For the fourth quarter ended December 31, 2015, Polaris reported net income was $110.7 million, down 18 percent from the previous fourth quarter’s net income of $135.4 million. Sales for the fourth quarter of 2015 totaled $1.105 billion, a decrease of 13 percent over last year’s fourth quarter sales of $1.275 billion.

“While 2015 was a difficult year, we did manage to grow market share in each of our businesses and increased sales and earnings per share for the sixth consecutive year. That said, our performance failed to meet our earlier projections, as both external and internal challenges restrained growth and profitability. The strengthening dollar and weakening oil markets combined with an unseasonably warm winter constrained demand for off-road vehicles and snowmobiles, placing pressure on dealer inventory and forcing us to curtail shipments in the fourth quarter. While our execution to plan did not meet our historically high standards, we have taken numerous actions to position Polaris for better performance in 2016,” commented Scott Wine, Polaris’ Chairman and Chief Executive Officer.

“Our outlook for 2016 reflects another volatile year in powersports driven by near-term growth pressures from weak end markets as the threat of a worldwide economic slowdown looms. However, we have been in this situation before, and we know how to manage through difficult economic climates. We will continue to optimize dealer inventory, aggressively manage operating costs and other risk exposures, and provide our end-consumer with products and services that exceed their expectations. Concurrently we will continue to invest in projects that accelerate future growth and our lean journey, such as the Huntsville, Alabama plant which is scheduled to begin production in the second quarter of this year. I believe we have the best team in powersports, a strong and diverse portfolio of brands and products, broad capabilities across all our disciplines, and a proven strategy that will continue to create value for our stakeholders in the years to come.”

2015 Product and Operations Highlights

Introduced 20 new MY‘16 ORVs in 2015, including the all-new RZR XP 1000 Turbo – the most powerful recreational side-by-side available, the all-new POLARIS GENERAL™1000 – the new standard in off-road work and play versatility

The new moto-roadster, Slingshot, significantly exceeded our sales expectations in its first full sales year

Added to the iconic Indian Motorcycle line-up with the introduction of the all-new Indian Scout Sixty, a 999cc premium motorcycle at the lowest MSRP in the Indian Motorcycle line to-date at $8,999

Expanded the award winning AXYS platform into seven new MY’16 RMK mountain sled models

Introduced more than 500 new PG&A accessories

Continued to add to the Polaris family with five acquisitions; Brammo’s electric motorcycle business, Hammerhead Off-Road Vehicles in China, Timbersled Products – the maker of snow bikes,the purchase of a paint facility in Spearfish, S.D., and 509 – an aftermarket leader in snowmobile helmets and goggles

Added several new MY’16 vehicles in the Company’s adjacent markets including the completely redesigned GEM with better ergonomics and refreshed styling

Eicher/Polaris JV began production and retail of its new Multix utility 3-in-1 personal vehicle

Broke ground on the new ORV manufacturing plant in Huntsville, Alabama which will provide additional capacity and flexibility to the Company’s current manufacturing footprint. Production is expected to begin in the second quarter of 2016

Renewed the Polaris Acceptance joint-venture agreement with GE Commercial Distribution Finance Corporation, a business of GE Capital, through 2022 and extended retail credit agreements with Sheffield and Synchrony Banks (both through December 2020)

2016 Business Outlook

Given the anticipated ongoing weak industry trends in North America, particularly in the oil and gas regions and continued volatility in the currency markets, the company expects full year 2016 sales are anticipated to be in the range of down 2 percent to up 3 percent over full year 2015 sales. Ongoing currency volatility and industry retail sales uncertainty are the major reasons for the wider guidance range for sales for 2016.