Polaris 2011 Annual Report Download - page 47

Download and view the complete annual report

Please find page 47 of the 2011 Polaris annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 107

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107

Results of Operations
Sales:
Sales were $2,656.9 million for 2011, a 33 percent increase from $1,991.1 million in sales for the same
period in 2010. The following table is an analysis of the percentage change in total Company sales for 2011
compared to 2010 and 2010 compared to 2009:
Percent Change in Total
Company Sales for the Years
Ended December 31
2011 vs.
2010
2010 vs.
2009
Volume ..................................... 24% 21%
Product mix and price .......................... 7% 4%
Currency .................................... 2% 2%
33% 27%
Volume for 2011 and 2010 increased 24 and 21 percent compared to 2010 and 2009, respectively. The
volume increase in 2011 and 2010 is due to the Company shipping more off-road vehicles and on-road vehicles,
snowmobiles and related PG&A items to dealers than during the prior years, as consumer retail demand
increased for our products. Product mix and price increased for both 2011 and 2010 compared to the respective
prior years primarily due to the increased shipments of side-by-side vehicles to dealers in both periods.
Side-by-side vehicles typically have a higher selling price than our other ORV products. Increased sales of
Victory motorcycles also contributed to the improved mix of products in 2011 and 2010 compared to the
respective prior years. Additionally, we realized select selling price increases in 2011 and 2010 on several of the
new model year products.
Total company sales by product line are as follows:
For the Year Ended December 31,
($ in millions) 2011
Percent
of Total
Sales 2010
Percent
of Total
Sales
Percent
Change
2011 vs.
2010 2009
Percent
of Total
Sales
Percent
Change
2010 vs.
2009
Off-Road Vehicles ............ $1,822.3 69% $1,376.4 69% 32% $1,021.1 65% 35%
Snowmobiles ................ 280.1 11% 188.9 10% 48% 179.3 12% 5%
On-Road Vehicles ............ 146.3 5% 81.6 4% 79% 52.8 3% 55%
PG&A ..................... 408.2 15% 344.2 17% 19% 312.7 20% 10%
Total Sales .............. $2,656.9 100% $1,991.1 100% 33% $1,565.9 100% 27%
ORV sales of $1,822.3 million in 2011, which includes both core ATV and RANGER side-by-side vehicles,
increased 32 percent from 2010. This increase reflects continued market share gains for both ATVs and
side-by-side vehicles driven by industry leading product offerings and good growth in military and shipments to
Bobcat. Polaris’ North American ORV unit retail sales to consumers increased mid-teens percent for 2011
compared to 2010, with ATV unit retail sales growing single digits percent and side-by-side vehicle unit retail
sales increasing mid-twenties percent over the prior year. North American dealer inventories of ATVs continued
to decline, decreasing eight percent from 2010. Side-by-side North American dealer inventories for 2011 were up
mid-teens percent to accommodate the continued strong retail demand. ORV sales outside of North America
increased 37 percent in 2011 compared to a year ago. Given the growth in our ORV business worldwide, we have
widened our market share leadership in off-road vehicles in 2011 compared to 2010.
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
31