Second-quarter sales for Polaris increased 10 percent to more than $1.5 billion, and adjusted sales increased 11 percent to more than $1.5 billion.
Reported net income was $1.43 per diluted share, up 47 percent over the prior year. Adjusted net income for the same period was $1.77 per diluted share, up 45 percent over last year.
Polaris increased full year 2018 sales guidance to 11 to 12 percent, taking into account improved volume expectations and the Boat Holdings acquisition.
Polaris expects adjusted net income to be in the range of $6.48 to $6.58 per diluted share, raising the lower range. That number includes the absorption of an estimated additional $40 million of tariff and related commodity cost increases anticipated in 2018, as well as the adjustment to exclude intangible amortization for all prior acquisitions.
“Consumer sentiment and dealer traffic improved throughout the quarter, building momentum that will help offset the rising risk of tariffs in the second half,” chairman and CEO Scott Wine said in a statement.
“During the quarter we were excited to announce another expansion of the Polaris powersports portfolio with the acquisition of Boat Holdings, the largest manufacturer of pontoon boats in the U.S.,” Wine added.
Between organic growth and considered acquisitions, Polaris’ underlying performance “has significantly improved, but much of our success is being masked by substantial cost escalation driven by tariffs and commodities,” Wine said.
