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This is not good news:

The Milwaukee-based manufacturer said it now expects 2007 earnings of $3.69 a share to $3.77 a share, well below the average forecast of $4.12 a share in a survey of analysts by Thomson Financial.

Moreover, Harley-Davidson reduced its estimate for third-quarter shipments to a range of 86,000 to 88,000 units, from 91,000 to 95,000 previously.

"Initial reports about our 2008 model-year motorcycles from our dealers and the media have been excellent, but this is a difficult time for the U.S. consumer," said CEO Jim Ziemer in a statement. "However, our U.S. dealers' retail sales have fallen sharply during August."

Against the current economic background, Harley-Davidson said it no longer expects worldwide dealer retail sales to increase during the second half of this year, with a "modest" revenue decline for 2007 and earnings per share falling 4% to 6%.

For 2008, management now expects the U.S. retail environment to continue to be challenging for motorcycle sales, with moderate revenue growth, narrower operating margins and earnings-per-share growth between 4% and 7%.

Analysts have been expecting 2008 earnings of $4.51 a share, on average.

Harley-Davidson also withdrew its financial forecast for 2009.

Posted by edelfenbein at September 7, 2007 10:31 AM