris more competitive over the next 12 to 15 months and we are confident that these changes will allow us to better invest resources into the competitive ATV business, adjacent markets and new product opportunities,” Polaris CEO Tom Tiller said in a prepared statement. “This was not an easy decision; however, we're facing a tougher external environment in the ATV, international and snowmobile markets and need to realign resources throughout the organization.”
Last month Polaris said it expects sales for the year ending Dec. 31, 2006, to be down 11 to 12 percent.
Polaris sales for the nine months ended September 30 totaled $1,207.9 million, down 10 percent compared to sales of $1,343.7 million for the nine months ended September 30, 2005. Polaris net income for the recently ended nine-month period was $76.7 million or $1.81 per diluted share, down from $95.6 million or $2.16 per diluted share for the nine-month period in 2005.
Polaris stock has experienced a 52-week high of $54.90 per share and a 52-week low of $34.24 per share. The stock traded at $43.74 per share at mid-day following the announcement, down 1.29 percent from an opening of $44.39 per share.
Read more about Polaris in the November 13 issue of Powersports Business.