Snowmobile and ATV maker Polaris Industries Inc. announced that its first quarter profit rose 26 percent as a huge jump in snowmobile and rising off-road vehicle sales offset weaker sales of on-the-road vehicles.

Despite concerns about customer “timidity” because of U.S. payroll tax increases, as well as economic risks in North America and Europe, Polaris raised its outlook for the year. It said new products should help fuel growth in the second half of the year.

The Minneapolis company’s net income from January through March was $75.5 million, or $1.07 per share, compared with $60.1 million, or 85 cents per share, a year earlier. Revenue grew 11 percent to $745.9 million.
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