{"id":4596,"date":"2016-07-22T20:03:35","date_gmt":"2016-07-22T20:03:35","guid":{"rendered":"https:\/\/smallvehicleresource.com\/blog\/?p=4596"},"modified":"2016-07-27T13:33:06","modified_gmt":"2016-07-27T13:33:06","slug":"polaris-reports-2016-2nd-quarter-earnings","status":"publish","type":"post","link":"https:\/\/smallvehicleresource.com\/blog\/2016\/07\/22\/polaris-reports-2016-2nd-quarter-earnings\/","title":{"rendered":"Polaris Reports 2016 2nd Quarter Earnings"},"content":{"rendered":"<div id=\"attachment_4465\" style=\"width: 810px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/smallvehicleresource.com\/blog\/wp-content\/uploads\/2016\/04\/2015-RZR-XP-4-1000-eps.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-4465\" class=\"wp-image-4465 size-full\" src=\"https:\/\/smallvehicleresource.com\/blog\/wp-content\/uploads\/2016\/04\/2015-RZR-XP-4-1000-eps.jpg\" alt=\"2015-RZR-XP-4-1000-eps\" width=\"800\" height=\"622\" srcset=\"https:\/\/smallvehicleresource.com\/blog\/wp-content\/uploads\/2016\/04\/2015-RZR-XP-4-1000-eps.jpg 800w, https:\/\/smallvehicleresource.com\/blog\/wp-content\/uploads\/2016\/04\/2015-RZR-XP-4-1000-eps-300x233.jpg 300w, https:\/\/smallvehicleresource.com\/blog\/wp-content\/uploads\/2016\/04\/2015-RZR-XP-4-1000-eps-768x597.jpg 768w, https:\/\/smallvehicleresource.com\/blog\/wp-content\/uploads\/2016\/04\/2015-RZR-XP-4-1000-eps-386x300.jpg 386w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/a><p id=\"caption-attachment-4465\" class=\"wp-caption-text\">The very large recall of RZR vehicles impacted Polaris 2nd quarter side-by-side revenue.<\/p><\/div>\n<p>Polaris Industries reported fiscal year 2016 second quarter earnings with sales increasing 1% from the same quarter last year to reach $1,130.8 million. Net income was down 29% to $71.2 million, reflecting approximately $25 million in warranty, legal and recall costs. Here are some of the highlights of the earnings callrelated to small, task-oriented vehicles.<\/p>\n<ul>\n<li>ORV (ATV and UTV) sales decreased 6% in the quarter with Ranger shipments flat and RZR\/ATV shipments down<\/li>\n<li>RZR retail was down significantly more than RANGER and that was anticipated given the impact from the recall<\/li>\n<li>North American (NA) ORV inventory was down 8%<\/li>\n<li>Demand for the new General line of UTVs is exceeding company expectations<\/li>\n<li>The Huntsville, AL plant is ramping up Ranger and Slingshot production<\/li>\n<li>NA retail market for side-by-sides was flat and declining for ATVs<\/li>\n<li>Management reports losing a few points of side-by-side market share attributable more to their product lineup in the utility segment in a competitive environment<\/li>\n<li>NA retail market for side-by-sides was flat and declining for ATVs<\/li>\n<li>Polaris NA retail was down double digits for ORV for the quarter impacted by the large product recall as well as weakness in the oil ??and ag markets with side-by-side retail down high single digits<\/li>\n<li>Product recall costs have been approximately $27 million for the first half of the year. The company has had a 30% response rate so far and the Consumer Product Safety Commission is targeting a response rate close to 80%<\/li>\n<li>Global adjacent market sales increased 14% in the second quarter to $91 million including PG&amp;A, driven by market share gains in Aixam and the added sales from the Taylor-Dunn acquisition.<\/li>\n<li>Management reports that Taylor-Dunn&#8217;s &#8220;performance out of the gate, it&#8217;s been one of our best acquisitions yet&#8221; and they like what is essentially a made to order model along with synergies for the people mover segment with other global adjacent brands<\/li>\n<li>The defense business was up over 30% and our PG&amp;A related sales for the global adjacent division??increased 21%.<\/li>\n<li>Defense sales were up with the DAGOR vehicle gaining traction<\/li>\n<li>Multix early sales have been disappointing but transmission issues were fixed during the 2nd quarter and the distribution network is expanding<\/li>\n<li>Polaris will begin transitioning their RZR and Ranger lines to their retail flow management system to improve lead times and inventory management<\/li>\n<li>ORV and Snowmobile sales are expected to decrease mid-single digits<\/li>\n<li>Global Adjacent markets which includes GEM, Aixam, Goupil, etc. is expected to be up mid teens for the year with strength across brands<\/li>\n<\/ul>\n<p><a href=\"http:\/\/seekingalpha.com\/article\/3989956-polaris-industries-pii-scott-w-wine-q2-2016-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 Industries reported fiscal year 2016 second quarter earnings with sales increasing 1% from the same quarter last year to reach $1,130.8 million. Net income was down 29% to $71.2 million, reflecting approximately $25 million in warranty, legal and recall &hellip; <a href=\"https:\/\/smallvehicleresource.com\/blog\/2016\/07\/22\/polaris-reports-2016-2nd-quarter-earnings\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,7,8,11,12,997,1829,27],"tags":[2274,2086,1684,1047,1127,2273,1282],"class_list":["post-4596","post","type-post","status-publish","format-standard","hentry","category-electric-vehicles","category-gem","category-globalization","category-investment-financing","category-management","category-polaris","category-side-by-side-2","category-utility-vehicles","tag-fiscal-year-2016","tag-general","tag-quarterly-earnings","tag-ranger","tag-rzr","tag-second-quarter","tag-taylor-dunn"],"_links":{"self":[{"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/posts\/4596"}],"collection":[{"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/comments?post=4596"}],"version-history":[{"count":4,"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/posts\/4596\/revisions"}],"predecessor-version":[{"id":4602,"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/posts\/4596\/revisions\/4602"}],"wp:attachment":[{"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/media?parent=4596"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/categories?post=4596"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/tags?post=4596"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}