MINNEAPOLIS — Polaris Industries Inc. today reported net income of $17.5 million for the second quarter ended June 30, 2009, down from the $24.4 million reported in the year-ago period.
Sales for the second quarter 2009 totaled $345.9 million, a decrease of 24 percent from second quarter 2008 sales of $455.7 million.
Polaris reported double-digit declines in sales of off-road vehicles, Victory motorcycles and parts, garments and accessories. However, sales of snowmobiles increased 23 percent in the second quarter, and grew one percent in year-over-year results.
The company said that availability of retail credit financing sources remains at acceptable levels given the continued uncertain credit markets. Polaris has relationships with HSBC Bank, GE Money Bank and Sheffield Financial to provide retail revolving and installment financing credit to United States consumers.
During the second quarter 2009, 48 percent of consumer retail credit loan applications from Polaris customers were approved by HSBC, GE or Sheffield , improved from the first quarter 2009 approval rate of 44 percent. Additionally, 33 percent of Polaris’ retail customers in the United States financed their Polaris product purchases through HSBC, GE or Sheffield , which is slightly better than the first quarter 2009 penetration rate. Although the availability of retail credit alternatives to consumers remains challenging, the Company believes that retail credit will continue to be accessible for Polaris consumers with an acceptable credit history.
Income from financial services decreased 24 percent to $4.0 million during the second quarter, down from $5.2 million reported in the year-ago period. The decrease was primarily due to lower income generated from retail credit activity resulting from lower penetration levels in 2009.
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