Polaris 2004 Annual Report Download - page 3

Sales
(dollars in millions) Worldwide ATV Industry (units in thousands)
Sales
(dollars in millions) U.S. Industry (units in thousands)
Cruisers and Touring
Sales
(dollars in millions)
$1,160
02 04
$1,043
03
$938
1,129
02 04
1,060
03
982
$74
02 04
$57
03
$34
443
02 04
419
03
399
$288
02 04
$229
03
$293
181
02 04
186
03
204
Worldwide Industry
(units in thousands)
Season ended March 31
$251
02 04
$223
03
$203
Sales
(dollars in millions) PG&A Product Mix by Business Line
56% ATV
4% PWC
5% Victory
28% Snowmobile
7% General Merchandise
56%
28%
7%
5%
4%
2004 OVERVIEW
Approximately 181,000 units were sold worldwide by the snowmobile industry
during the season ended March 31, 2004, down three percent from the
previous season. Better snowfall and increased riding in the previous season
helped the industry begin to recover in 2004. Polaris increased sales for
2004 by 26 percent largely due to new product introductions such as the
Fusion™900 and 900 RMK™models featuring the new IQ™chassis. In addition,
lower levels of dealer inventory coming into the 2004–2005 selling season
allowed for production increases in calendar year 2004.
PRIMARY
COMPETITORS
• Arctic Cat
• Bombardier
• Yamaha
2004 OVERVIEW
Pure Polaris PG&A sales increased 13 percent in 2004 to $251 million. The
PG&A business was positively impacted by balanced growth during the year
across each product line in 2004 versus 2003. Pure Polaris operating margins
remained the highest in the Company. We anticipate 2005 to be another
good year for PG&A with all product lines expecting growth.
PRIMARY
COMPETITORS
• Parts Unlimited
(aftermarket
distributor)
• Powersports OEM’s
• Tucker Rocky
(aftermarket
distributor)
2004 OVERVIEW
The $6 billion ATV industry recorded worldwide retail sales of over 1.1 million
ATV units, up seven percent from 2003. The industry continued to grow in
2004 particularly internationally where regulation changes have made riding
ATVs more convenient and overall acceptance of ATVs continues to develop
and expand. In 2004, Polaris introduced five completely new products and
upgraded several current models for model year 2005, including: a new
limited edition 700 EFI (electronic fuel injection) XP RANGER; an 800 EFI
Sportsman; a military version ATV built for the consumer; a new Troy Lee
edition Predator 500; and the new value-priced Phoenix. In addition, we have
several limited edition models that were introduced in conjunction with our
50th Anniversary celebration in 2004.
PRIMARY
COMPETITORS
• Arctic Cat
• Bombardier
• Honda
• John Deere
• Kawasaki
• Kymco
• Suzuki
• Yamaha
2004 OVERVIEW
Motorcycle sales in the U.S. continued to expand in 2004. The cruiser and
touring segments of the United States motorcycle market, where Victory
currently participates, experienced six percent growth in 2004 over 2003 for
both segments combined. Victory continued to expand its presence through
major motorcycle shows and rallies, plus an increased number of Victory
Rider’s Association rides. Polaris’ sales increased 29 percent in 2004 over
2003, as Victory added more models to its line-up and the Victory brand
continued to gain recognition as the new American motorcycle company in
the industry.
PRIMARY
COMPETITORS
• Harley-Davidson
• Honda
• Kawasaki
• Suzuki
• Yamaha