Washington - Harley-Davidson Inc, the largest US motorcycle maker, Thursday reported a 37-per-cent drop in its third-quarter profits amid a slowdown in its global bike sales and the ongoing credit crisis.

Revenue for the quarter was 1.42 billion dollars compared to 1.54 billion dollars in the year ago quarter - a 7.7-per-cent decrease. Net income for the quarter was 166.5 million dollars compared to 265 million dollars in the third quarter of 2007, a decrease of 37.1 percent, a company statement said.

"Unit sales in several European countries slowed more than we anticipated during September as a result of deteriorating economic conditions," said CEO Jim Ziemer.

Sales were also sluggish in the US, falling 15 per cent to 59,000 units. This dragged down global sales by 9.6 per cent, to 80,952.

The company cut its full-year profit forecast and said the situation was unlikely to improve soon.

"We expect the global economy and consumer concerns to continue to create challenges for Harley-Davidson through the end of the year and in 2009," Ziemer said.

A Harley can cost from anywhere between 7,000 dollars to 35,000 dollars, with a customised cruiser priced at over 40,000 dollars.

"They sell an expensive, discretionary item," Erik Kolb, an equity analyst for Standard & Poor's in New York, told Bloomberg news on Monday. "We're in a period when people aren't making such purchases." (dpa)