Polaris Industries (owner of Indian Motorcycles) reported record fourth quarter 2017 sales of $1,431 million, up +18 percent.
“I am proud of the Polaris team and excited to see their dedication and hard work pay off as we returned the company to sustainable profitable growth in 2017. Indian Motorcycles massively outperformed the Motorcycle industry, building on its existing momentum with a flood of product news and a very successful year on the race track”, said CEO Scott Wine.
Motorcycle segment sales, including PG&A, totalled $103 million, a decrease of two percent compared to $104 million reported in the fourth quarter of 2016 which included $25 million of Victory Motorcycle wholegood, accessory and apparel sales. Indian Motorcycles wholegood sales increased in the high-single digit percent range in the fourth quarter, while Slingshot sales more than doubled. Gross profit for the fourth quarter of 2017 was $5 million compared to $1 million in the fourth quarter of 2016. Adjusted for the Victory Motorcycles wind down costs of $3 million, motorcycle gross profit was $8 million, up from the fourth quarter last year due to higher sales volume for both Indian Motorcycles and Slingshot and lower warranty costs.
Off-Road Vehicle (“ORV”) and Snowmobile segment sales, including their respective PG&A related sales, were $994 million for the fourth quarter of 2017, up 13 percent over $881 million for the fourth quarter of 2016 driven primarily by improved side-by-side shipments. PG&A sales for ORV and Snowmobiles combined, increased nine percent in the 2017 fourth quarter compared to the fourth quarter last year. Gross profit increased +11 percent to $279 million, or 28.0 percent of sales, in the fourth quarter of 2017, compared to $252 million, or 28.6 percent of sales, in the fourth quarter of 2016. Gross profit percentage decreased primarily due to higher warranty and negative product mix offset somewhat by lower promotional costs.
|“Indian Motorcycles massively outperformed the motorcycle industry, building on its existing momentum with a flood of product news and a very successful year on the race track”|
International sales to customers outside of North America, including PG&A, totalled $211 million for the fourth quarter of 2017, up +18 percent, from the same period in 2016. In the fourth quarter, sales in EMEA grew low-twenties percent, Asia Pacific increased high-single digits percent, and Latin America sales rose mid-teens percent.
In corporate terms gross profit increased +18 percent to $368 million for the fourth quarter of 2017 from $313 million in the fourth quarter of 2016.
Polaris announced its intention to wind down its Victory Motorcycles operations on January 9, 2017. The decision is expected to improve the long-term profitability of Polaris and its global motorcycle business, while materially improving the company’s competitive position in the industry.