Earnings Drop Reflects Impact of Lower Shipments, One-Time
Reclassification of Finance Receivables and Goodwill Write-Off
Related to HDFS Decline in Retail Motorcycle Sales Prompts Shipment
Reduction, Additional Workforce Reduction UPDATED July 16, 2009,
8:00 A.M. CDT to correct hourly workforce reduction numbers and
reporting period for cash flow and capital expenditures. MILWAUKEE,
July 16 /PRNewswire-FirstCall/ -- Harley-Davidson, Inc. (NYSE: HOG)
reported decreased revenue, net income and diluted earnings per
share for the second quarter of 2009 compared to the year-ago
period. Net income of $19.8 million and diluted earnings per share
of $0.08 were primarily affected by the planned 27.6 percent
reduction in motorcycle shipments compared to the year-ago period
and by two non-cash charges related to HDFS: a $72.7 million credit
loss provision for a one-time reclassification of motorcycle loan
receivables; and a one-time $28.4 million charge to write off the
total goodwill associated with HDFS. Worldwide retail unit sales of
new Harley-Davidson motorcycles were down 30.1 percent compared to
the year-ago quarter. Retail new Harley-Davidson motorcycle sales
in the U.S. were down 35.1 percent and declined 18.2 percent in
international markets compared to last year's second quarter.
Industry-wide retail sales of heavyweight motorcycles in the U.S.
declined 48.1 percent for the same period. "While the underlying
fundamentals of the Harley-Davidson brand remain strong and our
dealers' retail motorcycle sales declined less than our
competitors, it is obviously a very tough environment for us right
now, given the continued weak consumer spending in the overall
economy for discretionary purchases," said Harley-Davidson, Inc.
President and CEO Keith Wandell. In light of the decline in retail
motorcycle sales, the Company also lowered its 2009 shipment
expectations for Harley-Davidson motorcycles. The Company now plans
to ship between 212,000 and 228,000 Harley-Davidson motorcycles to
dealers and distributors worldwide in 2009, or 25 percent to 30
percent fewer than the 303,479 shipped in 2008. Prior 2009 guidance
was for shipments of 264,000 to 273,000 motorcycles. In the third
quarter of 2009, the Company expects to ship 52,000 to 57,000
Harley-Davidson motorcycles. As a result of the lowered shipment
volume, the Company will implement a further reduction this year of
approximately 700 positions in the hourly production workforce.
Harley-Davidson will also be reducing the non-production, primarily
salaried headcount by an approximate 300 additional positions,
including a reduction at HDFS. The Company plans to offer a
voluntary separation incentive package to eligible salaried
employees. Earlier this year, the Company had announced workforce
reductions totaling about 1,100 to 1,200 hourly production
positions in 2009 and 2010 and about 300 non-production, primarily
salaried positions. "We continue to take these difficult actions to
manage through the current challenges and we also continue to take
major steps in creating the operational effectiveness that is
essential to our long-term future," said Wandell. "We are committed
to doing what is required to enable Harley-Davidson to operate as a
competitive business and employer over the long haul." The Company
continues to expect full-year gross margins to be between 30.5
percent and 31.5 percent. Details of Harley-Davidson, Inc.
Second-Quarter and Six-Month Results Second Quarter. Net income for
the quarter was $19.8 million, compared to $222.8 million in the
second quarter of 2008, on revenue of $1.15 billion compared to
$1.57 billion in the year-ago period. Diluted earnings per share
for the second quarter were $0.08, compared to diluted earnings per
share of $0.95 in last year's second quarter. A key factor
affecting earnings was the one-time reclassification of finance
receivables from held-for-sale to held-for-investment and the
related $72.7 million non-cash provision to establish the related
initial credit loss allowance. In addition, as a result of
Harley-Davidson's lower shipment volume projections, the Company
recorded a non-cash, one-time $28.4 million impairment charge to
write off the goodwill recorded in connection with the 1995
purchase of HDFS. The Company believes HDFS continues to have
significant strategic value despite the write-off of remaining
goodwill caused by the current economic environment. Six Months.
For the first six months of 2009, Company revenue totaled $2.44
billion, a 15.1 percent decrease from the year-ago period. Diluted
earnings per share were $0.59, a decrease of 66.1 percent compared
to the same period last year. Net income was $137.1 million,
compared to $410.4 million in the first half of 2008. . Strategy
for the Current Economic Environment In early 2009, Harley-Davidson
announced a three-part strategy for managing through the global
economic downturn and strengthening its operations and financial
results going forward. That strategy consists of: 1) investing in
the brand; 2) creating the appropriate cost structure; and 3)
obtaining funding to support the lending activities of HDFS. Brand
Investment Reductions in Harley-Davidson's motorcycle shipment
plans for 2009 reflect the Company's intense focus on maintaining
brand strength. "When it comes to protecting and enhancing the
brand, managing supply in line with demand is one of the most
important things we can do. We plan to ship fewer Harley-Davidson
motorcycles worldwide this year than we anticipate dealers will
sell at retail," Wandell said. At the same time, Harley-Davidson
continues to make significant investments in product development
and marketing, and the Company is more focused than ever on making
those investments work harder and smarter, according to Wandell.
"We've got a great lineup of motorcycles and one of our top
priorities is to reduce complexity and improve efficiency
throughout our product development and manufacturing processes,"
said Wandell. On July 25, 2009, Harley-Davidson Motor Company
introduces 2010 model year motorcycles at its Summer Dealer Meeting
in Denver. Cost Structure The Company earlier this year announced
plans to consolidate its two Milwaukee-area powertrain (engine and
transmission) plants into one facility; consolidate paint and frame
operations at its York, Pa. facilities into one plant; and close
its Franklin, Wis. Parts and Accessories distribution center and
consolidate those operations with General Merchandise distribution
through a third-party logistics company. In April, the Company
completed the transition of its U.S. transportation fleet
operations to a third-party provider as part of its restructuring
initiatives. Powertrain Consolidation Accelerated. Production
shutdowns and line rate adjustments will be implemented at
Harley-Davidson powertrain operations in Menomonee Falls and
Wauwatosa, Wis., and at motorcycle assembly operations in York, Pa.
and Kansas City, Mo., to achieve the newly-announced unit volume
reduction. As a result of the volume reduction and production
shutdowns, the Company expects to accelerate and substantially
complete the planned consolidation of the powertrain operations by
mid-2010. Sportster and V-Rod motorcycle final assembly operations
and V-Rod motorcycle powertrain production in Kansas City, and
production of Sportster motorcycle powertrains in Wauwatosa will be
shut down for approximately 14 weeks in 2009, including the entire
fourth quarter. The Company anticipates that other production
operations will be shut down for a total of approximately five
weeks over the rest of 2009. On a combined basis, Harley-Davidson
now expects the volume reductions and restructuring activities to
result in one-time charges of approximately $160 million to $190
million over the course of 2009 and 2010, an increase of $40
million from earlier estimates, including $50.0 million incurred
during the first half of 2009. The Company now estimates ongoing
annual savings of approximately $140 million to $150 million, or
$70 million greater than previously estimated, upon completion of
the announced restructuring actions. Savings in 2009 are now
estimated to be $70 million to $85 million. York Study Underway.
Since the announcement of the original consolidation plans in
January, Harley-Davidson has determined that the Company's York
operations are not currently competitive or sustainable. The
Company has undertaken a "two path" study to determine whether
major, additional restructuring at York can achieve cost and
efficiency targets to make the operations viable, or alternatively,
whether the Company will relocate the York operations to another
U.S. location. The Company expects to make a decision on the status
of the York operations later this year. HDFS Funding
Harley-Davidson continues to focus intently on the funding needs of
HDFS and, utilizing a variety of funding paths, has provided
liquidity for expected HDFS lending activities through the end of
this year and into 2010. The Company continues to evaluate
additional funding actions to diversify funding sources and balance
long-and short-term HDFS debt needs, as well as provide sufficient
liquidity for new loan originations. Business Segment
Second-Quarter and Six-Month Results Motorcycles and Related
Products Segment Second Quarter. Revenue from Harley-Davidson
motorcycles during the second quarter of 2009 was $808.7 million, a
decrease of $375.7 million or 31.7 percent versus the same period
last year. The Company shipped 58,179 Harley-Davidson motorcycles
in the second quarter of 2009 compared to 80,326 motorcycles
shipped in the year-ago period and within the Company's guidance
for this year's first quarter. Revenue from Parts and Accessories
(P&A), which consists of Genuine Motor Parts and Genuine Motor
Accessories, totaled $231.5 million, a decrease of $34.2 million or
12.9 percent versus the year-ago quarter. Revenue from General
Merchandise, which includes MotorClothes apparel, totaled $69.6
million, a decrease of $7.2 million or 9.4 percent from the
year-ago quarter. Gross margin for the second quarter of 2009 was
33.5 percent of revenue compared to 35.7 percent for the second
quarter last year. Operating margin was 14.5 percent, compared to
20.1 percent in the second quarter of 2008. Gross and operating
margins were adversely affected during the quarter by the shipment
volume reduction. Six Months. Through the first six months of this
year, shipments of Harley-Davidson motorcycles were 132,849 units,
a 12.7 percent decrease compared to last year's 152,194 units.
Harley-Davidson motorcycle revenue through six months was $1.82
billion, down 17.2 percent compared to last year's $2.20 billion.
Six-month P&A revenue totaled $401.2 million, a 10.4 percent
decrease from last year's $447.6 million. General Merchandise
revenue totaled $144.8 million, a 10.0 percent decrease compared to
$160.8 million during the same period in 2008. Gross margin through
six months was 35.3 percent and operating margin was 16.2 percent,
compared to 36.1 percent and 20.1 percent respectively in last
year's first half. Motorcycle Retail Sales Second Quarter. During
the second quarter, worldwide retail sales of Harley-Davidson
motorcycles decreased 30.1 percent compared to the prior-year
quarter. In the U.S., retail sales of Harley-Davidson motorcycles
decreased 35.1 percent from the year-ago period. Industry-wide
retail sales of heavyweight motorcycles in the U.S. declined 48.1
percent during the quarter. In international markets, retail sales
of Harley-Davidson motorcycles decreased 18.2 percent during the
second quarter of 2009 compared to the second quarter of 2008. Six
Months. For the first half of 2009, worldwide retail sales of
Harley-Davidson motorcycles declined 23.6 percent compared to the
prior year. U.S. retail sales of Harley-Davidson motorcycles
declined 26.1 percent for the first half of the year while the U.S.
heavyweight market segment was down 40.0 percent for the same
period, compared to the year-ago period. International retail sales
of Harley-Davidson motorcycles decreased 17.8 percent for the first
six months of 2009 compared to 2008. First half data are listed in
the accompanying tables. Financial Services Segment Harley-Davidson
Financial Services recorded an operating loss of $62.1 million for
the second quarter, compared to operating income of $37.1 million
in the year-ago quarter. In addition to the effects of the finance
receivables reclassification HDFS recorded $15.0 million in
writedowns on retained securitization interests due to expected
higher credit losses compared to a $6.3 million write-down in the
year ago period. For the first half of 2009, HDFS reported an
operating loss of $50.9 million, compared to operating income of
$72.1 million for the prior-year period. In addition, the Company
wrote off $28.4 million of goodwill associated with HDFS. Income
Tax Rate The Company's second-quarter effective income tax rate was
71.6 percent, compared to 36.0 percent in the same quarter last
year. This increase was due primarily to the non-deductible
goodwill write-off and the tax implications of MV Agusta, which the
Company acquired in August 2008. The Company expects its full-year
2009 effective tax rate to be approximately 55 percent due to the
items listed above as well as the previously reported one-time tax
charge of $22.5 million in the first quarter of 2009 and the
implications of reduced shipments on earnings for the remainder of
the year. Cash Flow Cash and cash equivalents totaled $1.03 billion
as of June 28, 2009, compared to $803.4 million at the end of the
year-ago period. Cash used by operations was $164.4 million and
capital expenditures were $57.3 million during the first six months
of 2009. For the full year, capital expenditures are now expected
to be $145 million to $175 million, including $20 million to $30
million related to restructuring activities. Company Background
Harley-Davidson, Inc. is the parent company for the group of
companies doing business as Harley-Davidson Motor Company (HDMC),
Buell Motorcycle Company (Buell), MV Agusta and Harley-Davidson
Financial Services (HDFS). Harley-Davidson Motor Company produces
heavyweight custom, touring and cruiser motorcycles. Buell produces
American sport performance motorcycles. MV Agusta produces premium,
high-performance sport motorcycles sold under the MV Agusta brand
and lightweight sport motorcycles sold under the Cagiva brand. HDFS
provides wholesale and retail financing and insurance programs
primarily to Harley-Davidson and Buell 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) effectively execute the
Company's restructuring plans within expected costs and timing,
(ii) successfully achieve with our labor union partners flexible
and cost-effective agreements to accomplish restructuring goals and
long-term competitiveness, (iii) manage the risks that our
independent dealers may have difficulty obtaining capital, and
adjusting to the recession and slowdown in consumer demand, (iv)
manage supply chain issues, (v) anticipate the level of consumer
confidence in the economy, (vi) continue to have access to reliable
sources of capital funding and adjust to fluctuations in the cost
of capital, (vii) manage the credit quality, the loan servicing and
collection activities, and the recovery rates of HDFS' loan
portfolio, (viii) continue to realize production efficiencies at
its production facilities and manage operating costs including
materials, labor and overhead, (ix) manage production capacity and
production changes, (x) provide products, services and experiences
that are successful in the marketplace, (xi) develop and implement
sales and marketing plans that retain existing retail customers and
attract new retail customers in an increasingly competitive
marketplace, (xii) sell all of its motorcycles and related products
and services to its independent dealers, (xiii) continue to develop
the capabilities of its distributor and dealer network, (xiv)
manage changes and prepare for requirements in legislative and
regulatory environments for its products, services and operations,
(xv) adjust to fluctuations in foreign currency exchange rates,
interest rates and commodity prices, (xvi) adjust to healthcare
inflation, pension reform and tax changes, (xvii) retain and
attract talented employees, (xviii) detect any issues with our
motorcycles or manufacturing processes to avoid delays in new model
launches, recall campaigns, increased warranty costs or litigation,
(xix) implement and manage enterprise-wide information technology
solutions and secure data contained in those systems, and (xx)
successfully integrate and profitably operate MV Agusta Group. 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, Inc. Condensed Consolidated Statements of Income
(In thousands, except per share amounts) (Unaudited) Three months
ended Six months ended June 28, June 29, June 28, June 29, 2009
2008 2009 2008 ---- ---- ---- ---- Net revenue $1,153,645
$1,572,569 $2,444,293 $2,878,882 Gross profit 386,278 561,924
863,061 1,038,061 Selling, administrative and engineering expense
203,581 234,292 416,891 448,825 Restructuring expense 15,131 11,549
49,993 11,549 ------ ------ ------ ------ Operating income from
motorcycles & related products 167,566 316,083 396,177 577,687
Financial services income 123,967 106,840 228,634 200,129 Financial
services expense 186,086 69,693 279,548 128,075 ------- ------
------- ------- Operating (loss) income from financial services
(62,119) 37,147 (50,914) 72,054 Corporate expense 6,312 7,367
14,082 12,825 Goodwill impairment 28,387 - 28,387 - ------ ---
------ --- Income from operations 70,748 345,863 302,794 636,916
Investment income 317 2,240 2,270 4,282 Interest expense (1) 1,538
- 11,798 - ----- --- ------ --- Income before provision for income
taxes 69,527 348,103 293,266 641,198 Provision for income taxes
49,777 125,316 156,169 230,830 ------ ------- ------- ------- Net
income $19,750 $222,787 $137,097 $410,368 ======= ======== ========
======== Earnings per common share: Basic $0.08 $0.95 $0.59 $1.74
Diluted $0.08 $0.95 $0.59 $1.74 Weighted-average common shares:
Basic 232,616 235,067 232,442 236,067 Diluted 233,520 235,314
233,088 236,277 Cash dividends per common share $0.10 $0.33 $0.20
$0.63 (1) Interest expense for the six months ended June 28, 2009
includes $8.0 million related to the Company's $600.0 million
senior unsecured notes (Notes) issued in February 2009. This
interest expense represents a portion of the total interest
incurred on the Notes during the first quarter and corresponds to
the initial temporary investment of proceeds at corporate. Prior to
the end of the first quarter, the full proceeds were transferred to
HDFS and, as a result, the balance of interest expense on the Notes
for the period has been included in financial services expense.
Harley-Davidson, Inc. Condensed Consolidated Balance Sheets (In
thousands) (Unaudited) (Unaudited) June 28, December 31, June 29,
2009 2008 2008 ---- ---- ---- ASSETS ------ Current assets: Cash
and cash equivalents $1,031,194 $593,558 $803,400 Marketable
securities - - 524 Accounts receivable, net 287,494 296,258 290,139
Finance receivables held for sale (2) - 2,443,965 1,617,817 Finance
receivables held for investment, net 1,651,700 1,378,461 1,246,325
Inventories 435,043 400,908 341,396 Other current assets 358,663
264,731 206,624 ------- ------- ------- Total current assets
3,764,094 5,377,881 4,506,225 Finance receivables held for
investment, net 3,472,325 817,102 934,534 Other long-term assets
1,528,267 1,633,642 1,342,994 --------- --------- ---------
$8,764,686 $7,828,625 $6,783,753 ========== ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------ Current liabilities: Accounts
payable & accrued liabilities $852,543 $865,108 $841,263
Short-term debt 1,690,910 1,738,649 526,898 Current portion of
long-term debt - - 401,036 --- --- ------- Total current
liabilities 2,543,453 2,603,757 1,769,197 Long-term debt 3,038,387
2,176,238 2,050,000 Pension liability and postretirement healthcare
benefits 754,733 758,411 269,928 Other long-term liabilities
175,330 174,616 161,791 Total shareholders' equity 2,252,783
2,115,603 2,532,837 --------- --------- --------- $8,764,686
$7,828,625 $6,783,753 ========== ========== ========== (2) During
the second quarter of 2009, the Company reclassified its finance
receivables held for sale to finance receivables held for
investment, net due to a change in the Company's intent to
structure future securitization transactions in a manner that does
not qualify for accounting sale treatment under the provisions of
Statement of Financial Accounting Standards No. 140, "Accounting
for Transfers and Servicing of Financial Assets and Extinguishment
of Liabilities." Harley-Davidson, Inc. Condensed Consolidated
Statements of Cash Flows (In thousands) (Unaudited) Six months
ended June 28, June 29, 2009 2008 ---- ---- Net cash used by
operating activities ($164,442) ($39,016) Cash flows from investing
activities: Capital expenditures (57,323) (99,597) Finance
receivables held for investment, net (26,099) (73,365) Collection
of retained securitization interests 26,904 18,607 Net change in
marketable securities - 2,019 Other, net (3,598) 1,193 ------ -----
Net cash used by investing activities (60,116) (151,143) Cash flows
from financing activities: Proceeds from issuance of medium term
notes - 993,550 Proceeds from issuance of senior unsecured notes
589,255 - Net borrowings of securitization debt 483,864 - Net
decrease in credit facilities and unsecured commercial paper
(392,366) (116,621) Net borrowings of asset-backed commercial paper
87,706 - Net change in restricted cash (76,658) - Dividends
(46,913) (148,591) Purchase of common stock for treasury (296)
(150,134) Excess tax benefits from share-based payments 147 252
Issuance of common stock under employee stock option plans 10 736
-- --- Net cash provided by financing activities 644,749 579,192
Effect of exchange rate changes on cash and cash equivalents 17,445
11,513 Net increase in cash and cash equivalents 437,636 400,546
Cash and cash equivalents: At beginning of period 593,558 402,854
------- ------- At end of period $1,031,194 $803,400 ==========
======== Net Revenue and Motorcycle Shipment Data (Unaudited) Three
months ended Six months ended June 28, June 29, June 28, June 29,
2009 2008 2009 2008 ---- ---- ---- ---- NET REVENUE (in thousands)
Harley-Davidson( R ) motorcycles $808,709 $1,184,369 $1,819,518
$2,197,838 Buell( R ) & MV Agusta( R ) motorcycles 39,934
41,518 71,199 63,593 Parts & Accessories 231,470 265,665
401,226 447,607 General Merchandise 69,601 76,790 144,792 160,796
Other 3,931 4,227 7,558 9,048 ----- ----- ----- ----- $1,153,645
$1,572,569 $2,444,293 $2,878,882 ========== ========== ==========
========== MOTORCYCLE SHIPMENTS: Harley-Davidson United States
35,194 51,449 87,904 99,275 International 22,985 28,877 44,945
52,919 ------ ------ ------ ------ Total Harley-Davidson 58,179
80,326 132,849 152,194 ====== ====== ======= ======= Buell & MV
Agusta 3,774 4,072 6,900 6,464 ===== ===== ===== ===== MOTORCYCLE
PRODUCT MIX: Harley-Davidson Touring 20,989 25,248 46,964 51,683
Custom 22,245 41,922 54,164 70,994 Sportster( R ) 14,945 13,156
31,721 29,517 ------ ------ ------ ------ Total Harley-Davidson
58,179 80,326 132,849 152,194 ====== ====== ======= ======= Retail
Sales of Harley-Davidson Motorcycles Three months ended Six months
ended June 28, June 29, June 28, June 29, 2009 2008 2009 2008 ----
---- ---- ---- North America Region -------------------- United
States 54,410 83,865 96,451 130,437 Canada 5,015 8,187 6,882 10,870
----- ----- ----- ------ Total North America Region 59,425 92,052
103,333 141,307 Europe Region (Includes Middle East and Africa)
------------------------------ Europe* 15,327 16,728 22,894 25,803
Other 971 1,403 1,792 2,477 --- ----- ----- ----- Total Europe
Region 16,298 18,131 24,686 28,280 Asia Pacific Region
------------------- Japan 4,022 4,067 6,292 6,805 Other 2,403 2,850
5,051 5,412 ----- ----- ----- ----- Total Asia Pacific Region 6,425
6,917 11,343 12,217 Latin America Region 1,420 2,401 2,789 4,258
-------------------- ----- ----- ----- ----- Total Worldwide Retail
Sales 83,568 119,501 142,151 186,062 ====== ======= ======= =======
Data Source (subject to update) -------------------------------
Data source for all 2008 and 2009 retail sales figures shown above
is sales warranty and registration information provided by
Harley-Davidson dealers and compiled by the Company. The Company
must rely on information that its dealers supply concerning retail
sales, and this information is subject to revision. Only
Harley-Davidson( R ) motorcycles are included in the
Harley-Davidson Motorcycle Sales data. * Data for Europe include
Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy,
Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the
United Kingdom. Heavyweight Market Data Six months ended June 28,
June 29, 2009 2008 ---- ---- United States(1) 177,880 296,323 Five
months ended May 31, May 31, 2009 2008 ---- ---- Europe(2) 164,844
202,872 (1) - United States industry data includes 651+cc models,
derived from submission of motorcycle retail sales by each major
manufacturer to an independent third party. This data is subject to
revision and update. As of the second quarter 2009, industry data
includes three-wheeled vehicles retroactive to 2008. (2) - Europe
data includes Austria, Belgium, Denmark, Finland, France, Germany,
Greece, Italy, Netherlands, Norway, Portugal, Spain, Sweden,
Switzerland, and the United Kingdom. Industry retail motorcycle
registration data includes 651+cc models, derived from information
provided by Giral S.A., an independent agency. Europe market data
is reported on a one-month lag. This data is subject to revision
and update. DATASOURCE: Harley-Davidson, Inc. CONTACT: Media, Bob
Klein, +1-414-343-4433, or Investors, Amy Giuffre, +1-414-343-8002,
both of Harley-Davidson, Inc. Web Site:
http://www.harley-davidson.com/
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