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Polaris 3Q profit up on higher selling prices

The Associated Press

NEWS: Polaris Industries Inc. said Tuesday that its third-quarter net income rose 20 percent, buoyed by higher selling prices and lower product costs.

The snowmobile and ATV maker also increased its full-year earnings from continuing operations and revenue forecasts.

DETAILS: Chairman and CEO Scott Wine said in a statement that there's continued demand for the Minneapolis company's existing products. He added that new model year 2014 vehicles and accessories are arriving at dealers and receiving positive customer feedback.

NUMBERS: Polaris earned $113.1 million, or $1.59 per share, for the three months ended Sept. 30. That's up from $94.3 million, or $1.33 per share, a year earlier. Earnings from continuing operations were $1.64 per share.

Analysts expected earnings of $1.61 per share, according to a FactSet survey.

Revenue rose to $1.1 billion from $879.9 million. The company said that this was the first time in its history that quarterly revenue topped $1 billion. Wall Street forecast $1.05 billion in revenue.

Snowmobile sales gained 25 percent, while off-road vehicle sales climbed 23 percent. Parts, garments and accessories sales rose 37 percent.

In the small vehicles division, sales more than doubled thanks to the Aixam Mega acquisition. Sales for the motorcycles unit fell 6 percent.

International sales rose 38 percent, while North American retail sales climbed 12 percent.

FUTURE: Polaris now expects full-year earnings from continuing operations of $5.30 to $5.37 per share. Its prior guidance was for $5.20 to $5.30 per share. The company now anticipates 2013 revenue will rise 15 percent to 16 percent, up from 13 percent to 15 percent.

STOCK: The stock rose $1.47, or 1.1 percent, to $137.50 in premarket trading. It's up 58 percent for the year to date.