Polaris snowmobile sales on the rise

Polaris Industries Inc. of Median, Minn. reported record sales for the second quarter of 2008, including an impressive increase in snowmobile sales.

Polaris sales for the second quarter of 2008 totaled $455.7 million, an increase of 21% over last year’s second quarter sales of $376.9 million.

“Our operating results this quarter are very strong especially given the very challenging macroeconomic environment,” says Tom Tiller, chief executive officer of Polaris Industries Inc. “Sales for the full year 2008 are now expected to grow in the range of nine to eleven percent over full year 2007 sales of $1.78 billion.”

Much of Polaris’ growth has been attributed to the performance of its side-by-side vehicles, international operations and parts, garments and accessories businesses. Second quarter ATV sales, which includes side-by-side vehicles, jumped 24% to $350.3 million compared to $282.1 million over the same period in 2007.

Polaris snowmobile sales have been better than expected in the first half of 2008.

Though the second quarter is historically a seasonally low quarter for snowmobile shipments, Polaris did see a significant increase. Snowmobile sales totaled $6.0 million for the 2008 second quarter compared to $4.4 million for the second quarter of 2007. For the first six months of 2008 (ending June 30) Polaris snowmobile sales have jumped 111% to $15.4 million compared to $7.3 million over the same period in 2007.

“Next week we will be unveiling our model year 2009 products at our annual dealer meeting,” says Tiller. “Innovation has always been a cornerstone of Polaris’ success and our new model year 2009 products will reflect the high standards that our customers have come to expect from Polaris. While we set the bar high in model year 2008 with our innovative new products including the Ranger RZR, Ranger Crew and Victory Vision, we similarly have high expectations for our new model year 2009 products. Despite a tough external environment that is not likely to improve in the near-term, we expect the momentum that we generated in the first half of 2008 to carry over into the second half of the year.”