Wall Street and motorcycles came together this morning for a coffee, bagel and a quarter of earnings from Milwaukee legend Harley-Davidson.

While other motorcycle manufacturers release their corporate results at around the same time, few capture the attention and imagination of economists and financial reporters like those of the vaunted ‘H-D’.

And this morning’s report from Harley-Davidson’s CEO Keith Wandell had the makings of worldwide drama, power struggles with organized labor and signs of which road the US economy is riding down. That is if you could look beyond mountains of data and accountant-speak.

The restructuring undertaken over the last few years which has seen the elimination of such famous brands as Buell and soon to be sold MV Agusta as well as how the very motorcycles that bear the Harley name are built is starting to work its way into the balance sheet and profits. The company’s net income more than tripled and management’s faith in the financing arm that helps put riders in the saddle of a new motorcycle paid off with a profitable turnaround.

"Harley-Davidson is making steady progress at executing its strategy to deliver results through focus," said Keith Wandell, President and Chief Executive Officer of Harley-Davidson, Inc. "We are seeing the benefits of our restructuring and continuous improvement activities reflected in our earnings performance.”

Interestingly, Harley-Davidson appears to reflect the rate at which the different parts of the world are coming out of the economy crippling recession. While sales in North America dropped less than they did compared to previous periods, international sales appear to be rebounding much quicker.

So how well did the Milwaukee motorcycle manufacturer do? Harley-Davidson, Inc. reported second-quarter 2010 income of $139.3 million compared to income of $33.4 million this time last year. Nearly half of those net profits came from its Financial Services division which brought $60.8 million to the ledger.

While motorcycle sales still misfired, the engine is certainly warming up. Worldwide retail sales of new Harley-Davidson motorcycles decreased 5.5 percent in the quarter compared to the second quarter of 2009, a definite improvement compared to the rate of decline from the prior four quarters. In the U.S., retail new Harley-Davidson motorcycle sales were down 8.4 percent and in international markets, retail sales were largely flat, down 0.2 percent compared to last year's second quarter.

When compared to its peers, Harley is pulling away from the economic pack with its motorcycles sales. Industry-wide U.S. heavyweight motorcycle (651cc-plus) retail unit sales decreased 10.1 percent in the second quarter compared to the year-ago period giving every indication the Harley brand rides off the showroom floor quicker than its counterparts.

"We are pleased with the continued moderation in the rate of decline of retail new Harley-Davidson motorcycle sales again in the second quarter,” Wandell noted,”At the same time, we continue to believe conditions will remain challenging this year for new motorcycle purchases and we will manage the business based on that expectation, with a continued strong focus on managing supply in line with demand."

Whether through adding the latest chromed gadget or riders working on their own motorcycles, Harley’s Parts and Accessories increased slightly. But sales in General Merchandise which includes apparel, continued to decline actually down 3.2 percent compared to this time last year, leaving bikers apparently hanging onto out of season fashion designs.

It appears that Harley-Davidson is still working hard to sell its most recent acquisition, the Italian motorcycle company MV Agusta noting they are still ‘in discussions with potential buyers’.

The dark cloud of restructuring its manufacturing facilities is ongoing and was discussed at this morning’s review of the financial numbers.

Harley-Davidson and the unions representing its Wisconsin production employees are scheduled to begin negotiations this week on new labor agreements that would take effect upon the expiration of the current contracts in April 2012. Through the negotiation of new agreements, the Company seeks to close large cost gaps in its Milwaukee-area and Tomahawk production operations and improve flexibility to meet seasonal and other customer-driven production needs.

However, it was noted in this morning’s presentation of the financial results ‘if Harley-Davidson is unable to achieve those objectives through agreement with the unions by mid-September 2010, the Company has said it will move Wisconsin production operations to another U.S. location.’

"Despite the decline in second-quarter retail motorcycle sales, we believe interest in the Harley-Davidson brand remains strong among riders of all generations. In fact, Harley-Davidson is the U.S. market share leader of on-road motorcycles among young adults. We will continue to focus our resources on expanding the global reach of the brand and developing new products that will reach even more riders going forward," Wandell said. "I would like to thank our employees for their continued hard work and support of our strategy."