American Motorcycle Dealer AMD 224 March 2018 | Page 10

Polaris reports +18% sales for
4Q at record $1,431 million
olaris Industries Inc.
reported record fourth
quarter 2017 sales of
$1,431 million, up +18 percent
from $1,218 million for the
fourth quarter of 2016.
Indian Motorcycles massively
outperformed the motorcycle industry,
building on its existing momentum
with a flood of product news and a
very successful year on the race track.
Motorcycle segment sales, including
PG&A, totaled $103 million, a
decrease of two percent compared to
$104 million reported in the fourth
quarter of 2016, which included $25
million of Victory Motorcycle
wholegood, accessory and apparel
sales. Indian Motorcycles’ wholegood
sales increased in the high-single digit
percent range in the fourth quarter,
while Slingshot sales more than
doubled.
Gross profit from the sector for the
fourth quarter of 2017 was $5 million
compared to $1 million in the fourth
quarter of 2016. Adjusted for the
Victory Motorcycles wind-down costs
of $3 million, motorcycle gross profit
was $8 million, up from the fourth
quarter last year due to higher sales
volume for both Indian Motorcycles
and Slingshot.
North American consumer retail
demand for the Polaris motorcycle
segment, including Indian Motorcycle
and Slingshot, increased about +30
percent during the 2017 fourth
quarter. Indian Motorcycle retail sales
increased about +17 percent, with
both heavyweight and mid-sized
P
10
motorcycles increasing at similar mid-
teens percent levels.
Indian Motorcycle continued to gain
“significant market share for the 2017
fourth quarter and full year on a year-
over-year basis. Slingshot’s retail sales
were up significantly due to improved
product availability compared to the
fourth quarter last year. Motorcycle
industry retail sales, 900cc and above,
were down high-single digits percent
in the 2017 fourth quarter.”
Off-Road Vehicle (“ORV”) and
Snowmobile segment sales, including
their respective PG&A related sales,
were $994 million for the fourth
quarter of 2017, up 13 percent over
$881 million for the fourth quarter of
2016, driven primarily by improved
side-by-side shipments. PG&A sales
for ORV and Snowmobiles combined
increased nine percent in the 2017
fourth quarter compared to the fourth
quarter last year.
International sales to customers
outside of North America, including
PG&A, totaled $211 million for the
fourth quarter of 2017, up 18 percent,
from the same period in 2016. In the
fourth quarter, sales in EMEA grew
low-twenties percent, Asia Pacific
increased high-single digits percent,
and Latin America sales rose mid-
teens percent.
At a corporate level gross profit
increased 18 percent to $368 million
Polaris CEO Scott Wine: “I am proud
of the Polaris team and excited to
see their dedication and hard work
pay off as we returned the company
to sustainable profitable growth
in 2017"
for the fourth quarter of 2017 from
$313 million in the fourth quarter of
2016. As a percentage of sales,
reported gross profit margin was 25.7
percent of sales for the fourth quarter
of both 2017 and 2016. Gross profit
for the fourth quarter of 2017 includes
the negative impact of $3 million of
Victory Motorcycles wind-down costs
and $2 million of realignment costs.
FOURTH QUARTER CONSOLIDATED CORPORATE SUMMARY
THREE MONTHS ENDED DECEMBER 31 NINE MONTHS ENDED DECEMBER 31
in thousands US $
Sales
Cost of sales
Gross profit 2017
1,431,049
1,063,237
367,812 2016
1,217,789
905,017
312,772 2017
5,428,477
4,103,826
1,324,651
2016
4,516,629
3,411,006
1,105,623
Operating expenses:
Selling and marketing
Research and development
General and administrative
Total operating expenses
Income from financial services
Operating income 116,319
62,412
85,198
263,929
18,595
122,478 97,423
48,870
87,039
233,332
19,303
98,743 471,805
238,299
331,196
1,041,300
76,306
359,657
342,235
185,126
306,4423
833,803
78,458
350,278
Net income 31,475 62,581 172,492
212,948
AMERICAN MOTORCYCLE DEALER - MARCH 2018
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