Thanks mainly to its resurgent off-road vehicle (ORV) business, US powersports manufacturer Polaris Industries has achieved sound half-yearly revenue and profit results. BDN financial editor Roger Willis reports.
Total revenue was 11.1% up to £2.126bn. Turnover from core ORV operations, covering what used to be called side-by-side ATVs and quadbikes plus snowmobiles, stacked on 16.2% to £1.385bn. The motorcycle sector, now featuring Indian bikes and Slingshot trikes since the demise of Victory, did less well with revenue falling by 5% to £229.5m over six months — and a more severe 13.4% dip to £130.2m in the second quarter. Overall half-yearly operating profit climbed by 71.1% to £156.2m. Net profit went stratospheric, 150.7% up to £112.6m.
Beyond that we only have vague assertions as to the detailed health of the company’s constituent parts, because Polaris blankly refuses to quantify either its wholesale or retail volumes. For instance, during the second quarter, ORV retail sales volume “increased in the mid-single digits percentage range” and “gained market share”. And “ORV dealer inventory was up high-single digits”. As for bikes, stumbling performance was “due to a weak motorcycle industry and timing of shipments for Indian motorcycles year-over-year. Slingshot sales were also down due to the weak motorcycle industry”.
Nevertheless, in his opening commentary, Polaris chief executive Scott Wine felt comfortable about boasting: “With solid retail growth and market share gains in both our ORV business and Indian Motorcycles, we are clearly reaping the benefits of our safety and quality investments, new product innovations and improved delivery performance.”