Polaris reports 2018 second quarter results
Minneapolis based Polaris Industries, owner of Indian Motorcycle and the market-leading ATV, SxS and snowmobile manufacturer, reported Q2 sales of +10% to $1,503 million; net income +47% at $1.43 per diluted share; north American retail sales of +6% for the quarter; and north American ORV (ATV and SxS) retail up mid-single digits % with market share gains for both.
Taking into account improved volume expectations and the acquisition of Boat Holdings, LLC (its first venture into the marine sector), Polaris increased full year 2018 sales guidance to be up between 11 and 12% and adjusted its full year earnings per share expectations downwards to allow for the absorption of an estimated additional $40 million of tariff and related commodity cost increases for 2018.
Motorcycle segment sales, including PG&A, totalled $171 million, down by -13 percent compared to $198 million reported in the second quarter of 2017 due to a weak domestic U.S. motorcycle industry and timing of shipments for Indian motorcycles year-over-year; Slingshot sales were also down. Segment gross profit was up at $25 million, but down when adjusted for Victory wind-down costs.
North American Indian Motorcycle retail sales increased mid-single digit percent; Slingshot's retail sales were down mid-single digit. Domestic U.S. motorcycle industry retail sales of 900 cc and above were down mid-single digit percent in the 2018 second quarter, meaning Indian gained share in a declining market.
International sales, including PG&A, were +7% at $204 million due to foreign exchange movements and “strong sales in the company's EMEA business for ORV and motorcycles”.
Scott Wine, Chairman and Chief Executive Officer of Polaris Industries Inc, stated: “I am very pleased with the Polaris team and the strong execution they delivered across the business during the second Quarter. With solid retail growth and market share gains in both our Off-Road Vehicle business and Indian Motorcycle, we are clearly reaping the benefits of our safety and quality investments, new product innovations and improved delivery performance. Consumer sentiment and dealer traffic improved throughout the Quarter, building momentum, which will help offset the rising risk of tariffs in the second half”.
Sweden: motorcycles +4.31 percent for first six months
Having been +30.76 percent for May (2,032 units), the latest data available from the motorcycle industry trade association in Sweden (McRF) shows new motorcycle registrations at +5.81 percent for June (1,329 units) and tracking at +4.31 percent (6,870 units) for the first six months of the year.
Having been +18.66 percent (4,292 units) for May, new registrations of all PTWs in Sweden were tracking at -0.59 (14,349 units) for the first six months of the year.
With moped registrations down by -20.51 percent in June and running at -4.70 percent YTD (7,479 units), the overall PTW market in Sweden for the first six months of 2018, the small cc Euro 4 to Euro 4 transition that kicked in with January 2018 continues to keep the overall PTW market suppressed, but a very good snowmobile market (+15 percent at 10,878 units) has kept the powersports industry in Sweden “in shape”.
Swedish made vintage MX discs
Well known as a manufacturer of the “strongest stainless steel motocross, street, off-road and vintage spokes available”, in addition to model-specific, rims, hubs and complete wheels, Swedish MX wheel specialist Cross-Center International also makes one of the world’s widest available ranges of vintage MX wheels, with a claimed 99 percent coverage of all vintage models as well as comprehensive recent and late model MX brake discs.
“We are a true one-stop-shop for MX wheels and components for most models for nearly all years,” says owner Torbjoern Bergh. “We manufacture our discs in-house from genuine high-grade Swedish steel, and customers who have tried to source MX brake discs elsewhere, especially for the older bikes, tell us ours is the largest available range in the world”.
In fact, there are those who think that the high level of interest in vintage motocross at this time is doing much to sustain and fuel the late model market, and as a complete front wheel and component specialist, ‘Tobbe’ says he has seen the strong growth in the vintage market in recent years.
“Vintage MX is over 50 percent of the sales here in Sweden, and our export orders suggest the same is happening around the world. The enthusiasm for vintage is massive – I put a picture of my KX 500 vintage wheels on Facebook in April and over 30,000 people had seen it in less than three months.”
Tobbe is a bit of a purist when it comes to brake discs, believing that a lot of the current design tweaks on the market “sell well because they may look good, but are often a step backwards when it comes to braking power, reliability and disc and pad wear.
“There are many claims out there, especially when it comes to heat management, that just aren’t justifiable. Which is why we mostly make OEM style discs, and they sell and perform best in our experience. Sometimes we are able to add certain improvements and refinements, but we think that a round brake disc with a lot of material and large, straight arms, an inner ring and no floating rivets is by far the best performing, most reliable, durable and economic brake disc.
“Modern brake pad compounds and manufacturing techniques are so good now that many of the old issues and preconceptions about how to get the best out of a pad are no longer relevant – especially where the effects of gasses is concerned. The result is that some of the designs that are currently fashionable can actually reduce the life and performance of the pad, as well as the disc”.
The Cross-Center range is indeed comprehensive, with new discs being tooled each time the manufacturer design changes. This means that for Honda models, for example, the company offers four different designs with M6 bolts for fronts from 1997 and up (and two M8 bolt fitments) that all have the same measurements all the way up to 2018 (2008 being a one-off exception).
“The same applies to many other brands and models, though other manufacturers have been more consistent with their designs in the last 20 years, generally with one design for ‘97-‘01 and one for ‘02-‘19”.
CROSS-CENTER INTERNATIONAL
www.cross-center.com
BS15 fully automatic charger
Leading battery expert Benjamin Sebban, of Paris based BS Battery International fame, says the new BS15 that his company has developed is “the most practical battery charger for motorcycle batteries”.
Described as a smart, high performance, safe and ergonomic design (complete with a handy folding hook), it has “all the features that dealers need from a contemporary smart charger - it cannot be used incorrectly. This charger will always deliver a good charge and even recondition old batteries”.
It is a fully automatic 8-stage smart charger delivering 1.5 amp that is able to recover tired, deeply discharged or sulphated batteries.
The multi-axis, ergonomically designed integrated hook allows the BS15 to be hung anywhere (including the bike itself) as it can be rotated 360 degrees on its horizontal axis and 180 degrees vertically.
Compatible with all kinds of lead acid batteries - GEL, AGM, DRY or Calcium batteries, it is delivered with an isolated BS clamp and fused ring connection set.
The BS15 is available in seven different colourways, so there is a match for most primary manufacturer signature colours.
BS BATTERY SAS
www.bs-battery.com
Need more space?
Of course you do, you can never have enough baggage space on an Adventure Tourer, which is why German BMW parts and accessory specialist Wunderlich is offering this simple solution – German made add-on rails for securing extra soft bag luggage capacity to the original Vario case holders on the R1200GS.
The rails are easily mounted without any need for drilling - when the mounted luggage rails are used, even with luggage attached, the cases can still be opened without any problems.
The volumes can be adjusted and the soft luggage tied down safely and securely with the four practical lashing rings per rail. The brackets are made of lightweight, high-stability stainless steel and come in black with a complete fitting kit and a five-year warranty.
WUNDERLICH GMBH
www.wunderlich.de
REV’IT! on the move
Netherlands based apparel specialist REV’IT! has announced that it is to leave the current headquarters at Oss (where it has been located since 2000) and move to the new head office in the third quarter of 2019 to a visible location right next to the A59 motorway in Oss.
The property will consist of 3,600 square meters of office space and 5,400 square meters of warehouse space.
Over the years, the design company that specialises in creating high-quality technical motorcycle clothing, has continued to evolve. Ivan Vos, Managing Director at REV’IT!, explained the decision to relocate: “Since 2000, we have grown enormously, so this is a logical step that also fits our vision and current position in the market.”
The REV’IT! team has been expanding every year: “At the moment, about 90 employees work at REV’IT!, 80 of which are at the head office in Oss. In 2017, we added 22 employees to our team, and we expect to expand further in the coming years. We want to create a nice workplace for everyone, and architectural firm cepezed have given us a well thought out plan. There will also be enough room for relaxation in a restaurant, a lounge and a sports club.
“The new building will be a reflection of our core values…design, performance and innovation. Central to this is the enormous responsibility we feel for the safety and well-being of the motorcyclist. Furthermore, a B2B showroom is included, and we are expanding our own laboratory where we test materials and products scientifically.
“As a brand, we want to inspire people to ride motorcycles and facilitate a passion - we expect our new building to reflect this ambition.”
www.revit.eu
EU motorcycle registrations +7.2% January - June
According to the most recent quarterly data released by ACEM, the Brussels based international motorcycle industry trade association for Europe, total PTW registrations, including electric 2 and 3 wheelers, grew by +7.2 percent for the first six months of 2018 (+37,962 units) to 564,841 units for the January to June period.
Registrations for the all-important second quarter were up by +8.59 percent (+28,495 units) to 360,314 for the April to June period, having been +4.85% for the first quarter of 2018 (+9,467 units) at 204,537.
With 130,540 units (a +4.4% increase on a year-on-year basis), Italy remains the largest European motorcycle market, followed by France (98,660 motorcycles, +7.8%), Germany (97,620 motorcycles, +10.5%), Spain (72,900 motorcycles, +8.2%) and the UK (55,350 motorcycles, +3.4%).
Motorcycle registrations also increased in most other European countries, with the exception of some relatively smaller markets such as Ireland, Slovenia, Poland and Croatia.
Moped registrations in the EU are continuing to decline - the European moped market reached 121,740 units during the first six months of 2018. This represents a decrease of -32.1% compared to the registration levels for the first half of 2017 (179,260 units). The largest markets for mopeds in Europe were: France (27,640 units), Netherlands (26,730 units), Germany (12,790 units), Italy (10,000 units) and Belgium (9,050 units).
Combined registrations of electric mopeds, motorcycles and quadricycles reached 21,100 units during the first six months of 2018. This represents a substantial increase of +49% compared to the registration levels of the first half of 2017 (14,160 units).
Most of the electric L-category vehicles registered in 2018 are mopeds (14,150 units), followed by motorcycles (5,370 units) and a much smaller number of quadricycles (about 1,580 units).
The largest European markets in terms of volume were France, where combined registrations of mopeds, motorcycles and quadricycles totalled 5,430 units (+24.8% on a year-on-year basis), followed by the Netherlands (3,890 vehicles, 48.6%), Belgium (3,830 vehicles, 62%), Spain (2,930 vehicles, +125.5%) and Italy (1,280 vehicles, +20.9%).
Commenting on the latest figures, Antonio Perlot, Secretary General of ACEM, said: "Our latest registration figures for the EU show, once again, the importance of two- and three-wheeled vehicles as a solution to the mobility needs of people, particularly in large urban areas that suffer from congestion problems.
"The latest increase in sales, particularly in the motorcycle segment, is a very positive development. Newer and more environmentally friendly vehicles are being added to the European vehicle fleet, which, according to our estimations, is now close to 36 million units.
"At the same time, the motorcycle industry continues working intensively on the development of new vehicles that will comply with the upcoming Euro 5 environmental standard, currently being discussed by the EU institutions."
