{"id":4361,"date":"2016-02-10T03:39:59","date_gmt":"2016-02-10T03:39:59","guid":{"rendered":"http:\/\/azureblog.smallvehicleresource.com\/?p=4361"},"modified":"2016-02-10T03:39:59","modified_gmt":"2016-02-10T03:39:59","slug":"polaris-q4-2015-results-point-to-slowing-utv-market","status":"publish","type":"post","link":"https:\/\/smallvehicleresource.com\/blog\/2016\/02\/10\/polaris-q4-2015-results-point-to-slowing-utv-market\/","title":{"rendered":"Polaris Q4 2015 Results Point To Slowing UTV Market"},"content":{"rendered":"<div id=\"attachment_4185\" style=\"width: 731px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/azureblog.smallvehicleresource.com\/wp-content\/uploads\/2015\/11\/Polaris-General-1000-EPS.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-4185\" class=\"size-full wp-image-4185\" alt=\"The base model General 1000 EPS is Indy Red with an MSRP of $15,999.\" src=\"http:\/\/azureblog.smallvehicleresource.com\/wp-content\/uploads\/2015\/11\/Polaris-General-1000-EPS.jpg\" width=\"721\" height=\"406\" srcset=\"https:\/\/smallvehicleresource.com\/blog\/wp-content\/uploads\/2015\/11\/Polaris-General-1000-EPS.jpg 721w, https:\/\/smallvehicleresource.com\/blog\/wp-content\/uploads\/2015\/11\/Polaris-General-1000-EPS-300x168.jpg 300w, https:\/\/smallvehicleresource.com\/blog\/wp-content\/uploads\/2015\/11\/Polaris-General-1000-EPS-500x281.jpg 500w\" sizes=\"(max-width: 721px) 100vw, 721px\" \/><\/a><p id=\"caption-attachment-4185\" class=\"wp-caption-text\">Despite a good start for the new General crossover utility vehicle, Polaris had a tough fourth quarter in 2015 as the UTV\/side-by-side market showed weakness.<\/p><\/div>\n<p>Polaris reported their worst year-over-year quarterly performance since 2009 with their recent Q4 2015 results.??Fourth quarter sales were down 13% to $1.1 billion with net income of $110.7 million, down 18% as all businesses except Indian motorcycles and Slingshot fell short of expectations. Management expects a slowdown in the UTV\/side-by-side market faces tough macroeconomic conditions in North American and abroad, as well as currency headwinds. The following are highlights of the earnings call as they relate to the UTV\/side-by-side market.<\/p>\n<ul>\n<li>Despite solid demand for the new GENERAL and improving interest in the RZR Turbo, Polaris lost side by side market share in the fourth quarter.<\/li>\n<li>To keep dealer inventory low the company cut shipments of higher margin RZRs and Rangers.<\/li>\n<li>Off-road vehicle dealer inventory including ATVs was down year-over-year for the first time in six years<\/li>\n<li>Side-by-side dealer inventory was up slightly for the year<\/li>\n<li>Management reported a &#8220;more cautious&#8221; consumer in the ORV channel<\/li>\n<li>Polaris side-by-side revenue for 2015 grew &#8220;modestly&#8221;<\/li>\n<li>4th quarter side-by-side retail sales in North America declined mid-single digits as the industry grew slightly<\/li>\n<li>The new GENERAL vehicles began shipping in December, and initial consumer and dealer response was positive<\/li>\n<li>ORV sales in oil producing states declined 10% while other areas of the market increased mid-single digits<\/li>\n<li>For the full year 2015, Polaris again grew side-by-side market share.<\/li>\n<li>Side-by-side retail sales increased mid-single digits in a side-by-side industry that grew slightly slower<\/li>\n<li>Camp RZR in Glamis, California had an all-time record attendance, over 17,000 strong, which was up 45%<\/li>\n<li>Q4 North American work and transportation revenue decreased low 20s percent as difficult comparables included the Ariens partners launch<\/li>\n<li>GEM sales declined due to the transition to a completely redesigned GEM product platform during the quarter<\/li>\n<li>Initial GEM orders are solid and a strong 2016 is expected<\/li>\n<li>Q4??European Work and Transportation revenue declined low single-digits percent due primarily to currency weakness and some softness in Goupil and Mega<\/li>\n<li>Aixam sales grew high single digits and the European quadricycle industry grew in both fourth quarter and for full year 2015, up low single-digits with Aixam retail up slightly more increasing their leading market share<\/li>\n<li>Vehicles sales in Q4 and 2015 to Department of Defense and GSA related accounts were hurt by stop gap funding measures, but 2016 backlog is &#8220;healthy&#8221;<\/li>\n<li>The European ORV industry grew mid-single digits in the fourth quarter and for the year.<\/li>\n<li>Polaris gained share in the fourth quarter, as retail was up mid-teens percent and for the full year retail increased mid-single digits.<\/li>\n<li>Multix, the three-in-one personal transportation vehicle from the Polaris-Eicher joint venture in India is retailing vehicles.<\/li>\n<li>Multix customers are satisfied although currently the retail ramp remains well below management expectations, but they expect to accelerate retail in 2016 with key product improvements and further distribution expansion.<\/li>\n<li>Huntsville plant will start production in Q2 and??will initially produce RANGER side-by-sides<\/li>\n<li>Huntsville incorporates the company&#8217;s most advanced Lean flow and state of the art manufacturing technologies and improves throughput times by approximately 80% compared to existing facilities<\/li>\n<li>Management expects continued macroeconomic headwinds with ongoing currency issues overseas, a slight slowdown in global economies and a low growth economy in North America<\/li>\n<li>Total company sales are expected to be in the range of down 2% to up 3%<\/li>\n<li>ORV market share is expected to be maintained while gains are expected in global adjacent markets<\/li>\n<li>ORV\/snowmobiles revenue is anticipated to be flat to down mid-single digits and global adjacent markets up mid-single digits<\/li>\n<li>Management continues to forecast strong competition in the side-by-side market<\/li>\n<li>Q1 for 2016 side-by-side revenues is expected to be down because of Canadian currency issues, a weaker retail environment and tough prior comparables<\/li>\n<\/ul>\n<p><a title=\"Polaris Q4 2015 Earnings Call Transcript\" href=\"http:\/\/seekingalpha.com\/article\/3837086-polaris-industries-pii-ceo-scott-wine-q4-2015-results-earnings-call-transcript?part=single:\/\/\" target=\"_blank\" rel=\"nofollow\">Learn more: ??Seekingalpha.com<\/a>??(Earnings call transcript)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Polaris reported their worst year-over-year quarterly performance since 2009 with their recent Q4 2015 results.??Fourth quarter sales were down 13% to $1.1 billion with net income of $110.7 million, down 18% as all businesses except Indian motorcycles and Slingshot fell &hellip; 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