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View Full Version : HD profit drops 71.6 percent - Ouch!



GetaHandleOnit
04-21-2010, 11:10 AM
Well this kind of news isn't usually good for anyone.


Copied from the Business Journal:
Harley Davidson (http://milwaukee.bizjournals.com/milwaukee/stories/2010/04/19/daily18.html?ana=e_pft)
Higher restructuring costs and losses from discontinued operations contributed to a 71.6 percent drop in net income for Harley-Davidson Inc. (http://profiles.portfolio.com/company/us/wi/milwaukee/harley-davidson_inc_/1581594/) in the first quarter of 2010.
The Milwaukee-based motorcycle manufacturer reported net income for the quarter of $33.3 million, or 14 cents per share, compared with $117.3 million, or 55 cents per share, for the same period a year ago.
Results included $35.4 million loss from discontinued operations, which includes MV Agusta, the Italian sport motorcycle that's up for sale. Restructuring expenses were $48.2 million, compared with $34.9 million in the same period a year ago. Excluding discontinued operations, the company's earnings were 29 cents per share, which was better than the 24 cents per share expected by analysts.
Harley-Davidson (NYSE: HOG) also said its financial services segment returned to profitability with operating income of $26.7 million.
Net revenue for the period dropped 19 percent on a more than 18 percent decline in worldwide retail sales of new Harley-Davidson motorcycles. First-quarter sales declined to $1 billion from $1.28 billion the year before.
The company said the rate of the retail sales decline of motorcycles is an improvement from the prior three quarters. In the United States, retail Harley-Davidson motorcycle sales were down 24 percent and in international markets, retail sales declined 3 percent, compared with last year's first quarter.
"We are encouraged by our progress in the first quarter," said Keith Wandell, president and CEO of Harley-Davidson. "We are seeing directional improvement in our dealers' retail motorcycle sales as we enter the key selling season. At the same time, given the global economic uncertainty that still exists, we believe conditions will remain challenging throughout this year, and we will continue to factor that into how we manage the business."
Revenue from Harley-Davidson motorcycles during the first quarter of 2010 of $808.8 million was down 20.0 percent compared to the year-ago period. In line with guidance, the company shipped 53,674 Harley-Davidson motorcycles to dealers and distributors worldwide during the quarter, compared with shipments of 74,670 motorcycles in the first quarter of 2009.



Read more: Harley-Davidson profit drops 71.6 percent - The Business Journal of Milwaukee: (http://milwaukee.bizjournals.com/milwaukee/stories/2010/04/19/daily18.html?ana=e_pft#ixzz0lkuPnUE0)

schlep1967
04-21-2010, 12:08 PM
They didn't make as much money, but they still made money. Better than what most companies out there are doing right now.

Stelis
04-21-2010, 02:42 PM
I agree, things are looking pretty good for the Motor Company right now. What screwed them over was a ton of bad loans through their financial business. And that was caused by so many weak dealers and small market dealers trying to do anything they can to make a sale go through. And now that those dealers are out of business, that should help Harley run a tighter ship.