HD profits SURGE
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Road Captain
Joined: Mar 2006
Posts: 679
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From: East TN.
HD profits SURGE
http://www.marketwatch.com/story/har...ges-2010-07-20
"Harley-Davidson Inc. shares rallied Tuesday after the company beat Wall Street's target as its financial-services unit swung to a profit, although revenue at the motorcycle maker remained flat"
"Harley-Davidson Inc. shares rallied Tuesday after the company beat Wall Street's target as its financial-services unit swung to a profit, although revenue at the motorcycle maker remained flat"
Outstanding HDF Member
Joined: Nov 2008
Posts: 2,034
Likes: 128
Peak sales were hit in 2006. Sales have been falling since then. Each year they have gotten worse. The second quarter announcement this morning pointed out the improvement in profits was largely attributed to the financing arm of the MOCO. In other words, those of us who are paying 8-12% interest on our bikes are generating a boat load of cash for the finance side. That however, like the original poster was correct in pointing out, is not the whole story. The other side of the coin is that revenue continues to be flat. In other words, they are not growing the sale of new bikes. The CEO said this morning that the slide in new sales "appears" to be slowing down from earlier. This is the peak time for Harley sales, so they will be at their best right now. The company is still struggling for survival and will continue to do so for some time. It is important to not confuse the dealer franchise with the manufacturer. Each is totally seperate from the other. While the manufacturer struggles, you may very well see some select dealers doing quite well, or not. At the end of the day overall bike sales are still in the dumper. Nothing much will change this until unemployment improves drastically and everybody who wants a good job, has one. I wish I was smart enough to know when that will be. I don't think it will be anytime real soon though.
Club Member
Joined: Sep 2009
Posts: 2,290
Likes: 2
Peak sales were hit in 2006. Sales have been falling since then. Each year they have gotten worse. The second quarter announcement this morning pointed out the improvement in profits was largely attributed to the financing arm of the MOCO. In other words, those of us who are paying 8-12% interest on our bikes are generating a boat load of cash for the finance side. That however, like the original poster was correct in pointing out, is not the whole story. The other side of the coin is that revenue continues to be flat. In other words, they are not growing the sale of new bikes. The CEO said this morning that the slide in new sales "appears" to be slowing down from earlier. This is the peak time for Harley sales, so they will be at their best right now. The company is still struggling for survival and will continue to do so for some time. It is important to not confuse the dealer franchise with the manufacturer. Each is totally seperate from the other. While the manufacturer struggles, you may very well see some select dealers doing quite well, or not. At the end of the day overall bike sales are still in the dumper. Nothing much will change this until unemployment improves drastically and everybody who wants a good job, has one. I wish I was smart enough to know when that will be. I don't think it will be anytime real soon though.
You ain't tellin me sales for the Harley line of clothes made in China is lagging are you? The 2010 EPA bikes ain't movin because everybody lost their job and can't afford one.
High Finance, way above my head!
Tourer
Joined: Jun 2010
Posts: 457
Likes: 0
At the end of the day overall bike sales are still in the dumper. Nothing much will change this until unemployment improves drastically and everybody who wants a good job, has one. I wish I was smart enough to know when that will be. I don't think it will be anytime real soon though.
Anyone ever hear of the 17 yr. cycle?
1955-1972
In the 1950's vehicle manufacturing was beginning to soar. Americans built nice big luxury cars with big engines. Muscle cars. Gas was cheap. My first car was a 1972 Olds Cutlass 442. Big block 455. Beginning around that year gas prices began to rise and you saw the americans attempt at 4cyl. cars. The economy tanks....
1972-1989
The latter part of the 70's and most of the 80's the cars were loaded down with emissions and relatively speaking, junk. A bad economy will do this.
1989-2006
The economy turn bright as computers generate the buzz and that buzz translates to cash...and lots of it. Money is flowing, houses are selling so fast that every Tom, Dick, and Harry want to become a real estate agent and flip houses. What goes up, must come down...always has, always will.
2006+17=2023
The economy will hopefully follow trend and get better as time moves toward that 2023 date. Hope none of you planned to retire soon
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Tourer
Joined: Jun 2008
Posts: 300
Likes: 0
From: North Jersey
Hmmm - Profits up. Lets see - we'll take our bikes and get rid of the chrome and make them black, then rather then paint them we'll leave em in primer - call it denim and people will pay the same or even in some cases EXTRA for it ....
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