Polaris Reports Record 2nd Quarter 2015 Results. Motorcycle Sales Increased 57% Compared To Same Period Last Year.

polaris-logoPolaris12Polaris23Sales, Net Income and Earnings per Diluted Share Increased Year-over-Year. Second Quarter Highlights: • Sales increased 11% year-over-year to a record $1,124.3 million • North American retail sales increased 11% year-over-year • Net income increased 4% to $100.9 million. Gross profit margin declined 166 basis points due to currency impacts and incremental manufacturing costs of $9 million related to motorcycle paint constraints • Motorcycle demand remained strong throughout the second quarter

This morning, Polaris Industries Inc. (NYSE:PII) reported record second quarter net income of $100.9 million for the quarter ended June 30, 2015, an increase of 4% from the prior year’s second quarter net income of $96.9 million. Earnings per share were a record $1.49 per diluted share for the second quarter of 2015 compared to $1.42 per diluted share for the second quarter of 2014.

Second quarter results included additional manufacturing costs and inefficiencies approximating $9.0 million, as the Company worked to scale-up production and add capacity to the paint system at the Company’s motorcycle facility in Spirit Lake, Iowa. Sales for the second quarter 2015 totaled a record $1,124.3 million, an increase of 11 percent over last year’s second quarter sales of $1,014.0 million.

“Although production still cannot keep pace with demand, we are confident in our plans to further increase our motorcycle throughput in the second half of the year, and as such, are maintaining and narrowing full year guidance for sales and earnings per share. Innovation remains a cornerstone of Polaris’ success, and at our dealer show next week we will introduce our model year 2016 powersports lineup that will further extend our market leadership.” said Scott Wine, Polaris’ Chairman and Chief Executive Officer.Polaris-


Motorcycle sales increased 57 percent to $162.1 million for the second quarter of 2015 compared to same period last year
due to continued strong demand for Indian motorcycles and the new Slingshot® roadster. Victory, Indian Motorcycle and Slingshot North American retail sales increased over 80 percent during the second quarter of 2015 driven by Indian Motorcycle and Slingshot retail sales, while North American industry midsize and heavyweight motorcycle retail sales were flat with the second quarter of 2014. Demand for the Indian Scout®, Roadmaster® and the new Indian Dark Horse® drove an over 100 percent increase in retail sales for Indian Motorcycle during the quarter. Victory retail sales in the second quarter of 2015 were lower than the prior year largely due to poor product availability of the new Victory Magnum® and Magnum X-1®, a result of the paint capacity constraints in the Spirit Lake facility. Slingshot retail sales continued to perform well ahead of expectations as consumer appeal for the new 3-wheeled roadster remained high. Polaris has increased production to meet the ongoing strong consumer demand for Slingshot.

Off-Road Vehicle (“ORV”) sales increased two percent to $688.8 million in the second quarter of 2015 compared to the second quarter of 2014. This increase reflects a combination of ongoing strong customer demand in North America for ORVs, offset by a planned deceleration of shipment growth to improve dealer inventory mix. Polaris North American ORV unit retail sales increased mid-single digits percent from the second quarter last year, with consumer purchases of side-by-side vehicles increasing high-single digits percent and ATV’s increasing mid-single digits percent. Consumer awareness of the Sportsman ACE™ category also continued to build during the quarter. The Company estimates North American industry ORV retail sales in the second quarter of 2015 increased mid-single-digits percent year-over-year, resulting in a modest market share gain for Polaris. Polaris North American ORV dealer inventories during the second quarter of 2015 increased mid-teens percent year-over-year and, as anticipated, the rate of increase improved sequentially from the first quarter of 2015.

Snowmobile sales increased 215 percent to $19.3 million for the second quarter of 2015 compared to $6.1 million for the second quarter of 2014. Snowmobile sales in the Company’s second quarter are historically low as they reflect the off-season for snowmobile retail sales and shipments. The increase in shipments during the second quarter of 2015 is related to the timing of snowmobile production and a higher mix of Polaris’s new premium snowmobiles with the Axys® chassis being shipped to dealers ahead of the upcoming snowmobile retail selling season.

Parts, Garments, and Accessories (“PG&A”) sales increased 17 percent to $187.5 million during the second quarter of 2015 as compared to the same period last year. All product lines experienced double digits percent sales growth during the quarter.

International sales to customers outside of North America totaled $162.9 million for the second quarter of 2015, down 4% from the same period in 2014 driven by weak currencies. The EMEA regions’ sales declined 12 percent in the 2015 second quarter, partially offset by a 32 percent increase in Latin American sales and a 15 percent increase in sales in the Asia/Pacific region. International sales by component in the second quarter compared to last year were as follows: ORV sales were down 13 percent; motorcycles sales were up 41 percent; Global Adjacent Markets declined 16 percent; and PG&A sales increased four percent. Snowmobile sales to customers outside of North America were insignificant in the second quarter of 2015.

Zipper's

8 Responses to “Polaris Reports Record 2nd Quarter 2015 Results. Motorcycle Sales Increased 57% Compared To Same Period Last Year.”


  1. 1 Matt W. Jul 22nd, 2015 at 10:58 am

    Nice to see the Slingshot is still going strong as well. I have started seeing them on the road more often these days. Probably wouldn’t buy one myself but am hoping that dealerships will make them available to rent someday.

  2. 2 Reyn Mansson Jul 22nd, 2015 at 1:28 pm

    @Matt W., a quick Google search found Eagle Rider and a dozen other places with them for rent now

  3. 3 Badams Jul 22nd, 2015 at 8:39 pm

    majority based on offroad.

  4. 4 Rodent Jul 22nd, 2015 at 8:43 pm

    You don’t need a helmet or motorcycle endorsement to drive a Slingshot

  5. 5 Robert Pandya Jul 23rd, 2015 at 12:51 pm

    Rodent – that depends on the state. Same laws as Trikes in some states, other have an “AutoCycle” or similar designation.

    Robert

  6. 6 B. D. Jul 23rd, 2015 at 7:08 pm

    Exactly. Here in DE, they have a new license category for three wheelers, a sort of ‘light motorcycle’ endorsement – in that if you have a motorcycle endorsement already, you are legal to operate a three wheeler. But if you don’t and you take a trike to the DMV to get your endorsement,, you still can;t legally ride a motorcycle – it’s only good for three wheelers.

  7. 7 B. D. Jul 23rd, 2015 at 7:10 pm

    Incidentally, I am surprised that nowhere in this item on Polaris is mentioned the so-called ‘Jet Ski’ market.

    Doesn’t Polaris make the Sea Doo or something like that?

  8. 8 Woody's Jul 24th, 2015 at 9:45 am

    BRP makes the Sea Doo line of PWC and Polaris used to make their own line also. They (Polaris) got out of that market, as did Kawasaki, which copywrited the original Jet Ski name for their PWC line.

Comments are currently closed.
S&S
S&S
HardDrive
Barnett
Harley Davidson Footwear
Barnett
Affliction Holdings, LLC

Socialize

Facebook Google+ Twitter