From BizTimes Daily:Wisconsin Businiess News 4/19/11



Financial services division drives up Harley’s income

Harley-Davidson Inc. today reported first quarter net income of $119.3 million, or 51 cents per share, up from $33.3 million, or 29 cents per share, in the same period a year ago.
The Milwaukee company’s quarterly operating income grew to $193.0 million from $152.8 million a year earlier.
Worldwide retail sales of new Harley-Davidson motorcycles grew 3.5 percent in the first quarter from a year ago.
"We are pleased by the growth of our dealers' new motorcycle sales on a worldwide basis, led by strength in Europe, even as we continue to encounter some headwinds in the U.S. related to the challenging macro-economic conditions," said Harley-Davidson president and chief executive officer Keith Wandell.
The company's improved first-quarter earnings performance was driven by operating income from financial services, which climbed 154.6 percent compared with the first quarter of 2010. Operating income from motorcycles and related products was flat with the year-ago quarter and was impacted by expected inefficiencies related to the restructuring and implementation of the new operating system underway at the company's manufacturing operations.
"Our entire team remains focused on transforming our company to be leaner, more agile and more effective than ever at delivering great products and experiences to an increasingly global community of customers," Wandell said. "Harley-Davidson's results for the quarter reflect the continued improvement at HDFS, as well as the near-term inefficiencies related to the transformation underway in manufacturing operations at York. We expect to continue to see an impact on our motorcycles segment financial performance in the coming quarters as we complete the transformation of our York operations. When this manufacturing transition is completed next year, we will have a best-in-class, flexible, lean operating structure that we expect will yield substantial ongoing savings.”
Looking forward, Wandell said, “While we continue to be encouraged by our overall progress, we are maintaining a cautious outlook for the year. I would like to thank all our employees, dealers and suppliers for their dedication and commitment to the transformation of our business."
In the second quarter, Harley-Davidson expects to ship 62,000 to 67,000 motorcycles.

 

Good to hear Harley is on the upswing.

 

I suppose one benefit of the weak dollar vs. the Euro is that HD products will be more competitively priced in Europe.

Very good news also re: HDFS as it shows that the credit markets are loosening up a bit.

 

"driven by financial services" Infact, product sales were flat last quarter year to year comparative. HD has become a bank. Wonder how many of their loans would be classified as risky at traditional lending institutions.

 

The word "risky" would be an understatement in describing SOME loans they make.