Polaris recorded a 25 per cent sales growth in the first quarter of 2012, but snowmobile sales slid by 48 per cent. Off-road vehicle sales increased 30 per cent and on-road vehicle sales increased 44 per cent during the 2012 first quarter.
"Our record first quarter results reflect not only the continued strength of our business and solid execution of our strategy, but also a healthy start to the year for our end markets," said Scott Wine, Polaris' chief executive officer. "Retail sales in the North American off-road vehicle and motorcycle industries are off to their best start in years, and through our innovative products and motivated dealers, Polaris continued to gain market share. We have significant work to do, but as momentum built throughout the first quarter, we gained confidence that 2012 will be another record year for Polaris, as indicated by our increased full year sales and earnings guidance."
Off-road vehicle ("ORV") sales increased 30 per cent from the first quarter 2011 to $504.6 million. This increase reflects strong market share gains for both ATV and side-by-side vehicles, primarily driven by new product offerings, including the recently introduced Ranger RZR XP4(R) 900, and increased sales in their military business. North American consumer ORV retail sales increased by ap per cent for the 2012 first quarter from the first quarter last year, with side-by-side vehicle retail sales once again increasing significantly and ATV retail sales increasing double digits percent. North American dealer ORV inventories for the 2012 first quarter were up slightly from the first quarter of 2011, as additional side-by-sides were shipped to meet increasing demand. Sales of ORVs outside of North America increased 15 percent in the first quarter 2012 when compared to the first quarter 2011, due to market share gains and positive mix benefit from greater sales of higher priced side-by-side vehicles.
Snowmobile sales totaled $4.6 million for the 2012 first quarter compared to $8.9 million for the first quarter of 2011. Historically, the first quarter is a slow quarter for snowmobile shipments to dealers. The North American snowmobile industry finished the selling season in March 2012 with retail sales down less than five percent compared to the prior season, in spite of unusually warm weather and minimal snowfall in many parts of the U.S. Snowbelt regions, whereas Polaris' retail snowmobile sales for the season were about even with the prior season's results. Polaris led the North American industry in market share gains, and recorded its highest season-ending market share since 2004. Season-end North American dealer inventories for Polaris snowmobiles are higher than last year, but remain manageable given the previous season's very low dealer inventory levels. During the first quarter the Company introduced ten new or significantly updated model year 2013 snowmobiles with industry-leading innovation, technology and value, including updated PRO-RMK(R) models, now lightest in the industry at 417 pounds and an all new version of the legendary Indy model, the new Indy(R) 600.
