Polaris Industries Inc. kept its penetration and income from financial services relatively flat year over year in 2017 and is expecting the same for fiscal year 2018, the company reported in fourth-quarter earnings yesterday.
The OEM maintained its penetration of retail credit contracts at 32% during the fourth quarter while approval rates remained at 63%. Income from financial services similarly remained flat at $19 million, but retail financing income grew by 4% to offset declines in wholesale income, the company reported.
Wholesale receivables from Polaris Acceptance, the manufacturer’s floorplan financier, declined 1% year over year to $1.19 billion in the quarter.
“Income from financial services is expected to be flat to down slightly, primarily driven by the mix of income between Polaris Acceptance, retail credit, and our growing extended service contract business,” Chief Financial Officer Mike Speetzen said on the company’s earnings call.