US powersports manufacturer Polaris Industries has unveiled a best-ever sales performance in third-quarter financial results to 30 September, on the back of booming quadbike and side-by-side ATV business. However, its motorcycle division — comprising the Victory and Indian bike brands — lost ground.
Overall revenue for the period was up by 25 per cent to £680.4m. ATV sales rose by 23 per cent to £433.2m, including a 20 per cent improvement in exports. Total international revenue approximately doubled, largely thanks to the acquisition of Aixam Mega in France. But revenue from motorcycles fell by six per cent to £30.5m, despite deliveries to dealers of limited numbers of the reborn Indian Chief range.
Polaris attributed this decline to Victory dealers recalibrating their inventory levels in line with a new “retail flow management” order-taking system which closely ties dealer shipments with retail sales. It added that Victory’s retail bike sales in the US were actually up by more than 30 per cent during the quarter.
Net profit increased by 20 per cent to £69.8m. This figure would have been slightly higher except that Polaris finally lost in a £2.3m product liability legal action dating from 2008 and therefore had to book a non-recurring charge. Full-year 2013 revenue is expected to grow in the range of 15 to 16 per cent.