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HARLEY-DAVIDSON RACING PROGRAMS TO BE RUN BY P & A DIVISION H-D Factory Dirt Track and Drag Racing Programs Will Fly Screamin? Eagle Colors. MILWAUKEE, WIS. – (August 1, 2003) Harley-Davidson recently announced that its factory drag racing and factory dirt track racing programs will be consolidated and managed within the Harley-Davidson Parts & Accessories Division and promoted under the Screamin? Eagle brand.
Mike Kennedy, Director of Marketing for Parts & Accessories, becomes responsible for Harley-Davidson?s racing strategy, plans and programs under this new alignment. In a related move, Anne Paluso is named to the newly created position of Racing Manager.
Screamin? Eagle Performance Parts are inspired by and built in the spirit of the raw adrenaline and power of motorcycle racing, offering both racing-grade and street-legal performance options for the Harley-Davidson motorcycle owner. Visit www.harley-davidson.com for more information.
HARLEY-DAVIDSON REPORTS RECORD SECOND QUARTER Milwaukee, Wis., July 16, 2003 — Harley-Davidson, Inc. (NYSE: HDI) today announced record revenue and earnings for its second quarter ended June 29, 2003. Revenue for the quarter was $1.22 billion compared with $1.00 billion in the year-ago quarter, a 21.8 percent increase. Second quarter diluted earnings per share (EPS) were 66 cents, a 40.4 percent increase compared with last year’s 47 cents.
“We are pleased with our strong results for 2003 as we head into the second half of the year,” said Jeffrey L. Bleustein, chairman and chief executive officer of Harley-Davidson, Inc. “Our U.S. dealer network sold more motorcycles in this quarter than in any other quarter in our 100-year history. Retail sales grew more than 14 percent compared with last year and outpaced our wholesale shipments by over 11,000 units,” added Bleustein.
On Monday, July 14, the Company unveiled its 2004 Model Year motorcycles to its dealers at its summer meeting held in Las Vegas. “Our dealer network is enthusiastic about the new 2004 Model Year motorcycles which will be available to the public in September. They are particularly excited about the completely redesigned Sportster family, which the Company believes will be a significant factor in attracting new customers and driving demand for Harley-Davidson products well into the future,” said Bleustein.
Motorcycles and Related Products Segment – Second Quarter Results: Second quarter revenue from Harley-Davidson? motorcycles was $955.4 million, an increase of 25.7 percent over last year. Worldwide shipments of Harley-Davidson motorcycles in the second quarter totaled 76,025 units, up 10,485 units or 16.0 percent over last year. After exceeding its second quarter target by 600 units, the Company is increasing its full year 2003 target for Harley-Davidson motorcycles from 290,000 to 290,600. The new target represents a 10.2 percent increase over the prior year. The new factory in York, PA is scheduled to begin ramping up in the third quarter as assembly of the Softail? family of motorcycles is relocated to the new plant.
Second quarter revenue from Parts and Accessories (P&A), which consists of Genuine Motor Parts and Genuine Motor Accessories, totaled $204.2 million, a 20.9 percent increase, or $35.4 million more than the year-ago quarter. Anniversary related sales accounted for $16.5 million and are not expected to be significant in the second half of the year. For the full year 2003, the Company expects P&A revenues to grow slightly faster than the motorcycle unit growth rate.
Second quarter revenue from General Merchandise, which consists of MotorClothes0/00 apparel and collectibles, totaled $43.7 million, down 14.9 percent or $7.6 million over the same period last year. During the second quarter of 2002, General Merchandise revenue benefited from $12 million in 100th Anniversary products. In 2003, shipments of 100th Anniversary merchandise were essentially completed in the first quarter. Given the strong prior year 100th Anniversary revenue, General Merchandise revenue for the full year 2003 is expected to be lower than in 2002.
Second quarter operating margin increased from 18.3 percent in 2002 to 21.9 percent. This increase was primarily driven by the second quarter gross margin, which was 36.4 percent of revenue compared with 33.5 percent in 2002. Gross margin was favorably impacted by wholesale motorcycle price increases, a richer product mix and foreign currency exchange rates. These positive factors were partially offset by higher retirement and health care costs.
Motorcycle Retail Data – Six Month Results Retail sales of Harley-Davidson motorcycles in the United States were up 6.3 percent for the period January through June 2003, when compared to the same period last year. Harley-Davidson retail sales in Europe and Japan were up 4.2 and 7.6 percent, respectively, when compared with 2002. Retail sales of Harley-Davidson motorcycles have outpaced the heavyweight motorcycle industry in all of the Company’s major markets. Market data is listed in the accompanying tables.
Financial Services Segment – Second Quarter Results Harley-Davidson Financial Services, Inc. (HDFS) reported second quarter operating income of $44.5 million, up from $37.0 million in the year-ago quarter. The subsidiary’s performance was driven primarily by strong loan originations and a favorable interest rate environment.
The Company’s second quarter securitization of $425 million of motorcycle retail loans resulted in a gain of $22.2 million, which compares to a securitization of $586 million and gain of $21.4 million during the second quarter of 2002. The net gain as a percentage of the amount of loans securitized went from 3.65 percent in the second quarter of 2002 to 5.22 percent in the second quarter of 2003, as HDFS continued to benefit in this declining interest rate environment.
Annualized credit losses on a managed portfolio basis increased slightly in the first half of the year from 0.68 percent in 2002 to 0.75 percent in 2003.
The Company is raising its expectation for HDFS’s total year 2003 operating income to be approximately 40 percent higher than in 2002. Over the long term, the Company expects the HDFS growth rate to be slightly higher than the Company’s motorcycle unit growth rate.
Harley-Davidson, Inc. – Six Month Results For the six month period, revenue totaled $2.33 billion, a 20.9 percent increase over the year-ago period. Diluted earnings per share were $1.28, an increase of 47.1 percent compared to the same period last year.
Through the first six months of this year, shipments of Harley-Davidson motorcycle units were 146,633, a 12.6 percent increase over last year’s 130,209. Harley-Davidson motorcycle revenue was $1.83 billion, a 21.5 percent increase over $1.51 billion in revenue in 2002. P&A revenue totaled $364.0 million, a 21.4 percent increase over last year’s $300.0 million. General Merchandise revenue totaled $100.1 million, a 7.0 percent increase compared with $93.6 million during the same period in 2002.
For the first six months, HDFS operating income was $87.8 million, a $38.6 million increase over last year’s first six months.
HARLEY-DAVIDSON PASSPORTS TO RIDE NOW AVAILABLE– Harley-Davidson Passports to Ride offer riders a chance to visit several dealerships, experience dealer events and sales and meet up with riders on the ride to and home from the 100th Anniversary events in Wisconsin.
Each participating dealer in Wisconsin is assigned a number of points, ranging from one to four. Once you collect 12 points, submit the passport to be entered into the October 6, 2003 drawing for the grand prize, a 100th Anniversary Harley-Davidson Sportster 1200 Custom Motorcycle.
Passports were distributed with all three-day ticket packages and can also be picked up at local Harely-Davidson Dealerships (while supplies last).
See the official rules online at http://www.harley-davidson.com/ for more information.
Sturgis Museum Activities– Museum address – 999 Main Street, Sturgis, SD 57785. We’ve been busy for a week, not the Museum but the street. When all the vendors begin to arrive we slow down for a bit. We’ll pick up when we post the banners that lists Segal Fine Arts. They’ll be a good draw, plus Sonny is coming for a book signing.
–Pepper
THAT’S ALL THE NEWS FIT TO PRINT–It’s Sunday, hardly a day of rest. We’ve got shit to do, bikes to tinker with, women to chase, chow… You get the picture. Here’s a shot of the Goliath Concept and the finished puppy. It’s been a rare experience, to assemble a bike in a week. It even runs and is for sale in a bidding war to support the Beach Ride.
Here’s the concept.
The completed CCI kit bike.
I dug into the Amazing Shrunken FXR boxes yesterday and found the weld on kick stand kit from CCI. It can now stand on it’s own. These are the way to go for a hidden custom application.
Watch as we post the Ventura Antique meet later today or tomorrow. Outstanding antiques and sharp shots from Frank Kaisler. Other than that and a small tech on the Shrunken FXR, Bikernet will be slow next week. We’ll be mopping around since we ain’t riding in the Badlands.
Ride forever,
–Bandit
