Polaris Industries Inc. has reported overall corporate fourth quarter 2016 sales of $1,217.8 million, up by +10 percent from $1,105.6 million for the fourth quarter of 2015; for the full year ended December 31, 2016 the Company reported sales of $4,516.6 million, a decrease of -4 percent versus $4,719.3 million in the prior year.
Motorcycle segment sales, including its PG&A related sales, decreased -35 percent in the 2016 fourth quarter to $105.7 million. Both Indian and Victory reported lower sales in the fourth quarter due to difficult comparables as product availability for all brands improved significantly in the 2015 fourth quarter, and as the Company reduced motorcycle production in the 2016 fourth quarter to complete the final paint system upgrade in Spirit Lake, IA.
Slingshot sales were down due to low product availability related to recall activity. Gross profit for the fourth quarter 2016 decreased -94 percent to $1.6 million compared to $24.0 million in the fourth quarter of 2015 due to lower production rates and higher warranty expense.
North American consumer retail demand for the Polaris motorcycle segment, including Victory, Indian Motorcycle and Slingshot, was down mid-single digits percent during the 2016 fourth quarter while the overall motorcycle industry retail sales, 900cc and above, declined low-single digits percent in the 2016 fourth quarter.
Indian Motorcycle retail sales increased about +20 percent, while Victory retail sales were down mid-single digits percent during the quarter. Before the January closure announcement, Slingshot retail sales were down significantly.
Overall corporate international sales to customers outside of North America totalled $178.2 million for the fourth quarter of 2016, including PG&A, down two percent from the same period in 2015. International sales on a constant currency basis were flat for the 2016 fourth quarter.
Off-Road Vehicle (“ORV”) and Snowmobile segment sales, including their respective PG&A related sales, were $905.0 million for the fourth quarter of 2016, compared with $862.0 million for the fourth quarter for the prior year. Gross profit decreased one percent to $259.2 million, or 28.6 percent of sales, in the fourth quarter of 2016, compared to $262.8 million, or 30.5 percent of sales, in the fourth quarter of 2015. Gross profit percentage declined primarily due to higher promotional spending and increased warranty expense.
CEO Scott Wine said: “We continued to enhance our quality and safety organisation, production in our new facility in Huntsville, Alabama, is ramping up to become the enabler to our go to market Retail Flow Management (RFM) process, and lean initiatives across our network drove approximately $150 million in gross Value Improvement (“VIP”) savings during the year”.
www.polarisindustries.com
