Lehman Trikes, a trike and trike kit manufacturer, increased its revenue, according to its latest earnings report.
The rise in sales, however, reflected an increase in revenue tied to Lehman Trikes’ supply agreement with Harley-Davidson that has now come to an end.
The South Dakota-based company said in its earning report that “the economic slowdown continues to have a negative effect on the company’s kit and conversion revenue during this period.”
Lehman Trikes finished the quarter with $10.8 million in sales, a 2 percent increase over the year-ago period. Net income, however, dropped to $437,000.
The company had manufactured trikes for Harley-Davidson under a three-year agreement that started in 2006. However in January, the two companies said the agreement would end this year, and Harley-Davidson recently reported it had begun building three-wheelers at one of its U.S. facilities.
In the earnings report, Lehman Trikes said it “is taking this opportunity to explore new opportunities to utilize the current facility’s excess capacity. It has made investments in improving its in-sourcing capacity. An annex has been purchased to expand the metal piece part capacity and new fiberglass operations will be completed in the third quarter.”
The company also launched a new custom trike line called “Lehman Signature Series,” a line of factory-assembled trikes that feature custom paint schemes and wheels. The limited-production trikes are based on “powered by Victory” models. PSB
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