From a press release issued by Harley-Davidson:

HARLEY-DAVIDSON, INC. REPORTS RECORD SECOND QUARTER REVENUE AND EARNINGS

Highly Anticipated New 100th Anniversary Models Introduced

Harley-Davidson, Inc. (NYSE: HDI) announced record revenue and earnings for its second quarter ended June 30, 2002. The Company’s second quarter revenue was $1.0 billion, an increase of 16.1 percent over the same period last year. Diluted earnings per share for the second quarter were 47 cents, a 25.4 percent increase compared to last year.

“In the midst of challenging economic times, we are pleased to deliver another record quarter,” said Jeffrey L. Bleustein, chairman and chief executive officer of Harley-Davidson, Inc. “Worldwide retail sales of Harley-Davidson motorcycles for the first half of the year grew 19 percent over the same time period last year.”

Motorcycles and Related Products Segment – Second Quarter Results

Second quarter revenue from Harley-Davidson® motorcycles was $760.1 million, an increase of 12.7 percent over last year. Shipments of Harley-Davidson motorcycles in the second quarter totaled 65,540 units, up 5,379 units or 8.9 percent over last year. As a result of continued manufacturing success and customer demand, the Company is increasing its 2002 target for Harley-Davidson motorcycles from 261,000 to 262,000, an 11.2 percent increase over the prior year.

Second quarter revenue from Parts and Accessories (P&A), which consists of Genuine Motor Parts and Genuine Motor Accessories, totaled $168.8 million, a 21.8 percent increase from the year-ago quarter.

Second quarter revenue from General Merchandise, which consists of MotorClothesä apparel and collectibles, totaled $51.3 million, up 54.7 percent or $18.1 million over the same period last year. Revenue from 100th Anniversary MotorClothes items accounted for more than $10 million of the increase.

On a longer-term basis, the Company expects the growth rate for P&A revenues to increase slightly faster than the Harley-Davidson motorcycle unit growth rate. General Merchandise is expected to grow slightly slower than the motorcycle unit growth rate.

Second quarter gross margin was 33.5 percent of revenue, which matches 2001’s second quarter gross margin. Second quarter operating margin for the Motorcycles and Related Products Segment was 18.3 percent of revenue, compared to 17.9 percent of revenue for the same period last year.

Pension Plan Assumption
During the quarter, the Company adjusted its long-term expected return on pension plan assets from 10.5 to 8.5 percent as a result of projected market conditions. The pre-tax impact of this change was a $3 million expense for the quarter and is expected to be approximately $6 million in expense for the full year.

Harley-Davidson Retail Data
Retail sales of Harley-Davidson motorcycles in the United States were up 20.4 percent for the period January through June 2002, when compared to the same period last year. Harley-Davidson retail sales in Europe and Japan were up 11.3 and 10.3 percent, respectively, when compared with 2001. Refer to the accompanying table for available industry data.

Financial Services Segment – Second Quarter Results
Harley-Davidson Financial Services, Inc. (HDFS) reported second quarter operating income of $37.0 million, up from $23.1 million in the year-ago quarter. The subsidiary’s performance was better than expected and was driven primarily by strong retail loan originations through the dealer network and strong credit quality of its loan portfolio. The Company’s second quarter securitization of $586 million of motorcycle retail loans resulted in a gain of $21.4 million, which compares to a securitization of $366 million and gain of $16.8 million during the prior year second quarter.

The Company is raising its expectation for HDFS’s total year 2002 operating income to be approximately 50 percent higher than 2001 performance. Over the long term, the Company expects the HDFS growth rate to be slightly higher than the Company’s motorcycle unit growth rate.

Cash Flow Reporting
With this second quarter report, Harley-Davidson is providing investors with even greater financial transparency by including a cash flow statement as one of the supporting schedules. “We are continuing our practice of providing clear and concise financial information to the investment community,” said James L. Ziemer, vice president and chief financial officer of Harley-Davidson, Inc. “Operations generated cash of over $427 million during the first six months of 2002, allowing us to fund our manufacturing expansion and maintain the strength of our balance sheet.”

Share Repurchase
During the quarter, the Company repurchased approximately 514,000 shares of its common stock. This brings the share repurchase amount to 1,089,000 shares on a year to date basis.

Harley-Davidson, Inc. – Six Month Results
For the six month period, revenue totaled $1.93 billion, a 17.7 percent increase over the year-ago period. Diluted earnings per share were 87 cents, an increase of 27.7 percent compared to the first six months last year. Shipments of Harley-Davidson motorcycle units were 130,209 a 13.9 percent increase over last year’s 114,315.

Through the first six months of this year, Harley-Davidson motorcycle revenue was $1.51 billion, a 17.0 percent increase over the $1.29 billion in revenue in 2001.

For the first six months of 2002, P&A revenue totaled $300 million, a 21.2 percent increase over last year’s $247.5 million, while General Merchandise revenue totaled $93.6 million, a 29.4 percent increase compared with $72.3 million during the same period in 2001.

For the first six months, HDFS operating income was $49.2 million, a $21.1 million increase.

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, Inc. 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.

From a press release issued by Honda:

HONDA RACING INFORMATION

Brands Hatch, Europe – 2002 World Superbike championship round 10, 2002 World Supersport championship round nine – Sunday July 28

Edwards out to impress biggest crowd of year

Castrol Honda’s Colin Edwards is aiming to continue where he left off in the last round with a repeat victory in Sunday’s 10th round of the World Superbike championship at Brands Hatch, GB.

The European round traditionally attracts the biggest spectator attendance of the year and last year’s 122,000 three-day crowd is expected to be drastically increased with ticket sales more than 30 percent up on last year.

Edwards arrives at Brands Hatch after a test at Suzuka, Japan last week and following his victory in a thrilling second race of round nine at Laguna Seca, USA two weeks ago.

“Winning at Laguna Seca was very special for me,” admits Edwards. “I’d never even finished on the podium there before in my life. It was great for everyone involved in the team to get that much needed boost and it went down well with the American fans they were keen to tell me how they were going to buy SP-2s after watching me win.”

Edwards takes on the Brands Hatch event, 53 points behind series leader Troy Bayliss but the American SP-2 rider believes the 2002 season is far from over.

“You only have to look what happened at Laguna Seca, as soon as I got a gap at the front Troy started making mistakes as he was trying to catch up. It would take nothing to turn this championship on its head,” says Edwards.

The affable 28-year-old is also setting the pace in the record books this year with 17 successive podium finishes, eclipsing the previous record of 12 set by Carl Fogarty in ’95 and ’99.

Edwards has also contributed 23 wins to the Castrol Honda team’s tally of 47 from the nine years the team has challenged for the World Superbike title and, more than a third of the team’s 158 podium finishes.

The Texan’s record at Brands Hatch is equally impressive with four wins in the last four years at the 2.62-mile circuit.

“Everything’s in place for me to go out, win two races and shoot straight back into the title race,” predicts Edwards. “We are confident that the SP-2 Michelin combination will work at Brands Hatch and, after the Laguna Seca win, I’ve never been more fired up.”

Mark Heckles will be hoping to give the Castrol Honda Rumi team success on the HRC kit SP-2 at Brands Hatch the scene of Heckles’ first podium finish on his international debut in the 2000 European Superstock race.

“Brands Hatch is a circuit I know and like and, just like the Silverstone round in May, it’s my home country with a big crowd and I’d like to give them something to shout about,” says Heckles.

The World Supersport championship resumes at Brands Hatch with Ten Kate Honda’s Fabien Foret looking to extend his three-point championship lead in Sunday’s ninth round.

Foret, looking for his fourth race win of the year believes: “We have everything needed to win at Brands Hatch. The Ten Kate Honda has won there before and on Pirelli tyres so I’ve every reason to believe I can win again.”

Foret is joined in the Ten Kate team by Scotsman Iain MacPherson, looking to improve on his current 11th place in the points standings.

The Honda UK duo of Karl Muggeridge and John McGuinness have every reason to believe Brands Hatch can bring success to the CBR600-mounted pair.

Muggeridge is confident the engine improvements made in the break since the last round at Misano, San Marino five weeks ago will be enough for him to add to his podium finish at Silverstone earlier in the year.

World Supersport rookie McGuinness is convinced Brands Hatch will give him the kind of result he’s been searching for all year.

McGuinness says: “I’ve won at Brands Hatch before and held the Supersport lap record so I just can’t wait to get going and at a circuit I know well. It’s been tough at times this year trying to learn new circuits, set up the machine and record fast qualifying laps but it should be different this weekend.”

The Van Zon Honda team currently hold eighth and 15th places in the championship standings, with Chris Vermeulen and Werner Daemen respectively.


Brands Hatch data:

Superbike:
2001 Qualifying: Colin Edwards (Castrol Honda) 1:26.556
2001 Superpole: Neil Hodgson (Ducati) 1:26.769
2001 Winner: Ben Bostrom (Ducati) x 2
Lap record: Ben Bostrom (Ducati) 1:26.884 (July 2001)

Supersport:
2001 pole position: James Whitham (Yamaha) 1:29.668
2001 winner: Jorg Teuchert (Yamaha)
Lap record: Iain MacPherson (Kawasaki) 1:30.129 (August 2000)

Copyright 2002, Roadracing World Publishing, Inc.

Racer John Hopkins may face surgery on his left hand, broken during qualifying for last weekend’s German Grand Prix.

Hopkins is seeking a fourth opinion on his hand, following two opinions that he does not need surgery and one that the break in his third metacarpal is too wide and should be pinned.

Copyright 2002, Roadracing World Publishing, Inc.

Racer John Hopkins and Red Bull Yamaha WCM’s Peter Clifford plan to attend the AMA National at Virginia International Raceway August 9-11.

Hopkins, who won the 2000 AMA 750cc Supersport Championship and the 2001 AMA Formula Xtreme Championship with Team Valvoline EMGO Suzuki, now rides a Yamaha YZR500 for Red Bull Yamaha.

Clifford is Racing Director for Red Bull Yamaha and visited the AMA National at Brainerd in 2001, prior to signing Hopkins to a three-year MotoGP deal.

The team plans to campaign Honda RC211V engines in a Moriwaki chassis in 2003.

Hopkins will be accompanied to VIR by his girlfried, Desiree Crossman.

From a press release issued by Mat Mladin’s publicist, Steve Reeves:

Rounds 13 & 14, 2002 AMA Chevy Trucks US Superbike Championship

Mid-Ohio Sports Car Course, Lexington, Ohio, USA

MLADIN CHASES REPEAT WINS AT MID-OHIO

The Mid-Ohio Sports Car Course will play host to the penultimate meeting for 2002 season with a double header round (rounds 13 & 14) of the AMA Chevy Trucks US Superbike Championship scheduled for this weekend, July 27 – 28.

Australia’s Mat Mladin will return to Ohio as the defending race winner, after taking victory in the first of the double header races at the corresponding meeting last year before finishing second in race two. The Blimpie Yoshimura Suzuki rider is also the current AMA Superbike lap record holder at the 3.86km (2.40 miles) circuit with a lap time of 1-min 26.498-secs.

The three times American AMA Superbike champion is looking forward to the round, even though he is still in a certain amount of discomfort with his injured hands he suffered when he crashed heavily during the final qualifying session of the World Superbike event at Laguna Seca less than two weeks ago. Mladin severely bruised the backs of both hands in the fall.

“I’m still having a bit of trouble moving the ring finger on my left hand, plus there is still a lot of swelling between my thumb and index finger on my right hand,” Mladin said. “There isn’t much that I can do about it at the moment, so we will be heading to Mid-Ohio and trying our best there.

“Even though the results haven’t shown it this year, I feel that I have been riding well,” added Mladin. “A lot of people felt that I rode a lot better at Laguna, but I feel that I have been riding as hard as I possibly can all year. A lot has depended on how the bike has suited that particular track. This weekend we are hopeful that we will have some updated parts from our suspension supplier Showa and that will allow us to continue to make progress with development of the bike.”

With four races remaining in this year’s championship, Mladin is still fiercely determined to stand atop the winners podium at the end of each race.

“Hopefully I’m going to win four races. That’s what I hope to do. If I can get a motorcycle that I can ride, it will make it a possibility. I don’t mind the Mid-Ohio circuit. It has a couple of little problem areas, but apart from that it’s fine. We had a win here last year, so hopefully we can go out there and repeat it again this weekend.”

Mladin arrives at Mid-Ohio lying in an uncustomary ninth place overall on the points standings with a total of 207 points. American Honda’s Nicky Hayden leads the points table with 381, with the title shaping up to be fought out between himself and Team Kawasaki’s Eric Bostrom who lies second with 345 points.

Qualifying for this weekend’s round gets underway on Friday, with final qualifying and the first Superbike race scheduled for Saturday, before Sunday’s second Superbike national.

MID-OHIO SPORTS CAR COURSE, AMA FAST FACTS

Circuit Length: 3.86km / 2.40 miles

2001 Pole position: Mat Mladin (Team Yoshimura Suzuki) 1:26.498

2001 Race results:

Saturday (Race 1 / 26 Laps)
1. Mat Mladin (Team Yoshimura Suzuki)
2. Eric Bostrom (Team Kawasaki)
3. Nicky Hayden (American Honda)

Sunday (Race 2 / 26 Laps)
1. Nicky Hayden (American Honda)
2. Mat Mladin (Team Yoshimura Suzuki)
3. Miguel DuHamel (American Honda)

Superbike lap record: Mat Mladin (Team Yoshimura Suzuki) 1:26.498 (2001)

2002 AMA Chevy Trucks US Superbike Championship (points after 12 of 16 rounds)
1. N. Hayden 381; 2. E. Bostrom 345 3. M. DuHamel 298; 4. A. Yates 287; 5. P. Picotte 277; 6. B. Parriott 235, 7. D Chandler 209; 8. J. Hacking 208, 9. M. Mladin 207; 10. B. Livengood 201.



More, from a press release issued by AMA Pro Racing:

YATES LOOKS TO CLINCH AMA PRO HONDA OILS SUPERSPORT TITLE AT MID-OHIO

PICKERINGTON, Ohio – Sunday at Mid-Ohio Sports Car Course 40-plus riders will take to the starting line for the Pro Honda Oils Supersport race. One of those riders will win Mid-Ohio’s Supersport race for the first time. Leading the series coming into this weekend’s race is Yoshimura Suzuki’s Aaron Yates. The 30-year-old veteran racer from Milledgeville, Ga., has three AMA Superbike wins at Mid-Ohio, but has yet to earn a Supersport victory at the track in his nine years of racing the series. It may not be the best circumstances for Yates to get his first Mid-Ohio Supersport win since he’ll certainly be focusing on wrapping up the championship. After winning four of the eight races leading up to Mid-Ohio, Yates needs only a 10th-place finish or better to nail down the 2002 title.

While Yates will be on championship-protection mode, Kawasaki’s Tommy Hayden will be looking to finish the season on a high note. Like Yates, Hayden, who is second in the series standings, is vying for his first Mid-Ohio Supersport victory. He lost in an epic struggle with his brother Nicky in one of the most exciting Supersport races at Mid-Ohio in 1999.

Australian Damon Buckmaster is having his best season to date in Supersport racing. The Yamaha factory rider has scored five top-5 finishes in the championship and on Sunday would love nothing better than to win his first Supersport race.

Jimmy Moore’s late-season surge has put him in an excellent position to defending his No. 1 plate in Genuine Suzuki Accessories Superstock. In the last four rounds Moore has won twice and finished second twice on his Corona Suzuki. That has help Moore pass early series leader Lee Acree. But the championship is far from over. While Moore is the defending Mid-Ohio winner, Acree is expected to be strong at the track as well. The series concludes at Acree’s home track in Virginia, so Moore will be looking to get as much of a cushion as possible this weekend. Third ranked Tommy Hayden, who is racing a 600cc machine in the 750cc-dominated Superstock class, has an outside chance of catching the two leaders should they have bad luck.

Lockhart Phillips Formula Xtreme has turned out to be the most hotly contested championship in the AMA’s national road racing series this season. Honda, which dominated Formula Xtreme in its first four years of existence but took a backseat to Suzuki last year, is back on top of the standings with Bruce Transportation Group Honda’s Jake Zemke. Zemke, of Paso Robles, Calif., holds a slim eight-point lead over Attack Suzuki rider Jason Pridmore. Yamaha’s Damon Buckmaster has more wins (three) than any other rider in Formula Xtreme, yet still finds himself third in the championship chase – nine points out of the lead. Tom Kipp, of Valvoline EMGO Suzuki, will be a fan favorite at Mid-Ohio. The veteran racer from nearby Chardon, Ohio, is the defending winner of the race. The Formula Xtreme Series will go down to the final round in Virginia in August, but the Mid-Ohio race will play a pivotal roll in the final outcome.

A total of eight riders still have at least a mathematical chance to win the MBNA 250 Grand Prix championship, but realistically frontrunner Chuck Sorensen is going to be hard to stop. The 29-year-old from Sunnyvale, Calif., is on track to give Italian maker Aprilia its first AMA national title. Sorensen himself is looking for his third championship in the 250GP series. Injury has kept five-time Mid-Ohio 250 winner Rich Oliver from serious contention in his bid to win a fifth AMA 250 Grand Prix title. However, losing parts of fingers and toes in separate accidents hasn’t kept Oliver from winning races. He is seeking his third 250GP win in a row this weekend at Mid-Ohio. Oliver’s teammate Perry Melneciuc runs second in the series standings, while young Jason DiSalvo is third. Both will be seeking their first career AMA 250GP victory.

Live coverage of the Pro Honda Oils Supersport final begins at 12 p.m. Eastern on Speed Channel, with repeats on Tuesday, July 30 at 10 p.m. and again at 3 a.m. Speed Channel’s coverage of the Lockhart Phillips USA Formula Xtreme Series from Lexington, Ohio, will air Tuesday, August 6 at 8 p.m. and again at 1 a.m. Eastern.

Copyright 2002, Roadracing World Publishing, Inc.

By Michael D. Green

The AMA Vintage Motorcycle Days event at Mid-Ohio Sports Car Course wrapped up on Sunday after a three-day extravaganza of AHRMA road racing, motocross, trials, and flat-track along with a 900-vendor swap meet.

Pat Mooney dominated the headline Premier 500 class on his Petty Manx Norton Replica, winning the event on both Saturday and Sunday. Mooney was shadowed closely in both races by Jay Richardson and his Manx Norton replica.

Dave Roper made a welcome return to AHRMA competition, although he was not riding under the Team Obsolete banner. Roper won the 350 GP event on Saturday on a Honda and finished third in Sunday’s Premier 500 race on a Manx Norton.

Paul Vitale on a Ducati 748 battled with Eric Gulbransen on a Ducati 996 in AHRMA’s Twins events. Vitale finished the weekend with three race wins, but he was beaten by Gulbransen in Sunday’s Sound of Thunder race. Al Charles won both Super Mono races on the Ducati SuperMono that he purchased new in 1993.

Results are available from AHRMA’s website at

http://www.ahrma.org/results/rr2002-13-14.htm

Racer Eric Falt married Diane Groves April 28 in Dallas, Texas. Racer Brian Roach is engaged to marry Laura Granato in April 2003. (Handy editorial hint: Submit wedding, engagement, birth and other milestone information via e-mail sent to [email protected]. Include your contact information, daytime phone number and evening phone number in case further information is needed.)

Copyright 2002, Roadracing World Publishing, Inc.

The AMA National At Mid-Ohio July 26-28 has one of the largest purses in the Chevy Trucks U.S. Superbike Championship. The Superbike purse totals $82,000 with half paid out in each of two Superbike races. The four support races each have a purse of $9500.

Chevy Trucks Superbike
Total Purse $82,000
(Half paid for each race)
1. $10,450
2. $7350
3. $5000
4. $4000
5. $3500
6. $3150
7. $3050
8. $2950
9. $2850
10. $2750
11. $2650
12. $2550
13. $2450
14. $2350
15. $2250
16. $2150
17. $2050
18. $2000
19. $1950
20. $1850
21. $1750
22. $1650
23. $1550
24. $1450
25. $1300
26. $1200
27. $1100
28. $1000
29. $900
30. $750
31. $550
32. $450
33. $400
34. $350
35. $300


MBNA 250 Grand Prix
Lockhart Phillips Formula Extreme
Pro Honda Oils Supersport
Suzuki Genuine Accessories Superstock
$9500 Purse Each
1. $1500
2. $1200
3. $900
4. $650
5. $600
6. $550
7. $500
8. $450
9. $400
10. $375
11. $350
12. $325
13. $300
14. $275
15. $250
16. $225
17. $200
18. $175
19. $150
20. $125

From a press release:

SHANE PRIETO HANGS ‘EM UP

In last Sunday’s CCS Florida Region race at Moroso, Shane Prieto graciously announced his retirement. A dominant rider for 10 years, Prieto left holding several records, including Most Consecutive Unlimited Grand Prix victories with 12. And, Most Unlimited GP Victories All-Time. “I had been thinking about it for awhile, and last week, it just clicked in my head that it was time,” said Prieto. “I intend to spend weekends water-skiing with my family now.” When Prieto was younger his family did that together and he misses it. He is an accomplished bare-foot skier.

By the time racing started Sunday morning, everyone in the paddock had heard the news, and there was more attention than usual paid to the battles throughout the day between Prieto and this year’s champ Marco Martinez. These two have produced some very exciting contests throughout the last several years, and this event was no exception. In this day’s Unlimited GP, both were riding Suzuki GSX-R1000s.

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Prieto jumped out to a 15-bike lead before Martinez made an outside pass in turn seven, to mixed emotions from the crowd, on lap five of the six-lap sprint. On lap three, Martinez set a new track record running him down on the newly tightened course. Prieto was on Pirelli DOTs and Martinez used Dunlop slicks.

Shane Prieto was the overall champion for two different seasons riding with the Number One plate in 1995 and 2001. Mounted on Suzukis, his brother Sean Prieto has been his mechanic, operating out of Prieto Racing, Inc. in Pompano Beach, FL. Prieto Racing is now the foremost road racing shop in Florida.

Florida Region Promoter Henry DeGouw says: “I hate to see him go, he’s been such a fixture here.” DeGouw, a former Florida Champ too, knows what he’s going through. He retired after three years himself, sat out for a year and “I was going crazy” he said. “Then I came back for 18 more years.”

CCS Racing in Florida features 12 races this year at Moroso Motorsports Park in West Palm Beach, Homestead Miami Speedway, and North Florida Motorsports Park in Jennings, FL.

Copyright 2002, Roadracing World Publishing, Inc.

A lack of Thursday practice prior to this weekend’s AMA Pro National at Mid-Ohio Sports Car Course and the inclusion of a qualifying round for the World GSX-R Cup drew a contingent of AMA Pro-licensed riders to the AMA Grand National Championships held Monday and Tuesday at the Lexington, Ohio racetrack.

Participating Pro riders include Rich Conicelli, who has been in the top 10 in AMA Superbike points this year, as well as Jason DiSalvo, who won the AMA Superstock National at Road America in June.

The appearance of Pro-licensed racers has reignited the debate over who should be allowed to participate in an “Amateur” event, and never mind that manufacturer contingency money has been posted for the races.

Complicating matters is the fact that AMA Pro Racing Director of Competition Merrill Vanderslice has in the past suggested that Thursday practice is not important and that riders can participate in club races prior to AMA Nationals if they need more set-up and practice time than that afforded in official AMA practice starting on Friday of a race weekend. Now, when AMA Pro riders have shown up at a club race as suggested by Vanderslice, AMA Amateur officials have discouraged their participation and in at least one case went so far as to briefly suggest that they might be disqualified if they insisted on racing.

At least one rider has pointed out that the AMA Pro riders are AMA members, are legal entrants and have complied with all published rules.