Polaris Industries today reported third quarter 2018 sales of $1.65 billion, up 12 percent from nearly $1.48 billion for the third quarter of 2017.
Adjusted sales for the third quarter of 2018 also were $1.65 billion, up 12 percent from the prior year. The Boat Holdings acquisition, which closed July 2, added $134 million in sales for the third quarter.
The company reported third quarter 2018 net income of $96 million, or $1.50 per diluted share, compared with net income of $82 million, or $1.28 per diluted share, for the 2017 third quarter. Adjusted net income for the quarter was $118 million, or $1.86 per diluted share, up 21 percent and 22 percent, respectfully, compared to $98 million, or $1.52 per diluted share, in the 2017 third quarter.
Weighing on profits were the impacts of tariffs, and commodity and freight costs, the company reported.
Gross profit increased 10 percent to $401 million for the third quarter of 2018, from $364 million in the third quarter of 2017. Reported gross profit margin was 24.3 percent of sales for the third quarter, compared to 24.6 percent of sales for the third quarter of 2017. Gross profit includes the negative impact of $8 million of Victory Motorcycles wind-down costs, costs related to the acquisition of Boat Holdings, and realignment and restructuring costs.
Boat segment sales were $134 million in the 2018 third quarter, slightly better than expected. Reported gross profit was $20 million, or 15.1 percent of sales in the third quarter of 2018. Adjusted gross profit, which excludes integration costs and purchase accounting, was $23 million, or 17.4 percent of sales in the third quarter of 2018.
