BMW, Harley Report Record Quarterly Motorcycle Sales

Sales results from the only two companies that announce earnings indicate the industry continues to grow.

U.S. motorcycle sales continue to climb briskly if announcements by BMW Motorrad USA, the importer of BMW motorcycles, and Harley-Davidson, Inc. are any indication. Both Harley-Davidson and BMW's American motorcycle distributor report increases in the 20-percent range as they close the books on the first half on 2003.

Both companies are also celebrating anniversaries. Most Americans probably know that this is Harley's 100th year (well actually, its 101st, which means that 2002 models were actually the 100th-year models, but no one seems to care about the math), and the company has badged all its 2003 motorcycles with 100th-anniversary markings. It also extended its production year by two months to meet the anticipated demand for anniversary machines. If anything, they seemed to have aimed a little low.

The company reported that it sold 76,025 motorcycles through out the world in the second quarter of 2003, an increase of 10,485 units or 16.0 percent over last year's second quarter and 600 machines over projections. It plans to ramp up production to attempt to meet demand. Its parts and accessories sales was up 21% to $204 million. Its general merchandise" (apparel and collectibles) sales were actually _down _ 15% ($7.6 million) compared to the second quarter of 2002, but the revenue for the quarter rose from $1 billion in 2002 to $1.22 this year. There is plenty of speculation about whether the company can maintain it momentum in 2004, and the details of 2004 models shown to its dealers in mid July and fueled the discussion.

Meanwhile, BMW has seen similar growth, even though 2003 is only its 80th anniversary. It said that sales are up 19 percent in the release that follows.

_**BMW Motorrad USA Celebrates 80th Anniversary With Record Sales For First Half of 2003 **
Sales Up 19 Percent Over Same Period Last Year

Woodcliff Lake, NJ, July 17, 2003...BMW Motorrad USA, the importer and distributor of BMW motorcycles in the United States, is celebrating 80 years of motorcycling excellence by shattering yet another sales record for the first half of 2003. Capitalizing on the momentum and success of the first quarter, sales have increased 19 percent at the half-year mark over the same period last year.

The surge in BMW motorcycle sales is fueled by continued consumer interest in the R 1150 RT Sport Tourer (up 12 percent over the same period last year), the R 1150 R and R 1150 RA Roadsters (up 21 percent over the same period last year), and the single cylinder F 650 CS and F 650 CSA (up 34 percent over the same period last year). Sales of BMW's Dual Sport R 1150 GS Adventure more than doubled during the first half of 2003._

Harley invented the factory cruiser in 1971 with the Super Glide, introducing a class that has become the biggest and most profitable in motorcycling.