MILWAUKEE, Feb. 27 /PRNewswire-FirstCall/ -- Harley-Davidson, Inc.
(NYSE: HOG) announced today that it is updating guidance for motorcycle
shipments for the first quarter of 2007 and financial guidance for the full
year. Guidance is being revised to reflect the impact of a three week
strike that concluded Thursday, February 22, 2007, at the Company's
manufacturing facility in York, Pa. Full production at the Pennsylvania and
Wisconsin plants is expected to resume over the next week. In all, the
strike will result in a loss of approximately one month's production.
"While we are pleased to have reached an agreement with our unionized
employees in York, a disruption of this magnitude has a significant impact
on our business, as well as our suppliers, dealers, employees and our
retail customers," said Tom Bergmann, Chief Financial Officer.
"Although the recovery process has begun, the immediate impact will be
a reduction in our first quarter Harley-Davidson(R) motorcycle shipments
from our previous guidance of 82,000 - 84,000 units, to revised guidance of
64,000 - 66,000 units. We expect to make up approximately 4,000 - 5,000 of
these motorcycles during the remainder of the year resulting in full year
shipment plans for approximately 14,000 fewer motorcycles than we
originally planned. This decision was made after carefully evaluating our
production constraints, supply chain issues, cost implications, timing of
shipments to dealers, and the delayed start of 2008 model year production
caused by the strike," said Bergmann.
For the full year 2007, Harley-Davidson now expects moderate revenue
growth, lower margins, and earnings per share (EPS) growth in the range of
4 - 6 percent compared to 2006. The Company expects its EPS growth rate to
return to 11 - 17 percent in 2008 and 2009.
Harley-Davidson, Inc. is the parent company for the group of companies
doing business as Harley-Davidson Motor Company, Buell Motorcycle Company
and Harley-Davidson Financial Services. Harley-Davidson Motor Company, the
only major U.S.-based motorcycle manufacturer, produces heavyweight
motorcycles and offers a complete line of motorcycle parts, accessories,
apparel, and general merchandise. Buell Motorcycle Company produces sport
and sport-touring motorcycles. Harley-Davidson Financial Services provides
wholesale and retail financing and insurance programs to Harley-Davidson
dealers and customers.
Forward-Looking Statements
The Company intends that certain matters discussed in this release are
"forward-looking statements" intended to qualify for the safe harbor from
liability established by the Private Securities Litigation Reform Act of
1995. These forward-looking statements can generally be identified as such
because the context of the statement will include words such as the Company
"believes," "anticipates," "expects," "plans," or "estimates" or words of
similar meaning. Similarly, statements that describe future plans,
objectives, outlooks, targets, guidance or goals are also forward-looking
statements. Such forward-looking statements are subject to certain risks
and uncertainties that could cause actual results to differ materially from
those anticipated as of the date of this release. Certain of such risks and
uncertainties are described below. Shareholders, potential investors, and
other readers are urged to consider these factors in evaluating the
forward- looking statements and cautioned not to place undue reliance on
such forward- looking statements. The forward-looking statements included
in this release are only made as of the date of this release, and the
Company disclaims any obligation to publicly update such forward-looking
statements to reflect subsequent events or circumstances.
The Company's ability to meet the targets and expectations noted
depends upon, among other factors, the Company's ability to (i) continue to
realize production efficiencies at its production facilities and manage
operating costs including materials, labor and overhead, (ii) manage
production capacity and production changes, (iii) manage supply chain
issues, (iv) provide products, services and experiences that are successful
in the marketplace, (v) develop and implement sales and marketing plans
that retain existing retail customers and attract new retail customers in
an increasingly competitive marketplace, (vi) sell all of its motorcycles
and related products and services to its independent dealers and
distributors, (vii) continue to develop the capacity of its distributor and
dealer network, (viii) manage changes and prepare for requirements in
legislative and regulatory environments for its products, services and
operations, (ix) adjust to fluctuations in foreign currency exchange rates,
interest rates and commodity prices, (x) manage regional and worldwide
demographic trends and economic and political conditions, including
healthcare inflation, pension reform and tax changes (xi) manage the credit
quality and recovery rates of HDFS's loan portfolio, (xii) retain and
attract talented employees and (xiii) detect any defects in our motorcycles
to minimize delays in new model launches, recall campaigns, increased
warranty costs or litigation. In addition, the Company could experience
delays or disruptions in its operations as a result of work stoppages,
strikes, natural causes, terrorism or other factors. Other factors are
described in risk factors that the Company has disclosed in documents
previously filed with the Securities and Exchange Commission.
The Company's ability to sell all of its motorcycles and related
products and services also depends on the ability of the Company's
independent dealer network to sell them to retail customers. The Company
depends on the capability of its independent dealers and distributors to
develop and implement effective retail sales plans to create demand for the
motorcycles and related products and services they purchase from the
Company.
In addition, the Company's independent dealers and distributors may
experience difficulties in selling Harley-Davidson motorcycles and related
products and services as a result of weather, economic conditions or other
factors.
SOURCE Harley-Davidson, Inc.
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Related links:
http://www.harley-davidson.com/
CONTACT:
Financial, Mark Van Genderen,
+1-414-343-8002, or Media, Bob Klein, +1-414-343-4433, both of
Harley-Davidson, Inc.
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