Harley-Davidson to donate motorcycles for Haiti relief efforts






MILWAUKEE (February 1, 2010) -
Harley-Davidson today announced it will donate 28 new Buell and Harley-Davidson motorcycles to assist with earthquake disaster relief and stabilization efforts in Haiti. The motorcycles are being shipped from Motor Company facilities to the Dominican Republic, where Harley-Davidson dealership Magna Motors, S.A. will facilitate direct delivery to the United Nations Stabilization Mission in Haiti.

“Our thoughts are with all of those affected by this devastating disaster in Haiti,” said Rod Copes, Sr. Vice President of International Sales, Marketing and Business Development for Harley-Davidson. “As the relief and stabilization efforts continue, motorcycles can often offer a higher degree of maneuverability and access than other types of vehicles.”

The motorcycles will remain in Haiti as a permanent donation to the government.

Harley-Davidson Motor Company produces heavyweight custom, cruiser and touring motorcycles and offers a complete line of Harley-Davidson motorcycle parts, accessories, riding gear and apparel, and general merchandise. For more information, visit Harley-Davidson's Web site at www.harley-davidson.com.

 

2010 Harley-Davidson Tri Glide Ultra Classic Available to Shrine Members for a Limited Time






Milwaukee, WI (February 3, 2010) -
We are excited to announce the addition of the 2010 FLHTCUTG Tri-Glide® Ultra Classic® motorcycle to our Shrine model offerings. There is a very limited quantity of the Trikes available during a limited time offered for Shrine members, and the ordering window is short.

The Shrine Tri Glide® is offered for members in Arctic White with Red & Gold pinstripes, or for the Jester members, Concord Purple with Violet & Burgundy pinstripes. The ordering window is from Wednesday, January 27th to Friday, March 5th, 2010 through Harley-Davidson dealers.

Any Shrine member whose membership is in good standing is eligible to purchase a Harley-Davidson motorcycle through the Shrine Purchase Program. Pricing is negotiated with your local Harley-Davidson dealership. This is a limited time offer and can only be ordered through Friday, March 5, 2010.

Be one of the first in your Shrine organization to own this truly unique FLHTCUTG Tri-Glide® Ultra Classic® motorcycle!

 

Harley-Davidson Competitive Bike Exchange extended to Feb. 28, 2010






MILWAUKEE (February 1, 2010) -
Harley-Davidson has extended its Competitive Bike Exchange trade-in program launched last December through February 28, 2010. The incentive program offers customers who trade-in an eligible non-Harley-Davidson brand motorcycle a credit of $500 above the dealer-negotiated trade-in value towards the purchase price of a new untitled Harley-Davidson motorcycle.

“If the bike in your garage is not the bike in your head, this offer makes it a little easier to purchase the bike of your dreams,” said Dino Bernacchi, Harley-Davidson Advertising and Promotions Director. “It’s just one more way Harley-Davidson and its dealers strive to welcome new riders into the Harley-Davidson family.”

For more details about the competitive trade-in promotion, visit your local Harley-Davidson dealer or log onto h-d.com/trade-in.

Company Background
Harley-Davidson Motor Company produces heavyweight custom, cruiser and touring motorcycles and offers a complete line of Harley-Davidson motorcycle parts, accessories, riding gear and apparel, and general merchandise. For more information, visit Harley-Davidson's Web site at www.harley-davidson.com.

 

New Harley-Davidson® CVO™ Ultra rides to the dark side






MILWAUKEE (January 24, 2010) -
The new 2010 Custom Vehicle Operations (CVO) Ultra Classic® Electra Glide® trades the shine of chrome for a fade to black in its debut as the new, darker version of this truly exceptional Harley-Davidson Touring motorcycle.

Each motorcycle is serialized from one to 999, and displays a formidable array of blacked out components, led by the serialized CB pod insert and the Gloss Black Rumble Collection and low-smoked windshield, the new CVO Ultra adds leading-edge technology with a handlebar-mounted Road Tech™ zūmo® 660 GPS Navigator and an integrated automatic lock system that now includes the ignition ****.

The CVO Ultra is powered by a black and chrome Screamin’ Eagle® Twin Cam 110™ engine and a 6-speed Cruise Drive® transmission, which is the largest-displacement V-Twin engine offered from the factory by Harley-Davidson. Besides the black powertrain, this menacing touring bike revels in all things dark with a Crimson Mist Black / Dark Slate and Flame graphics base color, and approximately 185 other unique black parts, components and accessories meticulously melded to form and function by the CVO team.

Among the main attractions on the dark road to CVO Ultra custom inspiration are the Contrast Chrome Roulette wheels, the Rumble Collection featuring nine Gloss Black accessories from mirrors to saddlebag latch covers, black engine and saddlebag guards, and Diamond Black gauge faces. All these deeply dark features combine to make the Ultra into an inspired motorcycle that could only come from Harley-Davidson CVO.

The CVO Ultra presents a lower profile up front with a 6.5-inch smoked windshield and adds premium Touring features like anti-lock braking system (ABS), LED saddlebag lights, Electronic Sequential Port Fuel Injection (ESPFI), a six-gallon fuel tank, Brembo brakes and 160-watt CD/AM/FM/WB/MP3 Advanced Audio System by Harman-Kardon, CB and intercom, and passenger audio with controls, cruise control, plus standard XM Radio.

The CVO Ultra is built on the innovative Touring chassis introduced by Harley-Davidson in 2009, based on a single-spar, rigid backbone frame and swingarm specifically developed to suit the needs of long-haul touring rides.

Key CVO Ultra Classic Electra Glide Features

Screamin’ Eagle Black and Chrome Twin Cam 110 engine with 110-cid (1803cc), rubber-mounted to the frame, is rated at 115 ft. lbs. of torque at 3750 rpm. The 6-speed Cruise Drive transmission with black and chrome case features a helical-cut fifth gear.
Developed for Harley-Davidson by Garmin, the Road Tech zūmo 660 has a new mounting position for convenient viewing by both rider and passenger with a glove-friendly touch screen, left-handed controls and a bright, UV-resistant display that's easy to read in sunlight.
Gloss Black Rumble Collection featuring rider footboard inserts and pans, passenger footboard inserts and pans, shifter pegs, brake pedal, highway pegs, mirrors, windshield trim, saddlebag latch covers and heated hand grips with end caps.
Contrast Chrome Roulette wheels, 17-inch front and 16-inch rear.
Suspended, dual control heated leather seat with new perforated printed insert.
Leather passenger backrest with adjustable lumbar support and new perforated, leather insert.
New custom paint scheme is Crimson Mist Black / Dark Slate with flame graphics.
Production of the 2010 CVO Ultra Classic Electra Glide will be limited to approximately 999 units and it has a suggested U.S. retail price of $36,499.

Harley-Davidson Motor Company produces heavyweight custom, cruiser and touring motorcycles and offers a complete line of Harley-Davidson motorcycle parts, accessories, riding gear and apparel, and general merchandise. For more information, visit Harley-Davidson's Web site at www.harley-davidson.com.

 

Harley-Davidson reports 2009 results






MILWAUKEE (January 22, 2010) -
Harley-Davidson, Inc. (NYSE:HOG) reported full-year 2009 revenue of $4.29 billion and income of $70.6 million, or $0.30 per share, from continuing operations. In the fourth quarter, the Company reported revenue of $764.5 million and a loss of $147.2 million, or $0.63 per share, from continuing operations. Affecting fourth-quarter results were a previously announced 53.1 percent reduction in Harley-Davidson® motorcycle shipments from the year-ago period and $167.1 million in restructuring and Buell® product line exit costs.

Including MV Agusta discontinued operations, the Company reported a full-year net loss of $55.1 million, or $0.24 per share, and a fourth-quarter net loss of $218.7 million, or $0.94 per share.

“Our full-year 2009 results were affected by the difficult economy, as well as the planned actions we took that resulted in restructuring charges of $224 million. We believe these actions are critical to restoring greater profitability and long-term growth to Harley-Davidson,” said Keith Wandell, Harley-Davidson, Inc. President and Chief Executive Officer. “We are confident we have made the right decisions for our future, and we are executing our strategy with focused intensity.”

Full-Year and Fourth-Quarter Results
For the full-year from continuing operations: revenue was $4.29 billion in 2009 compared to $5.58 billion in 2008, a 23.1 percent decrease; income was $70.6 million in 2009 compared to $684.2 million in 2008, a decrease of 89.7 percent; and earnings per share decreased 89.7 percent to $0.30 in 2009, compared to $2.92 in 2008. Full-year results from continuing operations primarily reflect the effects of lower motorcycle shipments, restructuring and Buell product line exit costs, and non-cash charges related to Harley-Davidson Financial Services.

In the fourth-quarter of 2009, the Company reported revenue of $764.5 million compared to $1.28 billion in the year-ago quarter, a 40.2 percent decrease, and a loss of $147.2 million, or $0.63 per share, compared to income of $91.9 million, or $0.40 per share in 2008, from continuing operations.

2010 Guidance
For 2010, the Company expects to ship 201,000 to 212,000 Harley-Davidson motorcycles to dealers and distributors worldwide, a reduction of five to ten percent from 2009. “We believe 2010 will continue to be a challenging year,” Wandell noted. In the first quarter of 2010, Harley-Davidson expects to ship 52,000 to 57,000 motorcycles. Gross margin is expected to be between 32.0 percent and 33.5 percent for the full year. The Company expects full-year capital expenditures of between $235 million and $255 million, including $95 million to $110 million to support restructuring activities.

“Delivering Results Through Focus” Strategy
During the fourth quarter, the Company moved forward with the execution of its business strategy, unveiled in October 2009, to deliver results by focusing on Harley-Davidson products and experiences, global expansion, demographic outreach and commitment to core customers. Additionally, the Company will continue to expand its initiative to enhance profitability through continuous improvement in manufacturing, product development and business operations.

“Focusing our investment behind the uniquely strong Harley-Davidson brand provides the most attractive path to sustained, long-term growth,” Wandell said. “We also expect to achieve substantial gains in the efficiency of our operations through continuous improvement.”

Motorcycles and Related Products Segment
Fourth Quarter. Revenue from Harley-Davidson motorcycles during the fourth quarter of 2009 was $552.0 million, down 45.6 percent compared to the year-ago period. The Company shipped 35,938 Harley-Davidson motorcycles to dealers and distributors worldwide, down 53.1 percent from the fourth quarter of 2008 but in line with previous guidance of 35,000 to 40,000 units.Revenue from Parts and Accessories totaled $144.6 million during the quarter, down 4.9 percent, and revenue from General Merchandise, which includes MotorClothes® apparel, was $66.8 million during the quarter, down 3.2 percent compared to the year-ago period.

Gross margin percent was down during the quarter from the year-ago period, primarily as a result of fixed costs being spread over fewer units and the impact of exiting the Buell product line. Operating loss was $221.8 million compared to an operating income of $162.2 million in the fourth quarter of 2008. Operating margin was negatively affected by lower gross margin and restructuring charges incurred during the quarter.

Full-Year. For the full year 2009, revenue from Harley-Davidson motorcycles was $3.17 billion compared to $4.24 billion in 2008 on shipments of 223,023 Harley-Davidson motorcycles, compared to 303,479 motorcycles in 2008. Revenue from Parts and Accessories totaled $767.3 million in 2009, down 10.7 percent, and revenue from General Merchandise was $282.2 million, down 10.1 percent compared to 2008.

Full-year 2009 gross margin was 32.3 percent compared to 34.6 percent in 2008, and operating margin was 7.3 percent compared to 17.5 percent in 2008.

Retail Motorcycle Sales.During the fourth quarter, retail sales of Harley-Davidson motorcycles decreased 21.4 percent worldwide, 27.9 percent in the U.S. and 10.3 percent in international markets, compared to the prior-year quarter. Industry-wide U.S. retail heavyweight (651cc+) motorcycle sales declined 20.9 percent during the quarter, compared to the year-ago period.

For the full year 2009 compared to 2008, retail sales of Harley-Davidson motorcycles decreased 22.7 percent worldwide, 25.8 percent in the U.S. and 15.4 percent in international markets. Industry-wide U.S. retail heavyweight motorcycle sales declined 36.7 percent in 2009, compared to 2008.

Financial Services Segment
Harley-Davidson Financial Services (HDFS) recorded an operating loss of $7.1 million for the fourth quarter of 2009, compared to an operating loss of $24.9 million in the fourth quarter of 2008. Key drivers of reduced operating loss versus the year-ago quarter include a decrease in impairments on retained securitization interests and a decrease in fair value writedowns on held-for-sale receivables, partially offset by an increase in the provision for retail loan losses.

For the full year 2009, HDFS reported an operating loss of $118.0 million, compared to operating income of $82.8 million in 2008.

HDFS continued to access the capital markets during the quarter, raising $1.76 billion through the unsecured debt and term asset-backed securitization markets. Through its 2009 funding actions, HDFS expects to meet its 2010 anticipated funding requirements.

Restructuring
The Company now expects previously announced restructuring activities that began in 2009 to result in total one-time charges of $430 million to $460 million into 2012, including charges of $175 million to $195 million in 2010. The Company continues to anticipate annual ongoing total savings from restructuring of approximately $240 million to $260 million upon completion of all announced restructuring activities, including savings of approximately $135 million to $155 million anticipated in 2010.

In December, Harley-Davidson announced that, as a result of the ratification of a new seven-year labor agreement at its York, Pa. motorcycle production operations, the Company is restructuring those facilities to focus on the core operations of motorcycle assembly, metal fabrication and paint. “When the restructuring is completed, we will have completely changed the face of how we build motorcycles in York and we expect significantly greater manufacturing flexibility and significant annual cost savings from a more efficient operation. It is a tribute to our employees at York that they understood we could not continue on the course we were on, and they worked with us to find a better way,” said Wandell.

During the fourth quarter, the Company made the decision to consolidate its vehicle test facilities from three locations, in Alabama, Arizona and Florida, into one location in Arizona.

Income Tax Rate
The Company’s full-year effective tax rate from continuing operations was 60.5 percent compared to 35.8 percent from the prior year. The increase was due primarily to the previously reported one-time charge for the Wisconsin tax law change and the non-deductible goodwill write-off for Harley-Davidson Financial Services, as well as the impact of reduced earnings. In 2010, the Company expects its full-year effective tax rate to be approximately 36.5 percent from continuing operations.

Cash Flow
Cash and marketable securities totaled $1.67 billion as of Dec. 31, 2009, compared to $568.9 million at year end 2008. Cash provided by operating activities for continuing operations was $609.0 million and capital expenditures were $116.7 million in 2009. In the fourth quarter, Harley-Davidson Motor Company made a $215 million contribution to fund Company pension plans.

Discontinued Operations
The Company continues to move forward with the sale of MV Agusta and is in the process of identifying potential buyers, following Harley-Davidson’s decision in the fourth quarter of 2009 to divest the subsidiary. MV Agusta is now presented as a discontinued operation for all periods. For the full year of 2009, Harley-Davidson, Inc. incurred a $125.8 million loss from discontinued operations, or a loss of $0.54 per share, comprised of operating losses as well as a fair value adjustment.

Company Background
Harley-Davidson, Inc. is the parent company for the group of companies doing business as Harley-Davidson Motor Company (HDMC), Harley-Davidson Financial Services (HDFS), Buell Motorcycle Company (Buell), and MV Agusta.

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) execute its strategy and successfully exit certain product lines and divest certain company assets, (ii) effectively execute the Company’s restructuring plans within expected costs and timing, (iii) successfully achieve with our labor unions flexible and cost-effective agreements to accomplish restructuring goals and long-term competitiveness, (iv) manage the risks that our independent dealers may have difficulty obtaining capital, and adjusting to the recession and slowdown in consumer demand, (v) manage supply chain issues, (vi) anticipate the level of consumer confidence in the economy, (vii) continue to have access to reliable sources of capital funding and adjust to fluctuations in the cost of capital, (viii) manage the credit quality, the loan servicing and collection activities, and the recovery rates of HDFS’ loan portfolio, (ix) continue to realize production efficiencies at its production facilities and manage operating costs including materials, labor and overhead, (x) manage production capacity and production changes, (xi) provide products, services and experiences that are successful in the marketplace, (xii) develop and implement sales and marketing plans that retain existing retail customers and attract new retail customers in an increasingly competitive marketplace, (xiii) sell all of its motorcycles and related products and services to its independent dealers, (xiv) continue to develop the capabilities of its distributor and dealer network, (xv) manage changes and prepare for requirements in legislative and regulatory environments for its products, services and operations, (xvi) adjust to fluctuations in foreign currency exchange rates, interest rates and commodity prices, (xvii) adjust to healthcare inflation, pension reform and tax changes, (xviii) retain and attract talented employees, (xix) detect any issues with our motorcycles or manufacturing processes to avoid delays in new model launches, recall campaigns, increased warranty costs or litigation, and (xx) 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. Many of these risk factors are impacted by the current turbulent capital, credit and retail markets and our ability to adjust to the recession.

The Company’s ability to sell its motorcycles and related products and services and to meet its financial expectations also depends on the ability of the Company’s independent dealers to sell its motorcycles and related products and services to retail customers. The Company depends on the capability and financial capacity 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 operating their businesses and selling Harley-Davidson motorcycles and related products and services as a result of weather, economic conditions or other factors.

 

Harley-Davidson India rolls out motorcycle line-up






NEW DELHI (January 5, 2010) -
Today at the Auto Expo, Harley-Davidson India announced it will bring 12 motorcycles from its 2010 model portfolio to India. The broad selection, with bikes from each of its five model families, will give riders in India maximum choice and opportunity to join millions of Harley-Davidson owners worldwide in pursuit of adventure, freedom and self-expression.

“For over a century, Harley-Davidson has inspired motorcyclists across the world to celebrate their passion for riding. Our experience in leading the leisure motorcycle market worldwide makes us naturally suited to help lead and define leisure riding in India. We entered India with a promise to bring riders the pure Harley-Davidson experience with bikes from every family. Over the past year we have listened to riders across India at our many events, and we have produced a line-up to stir their soul,” said Anoop Prakash, Managing Director, Harley-Davidson India.

The 2010 Harley-Davidson® models introduced across Harley-Davidson’s five motorcycle families in India include:

Sportster
XL 883L SPORTSTER
XL 1200N NIGHTSTER®
XL 883R ROADSTER®
XR 1200X

Dyna
FXDB STREET BOB®
FXDC SUPER GLIDE® CUSTOM

VRSC
VRSCDX NIGHT ROD® SPECIAL

Softail
FLSTF FAT BOY®
FLSTC HERITAGE® SOFTAIL CLASSIC

Touring
FLHR ROAD KING®
FLHX STREET GLIDE®
FLHTCUSE ULTRA CLASSIC ELECTRA GLIDE® (CVO)


Featured at the Auto Expo is a custom-painted Harley-Davidson Fat Boy in Indian color accents that will be the first motorcycle sold by Harley-Davidson in India.

The Harley-Davidson motorcycles are being imported into India as completely built units and will be priced between Rs. 6,95,000 and Rs. 34,95,000 ex-showroom (New Delhi).

“We have worked hard to give every enthusiast an opportunity to realize their dream of joining the global Harley-Davidson family,” said Anoop Prakash. “Our aim is to provide our riders with a world-class ownership experience comparable to the best in the world. We will have available genuine parts and accessories and a broad selection of riding apparel and merchandise through our dealer network in India.”

Bookings for Harley-Davidson motorcycles will be open from April 2010 at dealerships to be announced in New Delhi, Mumbai, Bangalore, Hyderabad and Chandigarh. Delivery of motorcycles will commence from June 2010.

The Harley-Davidson Boot Camps and Founders Rides held in Mumbai, New Delhi and Bangalore gave over 300 riding enthusiasts the opportunity to learn about the motorcycles and the model families and provide their input on the model lineup. In 2010, Harley-Davidson India will conduct more such experiential opportunities in India for passionate motorcyclists to experience the unique look, sound and feel of Harley-Davidson.

Harley-Davidson is the global leader in cruising and touring motorcycles and ranks as one of the strongest brands in the world, with motorcycle sales now in more than 70 countries.

Harley-Davidson Motor Company produces heavyweight motorcycles and a complete line of motorcycle parts, accessories and general merchandise. For more information, visit Harley-Davidson India's web site at www.harley-davidson.in .