American Motorcycle Dealer AMD 244 November 2019 | Page 64

Polaris Q3: Total Sales +7%
BRIEFS ($1,772m); Indian Retail Unit
Sales Down "Mid-Teens Percent"
NEWS
More than 220,000 riders are again
expected to visit next year's
INTERMOT (Cologne, Germany, Trade
days 6-7 October, public opening 8-
11 October). In addition to the AMD
World Championship of Custom Bike
Building highlighting INTERMOT
Customized in Hall 10, a
"spectacular innovative event stage -
'Stage X' - will global stream new
model launches and guest
appearances, with new products,
innovations and services being
staged and the whole world of
motorcycling brought to life, live from
Cologne." The show will announce a
whole range of initiatives to attract
young consumers in the coming
months; October 6 and 7 will be
reserved specifically for the press and
German and
international
industry and
dealer visitors.
Indian Motorcycle has issued a
recall for certain 2019
Chieftains over a taillight issue -
apparently they may be too
bright - exceeding the
maximum light output allowed.
"Due to increased brightness,
other drivers may have
difficulties discerning the brake
light from the taillight, and thus
may be unaware that the
motorcycle is braking, thereby
increasing the risk of a crash."
Fort Worth, Texas
based Tucker
Powersports
(formerly Tucker
Rocky Distributing)
has announced its
2020 'Tucker Show' for the
downtown Fort Worth Convention
Center for three days from January
21st to 23rd 2020.
64
Polaris motorcycles segment sales,
including PG&A, totaled $150 million
in Q3, down -3% compared to the
third quarter of 2018. Both Indian and
Slingshot reported sales decline
during the quarter. Gross third quarter
profit for Polaris' motorcycle segment
was $12 million compared to $20
million in the third quarter of 2018.
The decrease in gross profit was
primarily due to tariff costs and
negative mix.
North American consumer retail sales
for Polaris Indian motorcycles
decreased mid-teens percent during
the third quarter of 2019 primarily due
to the weak mid to heavy-weight two-
wheel motorcycle industry that was
down high-single digits percent and
retail pressure from heavy competitive
promotional spending.
North American consumer retail sales
for Polaris' motorcycle segment,
including both Indian Motorcycles
and Slingshot, decreased low-double
digits percent during the third quarter
of 2019, while the North American
motorcycle industry retail sales for mid
to heavy-weight motorcycles,
including three-wheel vehicles, was
down low-single digits percent in the
third quarter of 2019.
Polaris narrowed its full year 2019
earnings guidance by maintaining the
upper end of the net income range
and increasing the lower end of the
range and now expects earnings to be
in the $6.20 to $6.30 per diluted
share range. Full year 2019 adjusted
sales growth guidance is expected to
be up approximately 12% over the
prior year.
Scott Wine, Chairman and Chief
Executive Officer of Polaris Industries
Inc., said: "Through the strength of
AMERICAN MOTORCYCLE DEALER - NOVEMBER 2019
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands US $)
Three months ended Sept 30
Nine months ended Sept 30
2019
1,771,647
1,335,105
436,542 2018
1,651,415
1,250,145
401,270 2019
5,046,652
3,851,214
1,225,438 2018
4,451,420
3,341,493
1,109,927
Operating expenses:
Selling and marketing
Research and development
General and administrative.
Total operating expenses
Income from financial services.
Operating income.
Net income 149,759
77,337
100,794
327,890
21,602
130,254
88,388 128,929
64,181
90,639
283,749
21,348
138,869
95,529 419,621
220,836
297,822
938,279
60,153
347,312
224,929 369,495
197,741
262,206
829,442
64,117
344,602
243,783
Diluted Net income per share: $1.42 $1.50 $3.62 $3.78
Sales
Cost of sales
Gross profit
Scott Wine,
Polaris CEO.
our brand portfolio and solid
execution from our team, Polaris
delivered +7 percent revenue growth
and modest margin expansion amid
mounting macroeconomic ambiguity.
"We augmented our industry-leading
Off-Road Vehicle line-up with the
introduction of our Model Year '20
products and continued to improve
dealer satisfaction and engagement.
We also launched our evolved Polaris
brand and Think Outside tagline. This
more modern compass appeals to
broader demographics - as seen in
Polaris Adventures bringing 90
percent new customers to the brand,
or the uptick in millennial purchases
of the RZR and RANGER.
"Indeed, our RANGER/GENERAL and
RZR brands continue to perform well,
driving growth in side-by-sides
despite an increasingly competitive
market. We converted this growth into
increased profitability, as our strategic
supply chain investments, which are
driving organization-wide value
enhancement, began realizing cost
savings in the quarter. Our
commitment to being a customer-
centric, highly efficient growth
company remains steadfast, and
coupled with industry-leading
innovation, it will further solidify our
position as the global leader in
powersports."
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