Polaris Industries reported an 18% increase in motorcycle sales revenue over the first quarter of 2016, driven mostly by Indian Motorcycle sales.
The company’s motorcycle division, which also includes Victory and the three-wheeled Polaris Slingshot, generated $188.3 million in sales revenue over the quarter, compared to $159.5 million in the same period last year.
The bulk of the sales were from North America, representing $166.5 million. The Indian brand has a particularly strong quarter, seeing a 50% increase in North American sales revenue. Victory’s North American sales were down slightly, though improving as the quarter wore on. Slingshot sales were down over the quarter, though last year’s figures were buoyed by a large number of pre-orders.
Outside of the continent, Polaris reported a 42% increase in motorcycle sales, with growth reported in the Europe, Middle East and Africa (EMEA) region and in Latin America.
The overall growth from its motorcycle operations was a lone bright spot for Polaris as its off-road vehicle, snowmobile and other segments reported decreased sales revenues over the first quarter. The ORV segment, typically Polaris’ biggest earner, is struggling in states like Texas and Oklahoma which are particularly affected by low oil prices. Polaris Industries as a whole reported a net income of $46.9 million in the first quarter, meeting expectations but still down nearly half from the $88.6 million reported in the first quarter of 2015.
“Our first quarter results were in line with our projections, in spite of increased expenses for warranty and product liability. Our Customer Excellence initiatives and new products drove a six percent increase in North American retail, and in conjunction with shipment reductions, better demand forecasting, and process control improvements, enabled us to continue reducing dealer inventory levels year-over-year,” says Scott Wine, Polaris’ chairman and chief executive officer. “I still believe 2016 is likely to be another volatile year in powersports, but we are seeing pockets of strength. The North American ORV industry was up in the first quarter, with March experiencing the strongest improvement.”