New Lid Covers for FL now Match Mustang’s Variety of New Seats

24 03 2017

THREE RIVERS, MA – March 24, 2017 – (Motor Sports Newswire) – It’s no secret that Harley® FL touring riders have a reputation for putting hard miles on their baggers–which can mean scuffed or scratched hard saddlebag lids!  Whether you want to hide those battered bag lids or wisely protect their showroom-fresh look, seasoned riders know that Mustang’s lid covers are the perfect solution.

For years, Mustang’s popular lid covers for 1993-13 and 2014-17 FL Touring models with OE hard bags have been available in plain black (only $109 per pair) or with chrome or black pearl-centered studs ($129 MSRP).  Mustang is now introducing a new line of lid covers to match their latest seats: diamond stitch, deluxe style, carbon and the Dave Perewitz Signature Series for only $139 per pair.

Mustang’s form-fitted lid covers are made from the highest quality expanded vinyl and are uniquely designed to fit snugly with no wrinkles, unsightly straps or Velcro tabs.  As with all Mustang seats, lid covers are proudly designed and individually hand sewn in their New England facility.

For more information, visit www.MustangSeats.com or call Mustang at 800-243-1392 or 413-668-1100.

Comfort on a Mustang What’s it take to make a premium quality seat? Start with styling, the finest materials, and a perfectly contoured seat. Design and build every seat in Three Rivers, Massachusetts. Produce every seat with a satisfied customer in mind. That’s what you can expect from Mustang, recognized as the worldwide leader in replacement motorcycle seats.  Proudly handcrafted in the USA since 1980.

| Mustang: We go the distance

Source: Motorsport Aftermarket Group

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World-Class Builder Jim Nasi Featured in Kuryakyn Signature Series

13 03 2017

SOMERSET, WI, March 13, 2017 – (Motor Sports Newswire) – The latest world-class builder featured in the Kuryakyn® Signature Series is none other than Jim Nasi of Jim Nasi Customs, Inc., a true pioneer of custom motorcycles and components.

The Kuryakyn Signature Series showcases skillfully crafted designs from true masters of the trade; products produced exclusively by Kuryakyn and primed for your personal touch. A brand built on original designs, demanding quality and a passion for creativity, Jim Nasi Customs has established a reputation for awe-inspiring concepts, intelligent engineering, and clean, unfiltered style. The collection currently includes a trio of competitively priced high-quality components designed with original Jim Nasi styling.

Signature Series Smooth Dash Console by Jim Nasi
The Smooth Dash Console is a direct bolt-on replacement featuring quality aluminum construction. A unique, flowing design hugs the tank’s contours for a full custom appearance, without having to go the expensive stretched tank route. The console uses existing mounts for hassle-free installation, and the gloss black finish can be easily prepped to paint-match custom color themes. Finish the look off with the new Kuryakyn Flush Mount Pop-Up Gas Caps (P/N 7177 – gloss black, 7178 – Chrome), sold separately.

Fits the following models with center fill tank and without CB port: ’08-’17 Electra Glides, Road Glides, Street Glides & Street Glide Trikes.

 

Signature Series Horn Replacement Accent by Jim Nasi
The Nasi Horn Replacement Accent delivers a streamlined look to the left side of Twin Cam Touring models. This v-shaped accent fills the gap between cylinder heads, mounting tight to the motor for a sleek custom appearance in place of the factory cowbell cover and horn assembly. Constructed from lightweight and durable ABS polymer with stainless steel JNC “N” logo. Installs easily with included steel mounting bracket reusing factory motor mount bolts, but requires relocation of the horn assembly.

Fits ’08-’16 Electra Glides, Road Glides, Road Kings, Street Glides & Trikes.

 

Signature Series Finned EFI Cover by Jim Nasi
Coming soon for both round-style and 90-degree “elbow” air cleaners, the Finned EFI Cover cleans up the throttle body area by concealing the exposed wiring and servo motor on select fuel-injected models. Features chrome-plated aluminum fins and durable ABS gloss black base that can be custom-painted to match color themes.

Fits the following models with round, offset or 90-degree air cleaners: ’08-’16 Electra Glides, Road Glides, Road Kings, Street Glides & Trikes; ’16-’17 Softails, ’16-’17 FXDLS, ’11-’12 FLSTSE, ’13-’14 FXSBSE & ’14-’15 FLSTNSE.

About Kuryakyn

Kuryakyn has been leading the design and manufacturing of aftermarket parts and accessories for the motorcycle industry for the past 27 years. Our ideas are products of expressive minds that realize a motorcycle isn’t simply a means of transportation, but rather a representation of a person’s very identity. We are dedicated to producing innovative parts and accessories that keep us Miles Ahead.

Source: Motorsport Aftermarket Group

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Klock Werks and KICKER Created DIY Audio Fit Kits

28 02 2017

MITCHELL, SD – February 28, 2017 – (Motor Sports Newswire) – KICKER® Performance Audio and Klock Werks joined forces to bring motorcycle riders the clearest and loudest audio equipment available with the Klock Werks, powered by KICKER Audio, Fit Kits. These kits are specifically designed and tuned for motorcycle applications. It’s 100% plug-n-play installation that comes with all the necessary hardware and instructions. Installation is easy – wires are cut to length, pre-terminated, sheathed, and ready to plug into factory connectors.

170228-klock-werks-kicker-fit-kits

The amplifier runs at a low temperature saving you the worry of overheating components and installs with a Klock Werks stainless steel bracket discreetly under the fairing, utilizing previously unused space! The speakers are weatherproof, and the kit also comes with all the pieces to properly seal them to the fairing components!

“The speakers are tuned for road use,” Jennifer Bainbridge, Lead R&D tech explained. “They have a very clear high to mid range. It’s easier to hear the song lyrics when you’re driving down the highway!”

“Installation was really straight-forward, and it has really great sound to it,” Curtis Hofmann, owner of Hofmann Designs said. “This kit is awesome! It’s Klock Werks and

170228-klock-werks-kicker-fit-kits-2 170228-klock-werks-kicker-fit-kits-3

KICKER – two great brands. Why wouldn’t you use it? When we do audio, we need something simple, something bulletproof, something the customer won’t have an issue with.”

Backed by a 3-year warranty, KICKER and Klock Werks have you covered to rock the open road! Stock wiring does NOT need to be modified- the kit utilizes all factory plugs.

The Klock Werks Powered by KICKER® Audio Fit Kits include speakers that fit into factory openings, an amp with a small footprint, a custom stainless steel bracket, custom wiring harness, hardware, and instructions. Fitments are available for Harley, Victory, Kawasaki and Indian motorcycles.

About Klock Werks

Located in Mitchell, South Dakota, Klock Werks has grown from humble beginnings to a globally recognized Brand. Achieving status as “Air Management Experts”, Klock Werks credits this to the success of the original, patented, Flare™ Windshield. Also supplying fenders, handlebars, and other motorcycle parts, Klock Werks proudly leads the industry through innovation in design and quality of materials and fitment. Team Klock Werks has been successful for years designing parts, creating custom motorcycles, and setting records on the Bonneville Salt Flats. You will find motorcycles, family, and faith at the core of Klock Werks, along with a commitment to caring for the needs of enthusiasts around the world who enjoy their products.

Source: Klock Werks

klock-werks-logo

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Harley-Davidson Appoints New Directors to Board

23 02 2017

MILWAUKEE, WI – February 23, 2017 – (Motor Sports Newswire) –  Harley-Davidson, Inc. (NYSE: HOG) announced today the appointment of Troy Alstead and Allan Golston to the company’s board of directors, effective immediately. Alstead is retired from Starbucks Corporation where he most recently served as chief operating officer, and Golston is the president of the U.S. Program for the Bill & Melinda Gates Foundation.

“We are delighted to have two new talented professionals join our board,” said Michael Cave, non-executive chairman of the board of Harley-Davidson. “Troy and Alan bring valuable skills and have important perspectives as leaders in their fields that will be assets to the company.”

Alstead is founder of Harbor O5 and the Ocean5 Foundation. He worked for Starbucks for more than 24 years in finance, operations management and international business roles. Prior to joining Starbucks, Alstead held various finance roles at NCR Corporation and Egghead Software. Alstead is on the board of directors of Levi Strauss & Co. and TopGolf.

Golston, who has been with the Bill & Melinda Gates Foundation since 2000, previously served as its chief financial officer and chief administrative officer. He is a certified public accountant and has held positions with Swedish Health Services in Seattle and the University of Colorado Hospital. Golston is a member of the board of directors of Stryker Corporation, and is a member of the Stryker Corporation Audit Committee.

The appointment of Alstead and Golston by board action brings the total number of directors to 13. Their terms will expire at the company’s 2017 annual meeting of shareholders.

Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services. Since 1903, Harley-Davidson Motor Company has fulfilled dreams of personal freedom with custom, cruiser and touring motorcycles, riding experiences and events and a complete line of Harley-Davidson motorcycle parts, accessories, general merchandise, riding gear and apparel. Harley-Davidson Financial Services provides wholesale and retail financing, insurance, extended service and other protection plans and credit card programs to Harley-Davidson dealers and riders in the U.S., Canada and other select international markets. For more information, visit Harley-Davidson’s website at www.harley-davidson.com.

Source: Harley-Davidson, Inc.

Harley-Davidson

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Harley-Davidson Road King Special Delivers All-New Style and Attitude Powered by the Milwaukee-Eight Engine

10 02 2017

MILWAUKEE, WI – February 10, 2017 – (Motor Sports Newswire) –  Swapping chrome for black and powered by the muscular Milwaukee-Eight™ 107 engine, the new Road King Special motorcycle pushes Harley-Davidson’s touring line in a dramatic new styling direction, expressing a contemporary perspective on the classic Road King model.

MY17.5 FLHRS Road King Special. Touring.“The Road King Special pounds down the boulevard like a gleaming locomotive rolling through a train yard at midnight,” said Brad Richards, Harley-Davidson Vice-President of Styling and Design. “The Road King has always reflected the purity of the Harley-Davidson FL riding experience. By exchanging chrome surfaces for black and lowering the bike’s profile, we’ve moved the traditional Road King into a new space that’s very current in the custom bagger scene.”

A dark front end topped by a massive gloss-black headlamp nacelle is the signature styling element of the Road King Special. A new 9-inch-tall, 1.25-inch-diameter mini-ape handlebar puts the rider in an aggressive posture on the bike that’s also comfortable for long runs on the open road.

MY17.5 FLHRS Road King Special. Touring. MY17.5 FLHRS Road King Special. Touring.

“Chrome was retained only on some key engine components,” said Harley-Davidson Designer- Stylist Dais Nagao. “The lower rocker boxes, pushrod tubes and tappet blocks are finished with chrome to emphasize the V-Twin shape of the Milwaukee-Eight 107 engine. We added a new engine-turned air cleaner insert, a finish that’s also featured on the tank console.”

The Road King Special’s engine guard, handlebar and hand controls, mirrors, turn signals, engine covers, air cleaner cover, mufflers and exhaust shields also feature black surfaces. New gloss black turbine cast-aluminum wheels include a 19-inch front wheel topped by a low-profile fender. At the rear, stretched saddlebags flow over the mufflers to provide a slammed-to-the-ground appearance without reducing suspension travel. A rear fascia panel fills the space between the saddlebags and rear fender, and a low-mount license plate module completes the tight, low lines of the rear end.

Model Year 2014, MY14, Model Year 14, 2014, Road King, Touring MY17.5 FLHRS Road King Special. Touring.

Comfort, control and performance are enhanced by the all-new front and rear suspension components featured on all 2017 Harley-Davidson Touring model motorcycles. New hand-adjustable emulsion-technology rear shock absorbers offer 15 percent more pre-load adjustment than previous low-profile touring shocks. The front suspension features new double-bending valve suspension technology that delivers the damping performance of a racing-style cartridge fork with linear damping characteristics and reduced weight. Reflex linked brakes with ABS and the Harley-Davidson Smart Security System are standard equipment on the Road King Special.

MY17.5 FLHRS Road King Special. Touring.Powered by the new Milwaukee-Eight engine
New for all 2017 touring models, the Milwaukee-Eight engine offers quicker throttle response, more passing power, purer sound, a smoother ride and more of the feeling riders want from a Harley-Davidson Touring motorcycle engine.

  • More Power Each Milwaukee-Eight engine produces 10 percent more torque than the engine it replaces in touring models. In addition to increased displacement, the Milwaukee-Eight engine features a higher compression ratio and four-valve cylinder heads with 50 percent more intake and exhaust flow capacity. The valve train requires no adjustment as the design of the rocker arms enables valve lash to be set at the factory for life. Dual spark plugs for each cylinder contribute to more-efficient combustion. A single chain-driven camshaft is lighter, mechanically less complex and creates less friction and noise.
  • Quicker Acceleration The Milwaukee-Eight engine weighs the same as the engines it replaces, so its extra power contributes directly to improved acceleration performance. The Milwaukee-Eight 107 accelerates 11 percent quicker from 0-60 mph, equal to a two-to-three bike length improvement, and 11 percent quicker from 60-80 mph in top gear, equal to a one-to-two bike length improvement, compared to the Twin Cam High Output 103.
  • Heat Management The Milwaukee-Eight engine offers improved rider and passenger thermal comfort due to reduced heat absorption, increased heat rejection and a redesigned exhaust system. The Milwaukee-Eight 107 engine features a precision cooling strategy that targets a flow of oil around the hottest areas of the cylinder heads. A new knock sensor for each cylinder enables more-precise timing control. The rear exhaust pipe is repositioned and the exhaust catalyst is relocated to move heat away from the passenger. Idle speed is lowered from 1,000 rpm to 850 rpm.
  • Improved Fit A new, slimmer primary drive cover and the low-profile shape of the air cleaner cover provide improved rider legroom around the engine and an easier reach to the ground for many riders. All Milwaukee-Eight powered models are fitted with an assist and slip clutch with improved hydraulic actuation and 7 percent less clutch lever effort.
  • Reduced Vibration The rubber-mounted Milwaukee-Eight engine features a single internal counter balancer that cancels 75 percent of primary vibration at idle for a more refined feel and more comfortable experience for rider and passengers while retaining the classic character of Harley® V-Twin engines.
  • Richer Exhaust Note Lighter valves, a single camshaft, optimized cover designs and improved driveline components greatly reduce mechanical powertrain noise. The engine intake and air cleaner are designed to reduce intake sound while ensuring maximum air flow. As a result, the new Milwaukee-Eight engine is mechanically quieter, enabling a richer exhaust tone that meets all global noise and emissions standards while allowing the unmistakable rumble of its exhaust note to resonate.
  • Improved Charging The Milwaukee-Eight engine charging system delivers 50 percent more output to the battery at idle to better support the power demands of touring riders, including accessory lighting, performance audio, and heated gear and other accessories.
  • New Engine Styling The Milwaukee-Eight engine features sleek, modern styling that respects the heritage of previous Harley-Davidson big twin engines. The Road King Special is the first model to feature the Milwaukee-Eight in an all-black engine finish.

The Road King Special model is offered in four color options: Vivid Black, Charcoal Denim, Hot Rod Red Flake Hard Candy Custom™, and Olive Gold.

To experience the style and performance of the entire 2017 motorcycle line-up and feel the power of the Milwaukee-Eight engine, schedule a test ride at a local Harley-Davidson authorized dealer by visiting h-d.com/testride.

About Harley-Davidson Motor Company

Since 1903, Harley-Davidson Motor Company has fulfilled dreams of personal freedom with cruiser, touring and custom motorcycles, riding experiences and events, and a complete line of Harley-Davidson motorcycle parts, accessories, general merchandise, riding gear and apparel. For more information, visit www.h-d.com

Source: Harley-Davidson Motor Company

Harley-Davidson

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Klock Werks and Dynamat Offer Up the Ultimate “Buzz-Kill”

6 02 2017

MITCHELL, SD – February 6, 2017 – (Motor Sports Newswire) – The Klock Werks Krew, in partnership with the industry-leading premium acoustic control brand Dynamat, introduce a custom audio accessory kit for Harley-Davidson models. Riders around the world love the iconic engine and exhaust sounds of their Harley Davidson motorcycles, but distracting fairing rattles and muddled stereo systems are a drag. The all-new Klock Werks Dynamat Sound Control Fairing Kit is an easy to install custom cut kit that will vastly improve the quality of any stereo system.

The Klock Werks Dynamat Sound Control Fairing Kit reduces vibrations, providing louder and clearer audio output from your speakers. The kit will give you tighter bass response, more pronounced mid-range tone and an obvious improvement in your sound system.

“Ask the marketing department the difference it makes,” Brian Klock, President and Visionary of Klock Werks said. “Their office is adjacent to R&D. Before the Dynamat was installed, the AC/DC song the tech was playing on the stock system was fuzzy. After installation, the ladies in the office said they could make out the words of the song, and that kind of change in clarity from a stock radio can be heard, even through wall. ”

All fairing kits are custom cut, resulting in no waste and no guesswork, making them an ideal accessory for any custom builder or owner upgrading his own stereo. There is no mystery behind how much product you will need, where you should put it, or how much it will cost. Installation is quick and easy! You simply open the package, peel, stick and you’re done!

The Butyl-based Dynamat Extreme applies easily to the inner contours of the fairing, and when paired with the additional benefits of Dynaliner, builders will improve even a stock sound system on any motorcycle.

“Whether you have a stock stereo or upgrades to your audio system, this sound control kit is going to improve your output,” Jennifer Bainbridge, Lead R&D Tech said. “It absorbs vibrations, concentrates the sounds, provides dampening for the radio components, and prevents echo through the fairing.

The Klock Werks Dynamat Sound Control Fairing Kits are available starting at $189.95 for FLHT (‘96-’13 & 2014+) and $239.95 for FLTR (‘98-’13 & 2015+). They arrive pre-cut with instructions for application and take only a few minutes to install. Even though a rider can’t see the Dynamat products once the bike is buttoned up, they will hear and appreciate the difference. Available at GetKlocked.com and authorized Drag Specialties dealers worldwide.

About Klock Werks

Located in Mitchell, South Dakota, Klock Werks has grown from humble beginnings to a globally recognized Brand. Achieving status as “Air Management Experts”, Klock Werks credits this to the success of the original, patented, Flare™ Windshield. Also supplying fenders, handlebars, and other motorcycle parts, Klock Werks proudly leads the industry through innovation in design and quality of materials and fitment. Team Klock Werks has been successful for years designing parts, creating custom motorcycles, and setting records on the Bonneville Salt Flats. You will find motorcycles, family, and faith at the core of Klock Werks, along with a commitment to caring for the needs of enthusiasts around the world who enjoy their products.

Source: Klock Werks 

klock-werks-logo

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Harley-Davidson Reports Fourth Quarter, Full-Year 2016 Results

31 01 2017

Market Share Gains in the U.S. While Industry Sales Decline

MILWAUKEE, WI – January 31, 2017 – (Motor Sports Newswire) –  Harley-Davidson, Inc. (NYSE: HOG) fourth quarter 2016 diluted EPS increased 22.7 percent to $0.27 compared to $0.22 in the same period of 2015. In the fourth quarter of 2016, net income was $47.2 million on consolidated revenue of $1.11 billion versus net income of $42.2 million on consolidated revenue of $1.18 billion in the year-ago period. Full-year 2016 diluted EPS increased 3.8 percent to $3.83 compared to diluted EPS of $3.69 in 2015. Full-year net income was $692.2 million on consolidated revenue of $6.0 billion versus net income of $752.2 million on consolidated revenue of $6.0 billion a year ago.

“The global competitive environment remains intense, but our 2016 results demonstrate that our increased investments to drive demand and bring impactful new products to market are working,” said Matt Levatich, president and chief executive officer, Harley-Davidson, Inc. “We are energized by our resolve to compete and win in the U.S. and in major international markets. Our market share performance gives us great confidence in the strength of our long-term strategy.”

For the full-year 2016, worldwide Harley-Davidson retail motorcycle sales were down 1.6 percent compared to 2015. U.S. retail sales decreased 3.9 percent, partially offset by international growth of 2.3 percent.

During 2016, the company reported its best-ever retail sales results in Asia Pacific and EMEA. In the 601+cc motorcycle market, the company grew its number one market share position in the U.S. and grew market share in Europe. The company added 40 new dealer points internationally and reported that U.S. dealers trained more than 65,000 new riders through the Harley-Davidson Riding Academy. The company also launched its model year 2017 lineup of motorcycles, featuring the new, highly-acclaimed Milwaukee-Eight™ engine, and upgraded suspension, on all new Touring motorcycles.

“Our long-term strategy is all about growing ridership in the U.S., growing reach and impact internationally, and growing share and profit in every market we serve,” stated Levatich. “Our goal over the next 10 years is to build the next generation of Harley-Davidson riders worldwide.”

Harley-Davidson Retail Motorcycle Sales

4th Quarter

Full-Year

2016

2015

Change

2016

2015

Change

U.S.

26,077

26,044

0.1%

161,658

168,240

-3.9%

Canada

1,257

1,255

0.2%

10,203

9,669

5.5%

Latin America

2,637

3,082

-14.4%

9,701

11,173

-13.2%

EMEA  

7,891

7,689

2.6%

45,838

43,287

5.9%

Asia Pacific

8,748

8,787

-0.4%

32,889

32,258

2.0%

International Total

20,533

20,813

-1.3%

98,631

96,387

2.3%

Worldwide Total

46,610

46,857

-0.5%

260,289

264,627

-1.6%

In the fourth quarter, worldwide retail sales of new Harley-Davidson motorcycles declined 0.5 percent versus the prior year behind modest declines in some international markets partially offset by slight growth in the U.S.

Motorcycles and Related Products Segment Results

$ in thousands

4th Quarter

Full-Year

2016

2015

Change

2016

2015

Change

Motorcycle Shipments (vehicles)

42,414

48,149

-11.9%

262,221

266,382

-1.6%

Revenue

 Motorcycles

$685,047

$751,383

-8.8%

$4,122,113

$4,127,739

-0.1%

 Parts & Accessories

$169,445

$169,707

-0.2%

$842,637

$862,645

-2.3%

 General Merchandise

$72,919

$79,356

-8.1%

$284,583

$292,310

-2.6%

Gross Margin Percent

30.7%

31.9%

-1.2 pts

35.1%

36.8%

-1.7 pts

Operating Income

$9,271

$6,368

45.6%

$773,406

$875,490

-11.7%

Operating Margin Percent

1.0%

0.6%

0.4 pts

14.7%

16.5%

-1.8 pts

Fourth quarter revenue from motorcycles and related products was down versus the prior year behind fewer motorcycle shipments. Operating margin as a percent of revenue increased in the quarter compared to the same period in 2015, resulting from lower SG&A.

Financial Services Segment Results

$ in thousands

4th Quarter

Full-Year

2016

2015

Change

2016

2015

Change

Revenue

$177,577

$173,565

2.3%

$725,082

$686,658

5.6%

Operating Income

$60,139

$60,857

-1.2%

$275,530

$280,205

-1.7%

Financial services operating income fell 1.2 percent in the fourth quarter compared to the year ago period.

Income Tax Rate
For 2016, Harley-Davidson’s effective tax rate was 32.4 percent compared to 34.6 percent the prior year. The lower effective tax rate is attributed to the successful closure of various tax audits in 2016.

Other Results
Cash and marketable securities amounted to $765.5 million at the end of 2016, compared to $767.4 million at the end of 2015. Harley-Davidson generated $1.17 billion of cash from operating activities in 2016 compared to $1.10 billion in 2015. On a discretionary basis, the company repurchased 1.7 million shares of its common stock during the fourth quarter of 2016 at a cost of $91.0 million. In 2016, Harley-Davidson repurchased 9.7 million shares of its common stock at a cost of $459.1 million. In the fourth quarter of 2016, there were 177.6 million weighted-average diluted common shares outstanding. At the end of 2016, 19.3 million shares remained on a board-approved share repurchase authorization.

Guidance
For 2017, Harley-Davidson anticipates full-year motorcycle shipments to be flat to down modestly in comparison to 2016. In the first quarter of 2017, Harley-Davidson expects to ship approximately 66,000 to 71,000 motorcycles.

Harley-Davidson expects full-year 2017 operating and gross margin as a percent of revenue to be approximately in line with 2016 and its full-year effective tax rate to be approximately 34.5 percent.

The company anticipates 2017 capital expenditures of $200 million to $220 million.

Company Background
Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services. Since 1903, Harley-Davidson Motor Company has fulfilled dreams of personal freedom with custom, cruiser and touring motorcycles, riding experiences and events and a complete line of Harley-Davidson motorcycle parts, accessories, general merchandise, riding gear and apparel. Harley-Davidson Financial Services provides wholesale and retail financing, insurance, extended service and other protection plans and credit card programs to Harley-Davidson dealers and riders in the U.S., Canada and other select international markets. For more information, visit Harley-Davidson’s Web site at www.harley-davidson.com.

Conference Call and Webcast Presentation
Harley-Davidson will discuss fourth quarter and full-year results on a Webcast at 8:00 a.m. CT today. The supporting slides will be posted prior to the call and can be accessed at http://investor.harley-davidson.com under “Events and Presentations.” The audio portion of today’s call will also be posted approximately two hours after the call concludes.

Forward-Looking Statements
The company intends that certain matters discussed in this release are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the company “believes,” “anticipates,” “expects,” “plans,” or “estimates” or words of similar meaning. Similarly, statements that describe future plans, objectives, outlooks, targets, guidance or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially, unfavorably or favorably, from those anticipated as of the date of this release. Certain of such risks and uncertainties are described below. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this release are only made as of the date of this release, and the company disclaims any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

The company’s ability to meet the targets and expectations noted depends upon, among other factors, the company’s ability to (i) execute its business strategy, (ii) manage through changes in general economic and business conditions, including changing capital, credit and retail markets, and the changing political environment, (iii) accurately estimate and adjust to fluctuations in foreign currency exchange rates, interest rates and commodity prices, (iv) prevent a cybersecurity breach involving consumer, employee, dealer, supplier, or company data and respond to evolving regulatory requirements regarding data security, (v) drive demand by executing its marketing strategy of appealing to and growing sales to multi-generational and multi-cultural customers worldwide in an increasingly competitive marketplace, (vi) develop and introduce products, services and experiences that are successful in the marketplace, (vii) manage the credit quality, the loan servicing and collection activities, and the recovery rates of HDFS’ loan portfolio, (viii) balance production volumes for its new motorcycles with consumer demand, including in circumstances where competitors may be supplying new motorcycles to the market in excess of demand at reduced prices, (ix) manage the impact that prices for and supply of used motorcycles may have on its business, including on retail sales of new motorcycles, (x) prevent and detect any issues with its motorcycles or any associated manufacturing processes to avoid delays in new model launches, recall campaigns, regulatory agency investigations, increased warranty costs or litigation and adverse effects on its reputation and brand strength, (xi) continue to develop the capabilities of its distributors and dealers and manage the risks that its independent dealers may have difficulty obtaining capital and managing through changing economic conditions and consumer demand, (xii) manage risks that arise through expanding international manufacturing, operations and sales, (xiii) adjust to tax reform, healthcare inflation and reform and pension reform, (xiv) manage through the effects inconsistent and unpredictable weather patterns may have on retail sales of motorcycles, (xv) manage supply chain issues, including quality issues and any unexpected interruptions or price increases caused by raw material shortages or natural disasters, (xvi) implement and manage enterprise-wide information technology systems, including systems at its manufacturing facilities, (xvii) manage changes and prepare for requirements in legislative and regulatory environments for its products, services and operations, (xviii) manage its exposure to product liability claims and commercial or contractual disputes, (xix) execute its flexible production strategy, (xx) retain and attract talented employees, (xxi) successfully access the capital and/or credit markets on terms (including interest rates) that are acceptable to the company and within its expectations, and (xxii) continue to manage the relationships and agreements that the company has with its labor unions to help drive long-term competitiveness.

In addition, the company could experience delays or disruptions in its operations as a result of work stoppages, strikes, natural causes, terrorism or other factors. Other factors are described in risk factors that the company has disclosed in documents previously filed with the Securities and Exchange Commission.

The company’s ability to sell its motorcycles and related products and services and to meet its financial expectations also depends on the ability of the company’s independent dealers to sell its motorcycles and related products and services to retail customers. The company depends on the capability and financial capacity of its independent dealers and distributors to develop and implement effective retail sales plans to create demand for the motorcycles and related products and services they purchase from the company. In addition, the company’s independent dealers and distributors may experience difficulties in operating their businesses and selling Harley-Davidson motorcycles and related products and services as a result of weather, economic conditions or other factors.

Harley-Davidson, Inc.

Condensed Consolidated Statements of Income

(In thousands, except per share amounts)

(Unaudited)

(Unaudited)

(Unaudited)

Three months ended

Twelve months ended

December 31,

December 31,

December 31,

December 31,

2016

2015

2016

2015

Motorcycles and related products revenue

$      933,023

$   1,007,070

$   5,271,376

$   5,308,744

Gross profit

286,809

320,932

1,851,666

1,952,460

Selling, administrative and engineering expense

277,538

314,564

1,078,260

1,076,970

  Operating income from motorcycles & related products

9,271

6,368

773,406

875,490

Financial services revenue

177,577

173,565

725,082

686,658

Financial services expense

117,438

112,708

449,552

406,453

  Operating income from financial services

60,139

60,857

275,530

280,205

Operating income

69,410

67,225

1,048,936

1,155,695

Investment income

891

602

4,645

6,585

Interest expense

7,702

7,220

29,670

12,117

Income before income taxes

62,599

60,607

1,023,911

1,150,163

Provision for income taxes

15,420

18,411

331,747

397,956

Net income

$        47,179

$        42,196

$      692,164

$      752,207

Earnings per common share:

  Basic

$           0.27

$           0.22

$           3.85

$           3.71

  Diluted

$           0.27

$           0.22

$           3.83

$           3.69

Weighted-average common shares:

  Basic

176,616

189,681

179,676

202,681

  Diluted

177,642

190,621

180,535

203,686

Cash dividends per common share

$           0.35

$           0.31

$           1.40

$           1.24

Harley-Davidson, Inc.

Condensed Consolidated Balance Sheets(1)

(In thousands)

(Unaudited)

December 31,

December 31,

2016

2015

ASSETS

Current assets:

    Cash and cash equivalents

$      759,984

$      722,209

    Marketable securities

5,519

45,192

    Accounts receivable, net

285,106

247,405

    Finance receivables, net

2,076,261

2,053,582

    Inventories

499,917

585,907

    Restricted cash

52,574

88,267

    Other current assets

174,491

235,321

Total current assets

3,853,852

3,977,883

Finance receivables, net

4,759,197

4,814,571

Other long-term assets

1,277,191

1,180,523

$   9,890,240

$   9,972,977

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

    Accounts payable & accrued liabilities

$      721,970

$      707,578

    Short-term debt

1,055,708

1,201,380

    Current portion of long-term debt, net

1,084,884

838,349

Total current liabilities

2,862,562

2,747,307

Long-term debt, net

4,666,975

4,832,469

Pension and postretirement healthcare liabilities

257,709

358,547

Other long-term liabilities

182,836

195,000

Total shareholders’ equity

1,920,158

1,839,654

$   9,890,240

$   9,972,977

(1)  ASU 2015-03 Interest – Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs was adopted retrospectively on January 1, 2016. Debt issuance costs in Other current assets and Other long-term assets have been reclassified to Current-portion of long-term debt, net and Long-term debt, net for 2015 balances to reflect the adoption of the new guidance.

Harley-Davidson, Inc.

Condensed Consolidated Statements of Cash Flows

 (In thousands)

(Unaudited)

Twelve months ended

December 31,

December 31,

2016

2015

Net cash provided by operating activities

$   1,174,339

$   1,100,118

Cash flows from investing activities:

  Capital expenditures

(256,263)

(259,974)

  Finance receivables, net

(489,464)

(614,945)

  Proceeds from sale of finance receivables

312,571

  Net change in marketable securities

40,014

11,507

  Acquisition of business 

(59,910)

  Other

411

7,474

Net cash used by investing activities

(392,731)

(915,848)

Cash flows from financing activities:

  Proceeds from issuance of senior unsecured notes

740,385

  Proceeds from issuance of medium-term notes

1,193,396

595,386

  Repayments of medium-term notes

(451,336)

(610,331)

  Proceeds from securitization debt

1,195,668

  Repayments of securitization debt

(665,400)

(1,008,135)

  Net (decrease) increase in credit facilities and unsecured commercial paper

(145,812)

469,473

  Borrowings of asset-backed commercial paper

62,396

87,442

  Repayments of asset-backed commercial paper

(71,500)

(72,727)

  Net change in restricted cash

43,495

11,410

  Dividends paid

(252,321)

(249,262)

  Purchase of common stock for treasury

(465,341)

(1,537,020)

  Excess tax benefits from share-based payments

2,251

3,468

  Issuance of common stock under employee stock option plans

15,782

20,179

Net cash used by financing activities

(734,390)

(354,064)

Effect of exchange rate changes on cash and cash equivalents

(9,443)

(14,677)

Net increase (decrease) in cash and cash equivalents

$        37,775

$    (184,471)

Cash and cash equivalents:

  Cash and cash equivalents – beginning of period

$      722,209

$      906,680

  Net increase (decrease) in cash and cash equivalents

37,775

(184,471)

  Cash and cash equivalents – end of period

$      759,984

$      722,209

Motorcycles and Related Products Revenue and

 Motorcycle Shipment Data

(Unaudited)

(Unaudited)

(Unaudited)

Three months ended

Twelve months ended

December 31,

December 31,

December 31,

December 31,

2016

2015

2016

2015

MOTORCYCLES AND RELATED PRODUCTS REVENUE (in thousands)

  Motorcycles

$      685,047

$      751,383

$   4,122,113

$   4,127,739

  Parts & Accessories

169,445

169,707

842,637

862,645

  General Merchandise

72,919

79,356

284,583

292,310

  Other

5,612

6,624

22,043

26,050

$      933,023

$   1,007,070

$   5,271,376

$   5,308,744

MOTORCYCLE SHIPMENTS:

    United States

20,131

28,804

161,839

170,688

    International

22,283

19,345

100,382

95,694

       Total 

42,414

48,149

262,221

266,382

MOTORCYCLE PRODUCT MIX:

    Touring

17,943

19,414

107,410

114,768

    Cruiser

14,852

17,454

93,422

89,207

    Sportster® / Street

9,619

11,281

61,389

62,407

       Total

42,414

48,149

262,221

266,382

Worldwide Retail Sales of Harley-Davidson Motorcycles(1)

Three months ended

Twelve months ended

December 31,

December 31,

December 31,

December 31,

2016

2015

2016

2015

United States

26,077

26,044

161,658

168,240

Europe(2)

6,734

6,174

39,942

36,894

EMEA – Other

1,157

1,515

5,896

6,393

  Total EMEA

7,891

7,689

45,838

43,287

Japan

2,648

2,506

10,279

9,700

Asia Pacific – Other

6,100

6,281

22,610

22,558

  Total Asia Pacific

8,748

8,787

32,889

32,258

Latin America

2,637

3,082

9,701

11,173

Canada

1,257

1,255

10,203

9,669

  Total International Retail Sales

20,533

20,813

98,631

96,387

  Total Worldwide Retail Sales

46,610

46,857

260,289

264,627

(1)   Data source for retail sales figures shown above is new sales warranty and registration information provided by Harley-Davidson dealers and compiled by the Company. The Company must rely on information that its dealers supply concerning new retail sales, and this information is subject to revision. The EMEA Europe total for December 31, 2016 includes 618 units originally reported in the EMEA-Other total for the six month period ended June 30, 2016.

(2)   Europe data includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.

Motorcycle Registration Data(1)

Twelve months ended

December 31,

December 31,

2016

2015

United States(2) 

311,710

328,818

Europe(3)

391,936

351,773

(1)   Data includes on-road 601+cc models. On-road 601+cc models include dual purpose models, three-wheeled motorcycles and autocycles. 

(2)   United States data is derived from information provided by Motorcycle Industry Council (MIC). This third party data is subject to revision and update.  

(3)   Europe data includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom. Industry retail motorcycle registration data includes 601+cc models derived from information provided by Association des Constructeurs Europeens de Motocycles (ACEM), an independent agency. This third-party data is subject to revision and update. 

Source: Harley-Davidson, Inc.

Harley-Davidson

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