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    Polaris Reports Q1 Sales Increase

    Posted by Emily Hare
    on Tuesday, April 25, 2017

     According to its recently released financial report, Polaris Industries Inc. sales totaled $1,153.8 million in the first quarter of 2017, up 17% from $983.0 million for Q1 of 2016. Adjusted sales, which excludes the impact from Victory Motorcycles net sales for the first quarter of 2017, were $1,158.9 million compared to $983.0 million in the prior year period.

    Polaris also reported a Q1 net loss of $2.9 million, or $0.05 per diluted share, compared with a net income of $46.9 million, or $0.71 per diluted share, for Q1 2016. The reported net loss included costs related to the wind down of Victory Motorcycles and certain TAP integration and inventory step up costs taken in the first quarter. Adjusted net income for the quarter ended March 31, 2017, excluding these costs, was $48.3 million, or $0.75 per diluted share.

    “While we reported an expected net loss for the quarter, adjusted earnings were slightly ahead of our expectations," said Scott Wine, Chairman and Chief Executive Officer of Polaris Industries. "We saw continued strong performance from Indian Motorcycle and our ORV business improved its performance in the face of heavy competitive activity and a sluggish powersports environment. Overall, our dealer channel remains healthy with inventories down 8%, and we continue to diligently work to enhance our dealer engagement.” 

    Off-Road Vehicle (ORV) & Snowmobile Segment
    ORV and snowmobile sales, including their respective PG&A related sales, combined for $724.1 million for Q1 2017, about 2% more than last year's Q1 ($708.1 million). PG&A sales for ORV and Snowmobiles increased 13% in Q1, year-over-year. Gross profit increased 3% to $213.0 million, or 29.4% of sales, in Q1 2017, compared to $206.0 million, or 29.1% of sales, in Q1 2016. Gross profit percentage increased primarily due to product mix.

     Snowmobile wholegood sales in Q1 2017 decreased 3% due to timing of shipments during the quarter. While the snow season did not meet Polaris' expectations, dealer inventory finished below last year. The company also reported that it received a strong reception to its all-new 2018 Polaris Titan (pictured, right), an extreme crossover.

    2017 Business Outlook
    Polaris continues to expect adjusted net income to be in the range of $4.25 to $4.50 per diluted share, compared with adjusted net income of $3.48 per diluted share for 2016. Full year 2017 adjusted sales are anticipated to increase in the range of 10-13% over 2016 sales of $4,516.6 million, also unchanged from previously issued guidance.

    “We have made significant investments in people, processes and technology to support prevention, identification and remediation of safety and quality issues and we are identifying them earlier and reacting more quickly," said Wine. "The safety of our riders and vehicles is our number one priority, and we will continue to develop the processes required to deliver best-in-class performance in this area.

    "Further, we are aggressively investing in the development of innovative products that will further solidify Polaris’ position as the leader in powersports. Our first quarter results reflect our commitment to quickly and sustainably improve our strategic and tactical execution, continue enhancing overall safety and quality, and building superior products for our customers.”

    For the full report, visit www.polaris.com.

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