Polaris 2006 Annual Report Download - page 4

SNOWMOBILES
Polaris pioneered snowmobiles over 50 years
ago, and we are a recognized leader in the
snowmobile industry. We remain competitive
by continually offering product and program
innovations, and competitively priced models
covering all market segments: performance,
crossover, trail sport, trail luxury touring,
mountain and youth. For model year 2007, we
added power with several Polaris IQ®and
RMK™ models fitted with the new small-block
Liberty 600 HO and 700 HO CleanFire™
semi-direct injection engines. We are committed
to uncompromising ride, performance
and handling.
PARTS, GARMENTS
AND ACCESSORIES (PG&A)
Pure Polaris®PG&A complete the riding
experience. We have designed and engineered
PG&A to enhance the performance of Polaris
products ever since we introduced the first
snowmobile in 1954. Pure Polaris offers over
50,000 items consisting of service parts,
a diverse array of accessories and Polaris-
designed clothing products tailored to meet
the needs of the Polaris rider. Pure Polaris
also offers retail credit, extended service
contracts and insurance products to facilitate
the consumer’s buying experience.
ALL-TERRAIN VEHICLES (ATVs)
Polaris introduced the first American-made
ATV in 1985, and ever since we have pioneered
such market-transforming improvements
as automatic transmissions, long travel/
independent rear suspensions (IRS), full
floorboards, single-lever hydraulic braking,
on-demand AWD (true 4-wheel drive) and
the industry’s first electronic fuel-injected 4x4.
Our
RANGER off-road utility vehicle line has
redefined the market with its industry-leading
power and ride quality, and our Outlaw™
sport quad powered by a KTM engine takes
acceleration and handling to another level
with the industry’s first IRS on a sport ATV.
VICTORY MOTORCYCLES
For the 2007 model year, the lineup was
extended to include a soft-bag touring model,
the Kingpin®Tour, and a limited edition
Hammer™ S model. Additionally, two new,
limited-edition Vegas Jackpot™ models
designed by custom motorcycle builders
Arlen and Cory Ness were available, featuring
custom paint schemes, chromed-out forks
and swingarms, billet wheels and more.
The Custom Order Program continued for
model year 2007 allowing customers to
go online and custom-configure a bike,
choosing from thousands of combinations.
SALES
(dollars in millions)
Year ended December 31
WORLDWIDE ATV
AND UTILITY VEHICLE
INDUSTRY
(units in thousands)
SALES
(dollars in millions)
Year ended December 31
U.S. INDUSTRY
(units in thousands)
Cruisers and Touring
SALES
(dollars in millions)
Year ended December 31
$1,240
$1,117
04 06
$1,160
05
1,353
1,343
04 06
1,324
05
$99
$113
04
$74
05 06
466
480
04
443
05 06
$257
$157
04 06
$288
05
174
165
04 06
181
05
WORLDWIDE INDUSTRY
(units in thousands)
Season ended March 31
$274
$270
04 06
$251
05
SALES
(dollars in millions)
Year ended December 31
PG&A PRODUCT MIX
BY BUSINESS LINE
POLARIS
AT A GLANCE
PRIMARY
COMPETITORS
• Arctic Cat
• BRP
• Yamaha
PRIMARY
COMPETITORS
• Parts Unlimited
(aftermarket
distributor)
• Powersports
OEMs
• Tucker Rocky
(aftermarket
distributor)
PRIMARY
COMPETITORS
• Arctic Cat
• BRP
• Honda
• John Deere
• Kawasaki
• Kymco
• Suzuki
• Yamaha
PRIMARY
COMPETITORS
• BMW
• Harley-Davidson
• Honda
• Kawasaki
• Suzuki
• Yamaha
ATVS
VICTORY
PG&A
SNOWMOBILES
Forward-looking statements made herein involve certain important factors that could change and cause
actual results to differ materially from those anticipated. See Management’s Discussion and Analysis of
Financial Condition and Results of Operation beginning on page 15 of the Form 10-K included with this report.
63% ATV
22% Snowmobile
6% Victory
7% General Merchandise
2% Personal Watercraft
63%
22%
7%
6%
2%