Polaris’ profits nosedived in the first quarter, but the company says it was bracing for the fall.

CEO Scott Wine said the $8.5 million net income was in line with expectations and that the company gained market share in its off-road vehicle business and decreased inventory at dealerships for that unit, as well.

“Despite a difficult retail sales environment throughout the quarter, our team performed exceptionally well in executing our plan,” Wine said.

During the same period last year, the company’s net income was $19.1 million. The company said its 2009 outlook remains challenging and that it will continue efforts to streamline the company.