Harley-Davidson Inc. (Milwaukee) said it will ship between 5 and 10 percent fewer motorcycles in its third quarter than originally planned. It also said it expected a modest decline in revenue for 2007.
“This is a difficult time for the U.S. consumer,” said ceo Jim Ziemer. “Our U.S. dealers' retail sales have fallen sharply during August. Against the current economic background, we no longer expect worldwide dealer retail sales to increase during the second half of 2007. As a result, the company has decided to reduce its planned shipments of motorcycles to its dealers for the remainder of 2007.”
Harley-Davidson said it anticipates the U.S. retail motorcycle environment will continue to be challenging in 2008. It expects moderate revenue growth, lower operating margins and earnings-per-share growth of between 4 and 7 percent.
“Although this is a challenging time, Harley-Davidson is the worldwide heavyweight motorcycle market leader,” said Ziemer. “We enjoy an enviable position of financial strength, with a solid balance sheet, strong cash flow and a history of returning value to shareholders. While a decision to reduce shipments and expectations is never easy, it is clearly the right thing to do for the long-term health of the brand and the business.”