Harley Rides Into 2007: Fool by Numbers

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On Thursday, Jan. 18, Harley-Davidson (NYSE: HOG) released fourth-quarter and year-end earnings for the period ended Dec. 31, 2006. Here are the quick and dirty details for the quarter.

• Sales grew 11.9% to $1.5 billion.
• Total diluted earnings grew 15.5%, thanks in part to company stock repurchases, leading to fewer outstanding shares.
• Management is targeting 11%-17% annual growth in earnings through 2009.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q4 2006	Q4 2005	Change
Sales	$1,503	$1,342	11.9%
Net Profit	$252	$230	9.8%
EPS	$0.97	$0.84	15.5%
Diluted Shares	259	275	(5.7%)

Get back to basics with a look at the income statement.

Margin Checkup

	Q4 2006	Q4 2005	Change*
Gross Margin	38.01%	38.33%	(0.32)
Operating Margin	25.61%	26.12%	(0.51)
Net Margin	16.80%	17.13%	(0.33)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q4 2006	Q4 2005	Change
Cash + ST Invest.	$897	$1,046	(14.3%)
Accounts Rec.	$143	$122	17.2%
Inventory	$288	$221	30.0%

Liabilities	Q4 2006	Q4 2005	Change
Accounts Payable	$763	$668	14.2%
Long-Term Debt	$870	$1,000	(13.0%)

Learn the ways of the balance sheet.

Cash Flow Highlights

	Q4 2006	Q4 2005	Change
Cash From Ops.	$762	$963	($201)
Capital Expenditures	$220	$198	$21
Free Cash Flow	$542	$764	($222)

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Comparable Companies:

• Ducati Motor Holdings (NYSE: DMH)
• Polaris (NYSE: PII)
• Arctic Cat (Nasdaq: ACAT)

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.