Minneapolis-based Polaris, which manufactures snowmobiles and Victory cruiser motorcycles, said that operating cash flow used for continuing operations improved by $27.2 million primarily due to lower factory inventories.
Despite this, however, net income for the company slumped to $11.5 million, a 34% decrease on the $17.6 million from the prior-year period. Sales from continuing operations for the first quarter 2006 totaled $333.5 million, a decrease of 7% from last year's sales of $358.3 million.
"Our first quarter results met our expectations in a challenging environment," commented Tom Tiller, CEO of Polaris. "As expected, our decision to reduce North American ATV shipments to dealers in the 2006 first quarter resulted in reduced overall company sales and earnings when compared to the same period last year."
We made progress in reducing factory inventories and dealers adjusted their ATV orders to Polaris to continue rebalancing their inventory levels. However, both Polaris and our dealers still have more work ahead of us as we strive to bring ATV inventories in line with expectations," Mr Tiller continued.
Automotive Business Review [full article]
Despite this, however, net income for the company slumped to $11.5 million, a 34% decrease on the $17.6 million from the prior-year period. Sales from continuing operations for the first quarter 2006 totaled $333.5 million, a decrease of 7% from last year's sales of $358.3 million.
"Our first quarter results met our expectations in a challenging environment," commented Tom Tiller, CEO of Polaris. "As expected, our decision to reduce North American ATV shipments to dealers in the 2006 first quarter resulted in reduced overall company sales and earnings when compared to the same period last year."
We made progress in reducing factory inventories and dealers adjusted their ATV orders to Polaris to continue rebalancing their inventory levels. However, both Polaris and our dealers still have more work ahead of us as we strive to bring ATV inventories in line with expectations," Mr Tiller continued.
Automotive Business Review [full article]
