(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.
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