I’m not talking about Obama’s State of the Union address. Unfortunately I missed that opportunity to talk back to the TV with his long speech about “investment” plans in education, technology, roads and public sector workers.
Rather, my title reference is about Harley-Davidson (NYSE: HOG) who reported fourth-quarter earnings, a loss from operations of $42.1M, or $0.18 per share, which includes the impact of a one-time, $85.2M charge from the Company’s early repurchase of senior unsecured notes during the quarter. H-D also reported better news on the full-year 2010 income of $259.7M, or $1.11 per share, compared to income of $70.6M, or $0.30 per share, in 2009.
Mr. Wandell (CEO) stated the company faces “significant challenges” ahead as it tries to navigate the changing economic landscape marred by 9%+ unemployment and worsening home foreclosure rates. All of this underlines the challenges awaiting H-D in 2011 as it seeks to compete. H-D management hopes the economy will improve, they’ve changed about all they can to manage down factory shipments and invested in workers by way of transforming labor agreements.
For the 2010 year, H-D shipped 210,494 motorcycles, in line with its target range of 207,000 to 212,000 motorcycles. Full-year shipments were 5.6% lower than 2009, when the Company shipped 223,023 units. Revenue from Harley-Davidson motorcycles for the full year was $3.14 billion, a 1.2 percent decrease compared to 2009. In contrast the full year 2009 compared to 2008, motorcycle retail sales decreased 22.7% worldwide, 25.8% in the U.S. and 15.4% in international markets.
The full transcript of the earnings call can be found HERE.
Photo courtesy of H-D Annual Report.