Aftermarket Moto Design 278 September 2022 AMD 278 September 2022 | Page 64

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NEWS

BRIEFS

MIC reports that " sales results for the first half of the year remain strong despite inflation concerns , some predictions of a recession , and ongoing supply chain challenges ." Compared to pre-Covid 2019 levels , sales are up in every category : Scooter : + 18 %; On-Highway : + 3.8 %; Dual : + 63.7 %; Off-Highway : + 40.7 %. Dual-purpose sales have continuous YOY growth since 2016 with Q2 2022 sales volume the highest quarter in the history of the MIC Retail Sales Reporting System for this segment . The off-highway category is also on a sales tear - YTD 2022 sales are the third highest since 2008 ( with only 2020 and 2021 outperforming ).
Long-time SuperTrapp Sales Manager Jeff Wells has left the Cleveland , Ohio based exhaust manufacturer after 15 years and has now taken up a sales and marketing position with Kyle & Tyler Malinky at Brunswick , Ohio based Lowbrow Customs .
Harley declared a cash dividend of $ 0.1575 per share for the third quarter of 2022 . The dividend is payable September 22 , 2022 , to the shareholders of record of the company ' s common stock as of September 12 , 2022 . Hurrah - thank you Jochen !
Parts Unlimited continues to add horsepower to its electric vehicle sales operation with the addition of Matthew Loof as a new E-Bike Key Account Rep and Product Specialist for the East Coast region .
This year sees the 30th annual Biketoberfest ( October 13-16 ) with GEICO as official sponsor for the 10th straight year .

Polaris Q2 Sales + 8 %, Retail Sales -23 %

If you are someone who accepts the premise that making more from less is the holy grail of good business practise , then Polaris Industries had an awesome second quarter ( the period to June 30 , 2022 ). Usually , a near collapse of Retail Sales of -23% year on year would send investors and management running for cover , but provided gross profit margin is stable ( -3.03% is good , proportionately ) then to have still achieved a + 8 % increase in Sales Revenue for the quarter ( to $ 2,063m ) has got to be good management and good use of capital resources . The company says that the primary drivers in the quarter were " improved operational performance , strong pricing and stable demand supported by a healthy consumer while still seeing supply chain challenges constraining dealer inventory , as well as continued inflationary pressures ," with the -23% decline in Retail Sales primarily driven by those ongoing supply chain challenges - but they note that " North America ORV retail was up 13 % sequentially ." North America sales of $ 1,748m represented 85 % of total company sales and increased nine percent from $ 1,600m in 2021 . International sales of $ 315m represented 15 % of total company sales , an increase of one percent . " Sales in the second quarter of 2022 were largely impacted by strong mix and pricing offset by volume declines related to continued supply chain challenges reducing shipments and low dealer inventory levels ." On-Road segment sales were impacted by the already stated lower shipments ( driven by supply chain challenges ) despite modest sequential improvement in component availability and shipments , strong demand , and pricing . On-Road segment PG & A sales ( which
CONSOLIDATED STATEMENTS OF INCOME ( LOSS ) ( in thousands US $)
Three months ended June 30
Six months ended June 30
2022
2021
2022
2021
Sales
2,062.8
1,911.1
3,844.3
3,668.9
Cost of sales
1,588.4
1,413.7
3,017.0
2,739.7
Gross profit
474.4
497.4
827.3
929.2
Operating expenses : Selling and marketing
115.5
121.2
227.1
236.4
Research and development
86.8
86.7
167.6
164.3
General and administrative
89.2
92.5
160.9
164.5
Total operating expenses
291.5
300.4
555.6
565.2
Income from financial services
10.2
13.7
21.6
29.9
Operating income
193.1
210.7
293.3
393.9
Net income ( loss )
( 4.4 )
158.5
65.5
292.7
Diluted Net income per share : $( 0.08 ) $ 2.52 $ 1.07 $ 4.63
SEGMENT HIGHLIGHTS ( REPORTED )
Sales ( in millions )
Gross Profit Margin
Q2 2022
Q2 2021 Change
Q2 2022
Q2 2021 Change
Off-Road
$ 1,490.4
$ 1,397.5
7 %
23.8 %
27.3 % -359 bps
On-Road
$ 299.4
$ 298.3
—%
17.8 %
18.5 %
-71 bps
Marine
$ 273.0
$ 197.6
38 %
24.4 %
24.0 %
+ 39 bps
now includes relevant powersports aftermarket sales ) increased 24 %. Segment gross profit margin performance was driven primarily by
' trend is expected to continue '
higher input costs and supply chain constraints , partially offset by favorable product mix and lower promotions costs . North America retail sales for Indian Motorcycle were down low-forties percent . North America unit retail sales for the comparable motorcycle industry were down mid-twenties percent . Off-Road segment sales were driven
by increased pricing on new and presold orders , partially offset by volume despite modest sequential improvement in component availability . Off-Road PG & A sales , which now includes relevant powersports aftermarket sales , decreased three percent . Segment gross profit margin performance was primarily driven by negative mix and higher input costs , partially offset by increased pricing and continued low promotional costs . Polaris North America ORV unit retail sales were down mid-twenties percent . Estimated North America industry ORV unit retail sales were down mid-teens percent . Marine segment sales results were driven by favorable mix , positive
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