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.