Fourth Quarter Highlights: 

• Net income increased 38% to $88.1 million, or $1.24 per diluted share, with sales increasing 15% to $900.6 million, both fourth quarter records. 
• Off-Road Vehicle sales increased 22%, On-Road Vehicle sales increased 36% and PG&A sales increased 17% during the 2012 fourth quarter.
• North American retail sales remained strong, increasing 13% in the fourth quarter compared to a year ago.
• Gross profit margins expanded 210 basis points to 28.2% in the fourth quarter due to manufacturing realignment savings, lower product costs and higher selling prices.

Full Year Highlights: 

• Full year 2012 net income increased 37% to a record $312.3 million, or $4.40 per diluted share, with record sales of $3.2 billion, an increase of 21% from full year 2011.
• Full year 2012 gross profit margins improved 90 basis points compared to full year 2011.
• All product lines increased sales and retail market share for the full year 2012.

MINNEAPOLIS (January 29, 2013)  - Polaris Industries Inc. (NYSE: PII) reported record fourth quarter net income of $1.24 per diluted share for the quarter ended December 31, 2012, up 38 percent from the prior year's fourth quarter net income of $0.90 per diluted share.  Reported net income was $88.1 million for the fourth quarter of 2012, up 38 percent from the previous fourth quarter's net income of $63.9 million.  Sales for the fourth quarter 2012 totaled a record $900.6 million, an increase of 15 percent over last year's fourth quarter sales of $782.0 million.

For the full year ended December 31, 2012, Polaris reported record net income of $4.40 per diluted share, a 38% increase compared to $3.20 per diluted share for the year ended December 31, 2011.  Reported net income was $312.3 million for the full year 2012, up 37 percent from the previous year's net income of $227.6 million.  Sales for the full year 2012 totaled a record $3,209.8 million, an increase of 21 percent compared to sales of $2,656.9 million for the full year 2011.

"Our outstanding fourth quarter results concluded another successful year for Polaris, from both financial and strategic perspectives.  In 2012, Polaris exceeded $3 billion in sales for the first time and operational improvements drove net income margin above 9.7%, even as we continued to invest in numerous diversification and growth opportunities," commented Scott Wine, Polaris' Chief Executive Officer.

"We expect 2013 to be another year of profitable growth and margin expansion, although we remain wary of the fragility of the global economy, particularly in Europe, where we project our business will be down slightly.  Our product development and investment activity will remain high, as indicated by our decision to approve the construction of a new European plant that will provide significant future cost reduction and growth opportunities.  Our aggressive posture will be balanced by consistent and prudent evaluation and preparation for risks that may arise.  Operational flexibility and aggressive cost control are core strengths of Polaris, and we will leverage our excellence in executing those disciplines to overcome any obstacles to continued profitable growth."

"Our strong performance in 2012 once again afforded us the opportunity to invest in key growth initiatives.  Perhaps most exciting is the progress we made in support of the much anticipated Indian Motorcycle resurgence, which justifies and requires an unprecedented level of resources and investments.  From designing and developing an all new engine and bikes, to building the team, distribution network and launch plans, we are executing a plan that will ensure we give Indian the best possible introduction to the market later this year."

"Between the Indian launch and the much anticipated release of our jointly developed product with Bobcat, 2013 will be an exciting year for new vehicles.  We are also enthusiastic about the potential KLIM, which we acquired in the fourth quarter, brings to our PG&A offering, providing both additional growth opportunities and attractive margin characteristics through its strong apparel brand.  I believe our Polaris team is the best in Powersports, and together we will build on the strong finish to 2012 and play to win- again! - in 2013."

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