The following are the highlights of the Polaris earnings call for their first quarter 2013 earnings report as it relates to the STOV market.

• Total sales for the first quarter increased 11% to a record $754.9 million
• First quarter net income increased 26% to $75.5 million
• Gross profit margins were up a modest 10 basis points to 29%
• Full year sales expected to be up 12% to 15% over 2012.
• Polaris’ first quarter Off-Road Vehicle (ORV) revenue increased 7% driven by side-by-side sales.
• In the first quarter consumer demand for the RANGER 900XP outpaced all other ORVs in the industry.
• Polaris gained market share in both ATVs and side-by-sides.
• ATVs down low single digits and for industry as well
• Polaris side-by-side retail grew mid-single digits in an industry estimated to grow low single digits.
• The new RZR XP 900 Jagged X has been a hit with consumers
• Major strategic initiatives included launch of Brutus commercial line, acquisition of Aixam and start of plant construction in Poland
• Brutus line will be sold through dedicated new Polaris commercial channel that already includes 400 dealers
• Initial orders for both the Brutus product and the attachment have been better than are than expected.
• Small vehicle business consisting of GEM and Goupil grew double digits
• GEM and Goupil both had good quarters, as GEM retail more than doubled in its best first quarter since 2008, while Goupil retail orders were up about 20%, significantly outperforming the European economy.

Looking Forward

• Sales of Off-Road Vehicles are expected to increase in the 8% to 10% range, with retail sales of side-by-side vehicles and ATVs outpacing the overall market in North America and internationally.
• Management expects to increase ORV market share in 2013 although at a more moderate rate than the past 3 years.
• Management optimistic about new model introductions for model year 2014
• Poland facility to be online in the 2nd half 2014 mainly for producing ATVs for the European market with some side-by-side capability as well.
• Management expects to realize sourcing and engineering synergies between Goupil, Aixam and Gem
• Goal is to decrease the delivery time of for side-by-side products to dealers from 6 weeks down to 4 weeks

Learn more:  Seekingalpha.com (earnings call transcript)