Polaris raises outlook as off-road vehicles sales surge
(Reuters) - Polaris Industries Inc (PII.N) raised its full-year forecast after strong sales of its off-road vehicles boosted second-quarter results.
Minneapolis-based Polaris also said it will form a joint venture with India's Eicher Motors Ltd (EICH.NS) to design and make personal vehicles in emerging markets.
The companies will jointly invest about $50 million in the project. Production is expected to start in 2015, Polaris said.
Polaris, which also makes snowmobiles and motorcycles, forecast 2012 earnings of $4.05 to $4.15 per share, up from its prior forecast of $3.85 to $4.00 per share.
The company expects full-year sales to rise 14 to 17 percent, up from its previous revenue growth forecast of 10 to 13 percent.
For the second quarter, off-road vehicles sales rose 20 percent to $581.1 million, driving revenue up 24 percent to $755.4 million.
The company's off-road vehicles are used in sports such as fishing and hunting as well as in farms, ranches and construction sites.
Polaris competes with Harley Davidson (HOG.N), Honda Motor Co (7267.T), Yamaha Motor Corp (7272.T), Suzuki Motor Corp (7269.T) and Arctic Cat Inc (ACAT.O).
Quarterly earnings rose to $69.8 million, or 98 cents per share from $48.7 million, or 68 cents per share a year ago.
Analysts on average had expected earnings of 92 cents per share on revenue of $720.8 million, according to Thomson Reuters I/B/E/S.
The company's shares were up 5 percent at $75.60 in premarket trade. They closed at $71.92 on Monday on the New York Stock Exchange.
(Reporting by Bijoy Koyitty in Bangalore)
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