{"id":4863,"date":"2016-10-27T14:02:08","date_gmt":"2016-10-27T14:02:08","guid":{"rendered":"https:\/\/smallvehicleresource.com\/blog\/?p=4863"},"modified":"2016-10-27T14:02:08","modified_gmt":"2016-10-27T14:02:08","slug":"polaris-announces-q3-2016-results","status":"publish","type":"post","link":"https:\/\/smallvehicleresource.com\/blog\/2016\/10\/27\/polaris-announces-q3-2016-results\/","title":{"rendered":"Polaris Announces Q3 2016 Results"},"content":{"rendered":"<div id=\"attachment_4216\" style=\"width: 810px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/smallvehicleresource.com\/blog\/wp-content\/uploads\/2015\/12\/PolarisRZRXPTurboorange.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-4216\" class=\"size-full wp-image-4216\" src=\"https:\/\/smallvehicleresource.com\/blog\/wp-content\/uploads\/2015\/12\/PolarisRZRXPTurboorange.jpg\" alt=\"The Polaris RXR XP Turbo is being recalled because of a potential fire hazard.\" width=\"800\" height=\"563\" srcset=\"https:\/\/smallvehicleresource.com\/blog\/wp-content\/uploads\/2015\/12\/PolarisRZRXPTurboorange.jpg 800w, https:\/\/smallvehicleresource.com\/blog\/wp-content\/uploads\/2015\/12\/PolarisRZRXPTurboorange-300x211.jpg 300w, https:\/\/smallvehicleresource.com\/blog\/wp-content\/uploads\/2015\/12\/PolarisRZRXPTurboorange-426x300.jpg 426w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/a><p id=\"caption-attachment-4216\" class=\"wp-caption-text\">Recalls of vehicles like the Polaris RXR XP Turbo were a drag on the company&#8217;s financial performance for the quarter.<\/p><\/div>\n<p>Polaris Industries announced their financial results for Q3 2016 with third quarter sales down 19% to $1.18 billion as impacts of massive vehicle recalls are still being felt. CEO Scott Wine stated that the company is prioritizing &#8220;&#8230;recall execution and quality validation and delay the launch of many of our model year 2017 Off-Road Vehicles.&#8221; The following are highlights from the earnings call as they relate to the small, task-oriented vehicle market.<\/p>\n<ul>\n<li>Off-road vehicle industry retail declined modestly (down low single digits%) for the quarter with oil\/gas and agriculture segments remaining weak<\/li>\n<li>ORV and Snowmobile segment sales declined 23% in Q3 to $923.4 million driven by weak industry dynamics and delayed model year 2017 shipments as products were revalidated<\/li>\n<li>RZR retail dropped precipitously in the first two months of the quarter but improved significantly in the third month along with overall side-by-side retail driven by??promotions and better product??availability<\/li>\n<li>Management reports that RZR recalls have now passed the 50% penetration rate for both the RZR 900\/RZR 1000 recall and the more recent Turbo recall and the majority of the recalls should be completed by year end<\/li>\n<li>Gross margins were negatively impacted by higher promotional and customer appreciation costs to bolster confidence and credibility with our Off-Road Vehicle owners<\/li>\n<li>The Ranger 1000 has shown good early signs for sales<\/li>\n<li>Management reports that RZR market share is nearly 2.5 times all competitors combined and Ranger share over 2 times the next largest competitor<\/li>\n<li>Global Adjacent Markets segment revenue increased 6% to $78.5 million in Q3 driven by the prior Taylor-Dunn acquisition<\/li>\n<li>Sales in the Defense business and Work and Transportation businesses were lower quarter-over-quarter due to delayed military orders and weak rental and B2B sales<\/li>\n<li>RFM inventory management system will be aggressively rolled out next year and should improve ORV dealer&#8217;s ability to replenish vehicles, manage inventory and make models available to customers<\/li>\n<li>Guidance for full year 2016:\n<ul>\n<li>ORV and Snowmobile sales are expected to be down high single digits to low double digits percent but should show some retail growth in Q4<\/li>\n<li>Defense and Work and Transportation segment sales are expected to be up high single digits for the year<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><a href=\"http:\/\/seekingalpha.com\/article\/4014741-polaris-industries-pii-q3-2016-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 announced their financial results for Q3 2016 with third quarter sales down 19% to $1.18 billion as impacts of massive vehicle recalls are still being felt. CEO Scott Wine stated that the company is prioritizing &#8220;&#8230;recall execution and &hellip; <a href=\"https:\/\/smallvehicleresource.com\/blog\/2016\/10\/27\/polaris-announces-q3-2016-results\/\">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":[12,14,997,21,23,1829,27],"tags":[388,948,2372,1684,1047,1062,1127,1602],"class_list":["post-4863","post","type-post","status-publish","format-standard","hentry","category-management","category-market-trends","category-polaris","category-regulation-policy","category-sales-figures","category-side-by-side-2","category-utility-vehicles","tag-earnings-call","tag-orv","tag-q3-2016","tag-quarterly-earnings","tag-ranger","tag-recall","tag-rzr","tag-transcript"],"_links":{"self":[{"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/posts\/4863"}],"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=4863"}],"version-history":[{"count":5,"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/posts\/4863\/revisions"}],"predecessor-version":[{"id":4868,"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/posts\/4863\/revisions\/4868"}],"wp:attachment":[{"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/media?parent=4863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/categories?post=4863"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/smallvehicleresource.com\/blog\/wp-json\/wp\/v2\/tags?post=4863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}