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HARLEY-DAVIDSON, INC. ANNOUNCES RECORD THIRD QUARTER SALES/EARNINGS DECLARES $.06 PER SHARE DIVIDEND

 MILWAUKEE, Wis., Oct. 19 /PRNewswire/ -- Harley-Davidson, Inc. (NYSE: HDI) today announced record sales and earnings for its third quarter and nine month period ending Sept. 26, 1993. Virtually all of the sales and earnings increases are attributable to the company's motorcycles and related products segment.
 Third quarter 1993 consolidated net sales totaled $284.4 million, a $12.7 million or 4.6 percent increase over the year-ago quarter. Net income and earnings per share totaled $16.4 million and $0.43 on 38.0 million shares outstanding compared to $13.2 million and $0.37 on 35.8 million shares in the year-ago quarter. This represents an earnings per share increase of 16.2 percent.
 The motorcycles and related products segment posted 1993 third quarter sales of $220.8 million, a $19.4 million or 9.6 percent increase over the year-ago quarter. The segment's operating profit increased $5.9 million, or 23.2 percent over the year-ago quarter. The revenue increase was driven primarily by the segment's parts and accessories business, which posted net sales of $59.1 million, a 24.7 percent increase over the year-ago quarter. Despite increases in daily motorcycle production over the year-ago quarter, motorcycle unit shipments for the third quarter of 1993 were virtually even with shipments in the year ago quarter, during which employees worked extensive overtime to make up a production shortfall that occurred in the first half of last year.
 "Our consistency in achieving our daily motorcycle production schedule enabled us to increase our schedule to 350 units-per-day on Sept. 1," said Richard F. Teerlink, president and chief executive officer, Harley-Davidson, Inc. "In addition, the July start-up of 1994 model year production was the smoothest in recent history. Attainment of our production schedule on a daily basis has created significant increases in manufacturing efficiencies and predictability, which resulted in the improved operating profit compared to the year-ago quarter. Further improvements should allow us to increase our daily scheduled production rate to 365 units-per-day on Jan. 3, 1994."
 Teerlink again cautioned that Harley-Davidson expects fourth quarter production and unit sales to be slightly lower this year than the same period last year, due to extensive overtime in last year's fourth quarter to replenish production shortfalls carried over from 1992's first half.
 "At our July motorcycle dealer meeting, we introduced our 1994 motorcycle and parts and accessories offerings to enthusiastic response," Teerlink said. "Excitement over our two new motorcycles, the Electra Glide Road King and Dyna Low Rider Convertible, is very apparent at the retail level. In fact, most dealers are reporting they've already received customer orders for their entire
allocations of 1994 motorcycles. Our parts and accessories business continues to generate market excitement, as evidenced by the record orders we received at the dealer meeting and the positive response to our new offerings from the motorcycle enthusiast community."
 "We're also pleased that the domestic heavyweight (851+cc) motorcycle market has grown significantly this year, with registrations up 16.9 percent through August," Teerlink said. "At Harley-Davidson registrations are up 10.6 percent. Motorcycling is continuing to grow in popularity and this bodes well for our future." The most recent 1993 data (through August) show Harley-Davidson with a 59.4 percent share of the U.S. 851+cc market compared to 62.8 percent for the same period last year. "The impact of lower dealer inventories and being capacity- constrained in a growing market is resulting in the slightly lower market share at Harley-Davidson," he said.
 Teerlink reported that, in August, Harley-Davidson's board of directors approved a comprehensive manufacturing strategy designed to achieve the company's goal of a 100,000 motorcycle units-per-year production rate by the end of 1996. "The strategy calls for us to invest approximately $80 million over the next four years to enhance our ability to increase capacity, our flexibility to adjust to changes in the marketplace and further improve quality while reducing costs," he said. "And we plan to accomplish this in our existing facilities without significantly changing manufacturing headcount. We'll be integrating machining and assembly operations to create more synchronous production, which improves communications, efficiencies, predictability and product quality while reducing waste."
 Teerlink said the investment will be over and above the capital normally required for running the business and, therefore, capital expenditures in 1994 are expected to be higher than current levels, but funding will still be internally generated.
 The transportation vehicles (Holiday Rambler Corporation) segment was negatively affected by disappointing performance in the recreational vehicle division, Teerlink said. Overall segment sales declined to $63.6 million from $70.3 million in the year-ago quarter. The entire decline in sales came from the recreational vehicles division, which posted sales of $43.7 million, down $8.4 million or 16.0 percent from the year-ago quarter. As a result of the decrease in recreational vehicle sales, the transportation vehicles segment posted an operating loss of $2.1 million for the quarter, versus break-even in the year-ago quarter.
 "Total recreational vehicle industry registrations, through July, are up for the year," Teerlink said. "Unfortunately, we have not yet established a stronger foothold in the mid to premium niches where we compete." In the three month period ending in September, Holiday Rambler Class A motorhome retail sales increased 18.6 percent, fifth wheel retail sales increased 9.7 percent and travel trailer retail sales declined 3.6 percent.
 Holiday Rambler's recreational vehicle dealer meeting was held in September, one month later than in prior years. "The meeting was pushed back due to an industry-wide goal to eliminate the practice of introducing new models during peak selling season months," Teerlink said. "This caused dealers to hold off on ordering new model year product in August, in anticipation of the September dealer meeting, resulting in decreased wholesale performance compared to 1992. The later dealer meeting and improved retail activity due to promotions instituted in the second quarter have driven dealer inventories to below 1992 levels," he said.
 "We're cautious in our outlook for the recreational vehicle division for the fourth quarter," Teerlink said. "While we're generally pleased with dealer reaction to our new products, especially our Class A Endeavor and Imperial Diesel motorhomes, it's much too early to determine how the retail market will react and to what extent dealers will replenish their inventories."
 Holiday Rambler's Commercial Vehicles division (Utilimaster Corporation) posted a $1.4 million or 9.4 percent revenue increase over the year-ago quarter. "We are pleased with our performance at Utilimaster, which has continued to increase its fleet contract business," Teerlink said. "The fourth quarter of 1993 will benefit from the recent start-up of a major Federal Express contract, which is expected to conclude by the end of the quarter," Teerlink said.
 Nine Month Results
 For the 1993 nine month period, consolidated net sales totaled $888.3 million, a $95.2 million or 12.0 percent increase over the year ago period. Income before extraordinary items and cumulative effect of accounting changes totaled $55.3 million versus $39.7 million a year ago, or $1.46 on 38.0 million shares outstanding versus $1.11 on 35.8 million shares in the year-ago period. Net income for the nine month 1992 period included an extraordinary charge of $0.4 million ($0.01 per share) related to the early retirement of Holiday Rambler Corporation subordinated notes. As previously announced, the company took a one- time charge in the 1993 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 nine month period revenue increase is entirely attributable to the motorcycles and related products segment, which posted nine month sales of $683.0 million versus $584.3 million a year ago. The transportation vehicles segment posted nine month sales of $205.3 million, a $3.5 million decrease from the year-ago period.
 Dividend
 Harley-Davidson, Inc.'s board of directors declared a cash dividend of $.06 per share, payable Nov. 15 to shareholders of record Nov. 1. The company currently has 38.0 million shares of common stock outstanding.
 Harley-Davidson, Inc., the only major American-based 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 Nine Months Ended
 Sept 26 Sept 27 Sept 26 Sept 27
 1993 1992 1993 1992
 Net sales $284.4 $271.7 $888.3 $793.1
 Gross profit 76.2 72.6 242.5 207.0
 Operating income 27.9 24.0 93.1 72.4
 Interest expense (0.1) (1.1) (0.8) (4.0)
 Other expense (0.7) (2.0) (0.1) (3.3)
 Income from operations
 before provision
 for taxes, extraordinary
 item and accounting
 changes 27.1 20.9 92.2 65.1
 Provision for
 income taxes 10.7 7.7 36.9 25.4
 Income before
 extraordinary item
 and accounting
 changes 16.4 13.2 55.3 39.7
 Extraordinary item -- -- -- (0.4)
 Cumulative effect
 of accounting changes:
 Postretirement benefits -- -- (32.1) --
 Income taxes -- -- 1.8 --
 Net income $ 16.4 $ 13.2 $ 25.0 $ 39.3
 Earnings per share
 assuming no dilution:
 Income before
 extraordinary
 item and
 accounting
 changes $ 0.43 $ 0.37 $ 1.46 $ 1.11
 Extraordinary item -- -- -- (0.01)
 Cumulative effect
 of accnt'g changes:
 Postretirement
 benefits -- -- (0.85) --
 Income taxes -- -- 0.05 --
 Net income $ 0.43 $ 0.37 $ 0.66 $ 1.10
 Shares outstanding,
 assuming no dilution 38.0 35.8 37.9 35.8
 HARLEY-DAVIDSON, INC.
 Segment Data
 Three Months Ended Nine Months Ended
 Sept 26 Sept 27 Sept 26 Sept 27
 1993 1992 1993 1992
 Units
 Motorcycle shipments
 United States 13,547 13,744 42,699 37,862
 Export 4,416 4,233 17,717 16,072
 Total 17,963 17,977 60,416 53,934
 Revenue (Millions)
 Motorcycles and related
 products $220.8 $201.4 $683.0 $584.3
 Transportation vehicles 63.6 70.3 205.3 208.8
 Total $284.4 $271.7 $888.3 $793.1
 Operating profit (Millions)
 Motorcycles and related
 products $ 31.2 $ 25.3 $100.3 $ 76.4
 Transportation vehicles (2.1) .1 (2.4) 1.4
 Corporate expenses (1.2) (1.4) (4.8) (5.4)
 Total $ 27.9 $ 24.0 $ 93.1 $ 72.4
 HARLEY-DAVIDSON, INC.
 Condensed Consolidated Balance Sheets
 (In Millions)
 Sept. 26, 93 Dec. 31, 92(a) Sept. 27, 92
 (Unaudited) (Unaudited)
 Assets
 Current assets:
 Cash and cash equivalents $ 49.8 $ 44.1 $ 17.9
 Accounts receivable, net of
 allowance for doubtful
 accounts 110.1 93.2 100.5
 Inventories 138.3 94.4 101.4
 Other current assets 27.0 33.8 27.5
 Total current assets 325.2 265.5 247.3
 Other long-term assets 286.5 256.7 242.2
 Total assets $611.7 $522.2 $489.5
 Liabilities and
 stockholders' equity
 Current liabilities:
 Notes payable and
 current maturities $ 13.9 $ 17.0 $ 13.6
 Other current
 liabilities 169.2 152.2 135.5
 Total current
 liabilities 183.1 169.2 149.1
 Long-term debt 1.9 2.4 38.4
 Other long-term
 liabilities 64.2(b) 15.2 18.0
 Total stockholders'

 equity 362.5 335.4 284.0
 $611.7 $522.2 $489.5
 (a) Condensed from audited financial statements
 (b) Includes $54.0 million of postretirement benefits.
 -0- 10/19/93
 /CONTACT: Ken Schmidt, 414-935-4538, or Jim Ziemer, analyst 414-935-4750, both for Harley-Davidson, Inc./
 (HDI)


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

LD -- NY115 -- 4282 10/19/93 20:17 EDT
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Date:Oct 19, 1993
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