* Harley, Polaris post better-than-expected results
* Harley 'mildly encouraged' by U.S. sales trends
* Polaris says "we like what we've seen" so far in April
By James B. Kelleher
CHICAGO, April 16 (Reuters) - Stronger-than-expected
results on Thursday from motorcycle maker Harley-Davidson Inc and off-road vehicle maker Polaris Industries Inc raised a glimmer of hope that the buyer pullback
bedeviling consumer goods companies may be slowing.
The results came one day after the U.S. Federal Reserve
said economic activity in some parts of the economy appeared to
be stabilizing, and offered fresh hope -- however slim -- that
the economy's steep descent is no longer building momentum.
[nN15491736]
Investors responded to the news by sending the two
companies' shares, which had already doubled in recent weeks on
nascent hopes of a rebound, sharply higher.
Harley-Davidson reported stronger-than-expected
first-quarter earnings, affirmed its full-year shipment
forecast and said it was "mildly encouraged" by sales trends in
the United States, its biggest market by far. [nN14443324]
To be sure, retail sales of Harley-Davidson motorcycles in
the United States, which accounts for 65 percent of the
company's revenue, fell 9.7 percent in the quarter. But that
represented an improvement over the fourth quarter of 2008,
when U.S. retail sales tumbled 19.6 percent, and the third
quarter of 2008, when U.S. retail sales fell 15.5 percent.
Citi analyst Gregory Badishkanian called the sales data
"better than expected."
Harley-Davidson also affirmed its plans to ship between
264,000 and 273,000 Harley-Davidson motorcycles to dealers
worldwide in 2009 -- avoiding the shipment or production cuts
that the bike maker has been forced to make in the past and
suggesting conditions are stabilizing.
Polaris also reported stronger-than-expected first-quarter
earnings on Thursday and stood by its full-year earnings
forecast, saying lower commodity costs and higher selling
prices are helping it enjoy wider gross margins despite a
downturn in sales. [nN14459607]
The company, which makes all-terrain vehicles, snowmobiles
and motorcycles, also provided some encouraging comment on
early sales in April, the start of the industry's key spring
selling season .
During a conference call to discuss the earnings, Bennett
Morgan, Polaris' president and chief operating officer, told
analysts "we like what we've seen in the first 15 days" of
April. But he quickly added: "We're going to be conservative
and balanced about this and not get too high or too low based
on weekly or monthly shifts in demand."
(Reporting by James Kelleher, editing by Gerald E. McCormick)
((james.kelleher@thomsonreuters.com ; +1 312 408 8130; Reuters
Messaging: james.kelleher.reuters.com@reuters.net))
Keywords: USA RECREATION/
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