Polaris Reports 2016 First Quarter Results. Motorcycle Segment Sales +18%. Indian Motorcycles +50%.

Polaris7-1Polaris Industries Inc. (NYSE:PII) today reported first quarter net income of $46.9 million, or $0.71 per diluted share, for the quarter ended March 31, 2016 compared to $88.6 million, or $1.30 per diluted share reported in the first quarter of 2015, in-line with Company expectations. Sales for the first quarter 2016 totaled $983.0 million, down five percent compared to last year’s first quarter sales of $1,033.3 million.

Motorcycle segment sales (Victory®, Indian Motorcycle® and Slingshot®), including their respective PG&A related sales, increased 18 percent in the 2016 first quarter to $188.2 million primarily due to continued strong retail sales for Indian® motorcycle up over 50%. North American consumer retail demand for the Polaris motorcycle segment, was up 8 percent during the 2016 first quarter while the overall motorcycle industry retail sales, 900cc and above was about flat in the 2016 first quarter.

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During the 2016 first quarter, the Company began retailing two new additions to its Victory and Indian motorcycle line-up with the introduction of the Octane™, Victory motorcycles’ first mid-sized cruiser and the new Indian Springfield™, named after the birthplace of Indian Motorcycle. Slingshot also broadened its color options with its 2016 model introduction including the new Limited Edition White Pearl SL. Product availability for Victory, Indian Motorcycle® and Slingshot® improved considerably in the 2016 first quarter and dealer inventories are essentially at targeted stocking levels at quarter-end.

While the powersports industry was slightly better than anticipated in the 2016 first quarter, the Company is keeping its guidance range unchanged for the full year 2016 with earnings expected to be in the range of $6.20 to $6.80 per diluted share with sales in the range of down two percent to up three percent over 2015 due to the persistent unpredictability around overall economic trends and more specifically powersports industry trends for the remainder of 2016.

Off-Road Vehicle (“ORV”) and Snowmobile segment sales, including their respective PG&A related sales, decreased nine percent from the first quarter of 2015 to $720.6 million. ORV vehicle sales decreased 12 percent, snowmobile vehicle sales were up two percent and ORV and snowmobile related PG&A sales, combined, increased two percent in the 2016 first quarter compared to the same period last year. Snowmobile wholegood sales increased two percent due to the acquisition of Timbersled in the second quarter of 2015. The Company gained market share the 2016 first quarter and for a third consecutive year for the season ending March 31, 2016.

While the powersports industry was slightly better than anticipated in the 2016 first quarter, the Company is keeping its guidance range unchanged for the full year 2016 with earnings expected to be in the range of $6.20 to $6.80 per diluted share with sales in the range of down two percent to up three percent over 2015 due to the persistent unpredictability around overall economic trends and more specifically powersports industry trends for the remainder of 2016.

“Our first quarter results were in line with our projections, in spite of increased expenses for warranty and product liability. Our Customer Excellence initiatives and new products drove a six percent increase in North American retail, and in conjunction with shipment reductions, better demand forecasting, and process control improvements, enabled us to continue reducing dealer inventory levels year-over-year. During the quarter, we improved shipment lead-times, met retail demand from our Spirit Lake motorcycle facility, and completing the acquisition of Taylor-Dunn. I still believe 2016 is likely to be another volatile year in powersports, but we are seeing pockets of strength. The North American ORV industry was up in the first quarter, with March experiencing the strongest improvement,” commented Scott Wine, Polaris’ Chairman and Chief Executive Officer. “We remain focused on an all-out assault on costs and rededicating the business to drive growth, not only for this year but as part of a renewed commitment to achieving our 2020 objectives. The entire Polaris team is united, and determined, to grow sales and expand margins.”

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18 Responses to “Polaris Reports 2016 First Quarter Results. Motorcycle Segment Sales +18%. Indian Motorcycles +50%.”


  1. 1 chingon choppers Apr 21st, 2016 at 10:37 am

    Good job Polaris/Victory/Indian. Look out HD……………Better do something really quick other than just making changes to your plastics!!!!!

  2. 2 Danny Ray Apr 21st, 2016 at 11:00 am

    Better results than Harley. I continue to the that Harley is going to continue to lose market shares in the US for the benefit of Victory & Indian.

  3. 3 Greeko Apr 21st, 2016 at 11:03 am

    The market is not very good in the US, but Polaris progresses, Harley declines.

  4. 4 boston jim Apr 21st, 2016 at 11:19 am

    Whoa ! Way to Go INDIAN ! H-D down 0.5%, Indian up +50% ! Finally the American Biker has a choice, & they have chosen wisely ! Since 1999, they have listened to lies & , lots of Bullshit from H-D & their Stealerships ! They do a Great job of selling T-Shirts, but suck at Building Motors ! With all the Technology & Engineering at their disposal, the Twin Cam motor design is the BEST they could come up with, to replace the EVO ? Why did it need replacing ? An inner & outer chain, along with the “Made in China”, plastic tensioners, that disintegrate, & clog your oil pump, POW ! Don’t believe me, , go to J&P Cycles, there are 3 different Blogs, 1300+ comments, 1000+ Blown Motors!!!

    Here’s another way to look at the poor design of the TC motor ! From 1984 to 1999, all EVO motors were the same, except the motor mounts, (rubber mount or solid mount for Softails). The motors were not different inside ? Were they ? In 1999, along with the last EVO Softail, comes the NEW 88″ Twin Cam motor, for all the rubber mounted bikes ! These motors were so sloppy, out of balance, out of true, that my understanding is H-D had to BEEF UP the rubber mounts ? Along comes 2000, the EVO motor has been put in it’s grave ! The Softails need a motor, for their rigid mount frame ? The rubber mount motor, is so out of balance, that just adding rigid mounts to the motor, won’t cut it ! They have to add chains & counter weights to both sides of the engine, to get the balance in specs ! Adding weight to the inside of your motor,, so it doesn’t tear off the frame mounts ? My 99 EVO, doesn’t have that set-up ? How much HP, do you lose, moving those weights ? Later, BJ

    PS, Yesterday, I read somewhere that POLARIS owns S&S Cycle, is that TRUE ???

  5. 5 JM Apr 21st, 2016 at 11:51 am

    How many people notice that Polaris, as a whole, had almost a 50% decline in profits and 5% decline in revenue, compared with last year at the same time This compared with Harley-Davidson’s very slight decline in profit with increased revenue. If you look at the FINANCIAL performance of Polaris it looks very bad compared with HD. Motorcycle sales, though showing an 18% increase year-year, are not in line with essentially the first full year of Indian sales, which tells me that Indian sales are poaching Victory sales more than they are Harley-Davidson. Note also that there were significant warranty costs for this past year – some of that, from what I understand, was associated with the Scout rollout.

  6. 6 JohnnySpeed Apr 21st, 2016 at 12:05 pm

    Twinkies do suck for the most part. But Polaris’ bikes are so damn ugly it makes me glad that there are so many Evos still around.

  7. 7 JohnnySpeed Apr 21st, 2016 at 12:06 pm

    Boston Jim – Twinkies do suck for the most part. But Polaris’ bikes are so damn ugly it makes me glad that there are so many Evos still around. But if Polaris picks up enough market share that it forces HD to improve their offerings it’s good for us all.

  8. 8 JM Apr 21st, 2016 at 12:22 pm

    I would just point out that Polaris as a whole had much worse financial performance than Harley. This includes significant warranty expenses, some of which came from the motorcycle division (I understand from the forums that the Scout had its fair share of teething issues). Note also that whereas motorcycle sales increased, they didn’t increase by an amount commensurate with the first full year of sales for Indian, which would suggest some large proportion of Indian’s sales were poached from Victory.

  9. 9 Woody's Apr 21st, 2016 at 1:16 pm

    Too funny. If I open up a used car lot and sell a single car my first week, and then 2 the following, I can brag I’m the fastest-growing car dealer in the area, with sales up 100%. Screw the % BS and give us the unit sales, most of us can figure out from there how things are going. ;P

  10. 10 JM Apr 21st, 2016 at 2:02 pm

    Well, I will try one more time:

    Polaris’ financial performance (decreased revenue, large warranty costs) is worse than Harley’s. Their motorcycle sales growth of (only) 18%, given that it includes the first full year of Indian sales and includes almost a year of Scout sales, would seem to suggest that a lot of their Indian sales are poaching Victory sales, not Harley sales.

  11. 11 Blackmax Apr 21st, 2016 at 3:32 pm

    True, overall the financial picture for Polaris, overall is disappointing.
    but the motorcycle division is up 18% & nibbling away from H-D’s 50% !
    Yes, there have been recalls/warranty issues but with a new bike (Octane/ big Scout & little Scout)
    there are going to be issues that come up & get fixed.
    There were issues when the Thunderstroke 111 came out & they got fixed.
    I too wish for a more complete “head to head” comparison, but that’s not going to happen.
    They are not going to give the “competition” info they can use against you.
    As has been said so many time before on here,
    “If you are smart enough to read between the lines” you can figure it out…
    I still agree with boston jim, if I’m spending my $20,000 – 30,000 on a new cycle
    Think I’m going with an Indian (or a Victory,) I still have not decided
    But other than the standard mods of air cleaner, exhaust & a fuel controller
    Tha’s about all the $$$ I HAVE to put into to it, to make it run the way I want it to !!!!
    (Cosmetics don;t count) !!!!

  12. 12 Blackmax Apr 21st, 2016 at 3:34 pm

    And No, Polaris does NOT own S & S !!!!
    if it had been acquired by Polaris, it we would’ve heard it first on Cyril’s Blog !!!!

  13. 13 Doc Robinson Apr 21st, 2016 at 6:00 pm

    What planet are you Twin Cam knockers living on? Oh . . . I get it, you are keyboard commandos living in the blog/forum world rather than the real world. I have a Pan, a Shovel, have owned 9 Evos over time, plus a V-ROD and since 1999, have owned and ridden hard some 7 Twin Cams, all with hotted up motors, one with a Supercharger and one with a Turbo. Plus I have ridden from LA to Sturgis and back on Twin Cam press fleet bikes some 12 times with never a problem. And the only bikes that get ridden harder than factory test fleet bikes are rentals, speaking of which I ride shotgun on a tour operators annual Sturgis tour, which will number between 7 to 50 bikes, LA/Sturgis?LA via roundabout scenic routes and never, ever, had a mechanical problem. Of course there were some problems with the Twin Cams, such as the early cam chain followers, but since then they have been well sorted engine making power Evo owners can only dream about. Hey, Evos are great motors and saved Harley-Davidson, but let’s not pretend they even come close to the TCs. Yes, it it is about time H-D came up with a new engine and we’ll have to wait on that, but meanwhile the TCs get the job done extremely well despite horrendous EPA requirements placed on them..

  14. 14 BobS Apr 22nd, 2016 at 6:24 am

    JM, try visiting an Indian dealer and ask how many Harley’s vs Vic’s are being traded. Indian pulls majority of its sales from Harley, most of the Vic riders are coming off other brands. If your little car dealership has been in business for 18 years and your sales are up while your competitors are flat or down, yep, you get to brag even if some of those competitors are still bigger.

  15. 15 Bob Apr 22nd, 2016 at 9:47 am

    I like the Victorys and The Slingshots but I have to say that the Indians have the market covered in Ugliest bikes. UGH!

  16. 16 burnout Apr 22nd, 2016 at 10:06 am

    ”…In spite of increased expenses for warranty and liability liability.” One thing is for sure, Polaris has deeeeeeep pockets. And yes, I agree on the homely looks of the models. peace

  17. 17 burnout Apr 22nd, 2016 at 10:07 am

    ”product liability” dangit

  18. 18 1550tc Apr 23rd, 2016 at 3:00 pm

    Medico Robinson……thanks and yeah these twin cam bashers WTF

    Sure they have had and still have some issues but overall their pretty good and if your increasing their size just do it right !!! and you will be ok !!

    These sales numbers and income statements for the average rider mean sweet f–k all. Most guys r out riding and enjoying their bikes, so who cares if their down .5% in sales or up 50%, like that is really going to effect my riding season F–K NO

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