Company increases full year 2013 EPS guidance
Second Quarter Highlights:
Net income increased 15% to $80.0 million, or $1.13 per diluted share, with sales increasing 12% to $844.8 million, setting records for second quarter sales and earnings.
North American retail sales improved, rising 11% year-over-year in the second quarter.
Gross profit margin percentage increased 120 basis points to 29.9% primarily due to higher selling prices and lower product costs.
Raising guidance for full year 2013 earnings to a range of $5.20 to $5.30 per diluted share, up 18% to 20% over 2012 based on expected full year 2013 sales growth of 13% to 15%.
MINNEAPOLIS--(BUSINESS WIRE)--Jul. 23, 2013-- Polaris Industries Inc. (NYSE: PII) today reported record second quarter net income of $80.0 million, or $1.13 per diluted share, for the quarter ended June 30, 2013, up 15 percent from the prior year’s second quarter net income of $69.8 million, or $0.98 per diluted share. Sales for the second quarter 2013 totaled a record $844.8 million, an increase of 12 percent over last year’s second quarter sales of $755.4 million.
Scott Wine, Polaris’ Chairman and Chief Executive Officer, stated, “We are pleased with the strength of our brands and the performance of our team, as they overcame unusually wet weather conditions across North America and sluggish international consumer demand to once again deliver record results. Retail sales to consumers in North America rose 11 percent in the second quarter, accelerating from softer first quarter results and sequentially reducing dealer inventory ahead of perhaps the most eagerly anticipated new product launch in the Company’s history. We also gained market share in our Off-Road Vehicle business, despite increasing competitive pressure. In addition, we expanded gross margin by 120 basis points, driven in large part by increased selling prices and continued product cost reduction efforts.”
Wine continued, “The second half of 2013 will be a momentous time for Polaris. In the coming weeks we will introduce some of the most exciting products in our history, which we expect will accelerate retail growth for the remainder of the year and beyond. The much anticipated re-launch of Indian Motorcycles has finally arrived, just a few short years after we purchased the brand in 2011. The motorcycles are gorgeous, the distribution channel is developing nicely and on August 3rd at the motorcycle rally in Sturgis, South Dakota, we will officially bring choice, in the form of the oldest American motorcycle company, back to the motorcycle riding community. While we are extremely enthusiastic about our future in motorcycles, we are equally excited to unveil some of the most innovative Off-Road Vehicles the Company has ever developed at our upcoming Dealer Meeting next week. Given continued share gains, and the actual performance of the Company in the second quarter, we are again confident in raising our earnings expectations for the full year 2013.”
2013 Business Outlook
For the full year 2013, the Company is increasing its earnings guidance and now expects earnings to be in the range of $5.20 to $5.30 per diluted share, an increase of 18 to 20 percent over full year 2012 earnings of $4.40 per diluted share. Full year 2013 sales are expected to grow in the range of 13 percent to 15 percent from 2012. We currently anticipate the overall economic environment around the world to remain relatively unchanged from the first half of 2013.
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