The financial ride seems to be improving for Milwaukee motorcycle manufacturer Harley-Davidson, but like any interesting road trip, there are still some bumpy roads to be covered.

All the financial indicators were moving in the right direction, from the number of motorcycles shipped to the company’s profits but still its stock price was battered on Wall Street as the third quarter numbers were announced.

Looking at the nine months for 2011 Harley-Davidson enjoyed an increase in its income numbers which rose 95.9 percent to $183.6 million. A nice number, especially when compared to the $93.7 million reported at the same time last year.

The world still love a Harley with retail sales of new Harley-Davidson motorcycles grew 5.1 percent worldwide in the third quarter compared to the prior-year period. Surprisingly, this improvement was led by a 5.4 percent rise in the United States market.

“We are pleased with our sustained progress and we continue to realize strong momentum in the transformation our business,” said Keith Wandell, President and Chief Executive Officer of Harley-Davidson, Inc.

Dealers sold 42,640 new Harley-Davidson motorcycles in the U.S., a 5.4 percent increase compared to last year’s third quarter. In international markets, dealers sold 19,198 new Harley-Davidson motorcycles during the third quarter, an increase of 4.4 percent compared to the year-ago period.

Compare these numbers with the current industry standard of an increase of 3.7 percent for heavyweight (651cc-plus) new motorcycles and the Milwaukee story gets even better.

“Two years ago we embarked on our strategy to focus solely on the Harley-Davidson brand, provide the flexibility required in today’s market and make Harley-Davidson lean, agile and more effective than ever at delivering remarkable products and extraordinary customer experiences. Today, we continue to see the positive results of the course we have charted,” Wandell said. “The changes underway in manufacturing, product development and retail capability will increasingly enable Harley-Davidson to be customer-led like never before.”

Better selling motorcycles obviously mean riders adding their own little touch to their new ride. Revenue from Motorcycle Parts and Accessories (P&A) totaled $235.7 million during the quarter, up 7.6 percent.

And after a retail slump, bikers are restocking their t-shirt drawers with the latest in Harley fashion, revenue from General Merchandise, which includes MotorClothes Apparel and Accessories, was $69.3 million, up 8.2 percent compared to the year-ago period.

The division that helped the famous motorcycle company weather the economic storm, its financial services division recorded operating income of $62.0 million in the third quarter, compared to operating income of $50.9 million in the year-ago quarter. The increase in year-over-year operating income was largely the result of continued improvement in credit performance at Harley-Davidson Financial Services.

But all the improved numbers weren’t good enough for the experts on Wall Street who felt Harley-Davidson’s performance should’ve been even better.

At the heart of financial world’s concerns are the growing pains involved with the new manufacturing strategy painfully implemented over the last few years.

Disruptions in production at the company's York, Pa., plant led to fewer sales of some of Harley's larger and higher-margin motorcycles. Lower-margin products, such as the smaller Sportsters made at Harley's plant in Kansas City, Mo., took up some of the slack.

The York plant has had frequent stoppages as the company adjusts to what it expects will be a more efficient process in which a single production line handles a broad range of products that used to have separate lines.

During the third quarter, Harley-Davidson completed the consolidation of final assembly operations at York, Pa. Final assembly of all Touring, Softail, Trike and Custom Vehicle Operations (CVO) motorcycles now occurs on a single assembly line.

In simpler terms, production in York has moved from more than 20 separate buildings into a single facility.

"It's brain surgery," Keith Wandell has said, "It's not a torn ligament in the knee."

He noted workers are going through ‘massive training and learning on the job,’ as they master a broader range of skills needed for more flexible manufacturing.

And those training related hiccups could continue over the next year with executives hoping production smooth’s out as the company gets used to new working arrangements.

"Are we disappointed that things haven't been perfect? Yes," he told analysts, "But I will tell you we are pleased with where we are in this transformation," which also will involve increased ability to use temporary workers.