BRP Earnings Call Highlights – FY 2014 Q2

The Can Am Maverick Side-by-Side helped drive quarterly sales growth for BRP

BRP, manufacturer of Can Am side-by-sides and other products recently reported its financial results for the three and six-month periods ended July 31, 2013. What follows are some of the highlights with a focus on utility vehicles.

  • Revenues excluding sport boat figures increased to $620.9 CAN compared to $583.1 for the same quarter last year
  • Revenue for the quarter are up 6.5% in year over year comparison excluding sport boat sales.
  • Growth, in part, was driven by sales of the Maverick side-by-side
  • International sales up 14% with the off road vehicle segment which includes ATVs and side-by-sides up 35%
  • Solid performance for side-by-sides in Europe, Australia and Latin America.
  • 35 to 40 new dealers in North America this year
  • North America side-by-side industry grew mid double digit with BRP growing more than 30% in the 2013 season ending june 30 with a particularly strong 2nd quarter
  • 50% growth in ORV parts and accessories with good growth in Maverick parts and accessories sales
  • White Mavericks proved more popular than yellow Mavericks resulting in a change in production
  • Just started shipping the Maverick 4 seater which has received good comments and strong orders from dealers
  • Of all their products which includes the Spyder, snowmobiles, personal watercraft, ATVs and side-by-sides the side-by-sides stand out as a strong driver with an overall market that is outpacing the other product categories
  • Management remarked that although there have been a number of new product introductions in the UTV market, nothing is a game-changer and they believe their products are very competitive

 

 

Trojan Battery Expands Distribution in South Korea for the Golf Car Market

The Trojan T105 battery is popular in the golf car market.

Trojan Battery Company, the world’s leading manufacturer of deep-cycle batteries, today announced TAIJIN Instrument & Electric Co., Ltd. will distribute Trojan’s deep-cycle batteries in South Korea. TAIJIN will sell and service Trojan products for the golf car market in the region. Trojan estimates that there are 400 golf courses in the country.

TAIJIN is a leading supplier for the region’s golf industry and will offer Trojan’s broad line of deep-cycle flooded, AGM and gel batteries. The company will maintain an extensive stock of Trojan battery models to ensure product availability to meet immediate customer needs.

Learn more:  Golfcourseindustry.com

Kawasaki Introduces Three New Teryx Models for 2014

New 2014 Teryx base model from Kawasaki

New 2014 Teryx LE from Kawasaki

New 2014 Teryx Camo from Kawasaki

Kawasaki recently introduced three new Teryx models for 2014. The new models feature more power, more room, a larger chassis, upgraded suspension and a new CVT clutch. Some of the key features for the two seater models include:

  • 783cc V-twin engine with 26% more horsepower over the previous version
  • CVT with changes to reduce belt wear and increase reliability
  • New Double X chassis to reduce flex and improve handling
  • 8 inches of travel in the front and 8.3 inches in the back
  • Electronic power steering
The base Teryx starts at $12,999.  The Teryx Camo and Teryx LE are two special models with some additional features. The Camo has upgraded LED headlights, a roof and premium Real Tree APG HD camouflaged bodywork. The LE gets the same LED lighting and roof, but adds some bling with Premium Candy Lime Green automotive quality paint on the bodywork, suspension arms and shock springs as well as matching three-tone bucket seat covers. In addition, the LE gets a tubular steel brush guard and lightweight aluminum wheels.  The Camo starts at $14,299 and the LE at $14,999.  Learn more:  Motorcycle-USA.com

 

How to Buy Used UTVs

UK dealer Murray Boss gives some pointers on buying a used UTV
Credit: Farmers Guardian

I came across an article out of the UK about how to approach buying a used UTV.  Not only is the article informative but it gives me a chance to make a few comments about the used UTV market.

In talks with dealers for our various research projects, most have told us that they do not sell a lot of used UTVs. One reason is that trade-ins are not that common. There is a good chance that the buyer has really worked their current UTV very hard and there is not much value left in it, if at all. In addition a lot of used UTVs are sold directly between private owners, bypassing the dealer channel. The UTV market has also seen a large number of first-time buyers in the last few years as ATV owners switch to UTVs and entirely new customers discover the advantages of UTVs, so they have no UTVs to trade-in.

It is likely in the coming years that the used UTV market will grow. The strong growth in the market over the last few years has built a large existing population of UTVs in the market. As that population grows the number of used UTVs available is likely to grow which brings us back to the article.

The heavy workload that many UTVs experience means buyer beware and knowledgeable about what to look for when buying a second hand vehicle. The article is worth a read if you are in the market for a used UTV and offers quite a few pointers on how to evaluate a vehicle and identify any potential problems. Some of these include:

  • Looking at tire wear for clues about the suspension
  • Using vehicle hours and miles to gauge how the vehicle was used
  • Considering the simplicity of the vehicle design in the context carrying out repairs

Learn more:  Farmersguardian.com

Polaris Starts Construction on First European Factory

In August Polaris started construction on it’s first European factory located in Opole, Poland within the Wałbrzych Economic Zone Invest-Park. The factory will produce ATVs and UTVs for the European market and is expected to be completed in February, 2014. The facility will include approximately 200,000 square feet of production space, 37,000 square feet of warehouse space and another 42,000 square feet for administrative offices. Learn more:  Property-magazine.eu

ARPA-E Funding More EV Battery Research

ARPA-E RANGE program $36 million into more EV battery technology projects.

The US Department of Energy (DOE) Advanced Research Projects Agency – Energy (ARPA-E) will award approximately $36 million to 22 projects to develop transformational electric vehicle (EV) energy storage systems using innovative chemistries, architectures and designs. While the research is predominantly targeting highway capable vehicles, any significant advancements in battery performance and/or cost reduction will work its way down to the STOV market eventually. There are already lithium battery pack options available for some STOVs with more expected to hit the market in the next one to two years. Any trickle down technology will likely impact niche markets or particular applications that require better battery performance first. For example, an organization with “green” or sustainability mandates may be willing to pay the price premium for new better performing battery packs.

The projects being funded cover a range of battery technologies including lithium, lead acid, zinc-air, metal hydride and flow batteries. Some of the projects focus on integrating the batteries into the structure of the vehicle itself and/or changing the placement of batteries to increase battery safety in the event of a collision. Others focus on developing solid state lithium battery technology that is non-flammable and safer.  Learn more:  Greencarcongress.com

Utility Vehicle Reviews from the UK

The Kubota RTV1140 being put through it’s paces.  Credit:  HW

 

HorticultureWeek based in the UK recently put a Kubota RTV400Ci, Kubota RTV1140 and John Deere XUV855D through their paces and offered their opinions.  The reviewers were from college campuses, a park and a golf course. In general, all the vehicles received good reviews but the John Deere seems to garner the most praise.  Here is a quick summary of their reviews:

Kubota RTV400Ci

  • Smaller than the others but compactness good for certain applications
  • Good ergonomics and usability
  • Handles tough terrain well
  • Powerful and agile
  • Cargo box size a little small

Kubota RTV1140

  • Utility with versatility
  • Large cargo area and convertible to 4 person seating
  • Good power and acceleration
  • Comfortable ride
  • Good engine braking
  • Long wheelbase offers stability but wider turning circle and ground clearance issues in some situations

John Deere XUV855D

  • Fast
  • Climbs hills well
  • Couldn’t get it stuck
  • Comfortable ride
  • Feels well-built
  • Good maneuverability and suspension travel
  • Notable improvements on the previous version

Learn more:  HorticultureWeek.com

What’s Cooking on the STOV

Highlighting some of the many applications for small, task-oriented vehicles:

Here are a couple more examples of the different applications for STOVs. They show the range of uses of utility vehicles and how they can be customized or accessorized to a small or large degree depending on the need of the customer and the specialized conditions under which they will be used. In the first example, you also see how once again a STOV can replace a full-size vehicle and offer both upfront and operational cost savings.

A customized Club Car XRT1550SE in operation at a potash mine.

Transport for Potash Mining Operation – Club Car’s Custom Solutions Department has been customizing utility vehicles for use in this potash mining operation since 2007. The mining operation had previously been using full-size SUVs to transport personnel over a kilometer into the mine over challenging terrain. The SUVs were both expensive to purchase and maintain given the harsh work environment.  Club Car customized their XRT1550-SE four-passenger diesel utility vehicle for the application. The difficult and sometimes corrosive conditions required a number of specific features including:  diesel scrubbers, power steering, 120 decibel back-up alarms, heavy-duty brush guards, rear differential guards, belly pans/skid plates, CV boot guards and rock guard brake calipers for the difficult terrain. For operations in dark conditions the vehicles have complete light packages rear and front-facing spot lights on separate circuits, and digital speedometers that are legible in the dark. The cars were also equipped with sealed CVTs to keep dust and dirt off the clutch face, gel-cell maintenance-free sealed batteries, and spare tires and rims.

Over 50 of the vehicles have been used at the operation since 2007. Key benefits of the vehicles include aluminum frames that avoid corrosion, purchase price that is 20% of the full-size SUVs they previously purchased, tighter turning radius for operating in narrow tunnels, better handling in loose dirt, cheaper parts, and less oxygen use in the underground conditions than the SUVs. (The oxygen needs to be replaced as part of the mining operation.)  Learn more:  PRweb.com

The type of Gator the town of Greenville will use for trail maintenance.

Trail maintenance – The city of Greenville, MI will be purchasing a John Deere Gator for maintenance on the Fred Meijer Flat River Trail. The 4×2 Gator will feature an electric motor and a larger motor. The vehicle is being funded primarily by a grant from the Greenville Area Community Foundation and is expected to make it easier for town workers to move up and down the trail for maintenance work.  Learn more:  www.thedailynews.cc

Mission Golf Car to Distribute New Ford Shelby Specialty Golf Car

Ford Shelby GT500 Golf Car

Mission Golf Cars of San Antonio, TX has recently agreed to become a distributor for the new Ford Shelby GT500 golf car. The GT500 is the only officially licensed golf car of the Ford Motor Company. Key features of the golf car include:

  • Hand-laid fiberglass body with PPGPaint
  • SVT Inspired 12” wheels
  • Six Standard Ford Shelby GT500 colors
  • Locking front storage trunk
  • 48v DC motor (AC drive available)
  • Vinyl and ultra suede upholstered seats
  • Turn signals, horn and emergency flashers
  • Fold-down windshield
  • Limited three-year warranty

Learn more:  PRWeb.com

Polaris Announces GEM 2014 Models

New 2014 GEM Utility Vehicle

Polaris recently announced their new model line-up for GEM for 2014. The product line includes the e2, e4, e6 for transport and the eS, eL, eL XD for light utility vehicles. A 7.0 hp motor is standard in the all electric vehicle line-up and the vehicles also feature a new rear drum brake system. Other changes to the product line include:

  • New, more comfortable seating
  • Standard scuff guards and charge cords for all vehicles
  • New available options including hard doors with locks, sliding windows and improved hinges and seals are available for two and four person vehicles.
  • Simplified color choices
  • Newly designed hood
  • Mud guards
  • New headlight bezel

Learn more:  www.GEMcar.com