-- Completes Second and Final Closing Under Previously Announced
MINNEAPOLIS, June 15 /CNW/ - Polaris Industries Inc. (NYSE: PII) announced
that its Austrian subsidiary has completed the second and final closing of its
sale of shares of KTM Power Sports AG ("KTM") to a subsidiary of KTM's largest
shareholder, Cross Industries AG ("Cross"), under the terms of a previously
announced agreement dated December 22, 2006, as supplemented on February 20,
2007. Approximately 0.27 million shares were delivered at a purchase price of
approximately 11.5 million Euros. Polaris intends to utilize the proceeds
generated from the second closing completed today to reduce the outstanding
balance of the Company's revolving credit facility. Polaris now holds
approximately 0.34 million KTM shares, representing slightly less than 5
percent of KTM's current outstanding shares.
As a result of the second closing completed today, Polaris expects to
record in the second quarter 2007 a gain on the sale of the KTM investment of
approximately $1.3 million pre-tax or approximately $0.02 per diluted share,
as previously announced. The gain is due to the recognition of previously
unrealized translation gains recorded in accumulated other comprehensive
income, a component of shareholders' equity and was contemplated in Polaris'
previously issued earnings from continuing operations guidance range of $0.57
to $0.60 per diluted share for the second quarter of 2007.
Polaris will release its financial results for the second quarter 2007 on
the morning of Tuesday, July 17, 2007.
Information about the complete line of Polaris products is available from
authorized Polaris dealers or from the Polaris homepage at
With annual 2006 sales of $1.7 billion, Polaris designs, engineers,
manufactures and markets snowmobiles, all-terrain vehicles (ATVs), Victory
motorcycles and the Polaris RANGER(TM) for recreational and utility use.
Polaris is a recognized leader in the snowmobile industry and one of the
largest manufacturers of ATVs in the world. Victory motorcycles, established
in 1998 and representing the first all-new American-made motorcycle from a
major company in nearly 60 years, are rapidly making impressive in-roads into
the motorcycle cruiser marketplace. Polaris also enhances the riding
experience with a complete line of Pure Polaris apparel, accessories and
parts, available at Polaris dealerships. Consumers can also purchase apparel
and vehicle accessories anytime at www.polarisindustries.com.
Polaris Industries Inc. trades on the New York Stock Exchange under the
symbol "PII," and the Company is included in the S&P Small-Cap 600 stock price
Except for historical information contained herein, the matters set forth
in this news release, including management's expectations regarding 2007
sales, shipments, net income and cash flow, 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 product offerings, promotional
activities and pricing strategies by competitors; warranty expenses; foreign
currency exchange rate fluctuations; effects of the KTM relationship;
environmental and product safety regulatory activity; effects of weather;
commodity costs; uninsured product liability claims; and overall economic
conditions, including inflation and consumer confidence and spending.
Investors are also directed to consider other risks and uncertainties
discussed in documents filed by the Company with the Securities and Exchange
For further information:
For further information: Polaris Industries Inc. Richard Edwards,