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Polaris 2Q Net Earnings Off 28.3%
Profits drop by 40% in '09 as Motorcycle Shipments Plummet
MEDINA, Minn. — Polaris Industries Inc. (PII) says its earnings during the second quarter of 2009 fell by 28.3% on a 24.1-% decline in sales as the U.S. economic recession undermined its shipments to dealers of Victory motorcycles, and utility and all-terrain type vehicles.
Polaris says it earned a lower $17.5 million during the period, or $0.53 per diluted common share, from lower revenue of $345.9 million. It compares to a year-ago gain of $24.4 million, or $0.72 per common share, from sales of $455.7 million.
Since the start of the year, Polaris said its profit has fallen by 40.3% to $25.9 million, or $0.79 per common share, from sharply lower sales of $657.9 million. A year ago, it earned $43.5 million, or $1.27 per common share, from wider turnover of $844.4 million.
Polaris said its cash on hand at the end of last month rose to $30.0 million from $21.9 million a year earlier. Inventory valuation was reduced to $219.6 million from $278.4 million and the value of its outstanding long-term debt was cut to $541.8 million from $648.4 million during the same periods, reflecting a healthy balance sheet.
Polaris said 2009 second quarter sales of its off-road vehicles [ATVs and Ranger-badged units] fell by 25%. Snowmobile sales rose by 23% and Victory motorcycle turnover plunged by 55%.
Polaris predicted its overall sales would continue to decline during the third quarter of 2009, by another 25-30% as a dramatic fall in shipments of Victory motorcycles to its dealers hampers overall business.
Polaris also said it expects to earn a lower $0.76-0.86 per diluted common share during the period. A year ago, it earned $1.13 per common share.
Since the start of the year, Polaris said its profit has fallen by 40.3% to $25.9 million, or $0.79 per common share, from sharply lower sales of $657.9 million. A year ago, it earned $43.5 million, or $1.27 per common share, from wider turnover of $844.4 million.
Source: SNS
