Being a company chock full of discretionary items affected by higher gasoline prices, one has to be impressed. Part of this could be due to the agricultural boom affecting off road vehicles, but it difficult to tell how much. Full report here.
- Polaris attributed the performance to strong pricing that boosted gross margins and a 55 percent jump in sales of its off-road vehicles. Off-road vehicles, which comprise all-terrain and side-by-side vehicles, are used in recreational activities as well as on farms and construction sites. They account for about 70 percent of Polaris' total revenue.
- "The side-by-side segment is doing well ... better than the traditional ATV segment. On top of that, Polaris is the leading player in that segment," Longbow Research analyst James Hardiman said. Side-by-side vehicles, also known as utility task vehicles, are off-road, four-wheel drive vehicles that can carry up to six passengers in addition to cargo.
- “Retail demand for Polaris products in North America remained strong throughout the first quarter and we continued to gain market share. Our International business also remained strong with sales increasing 21 percent.”
- Polaris also significantly improved its margins, with operating expenses dropping from 18.6 percent of sales in the first quarter of 2010 to 16.3 percent of sales this year.