New product : Yamaha’s Release of the New “JUPITER Z1” for the Indonesian Market

Featuring fuel injection and further evolved running performance and economy

JAPAN – July 25, 2012 – Yamaha Motor Co., Ltd. announces the release of the new “JUPITER Z1,” mounting a 115cc fuel-injected engine. The model will be introduced into the Indonesian market in late July 2012. Along with the Indonesian market introductions of the automatic transmission commuter model “Mio J” in February and the “SOUL GT” in April, the “JUPITER Z1” is another model that is a part of Yamaha Motor’s medium-term growth strategy* to strengthen product competitiveness, appeal and profitability in the ASEAN motorcycle market.
The “JUPITER Z1” inherits and evolves the basic performance, outstanding running performance and sophisticated design of the current “JUPITER Z” and newly adopts fuel injection and more for improved economy and cost performance. Additionally, the smooth feel to the ride, great response and more makes for a model with excellent running performance for users to enjoy. The exterior has also been completely redesigned to bring out an even sportier, high-quality look to the styling.
Manufacturing and marketing of the new model will be done by group company PT. Yamaha Indonesia Motor Manufacturing.

(* Medium-term management plan: One of the four growth strategies in Yamaha Motor’s 3-year (2010-2012) medium term management plan is strengthening product competitiveness, appeal and profitability in the ASEAN motorcycle market. This aims to be accomplished by enhancing product appeal by (1) increasing the ratio of models featuring a fuel injection system and (2) increasing profitability through reducing the cost of fuel injection systems and the benefits of larger scale production. )

MSRP: 15,100,000 IDR (1,589 US) (with cast wheels, on the road price in Jakarta)

Sales target: 240,000 Units

(Motor Sports Newswire) 

Awards : adidas Outdoor Hydroterra Shandal Wins 2012 Outdoor Industry Award

 
FRIEDRICHSHAFEN, GERMANY, Jul 25, 2012 -

For the fourth year in a row, an adidas Outdoor footwear style has won a coveted Outdoor Industry Award given at the Outdoor show in Friedrichshafen, Germany, on July 12.  The 2012 adidas Outdoor winner was the Hydroterra Shandal, a sandal-like shoe that provides protection and high breathability neither a shoe nor a sandal can provide alone.

Since the adidas Outdoor brand launched in Europe in 2009, it has been an award winner at the renowned tradeshow.  The terrex fast x Mid GTX, a fast, light and stable hiking boot, won in 2009; the terrex Solo approach shoe won in 2010, and the ultralight terrex fast r was a winner at the 2011 show.  The Outdoor Industry Awards are decided by an international, expert jury that thoroughly evaluates hundreds of entries from more than 20 countries.

The Hydroterra Shandal’s construction incorporates an open mesh laminated on a soft foam frame, providing barefoot comfort with no direct contact with any uncomfortable mesh. In addition, the construction reduces inner stitching lines, avoids irritation and saves weight. The shoe comes with a collapsible heel connected to the speed lacing system that ensures a great heel-fit when worn as a shoe. With the step down construction and the elastic material, the heel is soft and comfortable to step on when used as a slip on. The sole ensures a perfect grip both on dry land and slippery wet surfaces. The Hydroterra Shandal is great for any water sport, but because of the robust nature of the shandal and the amount of protection provided, it can also be used as a light hiking shoe.

The super light fast hiking boot and 2011 winner, the fast r, represents the trend toward ultra-lightweight products at only 14 ounces. Developed for outdoor athletes looking for a light, athletic, stable and, at the same time, fast hiking boot, adidas Outdoor introduced the TERREX Fast R for Spring 2012. Combining rubber compound from category leader Continental Rubber with its proprietary 3D FORMOTIONTM, the TERREX Fast R is designed to excel during controlled descents, while the shaped heel cap provides an excellent fit.

The 2010 award-winner terrex Solo was developed as a light approach shoe with insight and suggestions from top adidas outdoor athletes.  The terrex Solo is flexible while also providing excellent stability, featuring reliable traction and comfort.  With an asymmetrical climbing zone in the front part of the sole, the shoe is ideal for short vertical climbs. A TPU film reinforcement in the midsole makes the lightweight shoe extremely stable. Special adiPRENE® foam in the heel area cushions impacts and results in a relaxed yet dynamic feel. Asymmetrical loops are fitted to the heels so that the shoes may easily be attached with a karabiner to backpacks or a climbing harness.

The terrex fast x GTX FM Mid, which won the Outdoor Industry Award in 2009, was designed as a fast, light and stable hiking boot and continues to do well today.  The supportive, multi-use boot was constructed for all-terrain performance and features a GORE-TEX Performance Comfort membrane, adidas FORMOTION and adiPRENE+ and TRAXION outsole technologies.  For Spring 13, the terrex fast x TRAXION® sole is made with Continental® rubber compound - now standard equipment on all fast x models. It guarantees grip and control on dry and especially wet surfaces.

About adidas Outdoor: adidas Outdoor is the athletic brand in the outdoors. The company’s founder, Adi Dassler, designed equipment solutions for athletes that improved their performance. The long history of adidas Outdoor began in the 1970’s with the creation of the first light trekking shoes. Climbing legend Reinhold Messner helped adidas design super light and fast approach hiking shoes for his first Everest ascent without supplemental oxygen in 1978. The tradition continues today with products influenced by Messner, as well as Alexander and Thomas Huber and many additional extreme outdoor adventurers from around the world.

(www.outdoorindustry.org)

Legal News : Dimethyl fumarate (DMF) is now banned in the EU following the amendment of " REACH"

Dimethylfumarat (DMF) wird nun in der EU folgende Änderung der "REACH" verboten/  富马酸二甲酯（DMF），现在被禁止在欧盟修订的“REACH法规”以下 / Le fumarate de diméthyle (DMF) est désormais interdit dans l'UE suite à la modification de la directive REACH / Диметил фумарат (DMF) в настоящее время запрещено в следующих ЕС поправки "REACH" / Dimetil fumarato (DMF) è ora vietato nei seguenti UE del "REACH" modifica / フマル酸ジメチル（DMF）は、現在改正"REACH" EUの次のように禁止されている/ Dimetil fumarato (DMF) que actualmente está prohibida en el siguiente de la UE de la reforma "REACH" / डाइमिथाइल fumarate संशोधन (DMF) अब "पहुंच" के यूरोपीय संघ निम्नलिखित में प्रतिबंध लगा दिया है


Since June 5, the chemical dimethyl fumarate (DMF) was added to the list of products banned in the EU on the basis of REACH.

REACH (Registration, Evaluation and Authorisation of Chemicals) is a European legislation on chemicals and their safe use. Adopted in 2006 (EC 1907/2006), it modernizes the European legislation and establishes a single integrated system for Registration, Evaluation and Authorisation of Chemicals in the European Union to identify faster and better their intrinsic properties.

Among its important aspects, the regulation specifies the list of chemicals whose use is strictly limited or prohibited because of its impact on human health and / or the environment.

Accordingly, certain chemicals must be specifically declared because of the risk they represent, while others are totally banned in the European market are listed in Annex XVII of Regulation.

You can find more information on REACH at the site of the ECHA (European Chemicals Agency) at :
  http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:128:0001:0003:EN:PDF

Business news : Puma does not rule out job cuts, the distribution referred.

German manufacturer of sports equipment Puma, a subsidiary of French group PPR, did not rule Thursday job cuts related to its plan to reduce costs, including store closures planned. 
"We are in a phase of validation and accuracy of our reorganization plan, before you can say what this means in terms of job cuts. But obviously, it focuses on retail," said its deputy CEO Franz Koch during a telephone press conference.Puma said Thursday it would simplify its structure and close stores, while its quarterly net income has shrunk a little over 29% year on year. 
The project has pleased the market: 9:21 to action was leading to Frankfurt index MDax average values, taking 5.35% to 224.50 euros. 
Puma intends to "optimize" its distribution "selectively opening new stores primarily in emerging markets" like China where the group achieved a double digit growth in sales in the second quarter, and "closing the stores in -perform ".But Mr Franz refused to say which stores would be affected by these closures, returning again in "few weeks".The organization in Europe will be simplified and concentrated in seven entities guidelines, against 23 before, he confirmed. 
Each entity must include several countries in order to concentrate the administrative, sales management remaining, she left to teams of each country. Some countries, like France, will continue to have as a CEO.The group also wants to develop a harmonized platform and reorganizing its procurement chain.Finally, the group will simplify its supply and "significantly reduce the overall number of items developed", all by ending the sponsorship contracts less attractive to him. 
In the process, he announced changes in its direction, especially with the departure of her business manager and director of its operational later this year, as the appointment of a new CFO.July 18, Puma had to revise down its annual targets, due to a charge of EUR 100 million related to its reorganization, and to report a decline of about 13% of its net profit in the first half.He also released figures Thursday for the second quarter, its net profit for the period has shrunk by 29.2% year on year to 26.7 million euros, with sales up 11.8% (in euros) over the same period.

(French Source :  AFP )

New products : X-Street Steps Up. Best “All-Ride” Boot Now Available From D2M

SOUTHLAKE, TX – July 24, 2012

Looking like your favorite pair of sneakers but offering a measure of protection on par with a roadracing boot, the new TCX “X-Street” line works well in all applications. “This is our hottest and best all-ride product right now,” notes D2M’s marketing guru Josh Whitaker (D2M is the U.S. agent for TCX). “This boot crosses many of the segment and stereotype boundaries TCX has encountered in the past.”
From the lace-up closure and vintage leather upper down to the wear resistant rubber sole, the X-Street is as comfortable as a pair of high tops on the basketball court, but still stands up to the rigors of motorcycle riding. Best of all, the latest version of the X-Street is fully waterproof!

Reinforcement at the toes and heels, as well as the over the ankle coverage, make the X-Street a real riding boot rather than just a fashion accessory. Even the TCX logo is strategically positioned to serve as a slider for the anklebone. These protective touches work in conjunction with TCX’s proprietary “Comfort Fit System” to make superior functioning footwear. Starting with a foot mould, the TCX process faithfully reproduces the anatomy of the foot, resulting in a better fit and prolonged comfort.
Sized to fit the American foot, a full range of sizes from 5-13 is in stock. Women’s sizes are also in inventory, and a variety of colors are available for both men and women. “Plus the price is right,” points out Whitaker. “With an MSRP under $150, this really is the best bang for the buck in terms of versatility and functionality.” Key selling points include:

• With the success of the X-Street Waterproof boot, TCX has added new colors – including black, white, denim and blue/gray two-tone versions. Women’s colors include gray and anthracite options.
• Sizes range from 5-13 are in stock and ready to rock!
• “Air Tech” breathable liners
• Replaceable footbed
• Durable “vintage look” soless

For more details on TCX boots in the U.S. contact D2M directly. MSRP: Waterproof X-Street – $139.99 Non-Waterproof X-Street – $129.99

About D2M
The D2M acronym stands for “Direct 2 Manufacturer” and the company is focused on cutting the costs associated with powersports parts and accessories. We are not a distributor, but rather a service provider for dealers and manufacturers. Our one-stop web platform enables dealers to go “Direct 2 Manufacturer” for their PG&A purchases, while allowing manufacturers to log-in and manage their product portfolio, catalogs and dealer accounts directly. The end result is an easy-to-use open platform where dealers can purchase product directly from manufacturers with one simple website. Direct dealer benefits include increased margin, a single point of contact, one invoice and the product is shipped directly from the manufacturer. D2M incorporates the absolute latest technology, including an ALL NEW dealer ordering system www.d2m-orders.com, the D2M iPad App, and mobile device compatibility. D2M provides a wide range of products for the Street, Dirt and ATV/UTV market segments. Cut costs, increase margins, improve flexibility and speed up delivery times with D2M!

Dealers click here for the demo: http://d2m-orders.com/demo
Or here to create your new account: http://direct2mfg.com/?page_id=13 Manufacturers
Manufacturers click here to get started: josh@direct2mfg.com
Sales Reps click here to start selling: info@direct2mfg.com

(Motor Sports Motorsports)

Business news :Golfsmith and Golf Town have officially combined operations, creating the largest golf specialty retail business in the world

Golfsmith and Golf Town have officially combined operations, creating the largest golf specialty retail business in the world. The combined business will operate under the name Golfsmith International.

Golfsmith International operates 151 golf retail stores in North America - 56 in Canada and 95 in the United States. Stores located in Canada will remain branded as Golf Town and all stores in the U.S. will be branded as Golfsmith.

The combination, announced on May 14, was brought together by OMERS Private Equity and joins two companies that have been serving golfers in North America for more than four decades. Golfsmith was founded in 1967 as a golf catalog business and started developing retail locations outside of Austin, Texas in the 1990s. Golf Town, founded in 1999, quickly set the standard for specialty golf retail in Canada.

"We look forward to working with a very strong management team to serve both brands' loyal customers. We believe there is excellent potential for future growth," said Don Morrison, senior managing director and Canadian country head of OMERS Private Equity. "This is a unique and strategic opportunity to build on a proven business model."

"The combination of two golf industry leaders completely changes the face of golf," said Martin Hanaka, CEO of Golfsmith International. "Our new size and strength will help us bring more to our customers - more value, more service and more innovation. This is a great match in so many ways. We share the same commitment to outstanding customer service, experiential golf retail, and geographically we have no overlap in stores. And most importantly, our associates' expertise and focus on personalized solutions is unmatched in the industry. Golf isn't just our business, it's our passion."

Sue Gove, president and COO of Golfsmith International, added, "Our business strategy will focus on leveraging our scale, deploying best practices from both companies, and pursuing our aggressive growth plans for retail and online commerce. We have already identified many potential new store locations where we believe golfers are underserved. In fact, we plan to open a number of new locations in the U.S. in 2013."
Corporate headquarters for the combined business will be located in Austin, Texas.

OMERS is one of Canada's largest pension funds with over $55 billion in net assets. It provides first-class pension administration and innovative products and services to 420,000 members. Approximately one in every 20 employees working in the province of Ontario is an OMERS member. Through the OMERS Worldwide brand, our team of investment professionals uses a direct drive, active management investment strategy to invest in public and private market assets, including publicly-traded equities, fixed-income, infrastructure, private equity and real estate.

Business people : Brammo Appoints Ron Luttrell to Direct Global Sales

ASHLAND, OR – July 24, 2012 –  Brammo, Inc. announced today that Ron Luttrell will be joining the Brammo team as Director of Global Sales.

Luttrell has worked in the motorcycle industry for 13 years and brings experience in brand development, strategic market positioning, dealership management and networks, and sales program development and growth. He has previously worked with several top motorcycle brands including Aprilia, Moto Guzzi, Hyosung and Triumph Motorcycles.
“I am very excited to join Brammo and to be a part of the company that is at the forefront of electric vehicle technology and innovations in the sales channel. This is truly a once in a lifetime opportunity for me,” said Luttrell.
“Ron brings deep knowledge of the motorcycle industry that will accelerate the growth of our sales network globally,” said Craig Bramscher, CEO and Founder of Brammo. “His expertise in developing sales programs for top brands in the industry will continue to elevate Brammo in the electric vehicle space.”

(Motor Sports Newswire) 

Business news : Dr. Martens Ends Sales Talks

Dr Martens has ended talks to sell the business. The family owners of R Griggs, which manages the firm, halted discussions with potential buyers, claiming the offers received failed to reflect a fair value for the brand.

Reports in June suggested that the owners were looking for about £200 million for the brand but that an offer in this region had not been found in the months since February that the firm has been on the market.

David Suddens, Dr Martens chief executive, commented: “There are few brands around with the global reach, unique positioning and heritage of Dr Martens.

“The family owners have decided that best value for the business will be achieved by focusing on the delivery of existing plans for profitable growth without further distraction.”

(SportsOneSource Media)

New product : ACR Electronics Announces ResQMate G™ 406 EPRIB with 66 Channel GPS

The world’s largest and best known name in EPIRB technologies, ACR Electronics, today has announced ResQMate G™, a new manual activation only 406 MHz EPIRB with onboard GPS designed for sale in Australia and New Zealand.

The ResQMate G™ will make its debut next week at The Sydney International Boat Show, and can be seen in Hall 1, Stand 168-169 and other select dealers.

Meeting the demand for mandatory applications in Australia (see local Marine Authorities Requirements), the ResQMate G™ has a MSRP of $466 AUD, and following Cospas-Sarsat approvals is anticipated for delivery at the end of August. ACR representative for The Sydney International Boat Show is Steve Mullin, steve.mullin@acrartex.com or mobile at +61 (0) 400540511.

With three levels of integrated signal technology— GPS positioning, a powerful 406 MHz signal, and 121.5 MHz homing capability—The ResQMate G™ quickly and accurately relays critical emergency position to the Cospas-Sarsat International worldwide network of rescue satellites.

The ResQMate G™ broadcasts a unique registered distress signal that not only tells rescuers where the sender is, but who they are. The onboard 66-channel GPS can quickly fix the sender’s position to within 100 meters and then utilizes a powerful 406 MHz signal to relay the distress call to orbiting satellites. As local Search and Rescue is deployed, a separate homing signal and integrated LED strobe light guide rescuers to the sender’s exact position.

In Australia the Australian Maritime Safety Authority in Canberra receives distress calls and these calls are then relayed to appropriate search and rescue groups.

ResQMate G™ 406 MHz EPIRB features include:

- 66-channel onboard GPS to pinpoint sender’s exact position.
- Transmission of a distress message 100 seconds after activation.
- Patented electronics provide greater frequency stability for most accurate position through the Cospas-Sarsat satellites.
- Provides a full functional self test of internal circuitry, and battery voltage test.
- Manual release bracket included.
- Audio/visual indicators of active transmission.
- Floats upright.
- High intensity LED strobe is 33 percent brighter than traditional EPIRB strobes.
- High impact polycarbonate case with non-tangling lanyard.
- Battery replacement due no later than 6 years from date of manufacture but 5 years from date of installation.
- 5-year limited warranty
- Exceeds required 48-hour operating life by over 13 hours @ -4 F (-20 C), non-Hazmat (Lithium Battery).
- Weight is 575 grams.

ACR designs and manufactures a complete line of safety and survival products under the ARTEX and ACR brand names including ELTs, EPIRBs, PLBs, AIS, SART, Strobe Lights, Life Jacket Lights, Search Lights and safety accessories. The quality management systems of this facility have been certified by TUV USA to AS9100C / ISO 9001:2008. Recognized as the world leader in safety and survival technologies, ACR and ARTEX have provided safety equipment to the aviation and marine industries as well as to the military since 1956. The company is headquartered in Fort Lauderdale, Florida and employs over 180 at its manufacturing facility.

by John Bell / www.marinebusiness-world.com

Business news : Polaris Reports Record Second Quarter 2012 Results; EPS Increased 44% to $0.98 With Sales Growth of 24%

Company increases full year 2012 guidance
Second Quarter Highlights:

•  Net income increased 43% to $69.8 million, or $0.98 per diluted share, with sales increasing 24% to $755.4 million, setting second quarter sales and earnings records.
• North American retail sales sustained considerable momentum, rising 17% year-over-year in the second quarter.
• All product lines experienced increased sales during the 2012 second quarter.
• Raising guidance for full year 2012 earnings to a range of $4.05 to $4.15 per diluted share, up 27% to 30% over 2011 based on expected full year 2012 sales growth of 14% to 17%.

MINNEAPOLIS, MN – July 24, 2012 –  Polaris Industries Inc. (NYSE: PII) today reported record second quarter net income of $69.8 million, or $0.98 per diluted share, for the quarter ended June 30, 2012, up 43 percent from the prior year’s second quarter net income of $48.7 million, or $0.68 per diluted share. Sales for the second quarter 2012 totaled a record $755.4 million, an increase of 24 percent over last year’s second quarter sales of $607.9 million.

Scott Wine, Polaris’ Chief Executive Officer, commented, “While the weak U.S. economy and likely recession in Europe are concerning, we continue to see strength in our core North American Powersports business. Our investments in adjacent markets and international expansion are paying dividends, and we are excited to have Eicher Motors Limited as a joint venture partner to aggressively pursue growth in India. The strong second quarter results were driven by solid strategic execution combined with end-market demand that is healthier than a year ago.”

Polaris’ North American retail sales to consumers climbed 17 percent during the quarter propelled by strong demand for our innovative products and supported by continued growth in the industry off-road vehicle and motorcycle markets. As a result, our Off-Road Vehicles business increased wholesale sales to dealers 20 percent during the quarter. Our On-Road Vehicles business also experienced strong demand, up 110 percent, which reflects ongoing consumer enthusiasm for our expanding line of motorcycles worldwide and the importance of our diversification efforts.

“We are extremely pleased with our success during the second quarter, but we remain mindful of the uncertainty surrounding the overall economic environment in Europe and North America. As we continue investing in our future growth, such as the recently announced joint venture with Eicher, we are prepared to react quickly to sales velocity changes in our businesses,” continued Wine. “Given the ongoing strength in our overall business as well as the anticipated success of several new model year 2013 vehicles to be unveiled next week at our dealer meeting, we are raising our expectations for sales and earnings for the full year 2012. We believe this continues to be a great time to be a Polaris shareholder.”

2012 Business Outlook
Based on Polaris’ performance in the first half of 2012 and projections for the remainder of the year, the Company is increasing its 2012 full year sales and earnings guidance. The Company now expects full year 2012 earnings to be in the range of $4.05 to $4.15 per diluted share, an increase of between 27 and 30 percent over full year 2011 earnings of $3.20 per diluted share. Full year 2012 sales are now expected to grow in the range of 14 percent to 17 percent from 2011.

Off-Road Vehicle (“ORV”) sales increased 20 percent from the second quarter 2011 to $581.1 million. This increase reflects continued North American market share gains for both ATVs and side-by-side vehicles. Polaris North American ORV unit retail sales were up more than 15 percent from the second quarter last year, with consumer purchases of side-by-side vehicles climbing over 20 percent and ATV retail sales up nearly ten percent. The Company estimates the North American industry ORV retail sales increased low double digits percent from the second quarter of 2011. North American ORV dealer inventories were up low double digits percent from the second quarter of 2011, in support of continued strong retail demand for side-by-side vehicles. Sales of ORVs outside of North America decreased eight percent compared to the second quarter 2011, due to weaker international economic conditions and an unfavorable currency impact resulting from the strong U.S. dollar.

Snowmobile sales totaled $8.9 million for the 2012 second quarter compared to $6.8 million for the second quarter of 2011. The increase is partially due to a mix of higher priced products being shipped during the 2012 second quarter compared to the same period last year. Second quarter snowmobile sales are routinely low for the Company as deliveries to dealers ramp up in the second half of the calendar year before the snowmobile retail selling season begins in earnest.
Sales of the On-Road Vehicles division, comprised primarily of Victory motorcycles but also including Indian motorcycles and our GEM and Goupil electric vehicles, increased 110 percent over the same period last year to $64.7 million. North American industry heavyweight cruiser and touring motorcycle retail sales increased low single digits percent during the 2012 second quarter as compared to the prior year’s second quarter. Over the same period, Victory North American consumer unit retail sales increased over ten percent, once again gaining market share. North American Victory dealer inventory increased over 2011 levels to support the retail sales increases, market share gains and new product launches of the Victory Judge™ and Victory Hard-Ball™. Polaris sales of On-Road Vehicles to customers outside of North America, now including Goupil, increased over 130 percent during the 2012 second quarter compared to same period last year. The 2011 acquisitions of Indian, GEM and Goupil contributed over a third of On-Road Vehicles’ second quarter sales growth.

Parts, Garments, and Accessories (“PG&A”) sales increased 15 percent during the second quarter 2012 compared to the same period last year. The increase was primarily driven by higher ORV and Victory motorcycle-related PG&A sales.

International sales totaled $111.5 million for the 2012 second quarter, a seven percent increase over the same period in 2011. Unfavorable currency fluctuations negatively impacted sales outside North America by five percent during the 2012 second quarter. The increase in the second quarter sales was driven by the additional sales from the Goupil acquisition as well as higher sales of Victory motorcycles and a 38 percent increase in Asia/Pacific region sales, offset by lower ORV sales, primarily in Europe, due to sluggish economic conditions and the weak currencies.

Gross profit was 28.7 percent of sales for the second quarter of 2012, a decrease of 50 basis points from 2011’s all-time second quarter high gross profit percentage. The gross profit percentage declined primarily due to unfavorable currency fluctuations, which had well over 100 basis points negative impact on the gross profit percentagein the second quarter 2012 compared to the second quarter 2011, as well as negative product mix and commodity costs impacts. Gross profit dollars increased 22 percent to $216.7 million for the second quarter of 2012, compared to $177.6 million for the second quarter of 2011. The increase in gross profit dollars resulted primarily from increased volume, cost savings from the manufacturing realignment project, continued product cost reduction efforts and higher selling prices.

Operating expenses for the second quarter 2012 increased eight percent to $114.5 million or 15.2 percent of sales as compared to $106.2 million or 17.5 percent of sales for the second quarter of 2011. Operating expenses in absolute dollars for the second quarter of 2012 increased primarily due to research and development expenses and continued infrastructure investments being made in international and adjacent markets, offset somewhat by lower incentive compensation plan expenses due to stock price changes during the second quarter of 2012 compared to the same period in 2011.

Income from financial services increased 49 percent to $8.2 million during second quarter 2012 compared to $5.5 million in the second quarter of 2011, primarily a consequence of increased profitability generated from retail credit portfolios with GE, Capital One and Sheffield and higher income from the dealer inventory financing through Polaris Acceptance.

Non-operating other expense was $0.2 million in the second quarter of 2012, compared to $1.6 million in the second quarter of 2011. The decrease in expense is the result of foreign currency exchange rate movements and the resulting effects on foreign currency transactions related to the Company’s foreign subsidiaries.

The provision for income taxes for the second quarter 2012 was recorded at a rate of 35.8 percent of pretax income compared to 34.4 percent of pretax income for the second quarter 2011. The higher income tax rate for the second quarter 2012 is primarily due to the United States Congress not yet extending the research and development income tax credit as of June 30, 2012.

Financial Position and Cash Flow
Net cash provided by operating activities increased 27 percent to $78.4 million for the year-to-date period ended June 30, 2012 compared to $61.8 million for the first half of 2011. The increase in net cash provided by operating activities for the 2012 period was due to increased net income, partially offset by a higher investment in working capital, largely due to higher factory inventory compared to the same period in 2011. Total debt at the end of the second quarter was $107.6 million. The Company’s debt-to-total capital ratio was 16 percent at June 30, 2012, compared to 18 percent at the same period in 2011. Cash and cash equivalents were $289.3 million at June 30, 2012 compared to $262.2 million for the same period in 2011.

Polaris web site at www.polarisindustries.com/irhome.
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.

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.

SOURCE: Polaris Industries Inc.
Polaris Industries Inc.
Richard Edwards, 763-542-0500
(Motor Sports Newswire)