MINNEAPOLIS--(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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Source: Polaris Industries Inc.