Polaris 2010 Annual Report Download - page 39

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On January 20, 2011, we announced that our Board of Directors approved a 13 percent increase in the regular
quarterly cash dividend to $0.45 per share per quarter, representing the 16th consecutive year of increased
dividends.
Results of Operations
Sales:
Sales were $1,991.1 million for 2010, a 27 percent increase from $1,565.9 million in sales for the same period
in 2009. The following table is an analysis of the percentage change in total Company sales for 2010 compared to
2009 and 2009 compared to 2008:
2010 vs. 2009 2009 vs. 2008
Percent Change in Total
Company Sales for the Years
Ended December 31
Volume ................................................. 21% ⫺29%
Product mix and price ...................................... 4% 10%
Currency ............................................... 2% ⫺1%
27% ⫺20%
Volume for 2010 increased 21 percent compared to 2009. This increase is due to the Company shipping more
ORV and on-road vehicles, snowmobiles and related PG&A items to dealers than during 2009, as consumer retail
demand increased for our products. Product mix and price increased for 2010 compared to 2009 primarily due to the
increased shipments of side-by-side vehicles to dealers during 2010 compared to 2009. Side-by-side vehicles
typically have a higher selling price than our other ORV products. Increased sales of Victory motorcycles also
contributed to the improved mix of products. Additionally, we realized select selling price increases on several of
the new model year products.
Volume for the 2009 decreased 29 percent compared to in 2008. This decrease is due to the Company shipping
fewer ORV and on-road vehicles, snowmobiles and related PG&A items to dealers than during 2008 given the
continued overall weak economic environment and more dealers transitioning to the MVP which some dealers
began utilizing in 2008 and 2009, which during the initial startup phase inherently requires lower dealer inventory
levels. Dealer inventory levels declined 24 percent in 2009 compared to 2008. Product mix and price increased for
2009 compared to 2008 primarily due to shipments of side-by-side vehicles to dealers declining less than shipments
of other ORV products during 2009 compared to 2008. Additionally, we realized select selling price increases on
several of the new model year products.
Total company sales by product line are as follows:
($ in millions) 2010
Percent
of Total
Sales 2009
Percent
of Total
Sales
Percent
Change
2010 vs.
2009 2008
Percent
of Total
Sales
Percent
Change
2009 vs.
2008
For the Year Ended December 31,
Off-Road Vehicles ........... $1,376.4 69% $1,021.1 65% 35% $1,305.8 67% ⫺22%
Snowmobiles ............... 188.9 10% 179.3 12% 5% 205.3 10% ⫺13%
On-Road Vehicles ........... 81.6 4% 52.8 3% 55% 93.6 5% ⫺44%
PG&A.................... 344.2 17% 312.7 20% 10% 343.6 18% ⫺9%
Total Sales............... $1,991.1 100% $1,565.9 100% 27% $1,948.3 100% ⫺20%
ORV sales of $1,376.4 million in 2010, which includes both core ATV and RANGER», side-by-side vehicles,
increased 35 percent from 2009. This increase reflects continued market share gains for both ATVs and side-by-side
vehicles driven by industry leading product offerings. North American dealer inventories of ATVs continued to
decline, decreasing 33 percent from 2009. Our North American ORV unit retail sales to consumers increased
approximately 15 percent for 2010 compared to the 2009 with side-by-side vehicle retail sales increasing in the mid
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