PowerSports Business

Sept 4, 2017

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FINANCE 18 • September 4, 2017 • Powersports Business www.PowersportsBusiness.com BMW Motorrad announced its best quarterly and six-month sales volume performances in its history. The motorcycles segment set new sales volume records for the two reporting periods, with Q2 sales up significantly by 12.3 percent to 52,753 units and six-month sales rising to 88,389 units. The number of motorcycles delivered worldwide in the second quarter of 2017 was up 12.3 percent, as compared to 46,966 units in the same period of 2016. The BMW Group sold 58,617 units (2016: 51,930 units; + 12.9 percent) in Europe dur- ing the first six months of the year. The num- ber of motorcycles sold in Germany increased by 4.9 percent to 14,461 units (2016: 13,792 units). At 9,447 units, the figure for France was more than 21 percent up on the previous year (2016: 7,790 units). Significant growth was also achieved in Italy, where motorcycle sales rose by 15.0 percent to 9,099 units (2016: 7,912 units). Despite an extremely competitive and contracting U.S. market, the BMW Group achieved 3.8 percent sales volume growth year-on-year (7,157 units; 2016: 6,897 units). In Q2 2017, the BMW Group manufac- tured 51,086 motorcycles at its four produc- tion sites worldwide (2016: 44,105 units; + 15.8 percent). A total of 105,552 motor- cycles rolled off production lines (2016: 84,385 units; + 25.1 percent) during the first six months of the current year. The significant increase in motorcycle production was largely due to the higher number of model produc- tion starts compared to the previous year. FOX FACTORY HOLDING SALES INCREASE IN Q2 Fox Factory Holding Corp. reported finan- cial results for the second quarter and six months ended June 30, 2017. Sales for the second quarter of fiscal 2017 were $120.8 million, an increase of 18.1 percent as compared to sales of $102.3 mil- lion in the second quarter of fiscal 2016. This increase reflects a 42.7 percent increase in sales of powered vehicle products and a 2.9 percent increase in sales of bike products. The increase in sales of powered vehicle products was primarily due to continued high demand for on- and off-road suspension products, including increased OEM sales. The increase in sales of bike products primarily reflects new product introductions and favorable spec positions with certain higher growth OEMs. "We were pleased to continue to grow our business across both our powered vehicle and bike product offerings to generate record sales and adjusted EBITDA in the second quarter. Our business benefited from posi- tive demand for on- and off-road suspension products, new bike product introductions and favorable model year spec positions in the quarter," said Larry L. Enterline, Fox's CEO. "As a result of year-to-date financial results and our current view of our business, we are pleased to be able to raise our outlook for fiscal year 2017." Sales for the six months ended June 30, 2017, were $227.1 million, an increase of 24.4 percent compared to the same period in 2016. Sales of bike and powered vehicle products increased 8.2 percent and 48 per- cent, respectively, for the first six months of 2017 compared to the prior year period. TEXTRON SEES Q2 REVENUES OF $3.6 BILLION Textron Inc. reported second quarter 2017 revenues of $3.6 billion, up 2.6 percent from the second quarter of 2016. Textron segment profit in the quarter was $295 million, down $33 million from the second quarter of 2016. "Revenues were up in the quarter primar- ily driven by the Arctic Cat acquisition," said Textron chairman and CEO Scott C. Don- nelly. "We saw strong performance at Bell and were encouraged by the continued strength- ening in commercial helicopter demand." Industrial revenues increased $109 million largely due to the impact of the Arctic Cat acquisition. Segment profit was down $17 million due to an operating loss at Arctic Cat, which was consistent with Textron's integration plan, and unfavorable pricing and inflation. MV AGUSTA USA ANNOUNCES ROADSIDE ASSISTANCE PROGRAM MV Agusta USA, in partnership with Motor- cycle Towing Services (MTS), will now pro- vide all new model year 2017 (and onwards) motorcycles with a two-year roadside assis- tance program at the time of purchase. Backed by a two-year warranty, MV Agusta's new roadside assistance program will provide 24-hour, 365-day assistance to its customers. This announcement follows the recent news of parent company MV Agusta Hold- ing completing its organizational restructure to now have 100 percent control of MV Agusta. The roadside assistance program for the U.S. is the first of several new programs the company plans to launch as part of its new global initiative. UTI REPORTS DECREASED REVENUE IN FISCAL Q3 Universal Technical Institute, Inc. reported financial results for its fiscal 2017 third quar- ter ended June 30, 2017. Revenues for the quarter were $76.3 mil- lion, compared to $82.3 million for the prior year period. Revenues exclude tuition related to students participating in the company's proprietary loan program, which were $4.0 million and $4.2 million for the third fiscal quarter of 2017 and 2016, respectively. This tuition will be recognized as revenues when payments are received. Operating expenses for the quarter were $79.0 million, compared to $87.7 million for the prior year period. PSB DIGEST BMW posts record sales in first half and Q2

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