W. Hall Wendel, chairman and chief executive officer, said the drop was expected. Personal watercraft sales growth should resume at the end of the 1998 season, he said. In 1996, the company also cut personal watercraft production, citing weak demand, and said it would reduce production of its 1997 models. Mike Malone, Polaris' chief financial officer, said the decision to cut production was made before the Minnesota Legislature began discussing possible restrictions on personal watercraft use.
Critics say the machines are noisy and disruptive to others trying to enjoy lake activities.
Current law allows operation from 8 a.m. to sunset. A mild winter attributed to El Ni o hurt snowmobile sales, which were below expectations, the company said. But sales of ATVs grew at a double-digit rate over the same period last year. Meanwhile, the company still plans to roll out its new Victory motorcycles in late spring, which it announced a year ago.