Polaris Lowers 2016 Guidance, Shares Fall

(RTTNews) - Polaris Industries Inc. (PII) announced the company now expects full-year 2016 earnings to be in the range of $3.30 to $3.80 per share, $2.50 to $2.70 per share lower than previously expected of which approximately two-thirds is expected to be incurred in the third quarter. Polaris also expects total company sales for the full-year 2016 to be down in the mid to high-single digit percent range compared to previously issued guidance of flat to down two percent.

The company summarized the earnings revision of $2.50 to $2.70 per share as: approximately half related to the margin impact from delayed model year 2017 shipments, including the high margin RZR Turbo vehicles, along with correspondingly lower sales of the company's high-margin PG&A business; and about 25 percent is the result of higher promotional and customer appreciation costs to rebuild confidence and credibility with RZR owners. The remaining 25 percent is primarily related to expediting the product recall repairs, including the recently announced RZR Turbo recall.

"Our number one priority is to get our loyal owners back to riding safely," said Scott Wine, Polaris' CEO. Shares of Polaris Industries were down 12% in pre-market trade on Monday.