Polaris 2008 Annual Report Download - page 39

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motorcycle wholegood products. 2007 sales of PG&Awere $293.1 million, an increase of nine percent compared to
$269.5 million in 2006. The increase was primarily due to increased shipments of Victory motorcycle and RANGER
side-by-side related PG&A. Victory and RANGER related PG&A increased due to the increased sales of these
vehicles during 2007 and the introduction of new products, particularly for the new Victory Vision
TM
and the
RANGER RZR
TM
models.
Sales by geographic region for the 2008, 2007 and 2006 year end periods were as follows:
($ in millions) 2008
Percent
of Total
Sales 2007
Percent
of Total
Sales
Percent
Change
2008 vs.
2007 2006
Percent
of Total
Sales
Percent
Change
2007 vs.
2006
For the Year Ended December 31,
United States ........... $1,371.1 70% $1,291.5 73% 6% $1,225.6 74% 5%
Canada ................ 273.0 14% 231.0 13% 18% 198.3 12% 16%
Other foreign countries .... 304.2 16% 257.5 14% 18% 232.6 14% 11%
Total Sales ........... $1,948.3 100% $1,780.0 100% 9% $1,656.5 100% 7%
Significant regional trends were as follows:
United States:
Sales in the United States for 2008 and 2007 increased six percent and five percent, respectively, when
compared to the same prior year periods. Lower shipments of core ATVs in the United States for 2008 were more
than offset by increased shipments of RANGER
TM
side-by-side vehicles. The United States represented 70 percent of
total Company sales in 2008 compared to 73 percent of total Company sales for 2007 and 74 percent in 2006. The
decrease in the percentage of total sales in the United States for the 2008 year is primarily the result of faster growth
in the International and Canadian operations compared to the United States where the Company has experienced
lower sales of core ATVs due to the continued weak core ATV market in the United States.
Canada:
Canadian sales increased 18 percent and 16 percent for the 2008 and 2007 periods, respectively, as compared to
the same prior year periods. Fluctuations in the Canadian currency rate compared to the U.S. dollar accounted for a one
percent reduction in sales for 2008 and a six percent increase in sales for 2007, respectively, as compared to the same
prior periods. Increased volume was the primary contributor for the remainder of the increase in 2008 and 2007, as the
strong Canadian economy contributed to increased core ATV, RANGER
TM
side-by-side and snowmobile sales.
Other Foreign Countries:
Sales in other foreign countries, primarily in Europe, increased 18 percent and 11 percent for the 2008 and
2007 periods, respectively, as compared to the same prior year periods. Favorable currency rates accounted for three
percent and seven percent of the change for the 2008 and 2007 year periods, respectively, as compared to the same
prior year periods. The remainder of the increase was primarily driven by volume gains as the Company increased
market share, increased distribution points and in 2008, increased shipments of RANGER RZR
TM
side-by-side
vehicles in markets outside of North America.
Gross Profit:
The following table reflects the Company’s gross profits in dollars and as a percentage of sales for the 2008,
2007 and 2006 year end periods:
($ in millions) 2008 2007
Change
2008 vs. 2007 2006
Change
2007 vs. 2006
For the Year Ended December 31,
Gross profit dollars................. $445.7 $393.0 13% $359.4 9%
Percentage of sales ............... 22.9% 22.1% +80 basis points 21.7% +40 basis points
21