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Author Topic: H-D MoCo News  (Read 3406 times)

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H-D MoCo News
« on: October 18, 2004, 05:33:10 PM »

 Chicago (Reuters) - Harley-Davidson Inc. reported a 20 percent rise in quarterly earnings on Wednesday, but its shares fell on a sharp drop in U.S. retail motorcycle sales and a lower-than-expected production goal for 2005.

The Milwaukee-based company blamed the retail sales drop on tough comparisons with a year earlier, when the company


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Re: H-D MoCo News
« Reply #1 on: October 19, 2004, 11:22:55 AM »

Harley-Davidson's profits soar

MILWAUKEE - Harley-Davidson Inc.'s third-quarter profit surged 20 percent, revved up by higher gross margin and brisk sales of its brand-name motorcycles and accessories.

The Milwaukee-based company has also projected continued growth in demand for its motorcycles, resulting in a wholesale unit target of 339,000 motorcycles in 2005, a 7 percent increase over the 2004 target.

Harley posted earnings of $229 million, or 77 cents a share, for the third quarter ended Sept. 26, up from $190.1 million, or 62 cents a share, in the third quarter a year earlier.

Third-quarter revenue rose 15 percent to $1.3 billion from $1.13 billion for the 2003 period.

A Thomson First Call survey of Wall Street analysts projected, on average, third-quarter earnings of 75 cents a share on revenue of $1.33 billion.

Third-quarter revenue from Harley-Davidson motorcycles grew 18 percent to $996.6 million. Domestic Harley retail sales slipped 9.8 percent after a record quarter in 2003 driven by events associated with the company's 100th anniversary. International sales fell marginally amid difficult economic and market conditions in certain markets.

Revenue from parts and accessories, general merchandise and financial services outpaced 2003 levels.

Sales of Buell Motorcycles fell to $18.3 million from $20.4 million in the year-earlier period.

The company reiterated its target for Harley shipments of 317,000 motorcycles in 2004, with 2005 growth of 7 percent from that level.

Over the long term, Harley-Davidson projected growth in its parts and accessories business and operating income at financial services would trend slightly higher than motorcycle sales, with growth of general merchandise expected to trend slightly lower.



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Re: H-D MoCo News
« Reply #2 on: October 19, 2004, 11:24:51 AM »

Harley-Davidson profit up 20%


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Re: H-D MoCo News
« Reply #3 on: October 19, 2004, 11:27:56 AM »

NEW YORK, October 15 ( - Analyst Joseph D Hovorka of Raymond James downgrades Harley-Davidson Inc (HDI.NYS) from "strong buy" to "market perform."

In a research note published yesterday, the analyst mentions that the company declared its 3Q04 EPS at $0.77, while posting weak revenues due to a higher-than-expected decline in bike prices. Harley-Davidson's gross margins during the quarter were, however, 152 basis points ahead of the estimates driven partly by favaurable foreign exchange valuations, the analyst says. The company witnessed sluggish retail sales in the US during the quarter due to the recent hurricanes, according to Raymond James.


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Re: H-D MoCo News
« Reply #4 on: October 19, 2004, 11:33:45 AM »

Harley-Davidson "neutral weight," estimates reduced

Thursday, October 14, 2004 4:18:39 AM ET
Prudential Financial

NEW YORK, October 14 ( - Analyst William J Lerner of Prudential Financial maintains his "neutral weight" rating on Harley-Davidson Inc (HDI.NYS), while reducing his estimates for the company. The target price has been raised from $66 to $67.

Most popular stories:
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Prudential plans to raise


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Re: H-D MoCo News
« Reply #5 on: October 19, 2004, 11:36:32 AM »

Harley-Davidson Profit Rises 20% on Custom Bike Sales (Update2)  ListenListen

Oct. 13 (Bloomberg) -- Harley-Davidson Inc., the largest U.S. motorcycle maker, said third-quarter net income rose 20 percent on increased U.S. shipments of Custom and Sportster bikes and additional deliveries in international markets.

Net income increased to $229 million, or 77 cents a share, from $190.1 million, or 62 cents, in the year-earlier period, the Milwaukee-based company in a statement. Sales at the maker of Fat Boy and Road King motorcycles rose 15 percent to $1.3 billion from $1.13 billion.

Harley-Davidson, which hasn't had a quarterly profit decline since 1997, benefited from higher shipments of Harley brand motorcycles. The company makes about half of all motorcycles with 650cc or larger engines sold in the U.S. and one in four worldwide. The gross profit margin rose to 38 percent from 35.6 percent, the company said.

Shipments are expected to rise 6.9 percent next year, to 339,000, from this year's target of 317,000, Chief Executive Officer Jeffrey Bleustein said in the statement. Worldwide shipments of Harley-Davidson motorcycles rose 19.5 percent to 80,578 and Buell brand motorcycles fell 0.4 percent to 2,472, the company said in the statement.

The company was expected to earn 75 cents a share, the average estimate of analysts surveyed by Thomson Financial.

Harley-Davidson shares fell 13 cents to $59.61 in early trading today, and fell 11 cents to closed at $59.74 yesterday in New York Stock Exchange composite trading. They have gained 26 percent this year.


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Re: H-D MoCo News
« Reply #6 on: October 19, 2004, 11:39:05 AM »

UPDATE: Harley-Davidson CFO Sees Higher Metal Prices In 4Q

Wednesday October 13, 1:42 PM EDT

(ADDS impact of metal prices in 4Q in 2nd graf and ADDS info about storms in the 7th graf. )

By Dwight Oestricher


NEW YORK (Dow Jones)--Harley-Davidson Inc. (HDI) Chief Financial Officer Jim Ziemer said the rising cost of metal could lead to $3 million to $4 million in surcharges in the fourth quarter.

Based on the company's diluted outstanding share count of 285.8 million, that could mean a cut of about a penny in per-share earnings. According to a Thomson First Call analyst projection, the company is expected to earn 69 cents in the fourth quarter, compared with 60 cents a year ago.

The Milwaukee maker of motorcycles said suppliers managed most of the risk for metal prices in the third quarter. To hedge against more increases, the company "will lock in some orders in the next three to four months, depending on what metal markets are doing," Ziemer said during a call Wednesday to discuss earnings results.

"We could expect surcharges to continue next year," he said. "(Metal prices) are at all time high levels and if they stay up there, there will be more charges."

For the third quarter, Harley-Davidson reported earnings of 77 cents a share, topping the 62 cents of last year and the Thomson First Call analyst projection of 75 cents.

Net income totaled $229 million on revenue of $1.3 billion compared with net income of $190.1 million on revenue of $1.13 billion last year.

The storms that swept through Florida and Gulf Coast states kept some potential customers away in the quarter, Ziemer said. Harley has started " limited incentive programs" in select markets that were affected by the weather to increase orders for fall and early winter, he said.

Despite a greater contribution from its lower-priced Sportster mix, compared with its premium-priced touring bikes like Road King and Electra Glide, gross margins for the quarter improved to 38% of revenue from 35.6% a year ago. Ziemer noted that the company had its York, Pa., site fully operational this year while it was just ramping up last year.

Harley-Davidson also realized about an $8 million gain on favorable foreign exchange which, when you exclude $2 million of expenses at European and Japanese wholly owned operations, turned into $6 million of operating profit, Ziemer said.

U.S. motorcycle sales were down 9.8% against tough comparisons with 100th anniversary products. International motorcycle sales were down 0.9%, with sales down 5.1% in Europe on a weak German economy and down 10.2% in Japan, where a rule prohibiting more than one rider on a motorcycle is hurting sales, Ziemer said.

Total motorcycle revenue in the quarter rose 18% to $996.6 million as shipments totaled 80,578 units, topping Harley's target of 80,500 units.

The company stuck to its 2004 shipment target of 317,000 and 2005 target of 339,000 units, in line with the estimated unit growth rate of 7% to 9% annually.

The company securitized about $625 million of motorcycle retail loans in the quarter for a gain of $13.8 million in the period. With the smaller amount of loans in the fourth quarter, the company won't securitize loans again until the first quarter, Ziemer said.

At Harley-Davidson Financial Services, where the loans originate, operating income in the third quarter rose 8.4% to $50.1 million from $46.2 million last year. The company reiterated that it expects operating income growth for the financial services unit to be slightly higher than the projected 7% to 9% motorcycle unit growth rate in the long term.

Shares of Harley-Davidson were down $1.38, or 2.3%, at $58.36 on volume of 2.5 million shares, compared with average daily volume in the NYSE-listed stock of 1.4 million.

-By Dwight Oestricher, Dow Jones Newswires; 201-938-5266; dwight.oestricher@

 Dow Jones Newswires
 10-13-04 1342ET

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