June 2007 -- Motorcycle manufacturer Harley-Davidson Inc. credits changes to its 2007 models for increased sales in 2006. Revenue for the year increased 8.6% to $5.8 billion, while wholesale shipments of motorcycles were 349,196 units for the year, a 6.1% increase compared over 2005. Year-end profit was $1.04 billion, an 8.7% increase over 2005.
"In 2006, the Company's revenue and earnings surpassed 2005 results demonstrating continued growth," said CEO Jim Ziemer in a January statement. "At the same time, our dealers achieved impressive Harley-Davidson motorcycle sales volumes. The enthusiastic worldwide response to the changes in our 2007 models contributed to an 8.5 percent increase in retail sales during the year."
Looking ahead, first-quarter 2007 net income decreased 18%, primarily from a three-week labor strike at Harley-Davidson's York, Pa., plant. Revenue for the quarter was $1.18 billion, an 8.3% decrease over the year-earlier period.
The strike ended on Feb. 22 when unionized workers approved a new contract. For the year, the company expects earnings per share to increase by 4% to 6% based on moderate revenue growth, lower operating margin and a strong free cash flow, according to Ziemer. The company projects it will ship between 94,000 and 97,000 motorcycles in the second quarter compared with 79,796 units shipped during second-quarter 2006.
