For this quarter Harley's total sales fell 9.6%, with U.S. sales falling 15.5%, while non-U.S. sales actually increased 11.3%. Q3 revenue was $1.05 Billion, an 11.1% decrease from Q3 2007, generating a net income of $166.5 million, a 37.1% decrease from a year earlier. Margins fell to 34% from 38.4% a year earlier, largely a result of higher material costs. HOG's financial services division has experienced an increase in delinquencies but remains profitable.
Harley Davidson announced a lower Q3 earnings guidance since the company’s summer sales had reduced. The company conducted a promotional campaign in July 2007, which increased the sales. However, the sales again declined in August, which forced the company to lower its Q3 shipment forecast between 5.5 and 7.4 percent.
A rumor on a trading website that Honda might acquire Harley Davidson sent shares higher on Friday, although many analysts described an acquisition as unlikely and shared fell back the next day.
HOG's net income was down to 76 cents (compared to 84 cents in the year-ago quarter), but this drop was attriuted entirely to a three-week strike in late February and was less drastic than analysts had feared.
Harley cuts 2007 outlook due to union strike in PA factory
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