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HARLEY-DAVIDSON ANNOUNCES FOURTH QUARTER/YEAR-END SALES AND EARNINGS

 HARLEY-DAVIDSON ANNOUNCES FOURTH QUARTER/YEAR-END SALES AND EARNINGS
 MILWAUKEE, Feb. 20 /PRNewswire/ -- Harley-Davidson, Inc., (NYSE: HDI) today reported its sales and earnings for the fourth quarter and year ended Dec. 31, 1991. Fourth quarter results were significantly above the comparable year- ago quarter. Total year sales outpaced 1990, but earnings were down slightly.
 Fourth quarter results.
 Net sales for the quarter totaled $237.7 million, a $43.4 million (22.4 percent) increase over the comparable year-ago quarter. Net income and earnings per share were $7.2 million and $.41, respectively, on 17.8 million shares outstanding, compared to $3.9 million and $.22 on 17.8 million shares in the year-ago quarter. The fourth quarter sales increase was fueled by a 29 percent increase in the Motorcycles and Related Products segment, which reported sales of $185.1 million.
 Holiday Rambler reported sales of $51.0 million for the quarter, up 18.7 percent over the year-ago quarter, but the increase is almost entirely attributable to lower-margin recreational vehicles. Holiday Rambler's Recreational Vehicle division posted sales of $37.0 million, up 36 percent over the year-ago quarter, while its Commercial Vehicle division reported fourth quarter sales of $11.3 million, a $1.9 million decrease.
 According to Richard F. Teerlink, president and chief executive officer, Harley-Davidson, Inc., the Motorcycle Division shipped 4,505 more units in the fourth quarter than in the comparable year-ago quarter. Approximately 3,000 of these units were drawn from year-end factory inventories in response to dealer demand. This will result in a decrease of first quarter 1992 unit shipments, Teerlink said.
 Holiday Rambler posted an operating loss of $6.9 million for the quarter, compared to a $1.8 million loss in the year-ago quarter, due mostly to increased promotional costs to move product in a soft market and a charge for the settlement of a product liability lawsuit.
 The Defense and Other Businesses segment reported sales of $1.6 million, compared to $8.2 million in the year-ago quarter, reflecting the company's completion during the third quarter of its U.S. Department of Defense contract to manufacture metal practice bomb casings.
 1991 year-end results.
 For the year, net sales totaled $939.9 million, an increase of $75.3 million (8.7 percent) over 1990. Net income and earnings per share totaled $37.0 million and $2.08 respectively, on 17.8 million shares outstanding versus $37.8 million and $2.12 on 17.8 million shares outstanding in 1990.
 The net sales increase is entirely attributable to an $83 million increase in the Motorcycle and Related Products segment, which reported an $85.7 million operating profit. That operating profit is $2.2 million lower than 1990 and was negatively impacted by a two week strike during the first quarter and start-up costs associated with the new paint facility at the company's York, Pa., plant, Teerlink said. The Transportation Vehicles segment, however, continues to battle market softness and reported a $13.4 million operating loss for the year. "For the fourth consecutive year, worldwide demand for our
motorcycles and parts and accessories outweighed supply. Currently, our dealers are reporting record low inventories," Teerlink said. "However, softness in the recreational and commercial vehicle markets served by Holiday Rambler did not improve as anticipated and had a negative impact on consolidated earnings."
 For the year, worldwide shipments of motorcycles totaled 68,626, an increase of 6,168 over 1990. "During February, we increased our normal shift production plan to 300 units per day," Teerlink said. "However, we are continuing to experience delays and additional expenses in the transition from our old to new paint systems and are currently using both simultaneously. During the next several months, we will be investing up to an additional $3 million of capital in the new paint facility to ensure that our quality and capacity objectives are achieved. As of today, we don't foresee a complete switch-over to our new paint system until late in the second quarter," he added. "Additional production increases will be considered as we make further progress in utilizing the new system."
 As in 1990, Harley-Davidson exported 31 percent of 1991 unit production, or 21,633 units. "The overseas motorcycle market, which has been growing annually and is expected to continue to do so, holds attractive long-term growth
potential for us," Teerlink said. As of


November, 1991 (most current data) Harley-Davidson claims 62.7 percent of the domestic superheavyweight (850cc+) motorcycle market and increased its market share in nearly every market it serves.
 Harley-Davidson's Parts and Accessories division reported its sixth consecutive record year, posting sales of $130.3 million, a $20.3 million (18.4 percent) increase over 1990.
 At Holiday Rambler, recreational vehicle unit sales were up slightly over 1990, but the increase was comprised largely of lower margin models, Teerlink said. "The three-year downcycle in the recreational vehicle market and recessionary spending habits continue to stall sales of our mid- to premium- priced motorhomes," he said. The same softness that has slowed the domestic automobile and truck industry is also negatively impacting sales at the company's Utilimaster Corporation commercial vehicles division, he added.
 "Our 1991 performance at Holiday Rambler was also hampered significantly by the Middle East crisis during our traditionally strong first quarter selling period," he said.
 In response to the continuing market softness, in late December Holiday Rambler reduced its overhead structure and reorganized its recreational vehicle product lines into business units. "These actions have resulted in a leaner and more focused operation that will help us to respond faster to changes in our markets, shorten our time-to-market with new products and generate further quality improvements," Teerlink said.
 The Defense and Other Businesses segment reported 1991 sales of $23.5 million, a $5.2 million decrease from 1990, due primarily to completion of the metal practice bomb casings contract. "We foresee no additional bomb casings contracts at this time," Teerlink said.
 Growth and improvement expected for 1992 and beyond.
 "We believe that the changes we're making in all facets of our operations to better respond to our markets should improve financial performance over the long-term," Teerlink stated. "With our motorcycle manufacturing capacity issues being addressed and the improvements we're making in our worldwide motorcycle sales and marketing operations, we believe we're very well positioned for long term growth within the global market," he added.
 "At Holiday Rambler, with the product quality, manufacturing efficiency, marketing and customer satisfaction improvements we're currently generating, we hope to significantly improve operating results in 1992," Teerlink said.
 Harley-Davidson, Inc., the only American motorcycle manufacturer, produces heavyweight motorcycles and a complete line of motorcycle parts and accessories. Its Holiday Rambler corporation subsidiary is a leading manufacturer of premium recreational vehicles, specialized commercial vehicles and a diverse range of related products. Harley Davidson, Inc. is also a manufacturing contractor for a variety of industries.
 HARLEY-DAVIDSON, INC.
 Condensed Consolidated Statements of Income
 (in thousands, except per share amounts)
 Periods ended Three months Twelve months
 Dec. 31 1991 1990 1991 1990
 Net sales $237,712 $194,268 $939,863 $864,600
 Operating profit 13,009 13,268 68,645 83,375
 Interest 560 1,986 7,312 9,701
 Other Expense 1,748 7,586 3,239 11,057
 Income before provisions
 for taxes & extraord. items 10,701 3,696 58,094 62,617
 Provision for income taxes 3,472 751 21,122 24,309
 Inc. before extraord. items 7,229 2,945 36,972 38,308
 Extraordinary items - 936 - (478)
 Net income 7,229 3,881 36,972 37,830
 Earnings per weighted
 average common share:
 Inc. before extraord. item $0.41 $0.17 $2.08 $2.15
 Extraordinary item - 0.05 - (0.03)
 Net income $0.41 $0.22 $2.08 $2.12
 Weighted average common
 shares outstanding 17,802 17,788 17,790 17,798
 SEGMENT DATA UNITS
 Motorcycle shipments:
 United States 12,817 10,025 46,993 43,138
 Export 6,022 4,309 21,633 19,320
 Total 18,839 14,334 68,626 62,458
 REVENUE (000s)
 Motorcycles and
 related products $185,126 $143,057 $678,487 $595,319
 Transportation vehicles 51,007 42,970 237,894 240,573
 Defense & other businesses 1,579 8,241 23,482 28,708
 Total $237,712 $194,268 $939,863 $864,600
 OPERATING PROFIT/(LOSS) (000's)
 Motorcycles and
 related products $ 20,941 $ 15,999 $ 85,657 $ 87,844
 Transportation vehicles (6,932) (1,783) (13,427) 825
 Defense & other businesses 1,010 1,048 3,894 2,375
 Corporate expenses (2,010) (1,996) (7,479) (7,669)
 Total $ 13,009 $ 13,268 $ 68,645 $ 83,375
 -0- 2/20/92 R
 /CONTACT: Ken Schmidt, 414-935-4538, or Jim Ziemer (investors), 414-935-4750, both of Harley-Davidson/
 (HDI) CO: Harley-Davidson Inc. ST: Wisconsin IN: AUT SU: ERN SH -- NY016 -- 0856 02/20/92 10:45 EST
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Date:Feb 20, 1992
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