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    Polaris Reports Q2 Earnings

    Posted by Emily Hare
    on Wednesday, July 20, 2016

     Polaris Industries Inc. reported its second quarter earnings today, and despite a modest increase in sales over the previous year, sales and gross profit numbers were both down in the off-road vehicle (ORV) and snowmobile segment.

    Polaris reported a net income of $71.2 million, or $1.09 per diluted share, for the quarter ended June 30, 2016, compared to $100.9 million, or $1.49 per diluted share reported in the second quarter of 2015. Sales for the second quarter of 2016 totaled $1,130.8 million, up 1% from last year’s second quarter sales of $1,124.3 million.

    “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, and 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,” continued Wine.

     “Commensurate with our commitment to industry-leading innovation, we have a number of model year 2017 products that will be introduced next week at our annual dealer meeting, which include vehicles that will significantly strengthen our line-up in areas where the competition has been the most intense.”

    ORV and snowmobile segment sales, including its respective PG&A sales, decreased 6% from the second quarter of 2015 to $808.5 million. Gross profit decreased 17% to $230.6 million or 28.5% of sales in the second quarter of 2016, compared to $278.9 million or 32.5% of sales in the second quarter of 2015.

    Snowmobile wholegood sales decreased 55% to $8.6 million due to the timing of shipments year-over-year. Snowmobile sales in Polaris' second quarter are routinely low as it is the off-season for snowmobile retail sales and shipments.

    Parts, garments and accessories (PG&A) sales increased 5% during the 2016 second quarter, driven by increases for all reportable segments.

    For the complete report, click here.

    Kort Duce photo

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