MoCo returns to profitability
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Elite HDF Member
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From: florida swamp
MoCo returns to profitability
Down 71% from last year but a profit just the same.
Harley-Davidson Inc. said Tuesday its first-quarter profit fell 71 percent as sales of its high-end bikes remained sluggish.
By DAN STRUMPF
AP Auto Writer
NEW YORK
Harley-Davidson Inc. said Tuesday its first-quarter profit fell 71 percent as sales of its high-end bikes remained sluggish.
Harley-Davidson CEO Keith Wandell said the uncertain economy is likely to make business conditions challenging throughout the year.
Still, the Milwaukee company's results beat analysts' forecasts, sending shares climbing in premarket trading. The stock gained 48 cents to $33.25 in electronic trading before the opening bell.
Harley-Davidson reported a profit of $33.3 million, or 14 cents per share, in the three months ended March 28. That's down from $117.3 million, or 50 cents per share, during the same period last year.
Excluding losses from discontinued operations, the Milwaukee company made 29 cents per share. Revenue during the quarter fell 19 percent to $1.04 billion.
Analysts expected a profit of 22 cents per share on $1.02 billion in revenue. Such estimates typically exclude one-time items.
The company said retail sales of its heavyweight motorcycles fell more than 18 percent worldwide, with sales in the U.S. falling by nearly a quarter. International sales fell a much smaller 2.8 percent.
The company reiterated its previous forecast to ship between 201,000 and 212,000 motorcycles to dealers in 2010, down between 5 and 10 percent from 2009. It plans to ship between 55,000 and 60,000 motorcycles in the second quarter.
The company has been looking to streamline its operations in recent years to deal with falling demand. Last year it announced the shutdown of its Buell sport-bike line and is trying to sell the premium motorcycle unit MV Agusta.
A bright spot was a return to profitability for its captive finance arm, Harley-Davidson Financial Services, which had been losing money the last three quarters. The unit turned an operating profit of $26.7 million in the first quarter.
Harley-Davidson Inc. said Tuesday its first-quarter profit fell 71 percent as sales of its high-end bikes remained sluggish.
By DAN STRUMPF
AP Auto Writer
NEW YORK
Harley-Davidson Inc. said Tuesday its first-quarter profit fell 71 percent as sales of its high-end bikes remained sluggish.
Harley-Davidson CEO Keith Wandell said the uncertain economy is likely to make business conditions challenging throughout the year.
Still, the Milwaukee company's results beat analysts' forecasts, sending shares climbing in premarket trading. The stock gained 48 cents to $33.25 in electronic trading before the opening bell.
Harley-Davidson reported a profit of $33.3 million, or 14 cents per share, in the three months ended March 28. That's down from $117.3 million, or 50 cents per share, during the same period last year.
Excluding losses from discontinued operations, the Milwaukee company made 29 cents per share. Revenue during the quarter fell 19 percent to $1.04 billion.
Analysts expected a profit of 22 cents per share on $1.02 billion in revenue. Such estimates typically exclude one-time items.
The company said retail sales of its heavyweight motorcycles fell more than 18 percent worldwide, with sales in the U.S. falling by nearly a quarter. International sales fell a much smaller 2.8 percent.
The company reiterated its previous forecast to ship between 201,000 and 212,000 motorcycles to dealers in 2010, down between 5 and 10 percent from 2009. It plans to ship between 55,000 and 60,000 motorcycles in the second quarter.
The company has been looking to streamline its operations in recent years to deal with falling demand. Last year it announced the shutdown of its Buell sport-bike line and is trying to sell the premium motorcycle unit MV Agusta.
A bright spot was a return to profitability for its captive finance arm, Harley-Davidson Financial Services, which had been losing money the last three quarters. The unit turned an operating profit of $26.7 million in the first quarter.
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Elite HDF Member
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From: florida swamp
Tourer
Joined: Jun 2009
Posts: 263
Likes: 0
From: atlanta ga.
my company is still doing it. but now we are starting to lose people by way of attrition. good people have begun to say "screw this bs" and leave on their own, because we don't have enough bodies to get the work done without breaking the backs of those still "lucky enough to have a job".
i must just be a little grumpy about this.
i must just be a little grumpy about this.
Elite HDF Member
Joined: Apr 2009
Posts: 3,780
Likes: 69
From: Al Bu Ker Key, New Mexico
Glad to see the MoCo has turned the corner and headed back to black. I did my part by purchasing a new 2010 StreetGlide. They are still tightening the belt and looking for ways to cut every expense. Have to agree that just like every other company they are expecting more work out of less people.....seems like its been like this since 2002......good people ARE walking out the door everywhere....tired of it....burned out. Just glad the MoCo didnt have another unprofitable quarter to fuel the fire of a takeover.....still could happen........Honda moving production of the GoldWing back to Japan after 27 years of making them here in the states.....they are feeling it also.
Seasoned HDF Member
Joined: Feb 2010
Posts: 5,294
Likes: 149
From: FL
my company is still doing it. but now we are starting to lose people by way of attrition. good people have begun to say "screw this bs" and leave on their own, because we don't have enough bodies to get the work done without breaking the backs of those still "lucky enough to have a job".
i must just be a little grumpy about this.
i must just be a little grumpy about this.
Cruiser
Joined: Nov 2008
Posts: 153
Likes: 0
From: NJ
I've filed a lemon law claim on my xr and I've seen on other forums of quite a few problems with them.
they won't be in the black long if they keep having to refund peoples money!
they won't be in the black long if they keep having to refund peoples money!
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Cruiser
Joined: Jun 2008
Posts: 194
Likes: 1
From: oregon
If anybody actually believes this company is profitable, I have this very cool bridge for sale in Arizona...
Local dealership now open 5 days a week instead of 7. On one of the days they were open - no mechanics working on the dozens of parked bikes. All wrenches were working part time - 4 days a week.
Local dealership now open 5 days a week instead of 7. On one of the days they were open - no mechanics working on the dozens of parked bikes. All wrenches were working part time - 4 days a week.
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