Polaris Industries has reported record third quarter sales for the third quarter 2015, totaling $1,456.0 million, an increase of +12 percent over last year’s third quarter sales of $1,302.3 million. Net income was $155.2 million, an increase of +10 percent from the prior year’s third quarter net income of $140.8 million.
“Our record third quarter results continue to reflect the efficacy of our long-term strategy and the resiliency of the Polaris organization, as motorcycle growth accelerated, ORV share gains continued and our developing adjacencies built momentum," stated Scott Wine, Polaris’ Chairman and Chief Executive Officer.
"We accomplished this in a difficult environment, with the combination of weakening currencies and softening economies adding to the pressure we face from the sluggish oil and agriculture markets, all in the midst of the most competitive powersports landscape we have seen in nearly a decade."
Wine continued: “Successful innovation requires agility, in order to react quickly to ever-changing market conditions. This applies not only to product design but also to our internal organization, which we demonstrated in the third quarter by realigning our international business structure to become more efficient and effective in response to challenging markets outside North America.
"Throughout the third quarter we made consistent enhancements to our Spirit Lake paint system, which helped us stabilize our operations and, by improving production output each week of September, outpace shipment goals for the first time this year. "We have a clear plan to further optimize and upgrade that system over the next six months, and with the recently acquired paint facility in Spearfish, South Dakota, we will further augment paint capacity in the latter part of the fourth quarter.
“Polaris has delivered solid financial performance in the first nine months of 2015, and despite facing stiff headwinds that show little sign of abating in the near term, our financial position remains robust and our growth opportunities plentiful.”
Motorcycle sales increased +154 percent to $160.4 million for the third quarter of 2015 compared to the same period last year due to continued strong demand for Indian motorcycles and the new Slingshot roadster.
Victory, Indian Motorcycle and Slingshot North American retail sales, combined, increased over +60 percent during the third quarter of 2015 driven by Indian Motorcycle and Slingshot, while North American industry midsize and heavyweight motorcycle retail sales were up low single digits compared to the third quarter of 2014.
Indian Motorcycles’ retail sales were up significantly in the third quarter with ongoing strong demand for all models. Product availability for Indian motorcycles improved during the 2015 third quarter as the Company continued to increase throughput at its Spirit Lake, Iowa, motorcycle factory.
Victory retail sales in the third quarter of 2015 were lower than the prior year partly due to low product availability. Retail sales for the new Slingshot three-wheeled roadster continued to outpace Company expectations during the third quarter. International motorcycle sales were up +115 percent.
Polaris North American motorcycle dealer inventories, including Slingshot, during the 2015 third quarter increased about +30 percent compared to the same period in the prior year, but remain below levels needed to meet current and backlogged retail demand.
Off-Road Vehicle (ORV) sales increased +3 percent to $822.9 million in the third quarter of 2015 compared to the third quarter of 2014. The Company estimates North American industry ORV retail sales in the third quarter of 2015 increased low-single digits percent year-over-year, resulting in Polaris market share gains for both ATVs and side-by-side vehicles.
Snowmobile sales increased +14 percent to $185.5 million for the third quarter of 2015 compared to $162.7 million for the third quarter of 2014. While the snowmobile retail selling season is just beginning, Polaris’ market share performance season-to-date through the 2015 third quarter is pacing with the Company’s expectations.
Global Adjacent Markets sales increased +10 percent to $60.8 million in the third quarter of 2015 compared to the same period last year. Work and Transportation group sales were up +1 percent during the third quarter of 2015. Sales for the Company’s defense business were up more than +50 percent during the 2015 third quarter. Parts, Garments and Accessories (PG&A) sales increased +3 percent to $226.3 million during the third quarter of 2015 as compared to the same period last year.
International sales to customers outside of North America totaled $153.6 million for the third quarter of 2015, +1 percent from the same period in 2014, though held back by weak currencies (up +18 percent on a constant currency basis). EMEA reported sales declined -4 percent in the 2015 third quarter and Asia Pacific reported sales were down -1 percent, while Latin American reported sales were up +50 percent.
Polaris buys former Lehman facility
Polaris Industries has purchased Lehman Trikes' former home at Spearfish, South Dakota, as an additional paint facility to supplement its Spirit Lake, Iowa, Indian and Victory paint capacity.
Lehman left the premises when parent Champion Trikes moved production to California. Polaris plans to employ some 80 people in the 51,000 square-foot facility. A familiar sight for Sturgis Rally goers, alongside the I90, the site will no doubt also provide Polaris with a valuable base for its Rally activities.