les of Buell motorcycles (whichare distributed through select Harley-Davidson dealers) increased to $14 millionin 1995 as compared to $6 million in 1994.The Company began 1995 at a scheduledmotorcycle production rate of 395 units per day. As the implementation of themanufacturing strategy continued, the rate increased to 470 units per day bythe end of the year. The Company exceeded its production goal of 100,000 unitsin 1995 and anticipates 1996 production will reach at least 115,000 units.The Company is currently reviewing alternative sites for the construction ofa new manufacturing facility to enable it to achieve its long-term goal ofdoubling motorcycle production by 2003. Year-end data indicates that thedomestic (United States) motorcycle market continued to grow throughout 1995.Compared to 1994, industry registrations of domestic heavyweight (engine displacementsin excess of 751cc) motorcycles were up 11.3% . The Company ended 1995 witha domestic market share of 55.8% compared to 56.1% in 1994. This decrease isa reflection of the Company's constrained production capacity in a growingheavyweight motorcycle market. Demand for the Company's motorcycles continuesto exceed supply with nearly all of the Company's independent domestic dealersreporting retail orders on all of their remaining 1996 model year motorcycleallocations (production through June, 1996). Export revenues totaled $394.8million during 1995, an increase of approximately $63.6 million (19.2%) over1994. The Company has exported approximately 30% of its motorcycle unit shipmentssince 1990 and expects to maintain approximately the same percentage during1996. The Company distributes approximately one-half of its exported unitsthrough its wholly owned subsidiaries in Germany, Japan and the United Kingdom,which allows the Company flexibility in responding to changing economic conditionsin a variety of foreign markets. While definitive market share information(engine displaceme...
