Polaris Industries to Wind Down Victory Motorcycles Operations Strengthening its Position in the Powersports Industry
January 09 2017 - 9:15AM
Business Wire
Polaris Industries Inc. (NYSE:PII) today announced it will
immediately begin winding down its Victory Motorcycles brand and
related operations. Polaris will assist dealers in liquidating
existing inventories while continuing to supply parts for a period
of 10 years, along with providing service and warranty coverage to
Victory dealers and owners. Today’s announcement does not affect
any other Polaris business units.
“This was an incredibly difficult decision for me, my team and
the Polaris Board of Directors,” said Polaris Industries Chairman
and CEO Scott Wine. “Over the past 18 years, we have invested not
only resources, but our hearts and souls, into forging the Victory
Motorcycles brand, and we are exceptionally proud of what our team
has accomplished. Since inception, our teams have designed and
produced nearly 60 Victory models that have been honored with 25 of
the industry’s top awards. The experience, knowledge,
infrastructure and capability we’ve built in those 18 years gave us
the confidence to acquire and develop the Indian Motorcycle brand,
so I would like to express my gratitude to everyone associated with
Victory Motorcycles and celebrate your many contributions.”
Several factors influenced today’s announcement. Victory has
struggled to establish the market share needed to succeed and be
profitable. The competitive pressures of a challenging motorcycle
market have increased the headwinds for the brand. Given the
significant additional investments required for Victory to launch
new global platforms that meet changing consumer preferences, and
considering the strong performance and growth potential of Indian
Motorcycle, the decision to more narrowly focus Polaris’ energy and
investments became quite clear.
“This decision will improve the profitability of Polaris and our
global motorcycle business, and will materially improve our
competitive stance in the industry,” said Scott Wine. “Our focus is
on profitable growth, and in an environment of finite resources,
this move allows us to optimize and align our resources behind both
our premium, high performing Indian Motorcycle brand and our
innovative Slingshot brand, enhancing our focus on accelerating the
success of those brands. Ultimately this decision will propel the
industry-leading product innovation that is core to our strategy
while fostering long-term growth and increased shareholder
value.”
Polaris will reduce the appropriate operating cost based on this
decision, while continuing to support the future growth of the
ongoing motorcycle business. Polaris remains committed to
maintaining its presence in the Spirit Lake, Iowa community with
Indian Motorcycle production and in the Huntsville, Alabama
community with its Slingshot production.
Any one-time costs associated with supporting Victory dealers in
selling their remaining inventory, the disposal of factory
inventory, tooling, and other physical assets, and the cancellation
of various supplier arrangements will be recorded in the 2017
income statement in respective sales, gross profit and operation
expense. These costs will be excluded from Polaris’ provided 2017
sales and earnings guidance on a non-GAAP basis.
Polaris will release its fourth quarter and full-year 2016
financial results and provide 2017 guidance on Tuesday, January 24,
2017. A webcast and conference call will be held at 9:00 a.m.
Central Time on January 24, 2017 to discuss the results. A slide
presentation and link to the webcast will be posted on the Polaris
Investor Relations website at ir.polaris.com. To listen to the
conference call by phone, dial 877-706-7543 in the U.S. and Canada,
or 478-219-0273 Internationally. The Conference ID is
#45015597.
Click here for additional information related to this
release.
About Polaris
Polaris Industries Inc. (NYSE: PII) is a global powersports
leader with annual 2015 sales of $4.7 billion. Polaris fuels the
passion of riders, workers and outdoor enthusiasts with our
RANGER®, RZR® and POLARIS GENERAL™ side-by-side off-road vehicles;
our SPORTSMAN® and POLARIS ACE® all-terrain off-road vehicles;
INDIAN MOTORCYCLE® midsize and heavyweight motorcycles; SLINGSHOT®
moto-roadsters; and Polaris RMK®, INDY®, SWITCHBACK® and RUSH®
snowmobiles. Polaris enhances the riding experience with parts,
garments and accessories sold under multiple recognizable brands,
and has a growing presence globally in adjacent markets with
products including military and commercial off-road vehicles,
quadricycles, and electric vehicles. Please visit
www.polaris.com.
Except for historical information contained herein, the matters
set forth in this news release, including management's expectations
regarding expected disposition charges and future investments, are
forward-looking statements that involve certain risks and
uncertainties that could cause actual results to differ materially
from those forward-looking statements. Potential risks and
uncertainties include such factors as product offerings,
promotional activities and pricing strategies by competitors; costs
of canceling supplier arrangements; warranty expenses; foreign
currency exchange rate fluctuations; environmental and product
safety regulatory activity; effects of weather; uninsured product
liability claims; and overall economic conditions, including
inflation and consumer confidence and spending. Investors are also
directed to consider other risks and uncertainties discussed in
documents filed by the company with the Securities and Exchange
Commission.
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version on businesswire.com: http://www.businesswire.com/news/home/20170109005324/en/
Polaris Industries Inc.Megan Kathman, 651–785–3212
(media)megan@skyya.comorRichard Edwards, 763–513–3477
(investors)richard.edwards@polaris.com
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