MILWAUKEE, Sept. 7 /PRNewswire-FirstCall/ -- Harley-Davidson, Inc.
(NYSE: HOG) announced today that it expects to ship between 86,000 and
88,000 Harley-Davidson(R) motorcycles in the third quarter of 2007.
Shipments of between 91,000 units and 95,000 units were originally planned
for the quarter. Shipments for the full year are expected to be in the
range of 328,000 to 332,000 Harley-Davidson motorcycles.
"Initial reports about our 2008 model year motorcycles from our dealers
and the media have been excellent, but this is a difficult time for the
U.S. consumer," said Jim Ziemer, Chief Executive Officer of
Harley-Davidson, Inc. "Coming off a negative U.S. retail sales trend in the
first six months of the year, we ran an effective promotion in July that
increased retail sales and reduced inventories of 2007 model motorcycles.
However, our U.S. dealers' retail sales have fallen sharply during August.
Against the current economic background, we no longer expect worldwide
dealer retail sales to increase during the second half of 2007. As a
result, the Company has decided to reduce its planned shipments of
motorcycles to its dealers for the remainder of 2007. The Company expects
its actions will result in fewer wholesale motorcycle shipments than dealer
retail sales during 2007," said Ziemer.
The Company now expects a modest decline in revenue for 2007. Diluted
earnings per share (EPS) for the full year 2007 are expected to be down 4
to 6 percent, in the range of $3.69 - $3.77, compared to 2006 EPS of $3.93.
Looking ahead to 2008, the Company anticipates the U.S. retail
motorcycle environment will continue to be challenging. It expects moderate
revenue growth, lower operating margins and EPS growth of between 4 and 7
percent.
The Company had previously provided guidance for 2009 as well, but will
not be providing that guidance at this time.
"Although this is a challenging time, Harley-Davidson is the worldwide
heavyweight motorcycle market leader," said Ziemer. "We enjoy an enviable
position of financial strength, with a solid balance sheet, strong cash
flow and a history of returning value to shareholders. While a decision to
reduce shipments and expectations is never easy, it is clearly the right
thing to do for the long-term health of the brand and the business," said
Ziemer.
Company Background
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
motorcycles. Harley- Davidson Financial Services provides wholesale and
retail financing and insurance programs to Harley-Davidson dealers and
their retail 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 capabilities 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, commodity prices and credit availability, (x) manage
regional and worldwide demographic trends and economic and political
conditions, including healthcare inflation, pension reform and tax changes,
(xi) anticipate consumer confidence in the economy, (xii) manage the credit
quality and recovery rates of HDFS's loan portfolio, (xiii) retain and
attract talented employees, (xiv) detect any defects in our motorcycles to
minimize delays in new model launches, recall campaigns, increased warranty
costs or litigation and (xv) implement and manage enterprise-wide
information technology solutions and secure data contained in those
systems. 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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