Product Cost Reduction Efforts

Gross Margin Percentage

Gross Margin Improvements are Sustainable

Initiatives taken to improve gross margins include:



• Roseau manufacturing facility redesign
• EDGE snowmobile chassis
• ATV model platform consolidation
• Victory product cost reduced over 20%
• Ryerson acquisition
• Improved purchasing practices/partnerships
• Overall drive to reduce product costs remains intact

23.4 – 23.6%

+60 to +80 Basis Points

*

* Slight decline in gross margins due to higher ATV promotional costs in 2001

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