Polaris Industries Inc. today reported record second quarter net income of $96.9 million for the quarter ended June 30, 2014, up 21 percent from the prior year’s second quarter net income of $80.0 million. Earnings per share were also a record at $1.42 per diluted share for the 2014 second quarter compared to $1.13 for the second quarter of 2013. Sales for the second quarter 2014 totaled a record $1,014.0 million, an increase of 20 percent over last year’s second quarter sales of $844.8 million.
Scott Wine, Polaris’ Chairman and Chief Executive Officer, stated, “The second quarter results, our 19th consecutive quarter of record earnings performance, exemplify our commitment to delivering high quality innovative products and a first-class purchase experience that our consumers expect. Our strong financial performance in the quarter was driven by outstanding retail sales growth, up 15 percent in North America, driven by share gains in our side-by-side vehicle product line and continued growth of our Indian motorcycle business. The recently introduced Sportsman ACE™ further solidifies our #1 market share position in the North American ORV market and our Small Vehicle and PG&A businesses delivered impressive growth, up 29 percent and 20 percent year-over-year in the second quarter, respectively.”
Wine continued, “On the heels of last year’s new product launch, which was lauded to be the largest and most groundbreaking in our Company’s history, next week we will celebrate our 60th anniversary and further enhance our innovation profile with the unveiling of our model year 2015 products for ORVs, motorcycles and the much anticipated Slingshot vehicle. Between strong demand for our existing offerings and our industry leading product innovation, we believe sales and earnings will continue to accelerate in the second half of the year, supporting our confidence and decision to again raise full year sales and earnings guidance for 2014.”
2014 Business Outlook
For the full year 2014, the Company is increasing its guidance and now expects earnings to be in the range of $6.48 to $6.58 per diluted share, an increase of 20 percent to 22 percent over full year 2013 earnings of $5.40 per diluted share from continuing operations. Full year 2014 sales are now expected to grow in the range of 16 percent to 18 percent when compared to 2013.
Second Quarter Highlights:
Net income increased 21 percent to $96.9 million and earnings per diluted share increased 26 percent to $1.42 compared to the second quarter last year with sales increasing 20 percent to $1,014.0 million, setting records for second quarter sales and earnings.
North American retail sales improved significantly, rising 15 percent year-over-year in the second quarter.
Gross profit margins increased 20 bpts over second quarter last year in spite of currency pressures.
Raising guidance for full year 2014 earnings to a range of $6.48 to $6.58 per diluted share, up 20 to 22 percent over 2013 based on expected full year 2014 sales growth of 16 to 18 percent.