Milwaukee, Wis. (April 17, 2008) - Harley-Davidson, Inc. (NYSE: HOG) today announced its results for the first quarter ended March 30, 2008.  Revenue for the quarter was $1.31 billion compared to $1.18 billion in the year-ago quarter, a 10.8 percent increase.  Net income for the quarter was $187.6 million compared to $192.3 million, a decrease of 2.5 percent compared to the first quarter of 2007.  First quarter diluted earnings per share (EPS) were $0.79, a 6.8 percent increase compared to last year’s $0.74.“With growing weakness in the economy, U.S. retail sales of Harley-Davidson® motorcycles were down 12.8 percent in the first quarter. Although these retail results are disappointing, Harley-Davidson’s U.S. dealers outperformed the heavyweight motorcycle industry, which was down 14.0 percent,” said Jim Ziemer, Chief Executive Officer of Harley-Davidson, Inc.

“We’ve said on a number of occasions that we would closely monitor the retail environment and regularly assess our wholesale shipment plans, and we remain committed to shipping fewer Harley-Davidson motorcycles to our worldwide dealer network than we expect they will sell this year.  In view of U.S. retail trends and uncertainty about the future of the economy, we now plan to ship 23,000 to 27,000 fewer Harley-Davidson motorcycles in 2008 than we shipped in 2007, resulting in total planned 2008 shipments between 303,500 and 307,500 units,” Ziemer said.

“We will achieve the shipment reduction through temporary plant shutdowns and adjustments to daily production rates.  This will result in a decrease of about 370 unionized employees over the next several months.  Our management group and union leaders will work together to implement this reduction.”

“The Company will also be reducing the non-production workforce by about 360 jobs. We believe these actions will better position the Company for a business environment that we expect to continue to be challenging,” Ziemer said.

“Harley-Davidson is fortunate to be dealing with the current economic environment from a position of financial strength.  We are a great company with an exceptionally powerful brand. We are optimistic about our long term business prospects and we will continue to invest in marketing, product development and our international business to drive future growth.”

“For 2008, the Company now expects earnings per share to decrease between 15 and 20 percent compared to 2007 resulting in expected earnings per share of $3.00 to $3.18,” said Ziemer.  This supersedes all previous guidance on earnings per share and other measures.

The Company expects to ship between 76,000 and 80,000 Harley-Davidson motorcycles in the second quarter of 2008.

A rare 1918 Harley-Davidson bicycle will be auctioned off along with six motorcycles from the Santa Cruz Harley-Davidson’s museum collection at the upcoming Legends of the Motorcycle.

4/16/2008
Courtesy of Bonhams & Butterfields

Six motorcycles from the museum collection of the Santa Cruz Harley-Davidson dealership in California have been consigned to the fast approaching auction at Legend of the Motorcycle on May 3rd.

The Harley motorbikes, which have been on view at the dealership’s museum, include: 1929 JDH - at the time, the fastest road bike Harley offered to the public; 1930 VL with sidecar - found in Chile and now beautifully restored; 1941 EL; 1947 WL; 1967 FLH; and 1978 XLH.

Additionally, a rare 1918 Harley-Davidson bicycle will be included in the sale. An anomaly in the Harley line, it was primarily marketed to children and ladies and one can’t help but think the bicycle was created in reaction to the success of Schwinn, the bicycle company whose proprietor also owned the Henderson and Excelsior motorcycle companies.

Although the bicycles were well-made and painted and pin-striped in the same colors as their motorcycle brethren, they were seemingly out of place in most Harley-Davidson dealerships and sales did not meet expectations.

This lady’s bicycle, with its wooden rims, was purchased from its original owner in 1975. The owner was born in 1899 and entered college in 1918. To pay for tuition she hired on with the US Postal Service as a rural route carrier and bought the pedal bike as her source of transportation. It was accessorized with a battery-powered front lamp, and unique to the girl’s model was the front chain guard and the web of string covering the rear wheel spokes. This web of string, which is original, kept the long skirts from getting caught in the wheel. After finishing college, the owner retired the bicycle to her basement where it was stored for over 50 years.

Renowned auctioneers Bonhams & Butterfields will host their second annual auction of important collector motorcycles and memorabilia in conjunction with the upcoming Legend of the Motorcycle Concours d’Elegance on Saturday, May 3rd at the ocean-side Ritz-Carlton in Half Moon Bay, California (just south of San Francisco).

The auction will consist of 100 motorcycles, including the Michael Corbin Collection, bikes previously owned by Steve McQueen and Evel Knievel, and a line-up as diverse as a 1913 Excelsior to a 2007 Ducati “New Blue”. The preview takes place throughout the day from 9:00 am-4:30 pm, and the auction starts at 4:30 in the hotel’s ballroom.

To register to bid - in person or remotely - or to purchase a catalog, please call 415-861-7500. For more information on this seminal auction, go to www.Bonhams.com/Legend.

For more information on the unique event that is Legend of the Motorcycle, go to www.LegendoftheMotorcycle.com.

April 8, 2007 — USW-represented workers at Harley-Davidson Inc. factories in Wisconsin have overwhelmingly approved new contracts that raise wages, protect medical benefits and make temporary two-tier wages for skilled craftsmen.

The agreements were ratified by overwhelming margins in April by members of USW Local 2-209, which represents about 1,700 Harley employees in Milwaukee, and USW Local 460 in Tomahawk, Wis., which represents about 360 employees.

A separate agreement covering about 128 members of the International Association of Machinists and Aerospace Workers (IAM) Lodge 78 in the Milwaukee area was also ratified.

The new four-year agreements were retroactive to April 1.

In addition to wage increases, the new contracts include an innovative way to help employees cover health care insurance deductibles and other out-of-pocket expenses.

Each employee will receive a $2,000 annual credit in a health savings program called a Health Reimbursement Arrangement (HRA).

The HRA credits, available to employees through a debit card, can be used for a wide range of medical care costs with the balance rolled over from year to year.

The account balance accrued during working years can be accessed after retirement or a job change. If the employee dies, a spouse or other eligible dependents can use the HRA balance toward reimbursable expenses until they are exhausted.

USW negotiator Steve Brady said the credit should be enough to cover the maximum amount of annual out-of-pocket expenses an employee could be required to pay within a network of health care providers.

“If members and their dependants are able to receive medical care in network, you can use a swipe card and never pay anything out of pocket,” Brady said.

The USW contracts include annual general wage increases for all employee classifications plus one-time boosts of $1 to $1.50 an hour for certain electricians and machinist classifications.

The contracts will also allow newly-hired skilled workers who start work at a lower tier wage than more experienced employees to progress to the top rate over four years.

Casual employees used to cover seasonal work at a parts and accessories warehouse received a rate hike of $6 an hour before the general wage increase, Brady said.

Source: USW

Courtesy of Harley-Davidson