Minnesota based Polaris Industries, manufacturer of the fast growing Indian Motorcycle and Victory Motorcycle brands, reported its second quarter 2016 motorcycle sales (to June 30th 2016) were up by +23 percent worldwide.
Its “Global Adjacent Markets” sales increased 14%, while Off Road vehicle (ORV) and Snowmobile sales were down -6%, which was slightly better than expected.
Second quarter total sales totalled $1,130.8 million, up one percent from last year’s second quarter sales of $1,124.3 million.
"International sales totalled $170.5 million"
The +23 percent increase in motorcycle segment sales, including its respective PG&A sales, was worth $231.3 million. All brands grew sales during the quarter. Gross profit increased 63 percent to $39.8 million or 17.2 percent of sales in the second quarter of 2016, compared to $24.5 million or 13.1 percent of sales in the second quarter of 2015.
North American consumer retail demand for the Polaris motorcycle segment, including Victory, Indian Motorcycle and Slingshot, was up mid-teens percent during the 2016 second quarter, while overall 900cc and above motorcycle industry retail sales were down mid-single digits percent in the 2016 second quarter.
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| Polaris CEO Scott Wine: “I am proud of how our employees and dealers have dedicated themselves to working through the current difficult environment” |
Gross profit for the total company decreased 11 percent to $284.5 million in the second quarter of 2016, compared to $319.4 million in the second quarter of 2015.
“Our team’s diligent and methodical execution drove a modest increase in second quarter sales despite a strong year-over-year sales comparison, a weaker retail sales environment and product recalls. Our all-out assault on costs continued to make progress during the quarter, generating earnings that finished in-line with our updated guidance. As we move into the second half of the year, we are redoubling our commitment to providing our consumers with the safest and most reliable vehicles in the industry while building a platform to return to profitable growth,” commented Scott Wine, Polaris’ Chairman and Chief Executive Officer.
“I am proud of how our employees and dealers have dedicated themselves to working through the current difficult environment, from the recall announcements to weaker industry trends. Dealer inventories are in-line with expectations. Our new Huntsville, Alabama plant began producing RANGERS at the beginning of June and Slingshots in early July, and our growing lean capabilities are driving factory inventory reductions and increased cash flow, while our customer excellence initiatives are enhancing our capabilities to deliver world-class sales and service to our consumers”.
International sales to customers outside of North America totalled $170.5 million for the second quarter of 2016, including PG&A, an increase of five percent from the same period in 2015. International sales on a constant currency basis were up seven percent in the 2016 second quarter.
