Polaris Industries Inc. today reported record third quarter net income of $155.2 million for the quarter ended September 30, 2015, an increase of ten percent from the prior year’s third quarter net income of $140.8 million. Earnings per share were a record $2.30 per diluted share for the third quarter of 2015 compared to $2.06 per diluted share for the same period in 2014. Sales for the third quarter 2015 totaled a record $1,456.0 million, an increase of 12 percent over last year’s third quarter sales of $1,302.3 million.
The Third Quarter Highlights: • Polaris Sales increased 12% year-over-year to a record $1,456.0 million (up 16% in constant currency)•North American retail sales increased 7% year-over-year • Net income increased 10% to $155.2 million year-over-year • Motorcycle consumer retail demand remained strong in the third quarter, up over 60%; motorcycle production rate improved sequentially from the 2015 second quarter • Maintaining and narrowing full-year 2015 sales and earnings guidance range to $7.37 to $7.42 per diluted share, an increase of 11% to 12% year-over-year based on full-year 2015 sales growth guidance of 10% to 11%
“Our record third quarter results continue to reflect the efficacy of our long-term strategy and the resiliency of the Polaris organization, as motorcycle growth accelerated, ORV share gains continued and our developing adjacencies built momentum. We accomplished this in a difficult environment, with the combination of weakening currencies and softening economies adding to the pressure we face from the sluggish oil and agriculture markets, all in the midst of the most competitive powersports landscape we have seen in nearly a decade. It is encouraging to see our Polaris team use these challenging times to get better and stronger, while displaying renewed determination to win across all our markets. Polaris has delivered solid financial performance in the first nine months of 2015, and despite facing stiff headwinds that show little sign of abating in the near term, our financial position remains robust and our growth opportunities plentiful.” stated Scott Wine, Polaris’ Chairman and Chief Executive Officer.
Motorcycle sales increased 154 percent to $160.4 million for the third 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, combined, increased over 60 percent during the third quarter of 2015 driven by Indian Motorcycle and Slingshot, while North American industry midsize and heavyweight motorcycle retail sales were up low single digits compared to the third quarter of 2014.
Indian Motorcycles retail sales were up significantly in the third quarter with ongoing strong demand for all models. Product availability for Indian motorcycles improved during the 2015 third quarter as the Company continued to increase throughput at its Spirit Lake, Iowa, motorcycle factory. Victory retail sales in the third quarter of 2015 were lower than the prior year partly due to low product availability.
Retail sales for the new Slingshot three-wheeled roadster continued to outpace Company expectations during the third quarter. Polaris North American motorcycle dealer inventories, including Slingshot, during the 2015 third quarter increased about 30 percent compared to the same period in the prior year but remain below levels needed to meet current and backlogged retail demand.
Off-Road Vehicle (“ORV”) sales increased three percent to $822.9 million in the third quarter of 2015 compared to the third quarter of 2014. Polaris North American ORV unit retail sales increased low-single digits percent during the 2015 third quarter compared to strong prior year third quarter retail sales growth of high-single digits percent. Consumer purchases of both side-by-side vehicles and ATVs increased at similar rates during the 2015 third quarter. The Company estimates North American industry ORV retail sales in the third quarter of 2015 increased low-single digits percent year-over-year, resulting in Polaris market share gains for both ATVs and side-by-side vehicles. During the 2015 third quarter, the Company introduced new ORV models in the value and premium segments including the Company’s first full-sized value RANGER® priced below $10,000 and the clear leader in the high-performance segment, the RZR® XP Turbo, delivering more horsepower and torque than any other high-performance side-by-side on the market today. Polaris North American ORV dealer inventories during the third quarter of 2015 increased about ten percent year-over-year, in line with Company expectations, as the Company began shipping the new 2016 model-year products.
Snowmobile sales increased 14 percent to $185.5 million for the third quarter of 2015 compared to $162.7 million for the third quarter of 2014. The increase is due to an increased quantity and richer mix of snowmobiles being shipped in the 2015 third quarter compared to the same period a year ago. While the snowmobile retail selling season is just beginning, Polaris’ market share performance season-to-date through the 2015 third quarter is pacing with the Company’s expectations, led by the award-winning model year 2016 PRO-RMK, the lightest mountain sled on the market. As planned, Polaris North American snowmobile dealer inventories during the third quarter of 2015 increased significantly year-over-year in preparation for the upcoming snowmobile retail selling season.
International sales to customers outside of North America totaled $153.6 million for the third quarter of 2015, up one percent from the same period in 2014, though held back by weak currencies (up 18 percent on a constant currency basis). EMEA reported sales declined four percent in the 2015 third quarter and Asia Pacific reported sales were down one percent while Latin American reported sales were up 50 percent. International reported sales by component in the third quarter compared to last year were as follows: Motorcycles sales were up 115 percent; ORV sales were down two percent; Global Adjacent Markets declined seven percent; snowmobile sales were down 52 percent, primarily due to Russia; and PG&A related sales increased one percent.
Wow. Congrats Polaris.
And guess where some Harley sales went?
Slingshot is no more a motorcycle than a Ford pick up truck with one flat tire.
I would rather have the Ford pickup with one flat tire. ..Z
I said several years ago that Polaris will kick HD’s ass in the long run and every quarter, the comparison of the financials, seems to prove me right more and more. Just sayin’.
Over & Out,
Jeff
I’d like to see a 111 Thuderstroke engine in an FXRT type frame with 6″ ground clearance with dual disk brembo brakes. Build that Polaris and I will buy one.
james i can build that for you..put your money where your mouth is
Looks like Indian is a winner once again. It’s rather impressive if not remarkable what Polaris has done with the brand in only a few short years!
As for the Sling Shot it’s not my bag personally but I would certainly be interested in renting one for a day/weekend. If Polaris made a couple of rentals available at each dealership I think they would generate a steady flow of $$$ if not a few more SS sales as well.
More about Off-road and parts…….. ???
(Like Husky & Chainsaws?)
-nicker-
Classify Slingshot as you wish – the simple fact is they are selling very well indeed! All adding to the diversified portfolio of products that Polaris Industries builds. The new plant acquisition on Spearfish is cool too. There are loads of good people contributing to this success story. It’s been fun to be part of it.
Robert Pandya
External Relations Manager
Indian Motorcycle
Its interesting that HD is not offering up much opposition at the moment and people in the USA are going to the American alternative.
Business is cyclical, HD need to learn from this and stop pandering (small joke) to growing markets and solidify the one they have (had?).
They have made the Fat Bob something the younger people might want but I have not seen many young people buying it?
A wise sage said to me “yea and they don’t care cause they think old farts like you can afford to change them back”
Well old Farts who are HD loyalists will just hang on to what they have and instead of trading in will just spend more on their existing bike (s)
Do I sound a little angry………………..hope so
I’d sure love to join in, but as often happens, my reply doesn’t appear but when I resubmit I get a “sorry, you already said that” error message.
First off, congratulations to Polaris for your impressive record 3rd quarter results. With that being said, while I think what you have done with the Indian brand as well as with the Sling shot are amazing, I see something in this report that worries me. I am a Victory owner. I embrace the brand whole heartedly. Here is what is worrying me, which is this statement from the above report – “Victory retail sales in the third quarter of 2015 were lower than the prior year partly due to low product availability”.
I don’t want to sound dramatic, but please don’t forget about Victory. There’s a LOT of buzz in the forums and on the Facebook pages about Polaris putting the majority of their resources into the Indian brand and treating Victory as the, and I quote from multiple forums….”the red headed step child”. Even with a new dealership that was opened where I am, you can see it. There is a clear difference between the Indian half of the showroom vs. the Victory half. Indian half sports nice hardwood floors while the Vic half is cement. PLEASE DONT GET ME WRONG, I think Indian is a terrific motorcycle and I would love to own on some day, but please don’t forget about Victory.
I may be way off here, and do apologize in advance if I am, but there are many Victory owners that are feeling the same way.
Agreed Marco!
The reason they aren’t selling more Vics is the hideous paint colors and no chrome on the normal stuff!
from a twice Vic owner…
I am hoping the Victory brand is being repositioned as a performance based American v-twin alternative. There is a market there. The Project 156 bike is rumored to spawn such a bike, and soon too. I would really, really like a replacement for my gone but loved XB9R…
I’m still wondering with all the advancements in automobile fuel savings, why many manufacturers still can’t make a bike with a 5 or 6 gallon tank that will go 300+ miles
To bad the Indian is the most hidious looking machine on the road
They do Brian, those are available right now, but they are smaller c.c. engines. The bikes you are talking about represent excitement when you twist the throttle. It takes more gas to make that kind of torque so that’s the compromise.