Polaris Reports Record Second Quarter 2011 Results; EPS Increased 83% to $1.37 with Sales Growth of 41%
Company increases full year 2011 guidance Second Quarter Highlights:
- Net income increased 90% to $48.7 million, or $1.37 per diluted share, with sales increasing 41% to $607.9 million, setting new second quarter sales and earnings records.
- All product lines and geographic regions experienced increased sales during the 2011 second quarter. North America sales increased 43% and International increased 35%.
- Gross profit margin percentage increased 300 basis points to 29.2% due to lower product and warranty costs, higher selling prices, and favorable currency movements.
- Raising guidance for full year 2011 earnings to a range of $5.93 to $6.05 per diluted share, a 39% to 41% increase over full year 2010 based on expected full year 2011 sales growth of 25% to 28%.
MINNEAPOLIS, Jul 19, 2011 (BUSINESS WIRE) -- Polaris Industries Inc. (NYSE:PII) today reported record second quarter net income of $48.7 million, or $1.37 per diluted share, for the quarter ended June 30, 2011, up 90 percent from the prior year's second quarter net income of $25.6 million, or $0.75 per diluted share. Sales for the second quarter 2011 totaled a record $607.9 million, an increase of 41 percent from last year's second quarter sales of $430.9 million.
"The Polaris team continues to excel and I am proud of our ability to accelerate sales while simultaneously expanding margins and strengthening earnings. Strong consumer retail sales demand for Polaris products, up 19 percent in North America for the second quarter, drove market share gains, while margin expansion efforts generated gross profit margin improvement of 300 basis points and net income margin improvement of 210 basis points compared to the 2010 second quarter. We expect our new Monterrey, Mexico production facility to play a key role in supporting future sales growth and margin expansion and we are pleased to note it came online during the second quarter on budget and on schedule. We are making steady progress in our LEAN journey, and the results and opportunities are extremely promising," commented Scott Wine, Polaris' Chief Executive Officer.
"Given our first half results and the continued strength of our businesses, we are again significantly raising our expectations for sales and earnings for the full year 2011. We continue to seek strategic investments to further strengthen our Company, as evidenced by the recently announced acquisitions of Indian Motorcycle Company and Global Electric Motorcars (GEM)."
Wine continued, "Next week we will be unveiling a number of new model year 2012 products. Innovation has always been one of our key competitive advantages and these products exemplify our commitment to providing consumers with high quality, cutting-edge products. I am confident that these new products, combined with continued execution of our strategic objectives, will drive profitable growth for the remainder of 2011 and deliver another record year for sales, net income and earnings per share."
2011 Business Outlook
Based on Polaris' performance in the first half of 2011 and projections for the remainder of the year, the Company is increasing its 2011 full year sales and earnings guidance. The Company now expects full year 2011 earnings to be in the range of $5.93 to $6.05 per diluted share, an increase of between 39 and 41 percent over full year 2010 earnings of $4.28 per diluted share. Full year 2011 sales are now expected to grow in the range of 25 percent to 28 percent from 2010. Revised full year 2011 expectations include costs and savings related to the ongoing manufacturing realignment and the impact of integrating the Indian Motorcycle Company and GEM acquisitions announced during the second quarter.
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