Polaris Reports Q2 2013 Results
Polaris Industries reports a 11.8% increase in net sales and a 14.6% increase in profit over the quarter ended June 30, 2013. The company earned a record $80 million in profit in the quarter, compared to $69.8 million in the same quarter last year.
Most of the gains however were from Polaris’ off-road vehicles, its GEM, Goupil and Aixam small vehicles and sales of parts, garments and accessories including Klim apparel. Sales were down for Polaris’ snowmobiles and motorcycles which includes both Victory and Indian which will be officially relaunched on Aug. 3.
“We are pleased with the strength of our brands and the performance of our team, as they overcame unusually wet weather conditions across North America and sluggish international consumer demand to once again deliver record results,” says Scott Wine, Polaris chairman and chief executive officer. “Retail sales to consumers in North America rose 11 percent in the second quarter, accelerating from softer first quarter results and sequentially reducing dealer inventory ahead of perhaps the most eagerly anticipated new product launch in the Company’s history.”
Polaris reported second quarter net sales of $49.9 million from its motorcycle division, down 6.1% from sales of $53.1 million reported in the same quarter last year. Polaris attributes the sales decrease to the timing of shipments in its new retail flow management order-taking process which is tied to retail sales. Last year, the company based its shipments on annual dealer orders and production timing. Polaris expects the shipment timing to even out over the rest of the year. Other contributing factors include increased competitor activity and unfavorable motorcycling weather over the quarter.
The company says actual retail sales rose in the low single digits, which is on par with the overall industry-wide North American heavyweight cruiser and touring market.
Looking forward, Polaris predicts year-end motorcycle sales to increase 15%-20% compared to 2012’s year-end sales of $195.8 million, which would mean a forecast of between $225 million and $235 million in sales. The forecast is based on the evening-out of shipments, the introduction of new 2014 Victory models and pending re-launch of Indian Motorcycles.
“The much anticipated re-launch of Indian Motorcycles has finally arrived, just a few short years after we purchased the brand in 2011,” says Scott Wine. “The motorcycles are gorgeous, the distribution channel is developing nicely and on August 3rd at the motorcycle rally in Sturgis, South Dakota, we will officially bring choice, in the form of the oldest American motorcycle company, back to the motorcycle riding community.”