June 2008 -- A weak U.S. economy took its toll on Harley-Davidson Inc. in 2007, shaving down both revenue and
profit at the Milwaukee-based motorcycle company over the previous year.
Revenue for the full-year 2007 was $5.73 billion, down 1.3% compared with $5.8 billion in the
previous year. Net income also slipped, reaching $933.84 million, compared with $1.04 billion in
the previous year. Diluted earnings per share were $3.74 versus $3.93 in 2006.
International sales were a bright spot. International retail sales of Harley-Davidson
motorcycles grew by 13.7%, even as U.S. retail sales dropped by 6.2%. The company exported
89,080 Harley-Davidson motorcycle units in 2007, an increase over the 75,984 it shipped in the
previous year. U.S. shipments totaled 241,539 in 2007, down 31,673 from the previous year.
"Harley-Davidson managed through a weak U.S. economy during 2007," stated Jim Ziemer, CEO, when
fourth-quarter and full-year 2007 results were released. "While these are challenging times in
the U.S., our international dealer network delivered double-digit retail sales growth in the
fourth quarter and for the full year of 2007."
While Harley-Davidson motorcycle revenue dropped in 2007 from $4.55 billion to $4.45 billion,
revenue from general merchandise and parts and accessories rose. General merchandise revenue
increased 10.1% to $305.4 million, and parts and accessories grew 0.7% to $868.3 million.
The company also repurchased 20.4 million shares of its common stock in 2007 at a cost of $1.15
billion.
Harley-Davidson said it expected moderate revenue growth, lower operating margin, and a diluted
earnings-per-share growth rate of 4% to 7% in 2008 compared with 2007.
