Medina, MN (1/16/2008)
- Polaris Industries Inc. (NYSE: PII)
announced today that its Chief Executive Officer,
Tom Tiller, expects to step down from his position
by the end of 2008 when his current employment
contract expires. Tiller, 46, has been with
the company since July, 1998 and its CEO since
May, 1999.
Tiller explained his decision as a personal
one. "After considerable thought and
extensive discussions with the Board of Directors,
I felt 2008 was the right time to leave. When
I came to Polaris from GE, I expected to lead
the company for a considerable period, and
2008 marks my tenth year here. I absolutely
love our company, our products, and our people,
and I'm proud of what we have been able to
accomplish together. This past year was another
good one for us in a tough environment, and
I expect 2008 to be good as well. We have
a very solid and experienced team, and I am
confident in our ability to win well into
the future. Our company is in good shape so
it seems like the right time."
"Polaris is a company that is built
on innovation. And a fresh set of eyes every
decade or so is a good thing. With just two
CEO's over the past 27 years, we have enjoyed
consistent leadership and results. I am confident
that we will identify a successor that will
benefit our employees, dealers, suppliers,
shareholders and communities for the long
run. And for me personally, I am excited about
ending my tenure as CEO in a very strong way,
helping the Board choose a successor, and
then exploring some new challenges."
Tiller is expected to remain on the Polaris
Board of Directors for a transitional period
after a successor is named.
The Board of Directors, led by its chairman
Greg Palen, is directing the search for Tiller's
successor and will evaluate both internal
and external candidates. "The Board is
committed to ensuring that Polaris goes through
an effective and orderly leadership transition,"
said Palen. "We have had a comprehensive
succession plan in place for several years,
and are in the process of executing that plan,
which will ultimately identify the best possible
candidate. We will take the time necessary
to identify the very best person, and that
process is expected to be completed this year."
In the interim, the current management team,
led by Tom Tiller and Bennett Morgan, President
& COO, will continue to direct the company
to ensure continuity.
As CEO, Tiller led Polaris to become a more
diverse and global company. Net sales grew
from $1.1 billion in 1998 to nearly $1.8 billion
today and the Company expanded its International
business outside of North America from 6 percent
of total Company sales in 1998 to approximately
14 percent of Company sales today. The market
capitalization of Polaris also grew from approximately
$1.0 billion in 1998 to nearly $1.7 billion
at the end of 2007.
Additionally, Tiller continued to diversify
the revenue and income generation capabilities
of the Company to better weather economic
changes including growing the side-by-side
business into what now represents more than
one-third of total Polaris ATV sales under
the RANGER(tm) brand, and establishing Victory
as the first successful launch of a major
motorcycle brand in more than 60 years. Tiller
also significantly grew Polaris' financial
services business and expanded the highly
profitable parts, garments and accessories
business. During his tenure, Polaris invested
$36 million into a new 126,000-square-foot
Product Development Center in Wyoming, Minnesota,
the single largest investment in product development
the Company has ever made, which demonstrates
the Company's commitment to continuing to
create innovative, top-of-the-line, high-quality
vehicles for Polaris and Victory riders.
"We are thankful to Tom for the direction
and success he has provided in the decade
in which he has led the Company, and support
his decision to take some time away from the
life of a public company CEO," said Palen.
"His focus on helping the Board to identify
the right person to lead Polaris in the future
and his decision to remain as CEO until the
successor is named and in place are key steps
to ensure both a smooth leadership transition
and a successful 2008 for Polaris."
Polaris Reaffirms Full Year 2007
Sales and Earnings Guidance
Polaris will release its fourth quarter and
full year 2007 financial results the morning
of Tuesday, January 29, 2008, and remains
confident in its previously announced full
year 2007 sales growth guidance of five to
six percent growth over 2006, and full year
2007 earnings per share from continuing operations
guidance range of $3.05 to $3.10 per diluted
share, a 12 to 14 percent increase over 2006.