From a press release:

HARLEY-DAVIDSON REPORTS RECORD FIRST QUARTER

Milwaukee, Wis., April 16, 2002 — Harley-Davidson, Inc. (NYSE: HDI) today announced record revenue and earnings for its first quarter ended March 31, 2002. Revenue for the quarter was $927.8 million compared with $776.9 million in the year-ago quarter, a 19.4 percent increase. First quarter diluted earnings per share (EPS) were 39 cents, a 30.6 percent increase compared with last year’s 30 cents.

“We are proud to announce another outstanding quarter and to report that demand for Harley-Davidson products remains strong as we begin our 99th year of operations,” said Jeffrey L. Bleustein, chairman and chief executive officer of Harley-Davidson, Inc. “Our worldwide network of independent dealers experienced a growth rate of 20 percent in retail registrations during the first quarter. Based on this demand and ongoing capacity improvements, we are raising our 2002 production target for Harley-Davidson® motorcycles to 261,000 units, up from the previous target of 258,000.

“I am also pleased to announce that our Dyna family of motorcycles is now being assembled exclusively in Kansas City, after successfully transferring these operations from our York, PA facility. This comes on the heels of a new five-year labor agreement with our Kansas City unions and is another step in executing our manufacturing strategy,” added Bleustein.

Motorcycles and Related Products Segment

Financial performance for the entire segment benefited from five percent more scheduled workdays in the first quarter of 2002 compared to last year’s first quarter.

First quarter revenue from Harley-Davidson motorcycles was $747.7 million, an increase of 21.9 percent over the first quarter last year. Shipments of Harley-Davidson motorcycles totaled 64,669 units, up 10,515 units or 19.4 percent over last year and approximately 2,100 units over the Company’s announced target. “We worked additional assembly line overtime during the quarter to help meet strong customer demand for our 2002 model year motorcycles,” said Bleustein. To support the new 2002 calendar year production target of 261,000 units, Harley-Davidson is increasing its second quarter production target to 65,000 units.

First quarter revenue from Parts and Accessories (P&A), which consist of Genuine Motor Partsä and Genuine Motor Accessoriesä, totaled $131.1 million, a 20.4 percent increase over the year-ago quarter. General Merchandise, which consists of MotorClothes® apparel and collectibles, had first quarter revenue of $42.3 million, up 7.9 percent over the same period last year.

For the long term, the Company expects P&A revenue to increase somewhat faster than Harley-Davidson’s motorcycle unit growth rate and expects General Merchandise to grow slightly slower than the motorcycle unit growth rate.

First quarter gross margin for the Motorcycles and Related Products Segment was 34.0 percent of revenue compared to 32.7 percent in the first quarter of last year. Gross margin improvements were driven by the effect of the greater number of workdays as well as a stronger product mix and a greater percentage of domestic shipments. Operating margin followed gross margin and was 18.7 percent of revenue, compared to 17.4 percent of revenue for the same period last year.

Financial Services Segment

Harley-Davidson Financial Services, Inc. (HDFS), a subsidiary of Harley-Davidson, Inc., reported first quarter income of $41.7 million, up from $32.9 million in the year-ago quarter. HDFS operating income was $12.2 million, compared with $5.0 million last year. The increase was due in part to continued strong acceptance of its consumer financing programs as well as growth across all product lines. Also contributing to the income growth was the January completion of the remaining $93 million sale of receivables from HDFS’ fourth quarter 2001 asset-backed securitization offering. The Company expects HDFS operating income to grow at a rate approaching 25 percent for 2002.

Harley-Davidson Retail Data

Retail sales for Harley-Davidson motorcycles in the United States were up 21.2 percent for the period January through March 2002, when compared to the same period last year. Harley-Davidson retail sales in Europe and Japan were up 16.6 and 3.7 percent, respectively, when compared with 2002. At this time, only limited industry data is available for these markets.

Income Tax Rate

The Company’s effective income tax rate was reduced to 34.5 percent for the first quarter of 2002 from last year’s rate of 35.0 percent. The Company expects to maintain the improved rate of 34.5 percent for the remainder of the year.

Share Repurchase

During the quarter, the Company repurchased approximately 575,000 shares of its common stock.

Company Background

Harley-Davidson, Inc. is the parent company for the group of companies doing business as Harley-Davidson Motor Company, Buell Motorcycle Company and Harley-Davidson Financial Services. Harley-Davidson Motor Company, the only major U.S.-based motorcycle manufacturer, produces heavyweight motorcycles and offers a complete line of motorcycle parts, accessories, apparel and general merchandise. Buell Motorcycle Company produces sport and sport-touring motorcycles. Harley-Davidson Financial Services, Inc. provides wholesale and retail financing and insurance programs to Harley-Davidson dealers and customers.