American Motorcycle Dealer AMD 218 September 2017 | Page 64

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NEWS

BRIEFS

The latest reports concerning stage one bids received by Volkswagen by the appointed July date for Ducati did not , after all , include Harley . Yay , hurrah for our side ! It is thought that by the time the reports emerged connecting Harley with seeking bid advice from Goldman Sachs , the executive suite at Juneau Avenue had already cooled on the idea , as the full gravitas of their way worse than expected second quarter results dawned on them .

Polaris says “ Indian motorcycle unit sales increased significantly ” in the second quarter

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On the other hand , several bids were received by VAG advisor Evercore – motorcycle related and investor-led bids . As a second stage of bidding is set to get underway , the Italian Benetton family and India ’ s giant ( and KTM partner ) Bajaj Auto are thought to be in the holeshot .
However , their 47.96 % ownership stake in KTM , recently announced plans to work with KTM brand Husqvarna to take the venerable off-roaders global and their Ducati ambitions haven ’ t stopped Bajaj Auto CEO Rajiv Bajaj from continuing to get creative where finding ways to spending the conglomerate ’ s $ 13 bn cash reserve are concerned . On August 8 , they announced a non-equity tieup with British manufacturer Triumph to offer a range of midcapacity motorcycles in emerging markets .
AMD is pleased to note that former World Championship competitor Athena “ Chickie ” Ransom has re-opened her Vagabond Choppers emporium at Pompano Beach , Florida , after a torrid few years .
Polaris Industries has reported second quarter 2017 sales of $ 1,364.9 million , up + 21 percent from $ 1,130.8 million for the second quarter of 2016 . Adjusted sales , which excludes the impact from Victory Motorcycles net sales for the second quarter of 2017 , were $ 1,358.8 million compared to $ 1,130.8 million in the prior year period . Motorcycle segment sales , including its PG & A related sales in the second quarter of 2017 , was $ 198.0 million , a decrease of -13 percent compared to $ 228.4 million reported in the second quarter of 2016 , which included $ 6.2 million of Victory motorcycle unit , accessory and apparel sales versus $ 54.0 million of Victory sales reported in the second quarter of 2016 - driven by new product introductions and increased awareness of the brand . This increase was more than offset by significantly lower Slingshot sales . Motorcycle gross profit for the second quarter of 2017 was $ 21.1 million compared to $ 38.9 million in the second quarter of 2016 . Adjusted for
SECOND QUARTER PERFORMANCE SUMMARY ( in thousands US $)
THREE MONTHS ENDED JUNE 30
2017
2016
Change
ORV / Snowmobiles
845,508
799,332
+ 6 %
Motorcycles
197,997
228,392
-13%
Global Adjacent Markets
97,022
90,959
+ 7 %
Aftermarket
224,393
Total sales
1,364,920
1,130,777
+ 21
Gross profit by segment ORV / Snowmobiles
266,150
228,494
+ 16 %
% of sales
31.5
28.6
+ 289 bps
Motorcycles
21,116
38,915
-46%
% of sales
10.7
17
-637 bps
Global Adjacent Markets
21,216
23,952
-11%
% of sales
21.9
26.3
-447 bps
Aftermarket
59,918
% of sales
26.7
Corporate
-18,014
-9,840
Total gross profit
350,386
284,503
+ 23 %
the Victory wind-down costs of $ 8.9 million , motorcycle gross profit was $ 30.0 million , down from the second quarter last year due primarily to lower
Slingshot volume . North American consumer retail demand for the Polaris motorcycle
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