Category Archives: market trends

UTVs Help Drive Strong Earnings At Polaris

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Polaris reported strong first quarter earnings for 2012 with record sales of $673.8 million. ??Key sales drivers were Ranger and RZR UTVs and Victory motorcycles across global markets. ??Some key takeaways from the earnings call:

  • First quarter net income increased 27% to $60.1 million
  • Earnings per share increased 27% from the prior year period to $0.85
  • ??32% improvement on operating profit
  • Management expects sales and earnings for 2012 to surpass previous guidance with??full year sales guidance to up 13% over 2011 and??full year earnings per share are now projected to be $3.85 to $4.00 per share, an increase of 20% to 25% over 2011.
  • Off-road Vehicle business revenue grew 30% in the first quarter. ??This includes side-by-sides and ATVs.
  • Polaris gained market share in both ATVs and side-by-sides.
  • Side-by-side retail sales grew at over 30% in North America for Polaris compared to low teens for the overall market with strong performance across all segments
  • Bobcat has reported dealer retail sales increases of upper single-digits in the first quarter
  • Expect a new Bobcat product ??in the coming months for both Polaris and Bobcat channels. “This should be a significant capability change from products we???ve offered traditionally.”
  • Management believes they can leverage their strengths in distribution, product cost and product innovation to drive growth in their??GEM and Goupil acquisitions. They see the global small electric vehicle market as a growth area and note “… certainly we think we???re not done building out that portfolio.”
  • In Europe under tough conditions Polaris outpaced the overall market with??particular??strength in France. ??Northern Europe is more of a work vehicle/Ranger market while Southern Europe sees more??recreational vehicle/RZR sales.

For earnings call transcript: ??Seekingalpha.com

Kawasaki Teryx4 Developed in the US

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Kawasaki Teryx4

Kawasaki Teryx4: First vehicle designed and developed primarily in Lincoln, NE

Kawasaki’s Teryx4 which hit dealer showrooms earlier this year was the first vehicle to be designed and developed primarily??at the Lincoln, NE manufacturing facility. ??The Lincoln R&D team developed the vehicle from the ground up concentrating on the vehicle’s frame and chassis while their counterparts in Japan worked on the engine and styling. ??It was a two to three year process. ??The Lincoln facility currently produces nearly the full range of Kawasaki’s consumer products with most of production destined for the US market. ??Management reports that more full product re-designs are in the future for the Lincoln R&D team. ??Learn more: ??Journalstar.com

 

Polaris Drives Side-by-Side Market Momentum in Q1

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According to preliminary results from a dealer survey conducted by Powersports Business and RBC Capital Markets, powersports dealers are reporting positive results across most categories in Q1 with side-by-sides leading the way. ??In the latter category Polaris is “outperforming” expectations with nearly half of ??dealers surveyed reporting double-digit sales increases in side-by-sides. ??Polaris competitors such as Arctic Cat and Can Am are not impacting the market leader’s performance as significantly as expected to date. ??Larger dealers are more likely to be selling above plan than smaller dealers. ??Learn more: ??Powersportsbusiness.com

Renault Twizy 45: A Starter Car for Young UK Drivers?

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Renault Twizy 45

Renault Twizy 45

A law is pending in the UK that would allow unlicensed drivers 16 years or older to drive lightweight vehicles with a top speed of 28 mph. ??The Renault Twizy 45 would fit the bill. ??The vehicle costs just under $10,000 but insurance premiums are estimated to be as high as $6,000 for younger drivers. ??The details of the law are not finalized so Renault has not announced any marketing plans for the vehicle in the UK. ??Learn more: ??Hybridcars.com

Solar Power For Emergency Vehicles

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Streamlight, Inc. is partnering with PowerFilm to provide flexible solar panels as an auxiliary power option for emergency responder vehicles. ??The PowerFilm panels would be used to power??lights, computers, radios and other electrical components. ??Streamlight plans to begin selling the products next month. ??While their primary market appears to be full-size police vehicles, they also see potential in the utility and industrial ??vehicle markets as well. ??PowerFilm already supplies E-Z-GO with solar panels for their electric vehicles. Learn more: ??Desmoinesregister.com

BRP To Offer Electric Can Am Commander

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An electric Can Am Commander will be available in limited markets starting this July according to BRP management. ??The electric side-by-side will have top speed of about 25 mpg (40 km/hr) and a range of 25 to 100 miles depending on terrain, driving behavior and other factors. ??The vehicle will be produced at a new assembly plant located in Sherbrooke, Quebec, which will be used for gas vehicles as well. ??Select dealers will be used to launch the vehicle in??Quebec, Ontario, Alberta, California, Florida, Illinois, New York, Texas and Virginia. ??Electric technology for the vehicle was developed at??Centre de technologies avancees BRP-University de Sherbrooke (CTA). ??Learn more: ??Powersportsbusiness.com

Tech News

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Rappa Fencing Machine

Rappa's ATV fencing machine adapted for UTVs

In the UK fencing manufacturer Rappa has adapted their ATV fencing machine for UTVs. ??The setup is good for about 2 km of stakes and fencing wire. ??A steel frame is attached to the tailgate and the fencing machine is attached to the frame. ??According to the manufacturer taking the machine on and off can be accomplished quite quickly and easily. ??The product is another indication of how UTVs are supplanting ATVs in the farm segment. ??Learn more: ??Farmers Weekly

UTV Sales Up In The UK Farming Segment

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The Agricultural Engineers Association recently reported that ATV sales in the ??UK totaled more than 10,500 units in 2011, an increase of 4% from 2010. ??Under ATVs they include both traditional ATVs and UTVs and theses figures appear to cover the farming segment.

A closer look at the data shows a similar trend as the US market, notably a decrease in the ATV market and an increase in the UTV market. ??UTVs grew 24% from 2010 to reach nearly 3,800 vehicles. ??Meanwhile ATVs decreased by nearly 5% but still accounted for a larger share of the market. ??However, at these growth rates UTV sales should surpass as ATVs in a few years as they offer “greater carrying capacity and comfort”. ??Learn more: ??FarmersWeekly

VP Racing Fuels Announces New Powersports Fuel

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VP Racing fuels recently launched their new T4 fuel for powersports. ??The fuel is only for use in competition vehicles such as UTVs, ATVs and motorcycles. ??T4 was developed in response to complaints about ethanol in pump gas causing problems with fuel injectors and??carburetors. ??Learn more: ??Powersportsbusiness.com

Mini-truck Market In Bangladesh

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Reports from Bangladesh indicate a small but fast growing mini-truck market. In 2011 the market was estimated to be 8,500 vehicles and the Tata Ace mini-truck, manufactured in neighboring India,??accounts for over ninety percent of the market. ??Tata started selling their mini-trucks in Bangladesh in 2009, selling 3,500 vehicles that first year.

The local distributor??Nitol Motors attributes their sales success to growing demand across many industries and a reduced down payment for purchasers. ??Instead of requiring a 50% initial payment, they only require 30% and sometimes as low as 20%. ??This has enabled local entrepreneurs to start their own goods shipping businesses. ??According to Nitrol Motors half the market is for this type of business and the other half for general business use. ??Buyers are most concerned with the initial payment costs instead of total vehicle costs. ?? The success of the Tata Ace has also taken a large chunk of the used and reconditioned mini-truck market. ??Learn more: ??Thedailystar.net