Primarily thanks to its core off-road vehicle (ORV) business, US powersports manufacturer Polaris has posted strong revenue growth in three-quarterly results to the end of September. But profitability declined and the company’s motorcycle operations were struggling. BDN financial editor Roger Willis reports.
For the nine months of 2019 to date, total sales were 13.4% up to £3.896bn. However, operating profit only increased by 0.8% to £268.1m and net profit was 7.7% down to £173.7m. Revenue from ORVs — quadbike and side-by-side ATVs plus snowmobiles — rose by 7.2% to £2.369bn. Motorcycles — Indian bikes and Slingshot trikes — added just 1.1% to £358.7m.
During the third quarter, ORV sales accelerated, climbing by 11.3% to £890.1m, while the motorcycle segment fell by 3.5% to £115.8m. Polaris admitted that punitive European tariffs and a negative model mix had also impacted earnings in that segment. Overall quarterly revenue put on 7.3% to £1.368bn. But operating profit was 6.2% lower at £100.6m and net profit dropped by 7.5% to £68.3m. Â
Â