Polaris released its third quarter 2019 results showing sales of nearly $1.8 billion on a reported and adjusted basis, up 7 percent from reported and adjusted sales of almost $1.7 billion for third quarter 2018. Sales in the boat segment, however, were down 11 percent.
The company reported third quarter net income of $88 million, or $1.42 per diluted share, compared with net income of $96 million, or $1.50 per diluted share, for the 2018 third quarter.
Adjusted net income for the quarter was $104 million, or $1.68 per diluted share, compared to $118 million, or $1.86 per diluted share, in the 2018 third quarter.
Gross profit increased 9 percent, to $437 million, from $401 million in the same quarter last year.
Reported gross profit margin was 24.6 percent of sales, up 30 basis points compared to 24.3 percent of sales for the third quarter of 2018. Adjusted gross profit was $441 million, or 24.9 percent of adjusted sales, compared to $410 million, or 24.8 percent of adjusted sales, in the third quarter last year.
Adjusted gross profit margins were up 10 basis points for the quarter.
“Through the strength of our brand portfolio and solid execution from our team, Polaris delivered 7 percent revenue growth and modest margin expansion amid mounting macroeconomic ambiguity,” CEO Scott Wine said in a statement. “Our commitment to being a customer-centric, highly efficient growth company remains steadfast, and coupled with industry-leading innovation, it will further solidify our position as the global leader in power sports.”
Boat segment sales decreased 11 percent to $119 million in the quarter compared to $134 million last year primarily due to a slowing marine industry. Gross profit increased 10 percent to $22 million, or 18.8 percent of sales, compared to $20 million, or 15.1 percent of sales, in the third quarter of 2018 due to favorable product mix.
The company’s boat brands, in addition to the Larson Boat Group, which it purchased in January, are Bennington, Godfrey, Hurricane and Rinker.