Polaris Reports Record Year for 2021
Polaris Industries has reported full year sales of +17% for a record $8,198m; fourth quarter reported sales increased 1% to $2,170m.
PG&A and International reported strong sales increasing +24% and +34% for the full year 2021 respectively. Market share improved during the year for ORV and Boats in North America; Internationally, market share improved for all powersports segments in 2021.
The company says that the year saw it "expand and strengthen the ORV, Snow, Motorcycle and Boats product portfolios with over 30 new vehicles and nearly 500 new accessories in 2021."
Q4 Motorcycles segment sales, including PG&A, totaled $150m, up 2% compared to Q4, 2020. Gross segment profit for Q4 2021 was $3m, or 1.7% of sales, compared to $1m, or 0.8% of sales, in the fourth quarter of 2020.
"The increase in gross profit margin was driven by favorable product mix and lower promotions costs, offsetting higher input costs, driven by supply chain constraints."
North American consumer retail sales for Indian Motorcycles decreased low-double digits percent during Q4 2021 - in a mid-to-heavyweight two-wheel motorcycle industry that was up mid-single digits percent. North American consumer retail sales for Polaris' motorcycle segment, including both Indian Motorcycle and Slingshot, increased low-single digits percent during Q4 2021.
North American consumer retail sales for the motorcycle industry, including both two-wheel and three-wheel, increased low-single digits percent during Q4 2021. Indian market share loss was driven by a lack of product availability during the quarter driven by supply chain challenges.
CEO Mike Speetzen is quoted as stating: "Marking a strong finish to the year, we delivered record sales and earnings in 2021, propelled by the Polaris team's dedication and tenacity as they capitalized on opportunities while navigating the macroeconomic-related headwinds."
Polaris confirmed that it has added manufacturing capacity for mid-capacity Indian Motorcycle models in Vietnam.
"Innovation remained the cornerstone of our culture, supported by the introduction of several new category-defining vehicles this year. With interest in powersports continuing to grow and new customers increasingly entering our industry, we expect 2022 to be another record year for Polaris.
"Leveraging the company's strengths and scale as the global leader in powersports, our refreshed strategy and new strategic objectives will guide our path forward to create greater competitive advantage, welcome new customers and grow the market, drive profitable growth and deliver value for all our stakeholders."
The company divested the Scott Wine era GEM and Taylor-Dunn business acquisitions during the quarter.
Polaris also stated that materials and broader supply chain shortages remain a challenge and likely will do through most, if not all, of the year ahead, but that it still expects to be able to post another record year in 2022.
The company issued full year 2022 sales and adjusted earnings guidance with full year adjusted net income in the range of $10.10 to $10.40 per diluted share and full year sales up in the range of 12% to 15%. For the full year 2021 Polaris reported net income of $7.88 per diluted share; adjusted net income for the same period was a record $9.13 per diluted share. Fourth quarter reported net income was $1.40 per diluted share; adjusted net income for the same period was $2.16 per diluted share.
