Harley-Davidson Reports Third-Quarter and Nine-Month Results

Company Reaches Restructuring Milestone with ERP Launch at York

MILWAUKEE, WI – October 25, 2012 – (Motor Sports Newswire) – Harley-Davidson, Inc. (NYSE: HOG) reported earnings per share of $0.59 for the third quarter of 2012, in line with Company expectations. Earnings were lower than the year-ago period due to a previously announced plan for lower third-quarter motorcycle shipments during the launch of an ERP production system at the Company’s largest assembly plant. For the full year 2012, Harley-Davidson continues to forecast a five-to seven-percent increase in motorcycle shipments compared to 2011.

Third-quarter income from continuing operations was $134.0 million on consolidated revenue of $1.25 billion, compared to income from continuing operations of $183.6 million, or $0.78 per share, on consolidated revenue of $1.40 billion in the year-ago quarter.

Through nine months, Harley-Davidson income from continuing operations increased 12.1 percent year-over-year to $553.3 million, or $2.40 per share, on consolidated revenue of $4.41 billion, compared to income from continuing operations of $493.4 million, or $2.09 per share, on consolidated revenue of $4.13 billion in the year-ago period.

“The third quarter marked a pivotal milestone in Harley-Davidson’s transformation. With the launch of the ERP production system at York, a major piece of our restructuring work is behind us. We are now focused on optimizing the system and look forward to the start of seasonal surge production early next year,” said Keith Wandell, Chairman, President and Chief Executive Officer.

“From our market leadership in U.S. outreach segments to our global expansion to the effective launch of ERP at York, we continued to see the evidence of the successful execution of our strategic plan,” said Wandell. “We believe Harley-Davidson is on track to deliver growth through our strategy, with investments in new markets, new products, and improved manufacturing and retail capabilities. Our entire team of employees, dealers and suppliers has done a great job of delivering on the many changes throughout the business that are important to Harley-Davidson’s long-term success.”

Retail Harley-Davidson Motorcycle Sales

Through nine months, retail sales of new Harley-Davidson motorcycles grew 6.0 percent overall, 6.2 percent in the U.S. and 5.4 percent internationally compared to the year-ago period. In the third quarter, retail sales of new Harley-Davidson motorcycles decreased 1.3 percent worldwide compared to the prior-year period, with unit sales down 5.2 percent in the U.S. and up 7.6 percent in international markets.

“We believe our U.S. dealers’ third-quarter new motorcycle sales were adversely affected by a limited availability of new motorcycles in July, August and early September resulting from the ERP implementation at York combined with the move of Harley-Davidson’s annual new model launch to late August from late July. As U.S. dealer inventory returned to more appropriate levels and the new 2013 motorcycles became more available, retail sales responded positively and gained momentum as we exited the quarter,” Wandell said.

“Harley-Davidson had a lot of exciting news for customers in the third quarter, with the launch of the 110^th Anniversary year and Anniversary Edition motorcycles, and the rollout of our exciting full line of 2013 bikes. While we see great untapped opportunity at retail, we continue to temper our expectations in light of continued softness in the global economy,” said Wandell.

On a worldwide basis, dealers sold 61,053 new Harley-Davidson motorcycles in the third quarter of 2012 compared to 61,838 motorcycles sold in the year-ago period.  Dealers sold 40,402 new Harley-Davidson motorcycles in the U.S. compared to sales of 42,640 units in last year’s third quarter. In international markets, dealers sold 20,651 new Harley-Davidson motorcycles during the third quarter compared to sales of 19,198 units in the year-ago period.  During the quarter, retail unit sales increased 32.3 percent in the Latin America region, 9.8 percent in the Asia Pacific region and 1.8 percent in the EMEA region and decreased 4.7 percent in North America (U.S. and Canada) compared to last year’s third quarter.

Through nine months, dealers sold 206,444 new Harley-Davidson motorcycles worldwide, with retail unit sales up 47.5 percent in the Latin America region, 14.1 percent in the Asia Pacific region and 6.0 percent in North America and down 2.9 percent in the EMEA region compared to the year-ago period.

Industry-wide U.S. heavyweight new motorcycle (651cc-plus) retail unit sales increased 3.8 percent through nine months of 2012 compared to the prior-year period.

Third-quarter and nine-month data are listed in the accompanying tables.

Harley-Davidson Motorcycles and Related Products Segment Results

Third-Quarter Results: Third-quarter operating income from motorcycles and related products was $144.8 million, a 19.9 percent decrease compared to operating income of $180.7 million in the year-ago period.

Revenue from motorcycles during the third quarter of 2012 of $774.0 million was down 16.1 percent compared to the year-ago period. The Company shipped 52,793 motorcycles to dealers and distributors worldwide during the quarter, down 14.5 percent and in line with prior guidance, compared to shipments of 61,745 motorcycles in the third quarter of 2011.

Revenue from motorcycle parts and accessories totaled $233.7 million during the quarter, down 0.8 percent, and revenue from general merchandise, which includes MotorClothes® apparel and accessories, was $75.6 million, up 9.1 percent compared to the year-ago period.

Gross margin was 34.7 percent in the third quarter of 2012, compared to 33.7 percent in the third quarter of 2011. Third-quarter operating margin from motorcycles and related products was 13.3 percent, compared to operating margin of 14.7 percent in last year’s third quarter.

Nine-Month Results: Through the first nine months of 2012 the Company shipped 200,558 motorcycles to dealers and distributors, a 10.0 percent increase compared to the year-ago period. Through nine months, revenue from motorcycles grew 8.4 percent to $2.99 billion, revenue from parts and accessories grew 6.6 percent to $698.4 million and revenue from general merchandise grew 10.0 percent to $225.4 million, compared to the year-ago period. Gross margin through nine months was 35.6 percent and operating margin was 16.8 percent, compared to 34.0 percent and 14.5 percent respectively through nine months last year.

Financial Services Segment Results

Operating income from financial services was $72.4 million in the third quarter of 2012, compared to operating income of $62.0 million in last year’s third quarter. Through nine months, operating income from financial services was $221.7 million, compared to operating income of $212.0 million in the year-ago period. Results for the third quarter and the first nine months of 2012 reflect continued improvement in credit performance year over year and lower interest expense. During the same periods in 2011, financial services results benefited from the release of significant credit loss reserves.

Guidance

Harley-Davidson continues to expect to ship 245,000 to 250,000 motorcycles to dealers and distributors worldwide in 2012, a five-to seven-percent increase from 2011. In the fourth quarter of 2012, the Company expects to ship 44,500 to 49,500 motorcycles, a two-to twelve-percent decrease from the year-ago period. This is consistent with the Company’s previously announced plans for lower shipments in the fourth quarter of 2012 related to the implementation of surge production at York in the first half of 2013. The Company believes surge production provides the flexibility to produce more motorcycles in the first half of 2013, closer to customer demand during the prime selling season. The Company continues to expect full-year 2012 gross margin of 34.75 percent to 35.75 percent.  The Company also continues to expect capital expenditures of between $190 million and $210 million in 2012.

Restructuring Update

In the third quarter of 2012, the Company incurred restructuring charges of $9.2 million. The Company now expects to incur full-year 2012 restructuring costs of $35 million to $45 million, a reduction of $5 million from the range previously provided. Upon the anticipated completion of restructuring in 2013, Harley-Davidson continues to expect restructuring activities initiated since 2009 to result in one-time overall costs of $490 million to $510 million through 2013. The Company continues to expect cumulative savings of $275 million to $295 million in 2012 from restructuring activities initiated since 2009, rising to cumulative annual ongoing savings of $315 million to $335 million beginning in 2014.

Income Tax Rate

Through nine months, the Company’s effective tax rate was 35.3 percent compared to 30.4 percent in the year-ago period. The 2011 effective tax rate was favorably impacted by a settlement of an IRS audit as well as a change in the Wisconsin income tax law associated with certain net operating losses.  The Company continues to expect its full-year 2012 effective tax rate from continuing operations will be approximately 35.5 percent.

Cash Flow

Cash and marketable securities totaled $1.93 billion at the end of the third quarter, compared to $1.61 billion at the end of last year’s third quarter. During the first nine months of 2012, Harley-Davidson generated $712.5 million of cash provided by operating activities of continuing operations, compared to $901.6 million in the year-ago period. On a discretionary basis, the Company repurchased 1.9 million shares of Harley-Davidson, Inc. common stock during the third quarter of 2012 at a cost of $84.9 million. At the end of the quarter, there were approximately 225 million shares of Harley-Davidson common stock outstanding and 15.3 million shares remaining on board-approved share repurchase authorizations.

Company Background

Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services. Harley-Davidson Motor Company produces heavyweight custom, cruiser and touring motorcycles and offers a complete line of Harley-Davidson motorcycle parts, accessories, riding gear and apparel, and general merchandise. Harley-Davidson Financial Services provides wholesale and retail financing, insurance, extended service and other protection plans and credit card programs to Harley-Davidson dealers and riders in the U.S., Canada and other select international markets. For more information, visit Harley-Davidson’s Web site at www.harley-davidson.com.

Conference Call and Webcast Presentation

Harley-Davidson will discuss third-quarter results on a Webcast at 8:00 a.m. CT today. The Webcast presentation will be posted prior to the call and can be accessed at http://investor.harley-davidson.com/. Click “Events and Presentations” under “Resources.” The audio portion of today’s call will also be posted at harley-davidson.com beginning approximately two hours after the conclusion of the call for one year. The audio may also be accessed until Nov. 6, 2012 by calling 404-537-3406 or 855-859-2056 in the US, pin number 32462414#.

Forward-Looking Statements

The Company intends that certain matters discussed in this release are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the Company “believes,” “anticipates,” “expects,” “plans,” or “estimates” or words of similar meaning. Similarly, statements that describe future plans, objectives, outlooks, targets, guidance or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this release. Certain of such risks and uncertainties are described below. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this release are only made as of the date of this release, and the Company disclaims any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

The Company’s ability to meet the targets and expectations noted depends upon, among other factors, the Company’s ability to (i) execute its business strategy, (ii) effectively execute the Company’s restructuring plans within expected costs and timing, (iii) adjust to fluctuations in foreign currency exchange rates, interest rates and commodity prices,  (iv) manage through inconsistent economic conditions, including changing capital, credit and retail markets, (v) implement and manage enterprise-wide information technology solutions, including solutions at its manufacturing facilities, and secure data contained in those systems, (vi) anticipate the level of consumer confidence in the economy, (vii) continue to realize production efficiencies at its production facilities and manage operating costs including materials, labor and overhead, (viii) manage production capacity and production changes, (ix) manage changes and prepare for requirements in legislative and regulatory environments for its products, services and operations, (x) successfully implement with our labor unions the agreements that we have executed with them that we believe will provide flexibility and cost-effectiveness to accomplish restructuring goals and long-term competitiveness, (xi) manage risks that arise through expanding international operations and sales, (xii) manage supply chain issues, including any unexpected interruptions or price increases caused by raw material shortages or natural disasters, (xiii) provide products, services and experiences that are successful in the marketplace, (xiv) develop and implement sales and marketing plans that retain existing retail customers and attract new retail customers in an increasingly competitive marketplace, (xv) manage the risks that our independent dealers may have difficulty obtaining capital and managing through changing economic conditions and consumer demand, (xvi) continue to have access to reliable sources of capital funding and adjust to fluctuations in the cost of capital, (xvii) manage the credit quality, the loan servicing and collection activities, and the recovery rates of HDFS’ loan portfolio, (xviii) sell all of its motorcycles and related products and services to its independent dealers, (xix) continue to develop the capabilities of its distributor and dealer network, (xx) adjust to healthcare inflation and reform, pension reform and tax changes, (xxi) retain and attract talented employees, and (xxii) detect any issues with our motorcycles or manufacturing processes to avoid delays in new model launches, recall campaigns, increased warranty costs or litigation.

In addition, the Company could experience delays or disruptions in its operations as a result of work stoppages, strikes, natural causes, terrorism or other factors. Other factors are described in risk factors that the Company has disclosed in documents previously filed with the Securities and Exchange Commission.

The Company’s ability to sell its motorcycles and related products and services and to meet its financial expectations also depends on the ability of the Company’s independent dealers to sell its motorcycles and related products and services to retail customers. The Company depends on the capability and financial capacity of its independent dealers and distributors to develop and implement effective retail sales plans to create demand for the motorcycles and related products and services they purchase from the Company. In addition, the Company’s independent dealers and distributors may experience difficulties in operating their businesses and selling Harley-Davidson motorcycles and related products and services as a result of weather, economic conditions or other factors.

 

Harley-Davidson, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
		Three months ended				Nine months ended
		September 30,		September 25,		September 30,		September 25,
		2012		2011		2012		2011
Motorcycles and related products revenue		$    1,089,268		$    1,232,699		$    3,931,684		$    3,635,487
Gross profit		377,904		415,391		1,398,231		1,235,525
Selling, administrative and engineering expense		223,982		222,258		709,015		660,890
Restructuring expense		9,170		12,429		26,841		49,022
Operating income from motorcycles & related products		144,752		180,704		662,375		525,613
Financial services revenue		161,027		164,557		477,962		492,296
Financial services expense		88,677		102,573		256,264		280,322
Operating income from financial services		72,350		61,984		221,698		211,974
Operating income		217,102		242,688		884,073		737,587
Investment income		1,447		2,479		5,611		5,625
Interest expense		11,438		11,270		34,528		34,101
Income before income taxes		207,111		233,897		855,156		709,111
Provision for income taxes		73,110		50,303		301,870		215,677
Income from continuing operations		134,001		183,594		553,286		493,434
Loss from discontinued operations, net of tax		-		-		-		-
Net income		$      134,001		$      183,594		$      553,286		$       493,434
Earnings per common share from continuing operations:
Basic		$           0.59		$           0.79		$           2.43		$            2.11
Diluted		$           0.59		$           0.78		$           2.40		$            2.09
Earnings per common share from discontinued operations:
Basic		$              -		$              -		$              -		$               -
Diluted		$              -		$              -		$              -		$               -
Earnings per common share:
Basic		$           0.59		$           0.79		$           2.43		$            2.11
Diluted		$           0.59		$           0.78		$           2.40		$            2.09
Weighted-average common shares:
Basic		226,020		233,800		227,953		233,989
Diluted		227,989		235,861		230,070		235,981
Cash dividends per common share		$         0.155		$          0.125		$          0.465		$          0.350

 

Harley-Davidson, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
		(Unaudited)				(Unaudited)
		September 30,		December 31,		September 25,
		2012		2011		2011
ASSETS
Current assets:
Cash and cash equivalents		$     1,795,141		$       1,526,950		$     1,428,753
Marketable securities		136,376		153,380		179,285
Accounts receivable, net		256,193		219,039		285,332
Finance receivables, net		1,212,977		1,168,603		1,104,056
Restricted finance receivables held by variable interest entities, net		513,084		591,864		586,144
Inventories		379,129		418,006		345,963
Restricted cash held by variable interest entities		217,400		229,655		238,208
Other current assets		237,396		234,709		217,445
Total current assets		4,747,696		4,542,206		4,385,186
Finance receivables, net		2,285,309		1,754,441		2,095,839
Restricted finance receivables held by variable interest entities, net		1,904,297		2,271,773		2,119,789
Other long-term assets		1,077,881		1,105,744		1,103,545
		$    10,015,183		$       9,674,164		$     9,704,359
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable & accrued liabilities		$        899,788		$         819,885		$     1,021,433
Short-term debt		404,693		838,486		774,971
Current portion of long-term debt		437,938		399,916		-
Current portion of long-term debt held by variable interest entities		559,256		640,331		644,779
Total current liabilities		2,301,675		2,698,618		2,441,183
Long-term debt		3,339,604		2,396,871		2,804,605
Long-term debt held by variable interest entities		1,132,809		1,447,015		1,350,294
Pension and postretirement healthcare liabilities		387,228		571,065		368,891
Other long-term liabilities		150,504		140,339		138,126
Total shareholders’ equity		2,703,363		2,420,256		2,601,260
		$    10,015,183		$       9,674,164		$     9,704,359

 

Harley-Davidson, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
		Nine months ended
		September 30,		September 25,
		2012		2011
Net cash provided by operating activities
of continuing operations		$        712,498		$         901,601
Cash flows from investing activities of continuing operations:
Capital expenditures		(95,329)		(106,115)
Finance receivables, net		(197,628)		(33,775)
Net change in marketable securities		18,053		(37,678)
Net cash used by investing activities of continuing operations		(274,904)		(177,568)
Cash flows from financing activities of continuing operations:
Proceeds from issuance of medium-term notes		993,737		394,277
Proceeds from securitization debt		763,895		571,276
Repayments of securitization debt		(1,161,592)		(1,333,541)
Net (decrease) increase in credit facilities and unsecured commercial paper		(634,874)		182,058
Net borrowings of asset-backed commercial paper		182,131		(483)
Net repayments of asset-backed commercial paper		(6,538)		-
Net change in restricted cash		12,255		50,679
Dividends		(106,560)		(82,557)
Purchase of common stock for treasury		(257,981)		(97,456)
Excess tax benefits from share-based payments		16,390		2,702
Issuance of common stock under employee stock option plans		36,342		7,763
Net cash used by financing activities of continuing operations		(162,795)		(305,282)
Effect of exchange rate changes on cash and cash equivalents
of continuing operations		(6,608)		(11,857)
Net increase in cash and cash equivalents of continuing operations		268,191		406,894
Cash flows from operating activities of discontinued operations		-		(74)
Net increase in cash and cash equivalents		$        268,191		$         406,820
Cash and cash equivalents:
Cash and cash equivalents – beginning of period		$     1,526,950		$       1,021,933
Cash and cash equivalents of discontinued operations – beginning of period		-		-
Net increase in cash and cash equivalents		268,191		406,820
Less: Cash and cash equivalents of discontinued operations – end of period		-		-
Cash and cash equivalents – end of period		$     1,795,141		$       1,428,753

 

Motorcycles and Related Products Revenue and
Motorcycle Shipment Data
(Unaudited)
		Three months ended				Nine months ended
		September 30,		September 25,		September 30,		September 25,
		2012		2011		2012		2011
MOTORCYCLES AND RELATED PRODUCTS REVENUE (in thousands)
Motorcycles		$        773,979		$         922,469		$     2,993,657		$    2,762,563
Parts & Accessories		233,749		235,676		698,381		655,387
General Merchandise		75,632		69,333		225,375		204,809
Other		5,908		5,221		14,271		12,728
		$     1,089,268		$       1,232,699		$     3,931,684		$    3,635,487
MOTORCYCLE SHIPMENTS:
United States		33,152		41,066		131,119		118,555
International		19,641		20,679		69,439		63,832
Total		52,793		61,745		200,558		182,387
MOTORCYCLE PRODUCT MIX:
Touring		18,483		22,357		77,859		70,410
Custom		20,719		25,638		78,430		71,526
Sportster®		13,591		13,750		44,269		40,451
Total		52,793		61,745		200,558		182,387

 

Worldwide Retail Sales of Harley-Davidson Motorcycles
		Three months ended				Nine months ended
		September 30,		September 30,		September 30,		September 30,
		2012		2011		2012		2011
North America Region
United States		40,402		42,640		135,925		127,930
Canada		2,578		2,458		9,526		9,288
Total North America Region		42,980		45,098		145,451		137,218
Europe, Middle East and Africa  Region (EMEA)
Europe*		8,146		8,064		31,667		33,337
Other		1,330		1,243		4,539		3,947
Total EMEA Region		9,476		9,307		36,206		37,284
Asia Pacific Region
Japan		2,941		2,868		7,915		7,827
Other		3,083		2,620		9,859		7,745
Total Asia Pacific Region		6,024		5,488		17,774		15,572
Latin America Region		2,573		1,945		7,013		4,755
Total Worldwide Retail Sales		61,053		61,838		206,444		194,829
Data Source
Data source for retail sales figures shown above is new sales warranty and registration information provided by Harley-Davidson dealers and compiled by the Company.  The Company must rely on information that its dealers supply concerning new retail sales, and this information is subject to revision.
* Europe data includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.

 

Heavyweight Motorcycle Registration Data(1)
		Nine months ended
		September 30,		September 30,
		2012		2011
United States2		239,940		231,125
		Eight months ended
		August 31,		August 31,
		2012		2011
Europe3		223,860		241,498

1 – Heavyweight data includes street legal 651+cc models.  Street legal 651+cc models include on-highway, dual purpose models and three-wheeled vehicles.
2 – United States data is derived from information provided by Motorcycle Industry Council (MIC).  This third party data is subject to revision and update.
3 – Europe data includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.  Industry retail motorcycle registration data includes 651+cc models derived from information provided by Association des Constructeurs Europeens de Motocycles (ACEM), an independent agency.  Europe market data is reported on a one-month lag.  This third-party data is subject to revision and update.

SOURCE: Harley-Davidson, Inc.

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Harley-Davidson, Inc. to Report Third Quarter Earnings Tuesday, October 23, 2012

Webcast Conference Call Scheduled for 8:00 A.M. CT

MILWAUKEE, WI – September 24, 2012 – (Motor Sports Newswire) – Harley-Davidson, Inc. (NYSE: HOG) today announced that it is scheduled to release its third quarter 2012 financial results before market hours on Tuesday, October 23, 2012.  The public is invited to attend a webcast conference call and downloadable slide presentation with Keith Wandell, Chairman, President and Chief Executive Officer, and John Olin, Senior Vice President and Chief Financial Officer, Harley-Davidson, Inc. from 8:00 AM to 9:00 AM (Central Time).

It is suggested that webcast participants log on and register at least ten minutes prior to the start time at http://investor.harley-davidson.com/phoenix.zhtml?c=87981&p=irol-calendar.  A replay of the audio webcast will be available approximately two hours after the call concludes.

Company Background
Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services.

Media Contact:        Bob Klein  (414) 343-8664

Financial Contact:        Amy Giuffre  (414) 343-8002

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Polaris Schedules Third Quarter Earnings Release and Conference Call

MINNEAPOLIS, MN – September 24, 2012 – (Motor Sports Newswire) – Polaris Industries Inc. (NYSE: PII) announced today that it will release its third quarter 2012 financial results on Thursday, October 18, 2012, and will hold a conference call and webcast at 9:00 am Central Time on the same day to discuss the release.

The call will be hosted by Scott Wine, CEO, Bennett Morgan, President and COO and Mike Malone, Vice President Finance and CFO.

A slide presentation and link to the webcast will be posted on the Polaris Investor Relations web site at www.polaris.com/irhome. To listen to the conference call by phone, dial 877-706-7543 in the U.S. and Canada, or 973-200-3967 Internationally. The Conference ID is #65258311.

A replay of the conference call will be available approximately two hours after the call for a one-week period by accessing the same link on our website, or by dialing 855-859-2056 in the U.S. and Canada, or 404-537-3406 Internationally.

About Polaris
Polaris is a recognized leader in the powersports industry with annual 2011 sales of $2.7 billion. Polaris designs, engineers, manufactures and markets innovative, high quality off-road vehicles (ORVs), including all-terrain vehicles (ATVs) and the Polaris RANGER® side-by-side vehicles, snowmobiles, motorcycles and on-road electric/hybrid powered vehicles.

Polaris is among the global sales leaders for both snowmobiles and off-road vehicles and has established a presence in the heavyweight cruiser and touring motorcycle market with the Victory and Indian motorcycle brands. Additionally, Polaris continues to invest in the global on-road small electric/hybrid vehicle industry with Global Electric Motorcars (GEM) and Goupil Industrie SA, and internally developed vehicles. Polaris enhances the riding experience with a complete line of Pure Polaris apparel, accessories and parts, available at Polaris dealerships.

Polaris Industries Inc. trades on the New York Stock Exchange under the symbol “PII”, and the Company is included in the S&P Mid-Cap 400 stock price index.

Information about the complete line of Polaris products, apparel and vehicles accessories are available from authorized Polaris dealers or anytime at www.polaris.com.

Source: Polaris Industries Inc.

Polaris Industries Inc.
Richard Edwards, 763-513-3477

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Arctic Cat Reports Fiscal 2012 Third Quarter Results

• Quarterly earnings per diluted share up 84 percent to $0.92 from $0.50;
• Net sales grew 36 percent;
• Third-quarter operating profit rose 114 percent to $26.2 million from $12.2 million;
• Company again raises fiscal 2012 sales and earnings guidance to a range of $1.60 to $1.70 EPS, a 129% to 143% increase over fiscal 2011, on expected full-year sales growth of 22% to 24%

MINNEAPOLIS, MN – January 26, 2012 – (Motor Sports Newswire) – Arctic Cat Inc. (NASDAQ: ACAT) today reported net earnings of $17.0 million, or $0.92 per diluted share, on net sales of $207.0 million for the fiscal third quarter ended December 31, 2011. In the prior-year third quarter, Arctic Cat reported net earnings of $9.3 million, or $0.50 per diluted share, on net sales of $152.0 million.

“We are very pleased with the company’s strong third-quarter and year-to-date performance. Arctic Cat continued to execute well during the quarter, producing double-digit sales and earnings gains,” said Claude Jordan, Arctic Cat’s president and chief executive officer. “Our focus on introducing innovative products and technologies, such as our extensive new snowmobile line-up and the Wildcat sport side-by-side, contributed to the strong third-quarter results and helped generate increased sales across all product lines.”

Among the highlights of Arctic Cat’s fiscal 2012 third quarter financial results versus the same quarter last year:

• Net sales grew 36 percent, chiefly driven by increased snowmobile sales and international all-terrain vehicle (ATV) sales;
• The company began to ship the new Wildcat sport side-by-side vehicle;
• Operating expenses as a percent of sales declined to 10.4 percent compared to 13.5 percent;
• Operating profit rose 114 percent;
• Cash and short-term investments totaled $76.3 million at quarter end; and
• The company had no short- or long-term debt.

Gross margins in the fiscal 2012 third quarter rose 154 basis points, primarily due to higher volumes, selling prices and improved product mix, coupled with lower sales incentives. The company continues to expect full-year gross margin improvement of 20 to 60 basis points.

Total cash and short-term investments at quarter end were $76.3 million compared to $107.1 million at the end of the prior-year quarter. Arctic Cat used $79.3 million in cash during the fiscal 2012 third quarter to purchase all of Suzuki Motor Corporation’s 6.1 million shares of Arctic Cat Class B common stock. The stock buyback was funded entirely with existing cash on the company’s balance sheet. The transaction reduced Arctic Cat’s outstanding shares from 18.4 million to 12.3 million, increasing non-Suzuki shareholders’ ownership of outstanding common shares by approximately 33 percent while leaving Arctic Cat’s public share float unchanged.

Commented Jordan: “We believe that this stock buyback provides immediate and long-term value to our remaining shareholders, who should see the benefit in improved earnings per diluted share from reduced shares over the next four quarters.”

Following the share purchase from Suzuki, Arctic Cat continues to have a strong balance sheet. Given the company’s current cash position and projected cash generation, Arctic Cat expects to end the current 2012 fiscal year with more than $60 million in cash.

As previously announced, Suzuki will continue to supply snowmobile engines to Arctic Cat through the 2014 model year, as well as engine parts to service existing engines. Arctic Cat will move snowmobile engine manufacturing to its St. Cloud, Minn., facility, where the company has manufactured ATV engines since 2007.

For the nine months ended December 31, 2011, Arctic Cat’s net earnings increased to $36.1 million, or $1.94 per diluted share, on net sales of $486.8 million. In the first nine months of last fiscal year, the company reported net earnings of $22.6 million, or $1.22 per diluted share, on net sales of $391.2 million.

Business Line Results

Snowmobile sales rose 61 percent to $125.2 million in the fiscal 2012 third quarter, up from $77.8 million in the prior-year quarter. Sales continued to be fueled by Arctic Cat’s extensive new 2012 model line-up, announced in March 2011, with 23 all-new snowmobiles representing 75 percent of the current offerings.

ATV sales increased 12 percent to $54.4 million in the fiscal 2012 third quarter versus $48.6 million in the same period last year, with strong contributions from Arctic Cat’s Prowler line of side-by-sides. During the third quarter, Arctic Cat began shipping limited quantities of its all-new Wildcat V-Twin 1000i H.O. sport recreational off-road vehicle (ROV) to dealers. The Wildcat ROV was introduced to the public through demonstrations and rides held throughout North America. Arctic Cat is ramping up production of the Wildcat in the fiscal fourth quarter in order to meet demand for this off-road sport vehicle.

Sales of parts, garments and accessories (PG&A) in the fiscal 2012 third quarter grew 7 percent to $27.4 million versus $25.6 million in the prior-year quarter. The growth was primarily due to snowmobile-related parts, garments and accessories sales. With the launch of its e-commerce site in Canada, Arctic Cat now offers online PG&A sales throughout North America. The company also launched a wide range of accessories for Wildcat vehicle customization.

Company Raises Fiscal 2012 Outlook

“With product innovation driving increased sales and our continued progress on operational excellence and execution, we are raising our fiscal 2012 sales and earnings guidance for the third consecutive quarter,” said Jordan. “We remain well-positioned for future sales growth across all product lines.”

Arctic Cat continues to expect higher snowmobile retail sales in fiscal 2012, due to its new model line-up. The company also anticipates continued gains in its ROV business, fueled by the competitive strength of the Prowler side-by-side offerings and the growth potential for the Wildcat pure-sport ROV model. Additionally, the company remains focused on further enhancing profitability through operational efficiencies.

Arctic Cat’s fiscal 2012 outlook now includes the following assumptions versus the prior fiscal year: ATV industry retail sales declining approximately 10 to 15 percent; snowmobile industry retail sales up approximately 3 to 5 percent; Arctic Cat dealer inventories decreasing 10 to 20 percent; achieving lower operating expense levels as a percent of sales; increasing cash flow from operations; and ending the year with more than $60 million in cash on its balance sheet and no debt. The company expects gross margins to improve between 20 to 60 basis points in fiscal 2012.

For the fiscal year ending March 31, 2012, Arctic Cat now anticipates sales in the range of $568 million to $575 million, an increase of 22 percent to 24 percent versus fiscal 2011. The company estimates that fiscal 2012 earnings per diluted share will be in the range of $1.60 to $1.70, an increase of 129 percent to 143 percent. Previously, the company expected fiscal 2012 sales in the range of $530 million to $545 million and earnings in the range of $1.10 to $1.15 per diluted share.

Conference Call

A conference call is scheduled for 11 a.m. CT (12 p.m. ET) today. To listen to the live call dial 1-800-762-8795. The webcast may be accessed through the investor relations section of www.arcticcat.com/corporate. In addition, a telephone replay will be available through February 2, 2012, by dialing 1-800-406-7325, passcode 4509174.

About Arctic Cat

Arctic Cat Inc. designs, engineers, manufactures and markets all-terrain vehicles (ATVs) and snowmobiles under the Arctic Cat® brand name, as well as related parts, garments and accessories. Its common stock is traded on the Nasdaq Global Select Market under the ticker symbol “ACAT.” More information about Arctic Cat and its products is available at www.arcticcat.com.

Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for certain forward-looking statements. The Company’s Annual Report, as well as the Report on Form 10-K, its Quarterly Report on Form 8-K and other filings with the Securities and Exchange Commission, the Company’s press releases and oral statements made with the approval of an authorized executive officer, contain forward-looking statements that reflect the Company’s current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated. The words “aim,” “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions that indicate future events and trends identify forward-looking statements. Actual future results and trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to: product mix and volume; competitive pressure on sales, pricing and sales incentives; increase in material or production cost which cannot be recouped in product pricing; changes in the sourcing of engines; interruption of dealer floorplan financing; warranty expenses and product recalls; foreign currency exchange rate fluctuations; product liability claims and other legal proceedings in excess of reserves or insured amounts; environmental and product safety regulatory activity; effects of the weather; general economic conditions and political changes; interest rate changes; consumer demand and confidence; and those set forth in the Company’s Annual Report on Form 10-K for the year ended March 31, 2011, under heading “Item 1A. Risk Factors.” The Company does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

FINANCIAL TABLES FOLLOW

ARCTIC CAT INC.
Financial Highlights
(000s omitted, except per share amounts) (Unaudited)
			Three Months Ended										Nine Months Ended
			December 31,										December 31,
			2011					2010					2011					2010
Net Sales
Snowmobile & ATV Units			$	179,659				$	126,381				$	408,378				$	319,485
Parts, Garments & Accessories				27,363					25,595					78,403					71,709
Total Net Sales				207,022					151,976					486,781					391,194
Cost of Goods Sold
Snowmobile & ATV Units				142,541					104,723					320,513					254,252
Parts, Garments & Accessories				16,704					14,521					47,067					42,193
Total Cost of Goods Sold				159,245					119,244					367,580					296,445
Gross Profit				47,777					32,732					119,201					94,749
Operating Expenses
Selling & Marketing				10,186					8,891					28,431					25,780
Research & Development				4,773					3,850					12,596					10,722
General & Administrative				6,635					7,774					22,664					25,554
Total Operating Expenses				21,594					20,515					63,691					62,056
Operating Profit				26,183					12,217					55,510					32,693
Other Income(Expense)
Interest Income				23					28					68					72
Interest Expense				(1	)				(1	)				(7	)				(11	)
Total Other Income(Expense)				22					27					61					61
Earnings Before Income Taxes				26,205					12,244					55,571					32,754
Income Taxes				9,177					2,982					19,455					10,161
Net Earnings			$	17,028				$	9,262				$	36,116				$	22,593
Net Earnings Per Share
Basic			$	0.96				$	0.51				$	2.00				$	1.24
Diluted			$	0.92				$	0.50				$	1.94				$	1.22
Weighted Average Shares Outstanding:
Basic				17,721					18,236					18,054					18,214
Diluted				18,489					18,644					18,633					18,484

			December 31,
Selected Balance Sheet Data:			2011				2010
Cash and Short-term Investments			$	76,296			$	107,070
Accounts Receivable, net				52,187				50,196
Inventories				87,867				77,150
Total Assets				279,207				296,400
Short-term Bank Borrowings				0				0
Total Current Liabilities				134,894				102,879
Long-term Debt				0				0
Shareholders’ Equity				142,227				190,953

			Three Months Ended												Nine Months Ended
			December 31,												December 31,
Product Line Data:			2011				2010				Change				2011				2010				Change
Snowmobiles			$	125,227			$	77,822			61	%			$	257,258			$	186,452			38	%
All-Terrain Vehicles				54,432				48,559			12	%				151,120				133,033			14	%
Parts, Garments & Accessories				27,363				25,595			7	%				78,403				71,709			9	%
Total Sales			$	207,022			$	151,976			36	%			$	486,781			$	391,194			24	%

Source: Arctic Cat Inc.

Arctic Cat Inc.
Timothy C. Delmore, 763-354-1800
Chief Financial Officer
or
Padilla Speer Beardsley Inc.
Shawn Brumbaugh, 612-455-1754
sbrumbaugh@padillaspeer.com

####

Arctic Cat to Webcast Fiscal 2012 Third Quarter Conference Call

MINNEAPOLIS, MN – January 19, 2012 – (Motor Sports Newswire) – Arctic Cat Inc. (NASDAQ: ACAT) announced today that it will webcast its fiscal 2012 third quarter conference call on Thursday, January 26, 2012, at 11 a.m. CT (12 p.m. ET). The company will release results for its third quarter ended December 31, 2011, before the stock market opens that day.

To access the live webcast or webcast replay, go to the corporate portion of the company’s website at www.arcticcat.com. To listen to a telephone replay of the conference call, dial 800-406-7325 and enter conference call passcode 4509174. The telephone replay will be available through Thursday, February 2, 2012.

Arctic Cat Inc. designs, engineers, manufactures and markets all-terrain vehicles (ATVs) and snowmobiles under the Arctic Cat® brand name, as well as related parts, garments and accessories. Its common stock is traded on the NASDAQ Global Select Market under the ticker symbol “ACAT.” More information about Arctic Cat and its products is available at www.arcticcat.com.

Source: Arctic Cat Inc.

####

Polaris Reports Record Third Quarter 2011 Results; 26% Sales Growth Drove EPS Increase of 38%

Company Increases Full Year 2011 Guidance

Third Quarter Highlights:

• Net income increased 43% to a record $67.6 million, or a record $0.95 per diluted share.
• All product lines and geographic regions experienced sales growth during the third quarter.
• Gross profit margin percentage increased 230 basis points to 28.3%.
• During the third quarter, the Board of Directors declared a two-for-one split of the Company’s outstanding shares of common stock.
• Raising guidance for full year 2011 earnings to a range of $3.10 to $3.16 per diluted share, a 45% to 48% increase over full year 2010 based on expected full year 2011 sales growth of 30% to 32%.

MINNEAPOLIS, MN – October 18, 2011 – (Motor Sports Newswire) – Polaris Industries Inc. (NYSE: PII) today reported record third quarter net income of $67.6 million, or $0.95 per diluted share, for the quarter ended September 30, 2011, up 43 percent and 38 percent, respectively, from the prior year’s third quarter net income of $47.2 million, or $0.69 per diluted share. Sales for the third quarter 2011 totaled a record $729.9 million, an increase of 26 percent from last year’s third quarter sales of $580.1 million.

Scott Wine, Polaris’ Chief Executive Officer, stated that “Despite challenging economic conditions, we are pleased to report another record quarter of sales, net income and earnings per share. I am exceptionally proud of how the Polaris team continued to drive growth and productivity in the third quarter. Each of our businesses experienced strong sales growth in the period, primarily driven by sustained market share gains. North American consumer retail demand for Polaris products remains vital, increasing 16 percent. We also once again improved our profitability, with healthy gross profit margin and net income margin increases when compared to last year.”

“I am also pleased to report that our Monterrey, Mexico manufacturing facility shipped their 10,000^th side-by-side product in the quarter, marking an important milestone while demonstrating the schedule fidelity and focus on quality that is a cornerstone of Polaris operations. Additionally, integration of Global Electric Motorcars (GEM) and Indian Motorcycle Company is progressing according to plan, providing us with exciting new growth platforms.”

2011 Business Outlook

The Company is increasing its previously issued sales and earnings guidance and now expects full year 2011 earnings in the range of $3.10 to $3.16 per diluted share, an increase of 45 to 48 percent over full year 2010 earnings of $2.14 per diluted share. Full year 2011 sales are now expected to grow in the range of 30 to 32 percent from 2010.

Wine noted, “Given our year-to-date results, the positive momentum exhibited by our businesses, and the strong performance of our 2012 model year products introduced earlier this year, we are raising our full year 2011 sales and earnings expectations. We expect 2011 will be a record year for Polaris, demonstrating our commitment to making growth happen in spite of adverse economic conditions.

“Looking ahead to 2012, we expect the overall economic climate to remain challenging. However, we believe our business is well positioned to offset these headwinds, as we continue to execute our successful long-term strategy, invest in product innovation, and seize additional opportunities to sustain our momentum. While our current success means the sales and earnings comparisons will be much tougher in 2012, at this early stage we expect to have another year of increasing sales, net income and earnings per share.”

Third Quarter Performance Summary (in thousands except per share data)
			Three Months ended September 30,											Nine Months ended September 30,
Product line sales			2011				2010				Change			2011				2010				Change
Off-Road Vehicles			$	486,243			$	389,349			25%			$	1,356,566			$	981,823			38%
Snowmobiles				95,102				77,285			23%				110,865				84,804			31%
On-Road Vehicles				35,655				20,137			77%				111,449				60,984			83%
Parts, Garments & Accessories				112,861				93,311			21%				296,100				245,086			21%
Total Sales			$	729,861			$	580,082			+26%			$	1,874,980			$	1,372,697			+37%
Gross profit			$	206,836			$	150,699			+37%			$	536,275			$	358,697			+50%
Gross profit as a % of sales				28.3%				26.0%			+230 bpts				28.6%				26.1%			+250 bpts
Operating expenses			$	102,873			$	87,139			+18%			$	296,620			$	228,759			+30%
Operating expenses as a % of sales				14.1%				15.0%			-90 bpts				15.8%				16.7%			-90 bpts
Operating Income			$	110,290			$	67,696			+63%			$	256,794			$	142,575			+80%
Operating Income as a % of sales				15.1%				11.7%			+340 bpts				13.7%				10.4%			+330 bpts
Net Income			$	67,637			$	47,221			+43%			$	163,676			$	92,616			+77%
Net income as a % of sales				9.3%				8.1%			+120 bpts				8.7%				6.7%			+200 bpts
Diluted Net Income per share			$	0.95			$	0.69			+38%			$	2.30			$	1.36			+69%

Summary of Operations

Off-Road Vehicle (“ORV”) sales, comprised of all-terrain vehicles (“ATVs”) and RANGER™ side-by-side vehicles, increased 25 percent year-over-year, to $486.2 million, during the third quarter 2011. This increase reflects significant North American market share gains for both ATVs and side-by-side vehicles. North American ORV unit retail sales from dealers to consumers for the 2011 third quarter were up low-teens percent year-over-year, with side-by-side vehicle consumer retail sales climbing significantly and ATV consumer retail sales down mid-single digits percent. As a result of consistently strong demand for Polaris products, North American ORV dealer inventories were up modestly compared to the third quarter of 2010, as higher side-by-side vehicle dealer inventory was largely offset by lower ATV dealer inventory. Polaris sales of ORVs outside of North America increased 59 percent compared to the third quarter 2010.

Snowmobile sales for third quarter 2011 were $95.1 million, an increase of 23 percent over third quarter 2010. These results reflect significantly reduced snowmobile dealer inventory levels entering the 2011 – 2012 selling season compared to the prior year, as well as the benefit of more higher priced snowmobiles shipping during the 2011 third quarter than in third quarter 2010.

On-Road Vehicle sales totaled $35.7 million, 77 percent higher than the same period in 2010, primarily due to Victory motorcycle sales increases. Sales of On-Road Vehicles to customers outside of North America increased 74 percent compared to the prior year’s third quarter. Third quarter North American heavyweight cruiser and touring motorcycle industry retail sales were up mid-single digits percent over the prior year’s third quarter, while Victory unit retail sales in North America increased upper-teens percent during the same period. In addition, a modest amount of On-Road vehicle sales related to the GEM and Indian Motorcycle Company acquisitions were recorded in the third quarter 2011.

Parts, Garments, and Accessories (“PG&A”) sales increased 21 percent during the third quarter 2011 to $112.9 million compared to the same period last year, with PG&A sales increasing across all businesses and geographies. During the 2011 third quarter the Company introduced over 200 new accessories and garments to the PG&A product line for the 2012 model year.

International sales totaled $97.9 million for the 2011 third quarter, a 59 percent increase over the same period in 2010. All regions and product lines experienced growth during the quarter driven by higher volume, and increased sales of higher priced side-by-side vehicles and motorcycles. Year-to-date, international sales totaled $293.2 million, an increase of 37 percent over the same period last year.

Gross profit was 28.3 percent of sales for the third quarter of 2011, up 230 basis points from 26.0 percent for the third quarter of 2010. Gross profit dollars increased 37 percent to $206.8 million for the third quarter of 2011, compared to $150.7 million for the third quarter of 2010. Continued product cost reduction efforts, production efficiencies on increased volumes, and higher selling prices were the most significant factors in this increase, partially offset by increasing commodity costs and unfavorable currency movements.

Operating expenses for third quarter 2011 decreased 90 basis points, as a percent of sales, to 14.1 percent of sales compared to 15.0 percent of sales for the same period last year as we gain leverage from the sales increases. Operating expenses in absolute dollars for the third quarter of 2011 increased 18 percent to $102.9 million compared to $87.1 million last year primarily due to continued investments in future growth opportunities and acquisition integration. This was offset somewhat by lower share-based incentive compensation plan expenses in the third quarter 2011, primarily as a result of the lower stock price at September 30, 2011 than a quarter ago.

Income from financial services increased to $6.3 million during third quarter 2011 from $4.1 million in the third quarter of 2010, primarily due to increased profitability generated from the retail credit portfolios with GE, HSBC, and Sheffield.

Non-operating other expense was $5.5 million in the third quarter of 2011, as compared to $1.5 million of income in the third quarter of 2010. The decrease in profitability was the result of foreign currency exchange rate movements and the resulting effects on foreign currency transactions related to the Company’s foreign subsidiaries.

Financial Position and Cash Flow

Net cash provided by operating activities increased 26 percent to $198.1 million for the year-to-date period ended September 30, 2011 compared to $156.9 million for the same period in 2010. The increase was driven by higher net income; partially offset by an increased investment in working capital, in particular factory inventory levels supporting business growth. Total long-term debt at September 30, 2011 was $100.0 million compared to $200.0 million a year ago. The Company’s debt-to-total capital ratio was 17 percent at September 30, 2011, compared to 40 percent for the same period in 2010. Cash and cash equivalents were $335.7 million at September 30, 2011 compared to $264.5 million for the same period in 2010.

2-for-1 stock split completed during the quarter

During the 2011 third quarter, the Board of Directors declared a two-for-one split of the Company’s outstanding shares of common stock. On September 12, 2011 Polaris shareholders received one additional share of common stock for each share they held of record at the close of business on September 2, 2011. All share and per share information for all periods presented have been adjusted to give effect to the stock split.

Conference Call and Webcast Presentation

Today at 10:00 AM (CT) Polaris Industries Inc. will host a conference call and webcast to discuss its 2011 third quarter earnings results released this morning. The call will be hosted by Scott Wine, CEO, Bennett Morgan, President and COO, and Mike Malone, Vice President―Finance and CFO. A slide presentation and link to the audio webcast will be posted on the Investor Relations page of the Polaris web site at www.polarisindustries.com/irhomeapproximately 30 minutes before the conference call begins.

To listen to the conference call by phone, dial 800-374-6475 in the U.S. and Canada, or 973-200-3967 internationally. The Conference ID is # 75875515.

A replay of the conference call will be available approximately two hours after the call for a one-week period by accessing the same link on our website, or by dialing 800-642-1687 in the U.S. and Canada, or 706-645-9291 internationally.

About Polaris

With annual 2010 sales of $1.99 billion, Polaris designs, engineers, manufactures and markets innovative, high quality off-road vehicles (ORVs), including all-terrain vehicles (ATVs) and the Polaris RANGER® for recreational and utility use, snowmobiles, motorcycles and on-road electric powered vehicles.

Polaris is a recognized leader in the powersports industry, among the global sales leaders for both snowmobiles and off-road vehicles. The Company has established a presence in the heavyweight cruiser and touring motorcycle market with Victory motorcycles and the acquisition of Indian Motorcycle Company. Additionally, Polaris continues to invest in the global on-road low speed vehicle industry with internally developed vehicles and the acquisition of Global Electric Motorcars (GEM). Polaris enhances the riding experience with a complete line of Pure Polaris apparel, accessories and parts, available at Polaris dealerships.

Polaris Industries Inc. trades on the New York Stock Exchange under the symbol “PII”, and the Company is included in the S&P Mid-Cap 400 stock price index.

Information about the complete line of Polaris products, apparel and vehicles accessories are available from authorized Polaris dealers or anytime at www.polarisindustries.com.

Except for historical information contained herein, the matters set forth in this news release, including management’s expectations regarding 2011 and 2012 sales, shipments, net income, net income per share, manufacturing realignment transition costs and savings in logistical and production costs, are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Potential risks and uncertainties include such factors as the Company’s ability to successfully implement its manufacturing operations realignment initiatives, product offerings, promotional activities and pricing strategies by competitors; acquisition integration costs; warranty expenses; impact of changes in Polaris stock price on incentive compensation plan costs; foreign currency exchange rate fluctuations; environmental and product safety regulatory activity; effects of weather; commodity costs; uninsured product liability claims; uncertainty in the retail and wholesale credit markets; changes in tax policy and overall economic conditions, including inflation, consumer confidence and spending and relationships with dealers and suppliers. Investors are also directed to consider other risks and uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission. The Company does not undertake any duty to any person to provide updates to its forward-looking statements.

(summarized financial data follows)

POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Data)
(Unaudited)
		For Three Months Ended September 30,							For Nine Months Ended September 30,
		2011			2010				2011			2010
Sales		$	729,861		$	580,082			$	1,874,980		$	1,372,697
Cost of Sales			523,025			429,383				1,338,705			1,014,000
Gross profit			206,836			150,699				536,275			358,697
Operating expenses
Selling and marketing			49,074			38,118				129,740			102,380
Research and development			25,750			22,257				74,248			59,507
General and administrative			28,049			26,764				92,632			66,872
Total operating expenses			102,873			87,139				296,620			228,759
Income from financial services			6,327			4,136				17,139			12,637
Operating Income			110,290			67,696				256,794			142,575
Non-operating Expense (Income):
Interest expense			1,270			721				2,766			2,149
(Gain) on securities held for sale, net			-			(1,594	)			-			(825	)
Other expense (income), net			5,480			(1,482	)			3,921			1,016
Income before income taxes			103,540			70,051				250,107			140,235
Provision for Income Taxes			35,903			22,830				86,431			47,619
Net Income		$	67,637		$	47,221				163,676			92,616
Basic Net Income per share		$	0.98		$	0.71			$	2.38		$	1.39
Diluted Net Income per share		$	0.95		$	0.69			$	2.30		$	1.36
Weighted average shares outstanding:
Basic			68,937			66,811				68,761			66,487
Diluted			71,289			68,753				71,056			68,250

Note: Shares outstanding and per share data have been adjusted to give effect to the two-for-one- stock split declared on July 20, 2011 and paid on September 12, 2011 to shareholders of record on September 2, 2011.

POLARIS INDUSTRIES INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands)
(Unaudited)
Subject to Reclassification		September 30, 2011				September 30, 2010
Assets
Current Assets:
Cash and cash equivalents		$	335,747			$	264,511
Trade receivables, net			108,889				98,151
Inventories, net			338,285				279,778
Prepaid expenses and other			37,762				17,443
Income taxes receivable			9,037				-
Deferred tax assets			62,269				68,696
Total current assets			891,989				728,579
Property and equipment, net			198,018				180,936
Investments in finance affiliate			37,273				33,479
Investments in manufacturing affiliates			882				1,183
Deferred tax assets			10,240				-
Goodwill and other intangible assets, net			59,658				27,880
Total Assets		$	1,198,060			$	972,057
Liabilities and Shareholders’ Equity
Current Liabilities:
Accounts payable		$	187,780			$	138,044
Accrued expenses:
Compensation			160,414				92,382
Warranties			36,724				29,602
Sales promotions and incentives			80,234				83,420
Dealer holdback			61,196				55,029
Other			66,189				50,463
Income taxes payable			1,598				4,559
Current liabilities of discontinued operations			1,550				1,850
Total current liabilities			595,685				455,349
Long term income taxes payable			7,156				4,045
Deferred income taxes			-				14,748
Long-term debt			100,000				200,000
Total liabilities			702,841				674,142
Shareholders’ Equity:
Total shareholders’ equity			495,219				297,915
Total Liabilities and Shareholders’ Equity		$	1,198,060			$	972,057

 

POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Subject to Reclassification		For the Nine Months Ended September 30,
		2011					2010
Operating Activities:
Net income		$	163,676				$	92,616
Adjustments to reconcile net income to net cash provided by operating activities:
Noncash valuation adjustments on securities held for sale			-					(825	)
Depreciation and amortization			50,692					49,616
Noncash compensation			14,815					13,460
Noncash income from financial services			(3,398	)				(3,313	)
Noncash loss from manufacturing affiliates			127					1,203
Deferred income taxes			(6,404	)				(4,423	)
Changes in current operating items:
Trade receivables			(17,563	)				(7,745	)
Inventories			(96,474	)				(100,463	)
Accounts payable			73,207					62,387
Accrued expenses			27,243					52,031
Income taxes payable/receivable			(8,542	)				(3,086	)
Prepaid expenses and others, net			700					5,455
Net cash provided by operating activities			198,079					156,913
Investing Activities:
Purchase of property and equipment			(62,474	)				(35,040	)
Investments in finance affiliate, net			3,294					11,166
Proceeds from sale of investments		-						9,601
Acquisition of businesses, net of cash acquired			(27,960	)				(2,500	)
Net cash used for investing activities			(87,140	)				(16,773	)
Financing Activities:
Borrowings under senior notes			100,000					-
Repayments under credit agreement			(200,000	)				-
Repurchase and retirement of common shares			(62,462	)				(27,486	)
Cash dividends to shareholders			(46,147	)				(39,538	)
Tax effect of proceeds from share-based compensation exercises			13,361					7,502
Proceeds from stock issuances under employee plans			28,005					43,653
Net cash used for financing activities			(167,243	)				(15,869	)
Impact of currency exchange rates on cash balances			(1,876	)				-
Net (decrease) increase in cash and cash equivalents			(58,180	)				124,271
Cash and cash equivalents at beginning of period			393,927					140,240
Cash and cash equivalents at end of period		$	335,747				$	264,511

 

Contacts

Polaris Industries Inc.
Richard Edwards, 763-542-0500

####

Harley-Davidson Earnings, Retail Motorcycle Sales Rise in Third Quarter

• Earnings Climb to $0.78 Per Share on Motorcycle Shipment Growth, Improved Motorcycle Operating Margin and Financial Services Results
• Worldwide Harley-Davidson® Retail New Motorcycle Sales Rise, Led by 5.4 Percent Growth in U.S.
• Company Marks Continued Progress on Transformation Strategy
• Company Repurchases Shares

MILWAUKEE, WI – October 18, 2011 – (Motor Sports Newswire) – Harley-Davidson, Inc. (NYSE: HOG) reported continued strong improvement in earnings and dealer retail sales in the third quarter of 2011 and through nine months, compared to 2010.

Income from continuing operations in the third-quarter 2011 rose 95.9 percent to $183.6 million, or $0.78 per share, compared to income of $93.7 million, or $0.40 per share from continuing operations in the year-ago quarter. Third-quarter operating income from Motorcycles and Related Products grew 78.0 percent on higher shipment volume and operating margin improvement, while operating income from Financial Services grew 21.9 percent on continued improvement in credit performance, compared to the third quarter of 2010.

Retail sales of new Harley-Davidson motorcycles grew 5.1 percent worldwide in the third quarter compared to the prior-year period, led by a 5.4 percent rise in the U.S.

For the first nine months of 2011, Harley-Davidson income from continuing operations was up 63.5 percent compared to the year-ago period to $493.4 million, or $2.09 per share. Retail sales of new Harley-Davidson motorcycles through nine months grew 4.9 percent worldwide compared to the year-ago period.

“We are pleased with our sustained progress and we continue to realize strong momentum in the transformation our business,” said Keith Wandell, President and Chief Executive Officer of Harley-Davidson, Inc.

“Two years ago we embarked on our strategy to focus solely on the Harley-Davidson brand, provide the flexibility required in today’s market and make Harley-Davidson lean, agile and more effective than ever at delivering remarkable products and extraordinary customer experiences. Today, we continue to see the positive results of the course we have charted,” Wandell said. “The changes underway in manufacturing, product development and retail capability will increasingly enable Harley-Davidson to be customer-led like never before.

“Harley-Davidson’s transformation involves a tremendous amount of highly complex, challenging work across every part of the organization. While much remains to be done, we are well down the road and everyone involved deserves much credit for bringing these changes to life,” Wandell said. “I continue to be impressed by the willingness of all employees, including the union leadership, to do the necessary things to transform our business to be a world class, sustainable operation.”

Retail Harley-Davidson Motorcycle Sales

On a worldwide basis, third-quarter retail Harley-Davidson new motorcycle sales grew 5.1 percent compared to last year’s third quarter to 61,838 units. Dealers sold 42,640 new Harley-Davidson motorcycles in the U.S., a 5.4 percent increase compared to last year’s third quarter. In international markets, dealers sold 19,198 new Harley-Davidson motorcycles during the third quarter, an increase of 4.4 percent compared to the year-ago period.

Through nine months, worldwide retail sales of new Harley-Davidson motorcycles increased 4.9 percent compared to the prior-year period to 194,829 units. U.S. retail sales of new Harley-Davidson motorcycles increased 4.7 percent to 127,930 units through three quarters compared to the year-ago period. In international markets, retail sales of new Harley-Davidson motorcycles increased 5.2 percent to 66,899 units for the first nine months of 2011 compared to 2010. Through nine months, industry-wide U.S. heavyweight new motorcycle (651cc-plus) retail unit sales increased 3.7 percent, compared to the year-ago period.

Third-quarter and nine-month data are listed in the accompanying tables.

Harley-Davidson Motorcycles and Related Products Segment Financial Results

Third-Quarter Segment Results: Revenue from Harley-Davidson Motorcycles during the third quarter of 2011 of $922.3 million was up 15.5 percent compared to the year-ago period. The Company shipped 61,745 Harley-Davidson motorcycles to dealers and distributors worldwide during the quarter, compared to shipments of 53,293 motorcycles in the third quarter of 2010.

Revenue from Motorcycle Parts and Accessories (P&A) totaled $235.7 million during the quarter, up 7.6 percent, and revenue from General Merchandise, which includes MotorClothes® Apparel and Accessories, was $69.3 million, up 8.2 percent compared to the year-ago period.

Gross margin was 33.7 percent in the third quarter of 2011, compared to 34.9 percent in the third quarter of 2010. Third-quarter operating margin was 14.7 percent, compared to 9.3 percent in the third quarter of 2010.

Nine-Month Segment Results: Through the first nine months of 2011, the Company shipped 182,387 Harley-Davidson motorcycles to dealers and distributors, a 9.9 percent increase compared to last year’s 166,013 units for the period.

Revenue from Harley-Davidson Motorcycles through nine months was $2.76 billion, a 13.2 percent increase compared to the year-ago period. Nine-month P&A revenue was $655.4 million, a 9.3 percent increase from the first nine months of 2010. General Merchandise revenue was $204.8 million, a 3.6 percent increase compared to the same period in 2010.

Gross margin through nine months was 34.0 percent and operating margin was 14.5 percent, compared to 35.5 percent and 11.8 percent respectively through nine months last year.

Financial Services Segment

The Financial Services segment recorded operating income of $62.0 million in the third quarter, compared to operating income of $50.9 million in the year-ago quarter. The increase in year-over-year operating income was largely the result of continued improvement in credit performance at Harley-Davidson Financial Services. Through nine months, operating income from financial services was $212.0 million, compared to operating income of $138.4 million in the first three quarters of 2010.

Guidance

Harley-Davidson continues to expect to ship 228,000 to 235,000 Harley-Davidson motorcycles to dealers and distributors worldwide in 2011, including 45,500 to 52,500 motorcycles in the fourth quarter.

For the full year, Harley-Davidson now expects gross margin to be between 33.5 percent and 34.5 percent, compared to previous guidance of 34.0 percent to 35.0 percent.  The Company continues to expect capital expenditures of between $210 million and $230 million, which includes $70 million to $85 million to support restructuring activities.

Restructuring Update

Harley-Davidson has lowered cost estimates related to the restructuring of its production operations and now expects all previously announced company-wide restructuring activities to result in one-time charges of $480 million to $495 million, including 2011 charges of $70 million to $80 million. The Company continues to expect to realize savings on a cumulative basis in 2011 of $210 million to $230 million from restructuring activities initiated since early 2009, and annual ongoing savings of $305 million to $325 million when the restructuring is fully implemented. Through the first nine months of 2011, the Company incurred restructuring charges of $49.0 million, including $12.4 million in the third quarter. During the third quarter, Harley-Davidson completed the consolidation of final assembly operations at York, Pa. Final assembly of all Touring, Softail, Trike and Custom Vehicle Operations (CVO) motorcycles now occurs on a single assembly line.

Income Tax Rate

Through nine months, the Company’s effective tax rate was 30.4 percent, compared to 34.0 percent in the year-ago period. The 2011 effective tax rate through the third quarter was favorably impacted by a settlement of an IRS audit, as well as a change in the Wisconsin income tax law associated with certain net operating losses. In 2011, the Company now expects its full-year effective tax rate from continuing operations to be approximately 31 percent.

Cash Flow

Cash and marketable securities totaled $1.61 billion at the end of the quarter, compared to $1.55 billion at the end of last year’s third quarter. During the first nine months of 2011, Harley-Davidson generated $901.6 million of cash from operating activities. In the first nine months of 2010, the Company generated $1.17 billion of cash from operating activities. Capital expenditures through the first nine months of 2011 were $106.1 million.

Share Repurchase

The Company repurchased 2.5 million shares of Harley-Davidson, Inc. common stock at a cost of $90.8 million during the third quarter of 2011. At the end of the third quarter, there were approximately 232 million shares of Harley-Davidson common stock outstanding and 22.4 million shares remaining on board-approved share repurchase authorizations.

Company Background

Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services. Harley-Davidson Motor Company produces heavyweight custom, cruiser and touring motorcycles and offers a complete line of Harley-Davidson motorcycle parts, accessories, riding gear and apparel, and general merchandise. Harley-Davidson Financial Services provides wholesale and retail financing, insurance, extended service and other protection plans and credit card programs to Harley-Davidson dealers and riders in the U.S., Canada and select European countries. For more information, visit Harley-Davidson’s Web site at www.harley-davidson.com.

Conference Call and Webcast Presentation

Harley-Davidson will discuss third-quarter results on a Webcast at 8:00 a.m. CT today. The Webcast presentation will be posted prior to the call and can be accessed at http://investor.harley-davidson.com/. Click “Events and Presentations” under “Resources.”

Forward-Looking Statements

The Company intends that certain matters discussed in this release are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the Company “believes,” “anticipates,” “expects,” “plans,” or “estimates” or words of similar meaning. Similarly, statements that describe future plans, objectives, outlooks, targets, guidance or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this release. Certain of such risks and uncertainties are described below. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this release are only made as of the date of this release, and the Company disclaims any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

The Company’s ability to meet the targets and expectations noted depends upon, among other factors, the Company’s ability to (i) execute its business strategy, (ii) effectively execute the Company’s restructuring plans within expected costs and timing, (iii) implement and manage enterprise-wide information technology solutions, including solutions at its manufacturing facilities, and secure data contained in those systems, (iv) adjust to fluctuations in foreign currency exchange rates, interest rates and commodity prices,  (v) anticipate the level of consumer confidence in the economy, (vi) manage through inconsistent economic conditions, including changing capital, credit and retail markets, (vii) continue to realize production efficiencies at its production facilities and manage operating costs including materials, labor and overhead, (viii) successfully implement with our labor unions the agreements that we have executed with them that we believe will provide flexibility and cost-effectiveness to accomplish restructuring goals and long-term competitiveness, (ix) manage supply chain issues, including the ability of several Company suppliers to execute short-term and long-term contingency plans for maintaining supply, or obtaining alternate supply, of certain components and sub-components currently manufactured in Japan, (x) manage production capacity and production changes, (xi) provide products, services and experiences that are successful in the marketplace, (xii) develop and implement sales and marketing plans that retain existing retail customers and attract new retail customers in an increasingly competitive marketplace, (xiii) manage the risks that our independent dealers may have difficulty obtaining capital and managing through unfavorable economic conditions and consumer demand, (xiv) continue to have access to reliable sources of capital funding and adjust to fluctuations in the cost of capital, (xv) manage the credit quality, the loan servicing and collection activities, and the recovery rates of HDFS’ loan portfolio, (xvi) sell all of its motorcycles and related products and services to its independent dealers, (xvii) continue to develop the capabilities of its distributor and dealer network, (xviii) manage changes and prepare for requirements in legislative and regulatory environments for its products, services and operations, (xix) adjust to healthcare inflation and reform, pension reform and tax changes, (xx) retain and attract talented employees, and (xxi) detect any issues with our motorcycles or manufacturing processes to avoid delays in new model launches, recall campaigns, increased warranty costs or litigation.

In addition, the Company could experience delays or disruptions in its operations as a result of work stoppages, strikes, natural causes, terrorism or other factors. Other factors are described in risk factors that the Company has disclosed in documents previously filed with the Securities and Exchange Commission.

The Company’s ability to sell its motorcycles and related products and services and to meet its financial expectations also depends on the ability of the Company’s independent dealers to sell its motorcycles and related products and services to retail customers. The Company depends on the capability and financial capacity of its independent dealers and distributors to develop and implement effective retail sales plans to create demand for the motorcycles and related products and services they purchase from the Company. In addition, the Company’s independent dealers and distributors may experience difficulties in operating their businesses and selling Harley-Davidson motorcycles and related products and services as a result of weather, economic conditions or other factors.

TABLES FOLLOW
Harley-Davidson, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
		Three months ended				Nine months ended
		September 25,		September 26,		September 25,		September 26,
		2011		2010		2011		2010
Motorcycles and related products revenue		$    1,232,699		$    1,087,115		$    3,635,487		$    3,259,551
Gross profit		415,391		379,806		1,235,525		1,156,337
Selling, administrative and engineering expense		222,258		210,828		660,890		624,984
Restructuring expense		12,429		67,476		49,022		145,837
Operating income from motorcycles & related products		180,704		101,502		525,613		385,516
Financial services revenue		164,557		172,845		492,296		516,387
Financial services expense		102,573		121,977		280,322		377,992
Operating income from financial services		61,984		50,868		211,974		138,395
Operating income		242,688		152,370		737,587		523,911
Investment income		2,479		1,239		5,625		3,666
Interest expense		11,270		23,102		34,101		70,148
Income before income taxes		233,897		130,507		709,111		457,429
Provision for income taxes		50,303		36,790		215,677		155,684
Income from continuing operations		183,594		93,717		493,434		301,745
Loss from discontinued operations, net of tax		-		(4,888)		-		(108,434)
Net income		$       183,594		$         88,829		$       493,434		$       193,311
Earnings per common share from continuing operations:
Basic		$             0.79		$             0.40		$             2.11		$             1.29
Diluted		$             0.78		$             0.40		$             2.09		$             1.29
Loss per common share from discontinued operations:
Basic		$                  -		$           (0.02)		$                  -		$           (0.46)
Diluted		$                  -		$           (0.02)		$                  -		$           (0.46)
Earnings per common share:
Basic		$             0.79		$             0.38		$             2.11		$             0.83
Diluted		$             0.78		$             0.38		$             2.09		$             0.82
Weighted-average common shares:
Basic		233,800		233,504		233,989		233,232
Diluted		235,861		234,786		235,981		234,627
Cash dividends per common share		$           0.125		$             0.10		$           0.350		$             0.30

Harley-Davidson, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
		(Unaudited)				(Unaudited)
		September 25,		December 31,		September 26,
		2011		2010		2010
ASSETS
Current assets:
Cash and cash equivalents		$    1,428,753		$    1,021,933		$    1,494,301
Marketable securities		179,285		140,118		55,229
Accounts receivable, net		285,332		262,382		306,085
Finance receivables, net		1,104,056		1,080,432		1,065,103
Restricted finance receivables held by variable interest entities, net		586,144		699,026		674,371
Inventories		345,963		326,446		319,101
Restricted cash held by variable interest entities		238,208		288,887		287,613
Other current assets		217,445		247,402		297,157
Total current assets		4,385,186		4,066,626		4,498,960
Finance receivables held for investment, net		2,095,839		1,553,781		2,045,249
Restricted finance receivables held by variable interest entities, net		2,119,789		2,684,330		2,425,788
Other long-term assets		1,103,545		1,126,003		1,070,963
		$    9,704,359		$    9,430,740		$  10,040,960
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable & accrued liabilities		$    1,021,433		$       782,017		$       934,651
Short-term debt		774,971		480,472		587,981
Current portion of long-term debt		-		-		201,426
Current portion of long-term debt held by variable interest entities		644,779		751,293		731,833
Total current liabilities		2,441,183		2,013,782		2,455,891
Long-term debt		2,804,605		2,516,650		2,814,400
Long-term debt held by variable interest entities		1,350,294		2,003,941		1,801,537
Pension and postretirement healthcare liabilities		368,891		536,847		626,128
Other long-term liabilities		138,126		152,654		153,054
Total shareholders’ equity		2,601,260		2,206,866		2,189,950
		$    9,704,359		$    9,430,740		$  10,040,960

Harley-Davidson, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
		Nine months ended
		September 25,		September 26,
		2011		2010
Net cash provided by operating activities
of continuing operations		$       901,601		$    1,169,502
Cash flows from investing activities of continuing operations:
Capital expenditures		(106,115)		(77,559)
Finance receivables held for investment, net		(33,775)		200,573
Net change in marketable securities		(37,678)		(13,918)
Net cash (used by) provided by investing activities of continuing operations		(177,568)		109,096
Cash flows from financing activities of continuing operations:
Proceeds from issuance of medium-term notes		394,277		-
Proceeds from securitization debt		571,276		-
Repayments of securitization debt		(1,333,541)		(1,518,528)
Net increase in credit facilities and unsecured commercial paper		182,058		145,687
Net borrowings of asset-backed commercial paper		(483)		(845)
Net change in restricted cash		50,679		78,928
Dividends		(82,557)		(70,480)
Purchase of common stock for treasury		(97,456)		(1,687)
Excess tax benefits from share-based payments		2,702		3,590
Issuance of common stock under employee stock option plans		7,763		7,466
Net cash used by financing activities of continuing operations		(305,282)		(1,355,869)
Effect of exchange rate changes on cash and cash equivalents
of continuing operations		(11,857)		4,921
Net increase (decrease) in cash and cash equivalents of continuing operations		406,894		(72,350)
Cash flows from discontinued operations:
Cash flows from operating activities of discontinued operations		(74)		(68,650)
Cash flows from investing activities of discontinued operations		-		-
Effect of exchange rate changes on cash and cash equivalents
of discontinued operations		-		(1,195)
		(74)		(69,845)
Net increase (decrease) in cash and cash equivalents		$       406,820		$     (142,195)
Cash and cash equivalents:
Cash and cash equivalents – beginning of period		$    1,021,933		$    1,630,433
Cash and cash equivalents of discontinued operations – beginning of period		-		6,063
Net increase (decrease) in cash and cash equivalents		406,820		(142,195)
Cash and cash equivalents – end of period		$    1,428,753		$    1,494,301

Motorcycles and Related Products Revenue and
Motorcycle Shipment Data
(Unaudited)
		Three months ended				Nine months ended
		September 25,		September 26,		September 25,		September 26,
		2011		2010		2011		2010
MOTORCYCLES AND RELATED PRODUCTS REVENUE (in thousands)
Harley-Davidson® motorcycles		$       922,257		$       798,769		$    2,761,374		$    2,439,206
Buell® motorcycles		212		828		1,189		11,734
Parts & Accessories		235,676		218,975		655,387		599,845
General Merchandise		69,333		64,052		204,809		197,667
Other		5,221		4,491		12,728		11,099
		$    1,232,699		$    1,087,115		$    3,635,487		$    3,259,551
MOTORCYCLE SHIPMENTS:
Harley-Davidson
United States		41,066		34,394		118,555		104,019
International		20,679		18,899		63,832		61,994
Total Harley-Davidson		61,745		53,293		182,387		166,013
Buell		44		157		264		2,551
MOTORCYCLE PRODUCT MIX:
Harley-Davidson
Touring		22,357		20,042		70,410		63,413
Custom		25,638		22,581		71,526		69,323
Sportster®		13,750		10,670		40,451		33,277
Total Harley-Davidson		61,745		53,293		182,387		166,013

Worldwide Retail Sales of Harley-Davidson Motorcycles
		Three months ended				Nine months ended
		September 30,		September 30,		September 30,		September 30,
		2011		2010		2011		2010
North America Region
United States		42,640		40,459		127,930		122,145
Canada		2,458		2,562		9,288		9,354
Total North America Region		45,098		43,021		137,218		131,499
Europe Region (Includes Middle East and Africa)
Europe*		8,064		7,973		33,337		31,440
Other		1,243		941		3,947		3,079
Total Europe Region		9,307		8,914		37,284		34,519
Asia Pacific Region
Japan		2,868		3,199		7,827		8,454
Other		2,620		2,194		7,745		6,832
Total Asia Pacific Region		5,488		5,393		15,572		15,286
Latin America Region		1,945		1,521		4,755		4,416
Total Worldwide Retail Sales		61,838		58,849		194,829		185,720

Data Source (subject to update)
Data source for retail sales figures shown above is new sales warranty and registration information provided by Harley-Davidson dealers and compiled by the Company.  The Company must rely on information that its dealers supply concerning new retail sales, and this information is subject to revision.
Only Harley-Davidson® motorcycles are included in the Harley-Davidson Motorcycle Sales data.
* Europe data includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.

Heavyweight Motorcycle Registration Data(1)
		Nine months ended
		September 30,		September 30,
		2011		2010
United States(2)		231,117		222,935
		Eight months ended
		August 31,		August 31,
		2011		2010
Europe(3)		241,744		247,517

1 – Heavyweight data includes street legal 651+cc models.  Street legal 651+cc models include on-highway, dual purpose models and three-wheeled vehicles.
2 – United States data is derived from information provided by Motorcycle Industry Council (MIC).  This third party data is subject to revision and update.  Prior periods have been adjusted to include all dual purpose models that were previously excluded.
3 – Europe data includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.  Industry retail motorcycle registration data includes 651+cc models derived from information provided by Association des Constructeurs Europeens de Motocycles (ACEM), an independent agency.  Europe market data is reported on a one-month lag.  This third-party data is subject to revision and update.

SOURCE: Harley-Davidson, Inc.

####

Gatorz Inc. Refiles Third Quarter Financial Statements

OAKVILLE, ONTARIO – April 13, 2011 – (Motor Sports Newswire) –

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Gatorz Inc. (“Gatorz“) (TSX VENTURE:GTZ) announces the refilling of its interim consolidated financial statements and management discussion and analysis for the three and nine month periods ended September 30, 2010 and the associated CEO and CFO certificates (the “Third Quarter Financial Statements”). The restatement will not affect the earnings or the cash flows of Gatorz.

About Gatorz

Gatorz Inc. (www.gatorz.com) designs, manufactures, and distributes performance eyewear, including sunglasses crafted from 7075 billet aluminum and from acetate. Gatorz precision built aluminum eyewear is proudly made in the USA, offering superior craftsmanship, performance and durability. Gatorz distribution markets include motorcycling and other motorsports, skydiving, military, off-road, action sports, and hunting & fishing.

Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The risks going forward remain adding production capacity and the ability to meet this demand, controlling costs and sourcing ongoing funds to meet increased growth targets. Gatorz is also subject to the general economic conditions in the domestic and international markets it operates in. Gatorz Inc. assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Gatorz Inc.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For more information, please contact

Investor Relations Inquiries:
All Gatorz investor relations inquiries should be
directed to Mark Di Cristofaro at
905.339-7999 ext.224
mark@ibf.ca

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Honda Motor Co., Ltd. Reports Consolidated Financial Results for the Fiscal Third Quarter Ended December 31, 2010

TOKYO – January 31, 2011 (Motor Sports Newswire) – Honda Motor Co., Ltd. (NYSE: HMC) today announced its consolidated financial results for the fiscal third quarter ended December 31, 2010.

Nine Months Results

Honda’s consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal nine months ended December 31, 2010 totaled JPY 489.5 billion (USD 6,077 million), an increase of 149.5% from the same period last year. Basic net income attributable to Honda Motor Co., Ltd. per common share for the fiscal nine months amounted to JPY 270.82 (USD 3.32), an increase of JPY 162.68 from JPY 108.14 for the same period last year.

Consolidated operating income for the period totaled JPY 523.5 billion (USD 6,425 million), an increase of 95.6% from the same period last year, due primarily to increased sales volume and model mix, reduction in fixed costs per vehicle as a result of increased production and continuing cost reduction efforts, despite increased SG&A expenses and R&D expenses and the unfavorable foreign currency effects.

Consolidated revenue for the period amounted to JPY 6,723.7 billion (USD 82,511 million), an increase of 6.7% from the same period last year, primarily due to increased revenue in the automobile business and the motorcycle business, despite the unfavorable currency translation effects. Honda estimates that if calculated at the same exchange rate as the corresponding period last year, revenue for the period would have increased by approximately 10.6%.

-United States dollar amounts have been translated from yen solely for the convenience of the reader at the rate of JPY 81.49=U.S.$1, the mean of the telegraphic transfer selling exchange rate and the telegraphic transfer buying exchange rate prevailing on the Tokyo foreign exchange market on December 31, 2010.

With respect to Honda’s sales by business segment, unit sales of motorcycles totaled 8 million 511 thousand units, an increase of 20.9% from the same period last year. Unit sales in Japan totaled 138 thousand units, an increase of 5.3% from the same period last year. Outside of Japan, total unit sales was 8 million 373 thousand units, an increase of 21.2% from the same period last year *, due mainly to increased unit sales in Asia and Other Regions including South America.

*Of the net sales of Honda-brand motorcycle products that are manufactured and sold by overseas affiliates accounted for under the equity method, those with respect to which parts for manufacturing were not supplied from Honda or its subsidiaries are not included in net sales and other operating revenue, in conformity with U.S. generally accepted accounting principles. Accordingly, these unit sales are not included in the financial results. Sales of such products amounted to approximately 5,480 thousand units for the period.

Honda’s automobile unit sales totaled 2 million 652 thousand units, an increase of 5.3% from the same period last year. In Japan, unit sales totaled 440 thousand units, a decrease of 5.0% compared to the same period last year**. Unit sales outside of Japan totaled to 2 million 212 thousand units, an increase of 7.6%, due mainly to increased unit sales in North America and Asia, despite decreased unit sales in Europe.

**Certain sales of automobiles that are financed with residual value type auto loans by our domestic finance subsidiaries are accounted for as operating leases in conformity with U.S. generally accepted accounting principles. As a result, they are not included in total sales of our automobile segment or in our measure of unit sales.

Honda’s power product unit sales totaled 3,763 thousand units, an increase of 20.9% from the same period last year. In Japan, unit sales totaled 284 thousand units, an increase of 29.1% from the same period last year. Unit sales outside of Japan increased 20.3%, to 3,479 thousand units, due primarily to an increase in unit sales in all the regions.

Forecasts for the Fiscal Year Ending March 31, 2011

In regard to the forecasts of the financial results for the fiscal year ending March 31, 2011, Honda projects consolidated results to be as shown below:

The forecasts are based on the assumption that the average exchange rates for the Japanese yen to the U.S. dollar and the Euro will be JPY 85 and JPY 112, respectively, for the fiscal year ending March 31, 2011.

Projected unit sales for the full year ending March 31, 2011
	Unit (thousands)	Changes from FY2010 (thousands)
Motorcycle business	11,535	+ 1,896
Automobile business	3,580	+ 188
Power product and Other businesses	5,610	+ 866

FY2011 Forecasts for Consolidated Results
	Yen (billions)	Changes from FY 2010
Net sales and other operating revenue	8,900	+ 3.7%
Operating income	620	+ 70.4%
Income before income taxes and equity in income of affiliates	665	+ 97.8%
Net income attributable to Honda Motor Co., Ltd.	530	+ 97.5%
	Yen
Basic net income attributable to Honda Motor Co., Ltd. per common share	293.41

Dividend per Share of Common Stock

The Board of Directors of Honda Motor Co., Ltd., at its meeting held on January 31, 2011, resolved to make the quarterly dividend JPY 15 per share of common stock, the record date of which is December 31, 2010. The total expected annual dividend per share of common stock for the fiscal year ending March 31, 2011, is JPY 54 per share.

This announcement contains “forward-looking statements” as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based on management’s assumptions and beliefs taking into account information currently available to it. Therefore, please be advised that Honda’s actual results could differ materially from those described in these forward-looking statements as a result of numerous factors, including general economic conditions in Honda’s principal markets and foreign exchange rates between the Japanese yen and the U.S. dollar, the Euro and other major currencies, as well as other factors detailed from time to time. The various factors for increases and decreases in income have been classified in accordance with a method that Honda considers reasonable.

For Additional information, please visit;

http://world.honda.com/investors/meeting/

where you can download presentation materials and financial results information.

SOURCE: Honda Motor Co., Ltd.

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Leatt Corporation Announces Unaudited Third Quarter FY2010 Results

CAPE TOWN, SOUTH AFRICA – November 15, 2010 – (Motor Sports Newswire) – Leatt Corporation, a Nevada corporation (PINKSHEETS: LEAT) (Company), and the distributor of the Leatt-Brace®, a Neck Brace System designed to help prevent potentially devastating motor sport injuries to the cervical spine (neck), today announced unaudited financial results for its fiscal 2010 third quarter ended September 30, 2010 (“Q3 FY2010″). The Company posted gross revenues of $ 4,012,145 and a net quarterly profit before tax of $ 159,585. These results compare to gross revenue of $ 3,044,940 and net quarterly loss before tax of $ 678,218 in the year-ago quarter. A summary of financial results is set forth below.

“We are encouraged to see that we made a modest quarterly profit for Quarter Three of 2010 and that the steps that we have taken as a result of the recession are beginning to filter through to the bottom line,” said Chief Executive Officer Sean Macdonald.

Since 2006, we have  sold a line of Neck Brace Systems for adults and children that are designed to help prevent potentially devastating motor sport injuries to the cervical spine (neck) among motorcycle, ATV, bicycle and other motor vehicles worldwide. The Company product line is set forth at our sales/product URL: http://www.leatt-brace.com.

A financial summary of the Q3 FY2010 results appears below, which summary is qualified in its entirety by reference to the Q3 FY2010 financial results posted on http://www.leatt-corp.com. One should not rely on the following summary as a complete presentation of financial results and condition for Q3 FY2010.

The Summarized Consolidated Statements of Operations (unaudited) for the periods ending September 30, 2010 and 2009 are:

		Three Months Ended							Nine Months Ended
		30-Sep							30-Sep
		2010			2009				2010				2009
		Unaudited			Unaudited				Unaudited				Unaudited
Revenues		$	4,012,145		$	3,044,940			$	9,825,465			$	10,496,463
Cost of Revenues			1,561,043			1,083,357				3,784,527				3,782,925
Gross Profit			2,451,102			1,961,583				6,040,938				6,713,538
Operating Expenses			2,301,048			2,647,457				6,353,764				7,010,105
Income / (Loss) from Operations			150,054			(685,874	)			(312,826	)			(296,567	)
Other Income (Expense)			9,531			7,656				(5,314	)			35,576
Income / (Loss) Before Income Taxes			159,585			(678,218	)			(318,140	)			(260,991	)
Income Taxes			-			308,504				2,400				-
Net Income / (Loss) Available to Common Shareholders		$	159,585		$	(369,714	)		$	(320,540	)		$	(260,991	)

Litigation. The Company has also been named as a defendant in a lawsuit in the U.S. District Court for the Western District of Kentucky. The claim is for alleged strict liability and breach of product warranties. The Company does not believe the claims in this case have merit.

The Company’s insurer initially filed a declaratory judgment in federal court to seek a court declaratory judgment that the insurer did not have to provide any coverage for the Kentucky lawsuit, but the insurer has since indicated that the insurer will provide coverage for the Kentucky lawsuit, including paying for legal defense, without withdrawing and subject to the claims in the declaratory lawsuit. The insurer declaratory action alleges, in part, that the Company failed to timely inform the insurer of the Kentucky lawsuit. The Company denies that allegation and will aggressively litigate.

The Company cannot predict at this time the outcome of any current litigation and as of the date hereof intends to defend these legal actions.

NOTICE: This press release may contain forward-looking statements under the Private Securities Litigation Reform Act of 1995, as amended. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include, without limitation, the effect of competitive and economic factors, and the Company’s reaction to those factors; on consumer and business buying decisions with respect to the Company’s products; the ability of the Company to deliver to the marketplace and stimulate customer demand for products, and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the inventory risk associated with the Company’s need from time to time to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; product quality control issues; the absence of a strong e-commerce website for products; the continued service and availability of key executives and employees; unfavorable results of legal proceedings, especially personal injury or product liability lawsuits or intellectual property rights lawsuits; and the Company’s dependency on the sales performance of distributors and other resellers of the Company’s products. More information on potential factors that could affect the Company’s financial results is included from time to time in the Company’s public disclosures at http://www.leatt-corp.com. The Company’s common stock quotes on The Pink OTC Market and said stock is a “penny stock” under SEC rules. The Company is not an SEC reporting company. As such, any investment in the common stock is highly risky. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates, unless applicable laws require otherwise. Neither any URLs referenced herein nor their contents are incorporated herein or made a part of this press release.

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