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Polaris Declares 10 Percent Increase in Cash Dividend
MINNEAPOLIS--(BUSINESS WIRE)--Jan. 18, 2007--Polaris Industries Inc. (NYSE:pII) today announced that its Board of Directors has approved an 10 percent increase in the regular quarterly cash dividend effective with the 2007 first quarter dividend. The first quarter dividend of $.34 will be payable on February 15, 2007 to shareholders of record at the close of business on February 1, 2007.

Tom Tiller, Chief Executive Officer of Polaris, stated, "This increase represents the 12th consecutive year of increasing the dividend to shareholders. We remain confident in the future growth of the Company and continue to adequately invest in the business to remain competitive in the markets we serve while demonstrating our commitment to returning a portion of the cash flow generated by the Company to our shareholders in the form of cash dividends and share repurchases."
 

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I would have to say thats because of Atv sales and their Victory motorcycle sales.
 

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That and their stock repurchase program, sale of 20% of their ktm stock which appearrs they made some coin on.
 

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I don't think anyone doubts Polaris will stay in business... I think there are some questions about whether or not they will continue making sleds... From a business standpoint, if they have been losing money on sleds for a number of years, it is hard to justify continuing that product line to the company's shareholders. I don't know their financials on sleds vs. atv's vs. motorcycles, etc. but if sleds have a been a consistent money loser for more than a few years, then there is some validity to the concerns people have. The stocks dividend increase really has no bearing on the snowmobile line. Could be that they are doing so well in other product lines to make up for it, or that they already know they are discontining sled production and that will make them a more profitable company. I love Polaris so I hope they continue to make them, but sound business sense maybe telling them the opposite. Just my $0.02.
 

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y does everyone say they are loosing money on sleds? I'm real curious to know where the facts are that back it up. Sure they dont sell as many sleds as they used to, sure they released 1 bad (arguable..I know a few that are awesome) model in 05 (900). What about before 05 and after 05...lots of good sleds were and are still coming from them.

Just because they dont sell the most amount of sleds doesnt mean they arent making money off them.

Yamaha didnt get out of the sled business in the late 80's (possibly early 90's) when they lost the #1 market share spot, instead they kept making sleds just a fewer amount.
 

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I'll be anxious to see the 2nd quarter results.

I see a lot of sled crates just sitting around at all the dealerships right now with this crappy weather![B)]

But as was said, Polaris has a diversivied product line, and must still be doing well in the ATV/Cycle arena
 

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I don't know if they are making money on sleds or not. My point is that if they are or aren't it has no bearing necessarily on the new kicked up dividend. That could be from a strategic standpoint, or from other divisions doing better than expected or maybe the sleds are selling?

If they are making money it wouldn't seem as thoguh they would discontinue making sleds (which is just a rumor as far as I know)as it just wouldn't make business sense.

If they are losing money year after year then I am sure it is a possibility. Again, I am not pretending to know if they are or aren't... Just looking at it from a business standpoint.

I would imagine the weather in the midwest this year is really hurting sales of all manufacturers sleds but there is a ton of snow out west so maybe that is making up for it?? No one really knows but the accounting department at Polaris Corporate how it's all coming out in the wash...
 
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