RZR sales showed improvement in the quarter compared to the prior year results hurt by recall issues.
Polaris Industries recently announced their quarterly earnings results for the second quarter of the 2017 fiscal year. The quarter ended June 30, 2017. Management reported second quarter sales of $1,364.9 million, up 21% from second quarter 2016. Net income for the quarter was $62.0 million compared to $71.2 the prior year, and included some one-time expenses.
The following are some of the highlights of the earnings call related to small, task-oriented vehicles:
- ORV sales increased 6% for the quarter
- North American ORV unit retail sales for the second quarter of 2017 were down low-single digits percent from the 2016 second quarter as UTV sales increased low single digits but ATVs sale declined high single digits in a weak ATV market
- Polaris ATVs lost market share in a heavy promotional environment
- RZR retail turned positive while Ranger retail was flat for the quarter in a highly competitive segment with significant promotional activity
- The General UTV product line has been good and the segment offers good opportunities according to management
- Agriculture markets remain weak while oil markets are improving
- Global Adjacent Markets segment sales increased 7% driven by the Work & Transportation group with good performances from Aixam quadricycles and Goupil light utility vehicles
- Management expects Global Adjacent Market segment to increase mid-single digits percent for the year
- Side-by-sides are expected to drive the improved guidance for the ORV/Snowmobile segment, which is now expected to see flat sales year-over-year
Learn more: Seekingalpha.com (Earnings call transcript)