In 2Q16, Polaris Industries (PII) reported sales of $1,130.8 million, a fall of 0.58% compared to the corresponding period last year.
Sales for the ORV (Off-Road Vehicle) and Snowmobile segment fell by 5.7% to $808.5 million, compared to 2Q15. ORV sales fell by 6% due to weak retail sales in North American oil markets and tough comparables in 2Q15. The company’s ORV dealer inventory fell by 8%, and North American ORV unit retail sales took a low-double-digit fall compared to 2Q15. Snowmobiles sales fell by 55% due to the timing of shipments or the off-season.
Sales in the Motorcycle segment rose 23.3% to $231.3 million as compared to 2Q15 due to strong retail sales for Indian Motorcycle, Slingshot, and Victory.
Sales in the Global Adjacent Markets segment rose by 14.2% to $91.0 million as compared to 2Q15.
The Work and Transportation segment’s wholegood sales rose by 10% due to growth in the Aixam business.
International sales outside North America rose by 5% and by 7% on a constant-currency basis.
Polaris Industries’ competitors
Harley-Davidson (HOG) reported fiscal 1Q16 motorcycle and related products revenue and EPS (earnings per share) of $1,576.6 million and $1.36, which represent rises of 4.4% and 7.1%, respectively, compared to fiscal 1Q15. Harley-Davidson will announce its fiscal 2Q16 results on July 28, 2016.
Textron’s (TXT) fiscal 1Q16 total revenues and EPS rose by 4.2% and 19.6% to $3,201.0 million and $0.55, respectively, compared to fiscal 1Q15. Textron will announce its fiscal 2Q16 results on July 22, 2016.
Polaris Industries’ key activities in 2Q16
Below are some key activities of Polaris Industries in 2Q16:
- After reports of thermal-related incidents, including fires, Polaris Industries stated it would voluntarily recall certain RZR 900 and 1000 ORVs manufactured since the model year 2013.
- On April 22, Polaris Industries announced that R.M. (Mark) Schreck would retire from Polaris Industries’ board of directors, effective immediately after the 2016 annual shareholder meeting.
- Polaris Slingshot introduced the Blue Fire SL Limited Edition in its lineup.
- Bennett Morgan, Polaris Industries’ president and chief operating officer, retired on May 16.
- Polaris Defense, a division of Polaris Industries, added high-performance MRZR turbo diesel (MRZR-D) to its MRZR ORV lineup.
The company started 3Q16 with a new appointment. Craig Scanlon has been appointed Polaris Industries’ chief marketing officer and will report to Scott W. Wine, the company’s chief executive officer and chairman.
In the next part of this series, we’ll compare Polaris Industries with its peers and ETFs.