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HARLEY-DAVIDSON, INC. ANNOUNCES RECORD SECOND QUARTER SALES AND EARNINGS

 -- Second Quarter EPS of $.63 versus $.48 in Year-Ago Quarter --
 MILWAUKEE, Wis., July 20 /PRNewswire/ -- Harley-Davidson, Inc. (NYSE: HDI) today announced record sales and earnings for its second quarter ended June 27, 1993. Both the Motorcycles and Related Products segment and the Transportation Vehicles segment (Holiday Rambler Corporation) posted revenue increases over the year-ago quarter, however the earnings improvement was driven entirely by the Motorcycles and Related Products segment.
 Consolidated net sales totaled $334.4 million, a $60.4 million or 22.1 percent increase over the year-ago quarter. Net income and earnings per share totaled $23.8 million and $.63, respectively on 38.0 million shares outstanding compared to $17.4 million and $.48 on 35.8 million shares in the year-ago quarter. This represents an earnings per share increase of 31.3 percent.
 The Motorcycles and Related Products segment posted second quarter sales of $256.9 million, a $52.9 million or 26.0 percent increase over the year-ago
quarter. The sales gain was driven largely by unit growth, with second quarter unit shipments totaling 22,951, a 22.3 percent increase over a year ago. This increase was the result of higher production and lower foreign in-transit inventory. The company's Parts and Accessories business posted sales of $51.6 million, a 23.9 percent increase over the year-ago quarter. Second quarter operating profit in the Motorcycles segment reached $41.6 million, an $8.8 million or 26.9 percent increase over a year ago.
 In discussing the Motorcycles and Related Products segment, Harley- Davidson, Inc. President and Chief Executive Officer, Richard F. Teerlink said the second quarter improvement was "a direct result of our consistently attaining our scheduled 345 units-per-eight-hour-day production plan. This contrasts with the year-ago quarter, during which we required extensive overtime to reach an average production rate of 300 units-per-day and we still finished the quarter 1,600 units behind our production plan."
 "The gain in operating profit in our motorcycle business has been the result of improved manufacturing efficiencies due to schedule attainment," Teerlink said, adding that the second quarter product mix had a higher percentage of entry-level Sportster motorcycles than the year-ago quarter.
 "Our motorcycle Parts and Accessories business was favorably impacted by our well publicized 90th anniversary activities," Teerlink said. Of particular note, he said limited edition 90th anniversary clothing, memorabilia and collectibles were in heavy demand. "We're pleased with this performance in Parts and Accessories, but we don't expect that we'll be able to continue sales gains at this pace," he cautioned.
 Looking forward, Teerlink said that daily motorcycle production is scheduled to increase from 345 to 350 units-per-day by adding five additional Sportster motorcycles to the daily production schedule on September 1. "We intend to maintain this product mix, which calls for Sportsters to comprise 28.5 percent of total unit production, through the rest of the year," he said. "This is the only scheduled increase that we are planning for the remainder of this calendar year."
 Teerlink cautioned that Harley-Davidson expects third and fourth quarter production and unit sales to be slightly lower this year than in the prior year. "Last year, we had an additional week of production in July and our employees worked Saturdays during the second half to make up our 1,600 unit production shortfall," he said.
 The Transportation Vehicles segment posted a 10.7 percent sales increase over the year-ago quarter, with sales of $77.5 million. Of that sales total, Holiday Rambler's Recreational Vehicle division contributed $51.2 million, a 1.9 percent increase, while its Commercial Vehicles (Utilimaster Corporation) division contributed $23.0 million, a 40.3 percent increase.
 "Holiday Rambler's revenue increase over the year-ago quarter is attributable to our improving fleet contract business at Utilimaster Corporation," Teerlink said. In contrast, he said, "I'm disappointed with our performance in the recreational vehicle market, where we are not generating the levels of sales and profitability improvements that we have set for ourselves." The Transportation Vehicles segment reported a $.3 million operating profit compared to $1.1 million in the year-ago quarter.
 "We introduced dealer and retail marketing initiatives in April and our dealers are reporting increases in floor traffic and product awareness,"
Teerlink said. "Internal reports indicate that our retail sales in May and June were up versus the same time last year, which we believe was driven by these initiatives. However, it's too early to tell if this success will be long-lived. The number of entrants in the Holiday Rambler retail sweepstakes has exceeded our expectations and generated an extensive data base for future customer prospecting by our dealers."
 "The most recent data (through April) show Holiday Rambler Class A motorhome and travel trailer registrations are down approximately 20 percent from the year-ago quarter, with accompanying market share decreases. The recreational vehicle market continues to show signs of improvement, with most gains coming from the entry levels where we don't compete," Teerlink said, "but our products have not been part of this overall growth."
 First Half Results
 For the first half of 1993, Harley-Davidson, Inc. consolidated net sales totaled $604.0 million, an $82.6 million or 15.8 percent increase over the year-ago period. Income before extraordinary items and the cumulative effect of accounting changes totaled $38.9 million versus $26.5 million a year ago. Related earnings per share totaled $1.03 on 37.9 million shares outstanding versus $.73 on 35.7 million shares a year ago. Net income for the first half of 1992 included an extraordinary charge of $.4 million ($.01 per share) related to the early retirement of Holiday Rambler Corporation subordinated notes. As previously announced, the company took a one-time net charge in the first quarter of $30.3 million (after tax), in accordance with new Financial Accounting Standards Board rules governing provisions for retiree benefits and income taxes.
 The first half revenue increase is attributable almost entirely to the Motorcycles and Related Products segment, which posted first half sales of $462.2 million versus $382.9 million a year ago. The Transportation Vehicles segment posted first half sales of $141.8 million, a $3.3 million increase over the year-ago period.
 Dividend
 As reported on May 10, Harley-Davidson, Inc. will pay its first cash dividend of 6 cents per share on August 16 to shareholders of record on August 2.
 Harley-Davidson, Inc., the only major 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.
 Condensed Consolidated Statements of Income
 (In Millions, Except Per Share Amounts)
 Three Months Ended Six Months Ended
 June 27, June 28, June 27, June 28,
 1993 1992 1993 1992
 Net sales $334.4 $273.9 $604.0 $521.4
 Operating profit 40.1 31.6 65.2 48.4
 Interest expense (0.3) (1.4) (0.7) (2.9)
 Other income (expense) 0.4 (0.4) 0.7 (1.3)
 Income before provision for
 taxes, extraordinary items &
 cumulative effect of
 accounting changes 40.2 29.8 65.2 44.2
 Provision for income taxes 16.4 12.0 26.2 17.7
 Income before extraordinary item
 and cumulative effect of
 accounting changes 23.8 17.8 38.9 26.5
 Extraordinary item - (0.4) - (0.4)
 Cumulative effect of accounting
 changes:
 Postretirement benefits - - (32.1) -
 Income taxes - - 1.8 -
 Net income $ 23.8 $ 17.4 $ 8.6 $ 26.1
 Earnings per share assuming
 no dilution:
 Income before extraordinary
 item and cumulative effect
 of accounting changes $ 0.63 $ 0.49 $ 1.03 $ 0.73
 Extraordinary item - (0.01) - (0.01)
 Cumulative effect of
 accounting changes:
 Postretirement benefits - - (0.85) -
 Income taxes - - 0.05 -
 Net income $ 0.63 $ 0.48 $ 0.23 $ 0.72
 Shares outstanding, assuming
 no dilution 37,957 35,752 37,929 35,705
 Segment data
 Units
 Motorcycle shipments
 United States 16,052 13,007 29,152 24,118
 Export 6,899 5,764 13,301 11,839
 Total 22,951 18,771 42,453 35,957
 Revenue (Millions)
 Motorcycles & Related Prods $256.9 $203.9 $462.2 $383.0
 Transportation Vehicles 77.5 70.0 141.8 138.4
 Total $334.4 $273.9 $604.0 $521.4
 Operating profit (Millions)
 Motorcycles & Related Prods $ 41.6 $ 32.8 $ 69.1 $ 51.1
 Transportation Vehicles 0.3 1.1 (0.3) 1.3
 Corporate expenses (1.8) (2.3) (3.6) (4.0)
 Total $ 40.1 $ 31.6 $ 65.2 $ 48.4
 -0- 7/20/93
 /CONTACT: Ken Schmidt, media, 414-935-4538, or Jim Ziemer, analyst, 414-935-4750, both of Harley-Davidson/
 (HDI)


CO: Harley-Davidson, Inc. ST: Wisconsin IN: AUT SU: ERN

TM -- NY124 -- 3679 07/20/93 19:53 EDT
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Date:Jul 20, 1993
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