Polaris Industries recently reported record earnings for the first quarter of 2011.  Management reported sales of $537.2 million  and net income of $47.3 million for the quarter compared to $361.7 million and $19.8 million in the first quarter of 2010.  For the full year 2011 management expects sales to increase 17%-20% compared to 2010.

I listened to the earnings conference call and here are some of the highlights as it relates to the STOV markets.

• Off-road vehicles which includes UTVs and ATVs exceeded expectations
• International sales were up 21% in part do to side by side sales increasing 50% in Europe where these vehicles are supplanting ATVs as they have been in North America
• Polaris is gaining market share in UTVs and ATVs as they outperform the market domestically and internationally.
• Management reports side by side sales increasing more than double the overall market rate
• RZR XP 900 launched in January is selling well
• Bobcat branded vehicles they supply “ramped up nicely” and is gaining retail momentum
• Military sales which includes some STOV products doubled in the first quarter
• Diesel product started nicely and is expected to slowly but steadily develop with good opportunities in the UK, military and single fuel use segments such as farming and construction
• Off-road parts, garments and accessories sales increased 22% in Q1