We’ve got a crisis in America. No jobs. And those with the money want to keep it! We live in a society. And right now our society is not cohesive. It’s about the haves and have-nots. Those who want to be in everybody else’s personal business under the guise of freedom and those who want to be able to pursue happiness in their own individual way.
Speaking of pursuing happiness with the wind in your face…
HOG released their Q3, 2010 earnings. Third-quarter retail sales of new H-D motorcycles decreased 7.7% worldwide, 9.4% in the U.S. and 3.6% in international markets compared to the year-ago period. Revenue from H-D motorcycles in Q3, 2010 was $798.8M, down 0.6% compared to the year-ago period. The Company shipped 53,293 motorcycles to dealers and distributors worldwide during the quarter, compared to shipments of 54,236 motorcycles in the third quarter of 2009. Revenue from Parts and Accessories totaled $219.0M during the quarter, down 1.2%, and revenue from General Merchandise, which includes MotorClothes apparel, was $64.1M, down 9.4% compared to the year-ago period. Overall the results were not as bad as the industry-wide retail decline in the U.S. of 14.4%, but it’s still in decline. The CEO stated:
“Despite the continued challenges in the economy, we are making solid, steady progress at transforming our business,” said Keith Wandell, President and CEO of Harley-Davidson, Inc. “With our strategic focus on future growth initiatives and continuous improvement, we are positioning Harley-Davidson to succeed at today’s volumes, as well as to grow and restore greater profitability longer term.”
The company lowered its capital expenditures outlook to $190M – $210M and adjusted the range of motorcycle sales to 207,000 to 212,000 for 2010. This is down 6-7% from 2009 levels. Mr. Wandell went on to say:
“The Harley-Davidson brand has remarkable strength globally. Few products or brands rank as highly in terms of awareness and affinity on the part of customers and non-customers alike. We have continued to gain market share in the U.S. and Europe. Since 2008, we also have been the U.S. leader in new motorcycle sales to young adults for the entire on-road motorcycle category. Going forward, we will continue to build on this brand strength and leadership position,” said Wandell.
One bright spot was operating income from financial services (HDFS) was $50.9M in Q3, 2010, compared to an operating loss of $31.5M in the year-ago quarter. The improvement in year-over-year operating income is largely the result of a lower cost of funds and improvement in credit losses.
Read the full press release HERE.
Photo taken in Milwaukee during 105th Anniversary.