Polaris continues to report record results
POLARIS Industries, the parent company of both Victory and Indian Motorcycles, has reported record net income of $108.7 million for the fourth quarter of 2013, up 23 percent from the previous fourth quarter’s net income of $88.1 million. Sales for the fourth quarter of 2013 totaled a record $1,083.7 million, an increase of 20 percent over last year’s fourth quarter sales of $900.6 million. For the full year ended December 31, 2013, Polaris reported record net income from continuing operations of $5.40 per diluted share, a 23 percent increase compared to $4.40 per diluted share for the year ended December 31, 2012. Net income from continuing operations was $381.1 million for the full year 2013, up 22 percent from the previous year’s net income from continuing operations of $312.3 million. Reported net income for the full year 2013, including both continuing and discontinued operations was $377.3 million, or $5.35 per diluted share. Sales for the full year 2013 totaled a record $3,777.1 million, an increase of 18 percent compared to sales of $3,209.8 million for the full year 2012.
“2013 marked Polaris’ fourth consecutive year of greater than 15 percent growth in both revenue and earnings. Sales and net income have more than doubled since 2009, testifying to the strength of our strategic plan that has served as a roadmap over the past five years as well as our relentless execution of its core principles. The plan keeps us focused on investing for organic growth in our principal Powersports businesses, expanding our global footprint, diversifying into market adjacencies and enhancing operational efficiencies,” said Scott Wine, Polaris’ Chairman and CEO.
“The past year was one of the most transformative in the Company’s history, as we introduced more new products than ever before, concluded a strategic acquisition, and continued the development of our global operational footprint. These and other milestones helped us attain our first $1.0 billion dollar sales quarter, and we enter 2014 poised to extend our established record of innovation and success.”
Motorcycle division sales, which include both Victory and Indian motorcycles, increased 94 percent in the 2013 fourth quarter to $68.8 million due to the initial shipments of the new model year 2014 Indian motorcycles. Consumer retail demand for the Polaris motorcycle division was up over 100 percent with strong initial retail sales for the three all-new 2014 Indian Chief models and continued strong demand for Victory motorcycles with retail sales up in the mid-single digits percent range in North America.
Fourth quarter North American industry heavyweight cruiser and touring motorcycle retail sales were up low-teens percent over 2012, driven by an unprecedented number of new product introductions in 2013, which includes three new Indian Motorcycle models. The Indian Motorcycle re-launch plan continued during the 2013 fourth quarter as an increasing number of dealers began retailing the new motorcycles, production volume accelerated at the Spirit Lake, Iowa, manufacturing facility and aggressive marketing generated exceptional exposure and attention for the brand.
Sales of Polaris motorcycles outside of North America increased 52 percent in the fourth quarter of 2013 as compared to a year ago. For the full year 2013, Polaris motorcycle sales increased 12 percent compared to the prior year.
International sales to customers outside of North America totaled $203.2 million for the 2013 fourth quarter, up 46 percent over the same period in 2012. The increase in fourth quarter sales resulted from strong sales growth in the Europe, Middle East and Africa (EMEA) region with sales up 61 percent; about half coming from the recent acquisition of Aixam, and a seven percent combined increase in sales to customers in the Asia/Pacific and Latin America regions. For the full year 2013, Polaris International sales increased 29 percent compared to the prior year.
Gross profit for the fourth quarter of 2013 was 29.3 percent of sales, a 110 basis point increase over the fourth quarter 2012. Gross profit dollars increased 25 percent to $317.1 million for the fourth quarter of 2013, compared to $253.8 million for the fourth quarter of 2012. The increase in both the gross profit percentage and gross profit dollars is primarily due to cost savings from product cost reduction efforts and higher selling prices, partially offset by higher sales promotions and unfavorable currency fluctuations.
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