Harley stock zooms, spurred by 86.4% surge in...

BY THE NUMBERS

February 21, 1992|By Ross Hetrick | Ross Hetrick,Staff Writer

Harley stock zooms, spurred by 86.4% surge in profits

Harley-Davidson Inc., which has 1,700 employees at its motorcycle plant in York, Pa., saw its stock price rise $5.25, to $53.50 a share, yesterday, after the Milwaukee-based company reported that its profits jumped 86.4 percent in the fourth quarter.

The only U.S. manufacturer of motorcycles had income of $7.2 million, or 41 cents a share, in the three months that ended Dec. 31, up from $3.9 million, or 22 cents a share, in the same period a year earlier. Sales for the quarter were up 22.4 percent, to $237.7 million.

The sales increase was fueled by a 29 percent increase in the division that includes motorcycles and related products, which reported revenue of $185.1 million.

For the full year, net income dropped 2.3 percent, to $37 million, ++ or $2.08 a share, from $37.8 million, or $2.12 a share, in 1990. Sales during the year were $939.8 million, up from $864.6 million in 1990.

The annual results were hurt by a two-week strike in last year's first quarter and costs associated with a new motorcycle-painting facility in York, the company said.

Harley-Davidson, which had been unable to meet the demand for its motorcycles, spent $23 million on the painting facility. The company has had problems with the new system, however, and continues to use the earlier method of hand-spraying, along with the new facility, said Ken Schmidt, a Harley-Davidson spokesman.

Although the motorcycle division's profits increased, Harley-Davidson's recreational vehicle division, Holiday Rambler, had an operating loss of $6.9 million in the quarter, compared with a $1.8 million loss a year earlier.

The company said the bigger loss resulted primarily fro increased promotional costs in a weak market and a charge for the settlement of a product-liability lawsuit.

Harley-Davidson claims 62.7 percent of the U.S. market for super-heavyweight motorcycles. Last year, it shipped 46,993 motorcycles in the United States, 8.9 percent more than in 1990. The company exported 21,633 motorcycles, 12 percent more than it did the year before.

&Three months ended 12/31/91

.. .. .. .. ..Revenue.. .. .. .. .. ..Net.. .. .. .. . Share

'91.. .. ..237,712,000.. .. .. 7,229,000.. .. .. .. 0.41

'90.. .. ..194,268,000 .. .. .. 3,881,000.. .. .. .. 0.22

% change.. .. +22.4.. .. .. .. .. +86.3.. .. .. .. .. +86.4

Twelve months ended 12/31/91

.. .. .. .. ..Revenue.. .. .. .. .. .Net.. .. .. .. .. Share

'91.. .. .. 939,863,000.. .. .. 36,972,000.. .. .. . 2.08

'90.. .. .. 864,600,000.. .. .. 37,830,000.. .. .. . 2.12

% change.. .. . +8.7.. .. .. .. .. .2.3.. .. .. .. .. .. 1.9

PharmaKinetics

This Baltimore-based drug testing company, now operating in Chapter 11 bankruptcy, trimmed its losses to $646,653, or 6 cents a share, in the three months that ended Dec. 31, 1991, from a loss of $764,690, or 8 cents a share, for the same period a year earlier.

The company blamed the most recent loss on costs associated with the bankruptcy filing and a decline in revenues. Increased government regulation also hurt the company, it said, by cutting the testing of generic drugs nationwide.

Three months ended 12/31/91

.. .. .. .. .. ..Revenue.. .. .. .. .. .Net.. .. .. .. Share

'91.. .. .. .. 3,309,500.. .. .. .. (646,653).. .. .(0.06)

'90.. .. .. .. 4,332,927.. .. .. .. $(764,690).. .. .(0.08)

% change.. .. .. -23.6.. .. .. .. .. .. NA.. .. .. .. .. . NA

Six months ended 12/31/91

.. .. .. .. .. .Revenue.. .. .. .. .. . Net.. .. .. .. . Share

'91.. .. .. .. 6,798,752.. .. ... (1,174,482).. .. . (0.11)

'90.. .. .. .. 8,799,504.. .. .. (1,533,468).. .. . (0.15)

% change.. .. .. -22.7.. .. .. .. .. .. NA.. .. .. .. .. . NA

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