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Non-Tech : Harley Davidson (HDI) -- Ignore unavailable to you. Want to Upgrade?

To: Iceberg who wrote (55)	6/2/1998 7:06:00 PM
From: jabbo	Read Replies (1) \| Respond to of 156

Good news after the close! Tuesday June 2, 6:05 pm Eastern Time INTERVIEW-Harley sees steady output growth By Kevin Drawbaugh CHICAGO, June 2 (Reuters) - Motorcycle powerhouse Harley- Davidson Inc. expects to boost production steadily as it winds down a multi-year capital spending program, said chief executive Jeffrey Bleustein on Tuesday. ''This is probably the last year that we see short-term for major capital expenditures. Starting next year, they should come down significantly...We have all the plants we need for the foreseeable future,'' Bleustein said in an interview with Reuters. Harley is targeting output of 148,000 units this year, up from 132,000 last year, 119,000 in 1996 and 105,000 in 1995. ''You could expect that the rate will continue kind of like it's been in the past four or five years. We'll be able to make similar kinds of steps in the future,'' Bleustein said. The only major U.S. motorcycle maker, Harley reported 1997 net income from continuing operations of $174.1 million, up 21 percent over 1996, on revenues of $1.8 billion, up 15 percent over the previous year. ''We have been increasing our revenues at kind of a double- digit rate for quite a long time and we expect to be able to continue to do that and increase earnings even faster than revenues,'' Bleustein said. In February, Harley acquired substantially all of the stock of Buell Motorcycle Co. that it did not already own. Harley had owned a 49 percent interest in Buell since its formation in 1993, with the remainder owned by founder Erik Buell. The terms of the transaction were not disclosed. Seen by heavy-cruiser king Harley as a wedge into the performance and touring machine market, Buell continues to be a development project, Bleustein said. ''Buell earnings are going to be incidental for a while...We're investing very heavily in Buell in terms of new product development and marketing programs for the future. I don't expect to see Buell break even this quarter or this year,'' Bleustein said. Named chief executive 11 months ago, Bleustein replaced Richard Teerlink, who remains chairman of the Milwaukee firm. To mark its 95th anniversary, Harley later this week will kick off a series of special events, including five cross-country rides beginning in York, Pa., Dallas, Orlando, Fla., Spokane, Wash. and Riverside, Calif. -- all ending June 9 in Milwaukee, where a huge reunion party is scheduled. Teerlink is on his way east from the Pacific Northwest, while Bleustein said he plans to lead the York ride aboard his fuel-injected Electra-Glide starting Friday. Harley estimates 40,000 owners and enthusiasts will participate in the ride and 100,000 in the reunion events.