Polaris Industries Inc reported net income from continuing operations of $ 42.7 million, or $1.04 per diluted share for the third quarter ended September 30, 2006, within the range of previously issued guidance.
By comparison, 2005 third quarter net income from continuing operations as adjusted for the impact of SFAS 123 was $48.6 million, or $1.11 per diluted share. Sales from continuing operations for the third quarter 2006 totaled $490.1 million, a decrease of 10 percent from $543.1 million last year.
Tom Tiller, Chief Executive Officer, commented, "As expected, snowmobile sales in the third quarter 2006 were less than last year due to significantly lower production in the current year."
"In addition, a declining overall industry and a continued focus on reducing ATV inventories by our North American dealers negatively impacted third quarter 2006 sales. Partially offsetting this, however, was strength in our RANGER utility vehicle product line and continued improvement in Victory's market position within the North American motorcycle cruiser industry.
Additionally, improved results from other income streams, such as financial services, and lower operating expenses resulted in earnings within the range of previously issued guidance despite soft product sales in our base ATV and snowmobile businesses."
"Taking into consideration the steps we are taking in 2006 and our current outlook on the ATV market, inventory levels and our volume expectations for 2007, we currently expect earnings per share from continuing operations to improve for the full year 2007 over 2006.