Sunday, April 21, 2024
HomeNEWSINTERNATIONALSTRONG FINISH LIFTS POLARIS

STRONG FINISH LIFTS POLARIS

Full-year results for US powersports giant Polaris, which majors on off-road vehicle (ORV) domination but also makes motorcycles, were a grim testament to the Covid pandemic’s impact through 2020. However, they would have been much worse without a truly sensational recovery in the fourth quarter. BDN financial editor Roger Willis reports.

Annual revenue actually rose, 3.6% higher at £5.117bn. But operating profit sank by 56.1% to £154.6m. And net profit plunged by 61.4% to a mere £90.9m.

Q4 figures were spectacularly different. In the year’s final three months, Polaris revenue stacked on 24.2% to £1.57bn. The core ORV segment (including snowmobiles) accounted for £1.068bn of that, rising by 28.8%.  Motorcycles — Indian cruisers and Slingshot trikes — contributed £107m, a 22.5% improvement. Associated operating profit went ballistic, 92.7% up at £191.3m. Net profit doubled, a 100.8% increase to £144.7m.

Although Polaris is always cagey about volume figures, it said North America retail sales of both ORVs and the motorcycle brands grew by roughly a third in the quarter. Effectively, without this surge in latent demand, the company’s yearly bottom line would have been written in red ink.

RELATED ARTICLES

Product News

Zapp secures investment

UK-based electric urban mobility firm Zapp has announced a new cash injection, which it says will allow production and roll-out of its new i300...