Polaris Industries Inc. reported 2018’s second quarter sales of $1,503 million, up 10 percent from $1,365 million for the second quarter of 2017.
The company reported second quarter 2018 net income of $93 million, or $1.43 per diluted share, compared with net income of $62 million, or $0.97 per diluted share, for the 2017 second quarter.
Gross profit increased 10 percent to $385 million for the second quarter of 2018 from $350 million in the second quarter of 2017.
Gross profit for the second quarter of 2018 includes the negative impact of $5 million of Victory Motorcycles wind-down costs and realignment and restructuring costs.
Off-road vehicles and snowmobile segment sales, including PG&A, totaled $991 million for the second quarter of 2018, up 17 percent over $846 million for the second quarter of 2017 driven by growth across most categories.
ORV whole good sales for the second quarter of 2018 increased 18 percent primarily driven by strong RANGER, RZR and ATV shipments.
Polaris North American ORV retail sales increased in the mid-single digits percent range with side-by-side and ATV vehicles growing retail sales in the mid-single digit percent range.
Side-by-sides and ATVs again gained market share during the quarter in their respective categories. The North American ORV industry was flat compared to the second quarter last year.
Motorcycle segment sales, including PG&A, totaled $171 million, a decrease of 13 percent compared to $198 million reported in the second quarter of 2017 due to a weak motorcycle industry and timing of shipments for Indian motorcycles year-over-year.
Slingshot sales were also down due to the weak motorcycle industry.
Aftermarket segment sales increased one percent to $227 million.
“I am very pleased with the Polaris team and the strong execution they delivered across the business during the second quarter,” said Polaris Chairman and CEO, Scott Wine. “With solid retail growth and market share gains in both our off-road vehicle business and Indian Motorcycles, we are clearly reaping the benefits of our safety and quality investments, new product innovations and improved delivery performance. Consumer sentiment and dealer traffic improved throughout the quarter, building momentum which will help offset the rising risk of tariffs in the second half. During the quarter, we were excited to announce another expansion of the Polaris powersports portfolio with the acquisition of Boat Holdings, the largest manufacturer of pontoon boats in the U.S. Between organic growth and considered acquisitions, Polaris’ underlying performance has significantly improved, but much of our success is being masked by substantial cost escalation driven by tariffs and commodities. As we navigate through increasingly dynamic markets, our efforts to enhance product quality and innovation, boost productivity and become a more customer centric Company are paying off, and Polaris is well-positioned for further success.”