Category Archives: Sales figures

Polaris Recalls 2011 Ranger RZR XP 900

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Polaris 2011 Ranger RZR XP being recalled, also comes in white.

Polaris is recalling approximately 4,500 Ranger RZR XP 900 utility vehicles because the firewall behind the driver and passenger seats can overheat and melt, posing a burn hazard to consumers. One incident of a person burning their fingers has been reported. The vehicles are either white or red and were sold between May 2012 and February 2013. Owners should stop using the vehicles and take them to a Polaris dealer for a free repair. The company is also contacting owners directly. Learn more:  CPSC.gov

Arctic Cat Earnings Call Highlights – F4Q 2013

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Arctic Cat Wildcat Side-by-Side

The following are some of the highlights from Arctic Cat’s earnings call for their fiscal 2013 fourth quarter ended March 31, 2013 with an emphasis on side-by-side related information.

  • Net sales for the fourth quarter increased 15% to $113.2 million from $98.5 million
  • Full year net sales increased 15% to $671.6 million from $585.3 million
  • Net earnings increased 33% to $39.7 million from $29.9 million
  • ATV and side-by-side sales increased 32% to $299.8 million from $226.9 million for the year and increased 16% to $87.6 million from $75.8 million for the quarter
  • ATV and side-by-side business sales increases were driven by Prowler models as well as the launch of the new Wildcat Four, a new four seat version of the Wildcat Four side-by-side and Wildcat X a high horsepower version of the Wildcat Sports side-by-side
  • Management reports taking more market share in the side-by-side category during the year
  • Wildcat parts and accessories business was strong
  • ATV industry retail sales for North America were flat as retail sales decreased by 2% during fiscal year 2013.
  • The new 50 inch trail legal Wildcat is expected to ship in the 4th quarter of 2014 and allows Arctic Cat to enter this segment of the side-by-side industry
  • Next year the North American ATV industry retail sales are expected to grow between zero to 5%
  • The side-by-side market is expected to grow in the 15% to 25% range.
  • Management expects net sales in the range of $754 to $768 million based on an increase in ATV and side-by-sales in the 25% to 29% range for the full year driven by shipments of Wildcat sport side-by-side models including the new Wildcat 50
  • Management expects at least 90% of our dealers to pick up the trail version of the Wildcat

Complete earnings call transcript:  Seekingalpha.com

Polaris to Compete for Military Contracts for Fire & Emergency Vehicle

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Typical Polaris Ranger emergency vehicle used by a municipal fire department

The Defense Department recently awarded a number of contracts including a $382.5 million contract for fire and emergency vehicles for the Army, Navy, Air Force, Marine Corps, and federal civilian agencies. The contract is a “maximum value, fixed-price with economic-price-adjustment contract” which gives the Polaris Defense subsidiary the right to compete with other vendors for various orders under the larger contract.  Polaris will only get the portion of the total contract for which it wins individual orders from the various agencies. The completion date for the contract is May 17, 2018.

Polaris management has targeted military sales a key strategic driver for future revenue growth.  According to the company, they currently sell about $50 million of products, including ATVs and UTVs, to military customers and is targeting $200 million in annual revenues. Polaris was also one of the first vendors to offer a six wheeled UTV that has been popular with Bureau of Land Management fire units which fight wild fires. Learn more:  Fool.com

Indian Light Commercial Vehicle Market Slows

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The Light Commercial Vehicle (LCV) market in India is experiencing a slowdown.  Industry experts point to expensive loans, reduced economic activity and challenging freight rates in several sub-markets as the reasons. The mini-trucks which can carry up to two tons of goods has seen growth fall. According to the manufacturer’s trade association, “From an average 40,000 units a month last financial year, sales of goods-carrying light commercial vehicles (LCVs) fell have fallen to 33,721 units in April; growth slowed from 16 per cent last year to three per cent in April.” The segment’s more recent growth had attracted more competition and new models with the main manufacturers being Tata Motors with their Ace models, Mahindra & Mahindra’s Maxximo and Ashok Leyland’s Dost .  Learn more:  Business-standard.com

Highlights from the Polaris Earnings Call – Q1 2013

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The following are the highlights of the Polaris earnings call for their first quarter 2013 earnings report as it relates to the STOV market.

  • Total sales for the first quarter increased 11% to a record $754.9 million
  • First quarter net income increased 26% to $75.5 million
  • Gross profit margins were up a modest 10 basis points to 29%
  • Full year sales expected to be up 12% to 15% over 2012.
  • Polaris’ first quarter Off-Road Vehicle (ORV) revenue increased 7% driven by side-by-side sales.
  • In the first quarter consumer demand for the RANGER 900XP outpaced all other ORVs in the industry.
  • Polaris gained market share in both ATVs and side-by-sides.
  • ATVs down low single digits and for industry as well
  • Polaris side-by-side retail grew mid-single digits in an industry estimated to grow low single digits.
  • The new RZR XP 900 Jagged X has been a hit with consumers
  • Major strategic initiatives included launch of Brutus commercial line, acquisition of Aixam and start of plant construction in Poland
  • Brutus line will be sold through dedicated new Polaris commercial channel that already includes 400 dealers
  • Initial orders for both the Brutus product and the attachment have been better than are than expected.
  • Small vehicle business consisting of GEM and Goupil grew double digits
  • GEM and Goupil both had good quarters, as GEM retail more than doubled in its best first quarter since 2008, while Goupil retail orders were up about 20%, significantly outperforming the European economy.

Looking Forward

  • Sales of Off-Road Vehicles are expected to increase in the 8% to 10% range, with retail sales of side-by-side vehicles and ATVs outpacing the overall market in North America and internationally.
  • Management expects to increase ORV market share in 2013 although at a more moderate rate than the past 3 years.
  • Management optimistic about new model introductions for model year 2014
  • Poland facility to be online in the 2nd half 2014 mainly for producing ATVs for the European market with some side-by-side capability as well.
  • Management expects to realize sourcing and engineering synergies between Goupil, Aixam and Gem
  • Goal is to decrease the delivery time of for side-by-side products to dealers from 6 weeks down to 4 weeks

Learn more:  Seekingalpha.com (earnings call transcript)

Polaris Reports Another Strong Quarter

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Ranger XP 900 helped drive Polaris sales in Q1 2013

Polaris reported strong financial results for the first quarter of 2013. Management reported sales of $745.9 million and net income of $75.5 which were 11% and 26% higher than the prior year’s first quarter, respectively. A major contributor to the record earnings was a better winter for the snowmobile business compared to the previous winter.  The off-road division, which includes side-by-sides, increased revenue by 7% compared to the Q1 2012 on the strength of new products and mid-size utility vehicles like the Ranger XP 900. Management also raised their full year projections, forecasting an increase of 15 to 18 percent from 2012 earnings and sales for the year to grow around 12 to 15 percent, up from its previously projected increase of 7 to 10 percent. Learn more:  TCBmag.com

LSV Manufacturer GreenTech Automotive to Make Highway Capable EV

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GreenTech Automotive plans to produce a highway capable electric sedan

GreenTech Automotive (GTA), the Virginia-based manufacturer of the MyCar LSV, is partnering with China-based JAC to build a 5-person electric powered sedan. JAC’s Rejoice platform will be used for the vehicle which will likely feature a 19 Kwh lithium battery power source and have a range of over 100 miles. According to executives they have distribution agreements in place to sell 30,000 vehicles over three years. Vehicle assembly will be carried out in Mississippi at the same facility as the MyCar with a dedicated new facility for the sedan in the plans. Production is scheduled to begin in late 2013. There is no information on the pricing of the vehicle.

Comment:  This is another LSV manufacturer that is trying to make the move from producing LSVs to producing highway capable EVs. None have met with any great success so far. From what we’ve seen, the sales of the MyCar has not met the hype about the company. Given the sales levels of the Nissan Leaf which is produced by a well-established company with an extensive distribution network, 30,000 units in three years for this sedan appears to be very optimistic.

Polaris Acquires Small Vehicle Manufacturer Aixam Mega

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Aixam Quadricycle

Aixam Mega Utility Truck

Polaris Industries announced the acquisition of Aixam Mega, a leading manufacturer of quadricycles and light commercial vehicles based in France. The acquisition adds to the company’s portfolio of small, task-oriented vehicles which includes GEM LSVs and Goupil commercial vehicles and increases their footprint in Europe as management targets international markets for future growth. In addition, the acquisition puts Polaris in a strong position in the personal transportation segment of the small vehicle market in Europe while adding to their commercial market presence.

Quadricycles are a class of vehicles characterized by limits on vehicle weight, top speed and engine power. Light quadricycles have a top speed of 45 kph and can be driven without a license in Europe depending on the regulations of the individual country. In France they have a classification similar to mopeds. There is also a heavy quadricycle classification that requires a license to drive. Aixam Mega has annual sales of approximately $110 million.

Aixam Mega offers a diverse lineup of small vehicles covering personal transportation and commercial vehicles, light and heavy quadricycles and ICE and electric powered vehicles. Their product lines include the Aixam line of quadricycles for personal transportation and their Mega brand of light commercial trucks and vans. They recently launched a new lineup of all electric models for personal transportation. Their Mega utility vehicles feature both diesel and electric powered versions of trucks and vans.

According to company information Aixam Mega is the market leader in Europe selling approximately 10,000 to 12,000 quadricycles of the personal transportation variety annually with about half being sold in France. The company has a network of about 400 dealers throughout Europe and two production facilities in France. Their Mega brand of light commercial trucks and vans are distributed internationally including in the US through Columbia ParCar.  Learn more:  TwinCitiesBusiness

Comment:  The regulations in Europe are more favorable for on-road small personal transportation vehicles than in the US where LSV regulations and road access are more restrictive. It will be interesting to see if Polaris tries to modify and export the Aixam personal transportation line into the US as an LSV. In contrast to many of the current LSV offerings on the market which still have a golf car like styling, the Aixam offers a more traditional automobile styling.  On the other hand, the US LSV market is still largely commercial oriented and the personal transportation segment may be too small for the effort without changes to regulations allowing for higher speeds.

In the commercial segment, the Polaris network of dealers, especially those already offering GEM vehicles, provide an opportunity to expand the US distribution of the Mega commercial vans and trucks. The configurations of the Mega utility trucks are a nice complement to the GEM product offerings and I can envision dealers being able to sell both lines to a customer with a range of small vehicle needs.

 

Analyst Points To Polaris Ranger For Stronger Polaris Q1 Sales

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An analyst from BMO Capital Markets predicts stronger than expected first quarter 2013 results for Polaris in large part driven by Ranger UTV sales. While the recreational segment has been experiencing fast growth the markets served by the Ranger UTV have been overlooked to a certain degree. The analyst points to an estimated 35% share in the segment held by the various Ranger models and the relatively lower level of competition compared to the recreational segment as reasons for optimism in the expanding market. Expectations are that Ranger sales will grow by nearly 50% in quarter to quarter comparison with 2012. Despite more competition, growth is expected in the recreational segment as well.  Learn more:  Powersportsbusiness.com

Piaggio Updates Vehicles for India LCV Market

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After a not so successful first try, Piaggio Vehicles India, will be taking a second crack at the light commercial vehicle market in India with some updated models. Their current product lineup featuring the Ape Mini and the Ape Truck Plus in the 0.5 and 1 tonne categories respectively will be replaced by the Porter 600 and the Porter 1000 in the next two months.  The Porter 1000 is a 0.75 tonne vehicle and a 1.5 tonne vehicle based on the Porter platform is also on the horizon.

The main competitors in this market are Tata Motors’ Ace Zip and Ace and Mahindra & Mahindra’s Maxximo. According to Piaggio’s According to the Society of Indian Automobile Manufacturers the new vehicles will provide more “power, fuel efficiency, gradability” than the competition and they hope to capture 10% of the market with the new vehicles.  The LCV market grew approximately 14% in the last year according to the Society of Indian Automobile Manufacturers.  Learn more:  Domain-b.com