POLARIS TO MOVE MANUFACTURING ATV & UTV OPERATIONS OUT OF U.S.A.
Realignment expected to improve long-term competitive positioning resulting from logistical and production cost savings while expediting delivery times !
In an effort to improve its long-term competitive positioning, increase operational efficiencies and position the company for future growth, Polaris Industries Inc. (NYSE: PII) today announced plans to realign its operations and refocus on its core strategic manufacturing processes. The Company will create manufacturing centers of excellence for Polaris Products by enhancing the existing Roseau, Minn. and Spirit Lake, Iowa, production facilities and establishing a new facility in Mexico.
The Company is currently evaluating several possible locations in the Monterrey/Saltillo area of Mexico for the new facility. The realignment will lead to the eventual sale or closure of Polaris’ Osceola, Wisconsin manufacturing operations over time. The realignment allows the Company to dedicate capital for strategic investments in painting, welding and assembly operations by outsourcing certain non-strategic component manufacturing processes. The Mexico facility is expected to maintain Polaris’ industry leading quality while improving the Company’s on-time delivery to customers and provide significant savings in logistical and production costs.
“While this was a difficult decision for us, given the impact on our employees at the Osceola facility, we believe the creation of these manufacturing centers of excellence will strengthen our company over the long-term and enable us to maintain our lead in a competitive market,” said Scott Wine, CEO, Polaris Industries Inc. “Pursuing opportunities in new markets outside the United States, while concurrently evaluating our cost structure to improve our long-term competitive positioning are key components to our growth strategy. This decision was based on a thorough review of our worldwide operations and will allow us to improve our ability to meet the quality, delivery and cost standards desired by our dealers and customers.”
The realignment of Polaris’ manufacturing footprint will strengthen the Company’s position in the powersports industry, as it will enable Polaris to have production facilities closer to customers in the southern United States and global markets the Company currently serves or expects to serve in the future. When the manufacturing realignment is completed the Company will have capabilities to manufacture ORVs (both ATVs and side-by-side vehicles), which represents more than two-thirds of the Company’s sales, in multiple locations depending on customer demand. Snowmobile assembly will remain in the Roseau facility and Victory motorcycle assembly will remain in the Company’s Spirit Lake facility. As part of the manufacturing realignment, certain Osceola manufacturing processes will be moved into the Roseau, Spirit Lake and Mexico facilities to more effectively utilize Company resources. In addition, certain manufacturing processes and equipment are intended to be sold to suppliers whom will continue to supply components to Polaris. Other non-strategic component manufacturing operations currently performed in the Osceola facility will be outsourced.
The realignment will begin immediately and is scheduled to be complete in 2012. The Company will look to have the new production facility in Mexico operational beginning in the first half of 2011. Polaris is currently in negotiations with several suppliers to sell certain non-strategic component manufacturing processes and equipment in the Osceola facility. If successful, Polaris’ intent is that the suppliers will continue to manufacture these components in the current Osceola location. Polaris will operate the Osceola manufacturing facilities during the transition period. Upon completion of the transition, Polaris will provide the affected employees severance benefits and work closely with the Wisconsin Department of Labor and other state and local agencies to offer employment assistance and other services.
The Company expects to record pretax transition charges to its income statement in the range of $20 million to $25 million and incur capital expenditures up to $35 million over the next few years related to the implementation of the manufacturing realignment. The Company expects the Osceola facility exit costs, comprising largely of one-time employee termination benefits, to amount to approximately a third of the total transition charges, while the start-up costs related to the new Mexico facility and other centers of excellence will comprise the balance. Transition charges to be incurred in calendar year 2010 are expected to be in the range of $8 to $10 million. The Company’s current earnings guidance of earnings per share of $3.48 to $3.60 for the full year 2010 will not change as a result of this announcement. The realignment is expected to generate pre-tax costs and expense savings in excess of $30 million on an annual basis when the transition has been completed. The Company expects to begin realizing some of the cost savings as early as 2011.
Sunday, May 23, 2010
Tuesday, May 18, 2010
Polaris Neighborhood Vehicles Launches 2-Passenger and Street-Legal Models
Continuing a tradition built on more than 55 years of off-road and on-road products that have earned the reputation of being innovative and well-built, Polaris Industries Inc. today unveiled its new Breeze™ Neighborhood Vehicle model line-up.
“Since our launch in fall 2009, the Breeze and its MyChoiceTM rear seat conversion capability have been very well received, so we’re thrilled to offer two new models to our customers,” said Greg Thompson, marketing manager for the Breeze family of vehicles. New to the line-up is Polaris’ first street-legal electric-powered neighborhood vehicle, the Polaris Breeze SL; and a new 2-passenger version of the Breeze.
Built by a company whose name is synonymous with redefining recreational vehicles, each new model features an advanced, adjustable suspension and plush, contoured seating that delivers an extremely comfortable and smooth ride which has become the hallmark of the Polaris Breeze. Boasting an automotive look, premium cut-and-sew seat design, and metallic paint colors, each Polaris Breeze promises to stand out from other neighborhood vehicles.
“The Breeze SL and two-passenger Breeze are yet two more examples of how Polaris is offering new and exciting ways for consumers to enjoy a master-planned community lifestyle,” said Marc Tullemans, director of Polaris’ Neighborhood Vehicle business. .”
The new Polaris Breeze models will be available for test rides and purchase beginning June 1st, at select Polaris Neighborhood Vehicle dealerships. Specific dealer locations can be found at www.polarisbreeze.com.
“Throughout 2010, we’ll continue to expand our dealer network and product availability, and hope the excitement around the Breeze thus far continues as consumers see and ride these wonderful new models we’ve added to the line,” said Tullemans.
Polaris Breeze Model Line-up
Breeze – MyChoice
Launched in 2009, the Polaris Breeze with MyChoice rear seat conversion allows anyone to effortlessly switch between golfing, riding with up to four passengers, or carrying cargo. It can be done on the fly, by anyone, anytime so you’re ready for whatever your day will bring.
Breeze - 2 Passenger
New to the line-up, the 2-passenger Breeze offers features and value unmatched by other vehicles on the market. Meeting the consumer need to fit more cargo comfortably in their golf cars, this Breeze touts the largest utility basket available as well as deep dash storage so you have plenty of room to stow and carry your gear.
A street-legal Breeze SL can be used on many public roads with a posted speed limit of 35 MPH or less, making it a fun and fuel-saving alternative to cars for drivers making numerous short trips around their communities. Featuring retractable seatbelts, driver- and passenger-side mirrors, and a light weight, high impact windshield, the Breeze SL let’s you ride with peace of mind. It also currently qualifies for a 10 percent federal tax credit that rewards owners for purchasing street legal vehicles that are environmentally friendly with low-emissions and energy consumption.
Wednesday, May 12, 2010
Yamaha Continues Support of Honored American Veterans Afield (HAVA)
HAVA to Raffle $20,000 in Prizes at NRA Annual Meeting to Raise Funds for Veterans
CYPRESS, Calif. – May 12, 2010 – Honored American Veterans Afield (HAVA) will conclude its biggest raffle in history – including a donated Yamaha Grizzly 550 FI EPS with an assortment of SureFire products as the grand prize – on May 16, 2010, at the NRA Annual Meeting and Exhibits in Charlotte, N.C.
Tickets, which were initially sold at the 2010 Shooting Hunting and Outdoor Trade (SHOT) Show earlier this year, will again be available for purchase directly from HAVA and its sustaining sponsors’ booths at the NRA Show. HAVA sponsors donated the raffle prizes so that all of the proceeds can go towards HAVA and its mission of supporting disabled veterans. HAVA’s website is:http://www.honoredveterans.org/
“We greatly appreciate the support from our sustaining sponsors who have made this raffle possible. We expect strong support from the thousands of attending NRA members who appreciate the contribution of our disabled veterans who have given their full commitment to protecting the American way of life,” said HAVA Chairman, Tom Taylor. “We had a great start to the promotion at SHOT Show and anticipate a strong finish at NRA. We hope everyone at the NRA Show will consider buying a ticket to support this worthy cause.”
“Yamaha is proud to support the veterans who benefit from HAVA’s mission and its activities,” said Steve Nessl, Yamaha’s ATV/Side-by-Side (SxS) group marketing manager. “As a founding member, Yamaha plans to continue to help HAVA through direct contributions and fundraising efforts such as this raffle. We encourage everyone to go to HAVA’s website to learn more and consider making a donation to help our veterans.”
The HAVA raffle prizes include the following:
· Grand Prize
Yamaha Grizzly 550 FI EPS ATV with an assortment of SureFire products ($12,000 approx. value).
· 1st Prizes
Smith & Wesson M&P-15T Tactical Rifle with Leupold Mark 4 Riflescope and Crimson Trace MVF-515 fore-grip ($3,532 approx. value).
Smith & Wesson Elite Silver Shotgun ($2,380 approx. value)
· 2nd Prize
Leupold Gold Ring 10x42 Binocular ($899 approx. value)
· 3rd Prizes
Four (4) Crimson Trace Laser Grips ($299-$479/each approx. value)
One (1) Hornady Ammo Assortment ($300 approx. value)
· 4th Prizes
Twenty (20) SureFire G2L Flashlights ($69/each approx. value)
Proceeds of the raffle will go toward HAVA sponsored activities including hunts and shooting events, highlighted by HAVA’s annual National Family Day. The winners will be drawn on the final day of the NRA Annual Meeting and need not be present to accept their prize.
Through support from industry leaders, HAVA continues to grow, and in turn supports more disabled veterans. The ultimate goal is to increase their confidence and hope for the future by reconnecting with their love of the outdoors and the American traditions of hunting and firearms. Sustaining companies include: Crimson Trace, FMG Publications, Hornady, Leupold & Stevens, NRA, Mossburg, Smith & Wesson, SureFire, and Yamaha. HAVA events are run by a committee of volunteer executives from these companies, and others who donate their time to the support of these American heroes.