Neil Young wrote the song Keep On Rockin’ In The Free World in 1989.
Neil and a member of his band, Pancho Sampedro, were glancing at newspaper photographs on the funeral of Ayatollah Khomeini in Iran as the angry mob set America flags on fire and chanted death to America. Sampedro commented, “Whatever we do, we shouldn’t go near the Mideast. It’s probably better that we just keep on rockin’ the free world.”
And speaking of rockin’… listening in on the HOG Q2’13 financial call today felt upbeat with a positive vibe. Sure there was plenty of financial mumbo jumbo, but every profession has its buzzwords to create the illusion that things are more complex than they really are.
Here are the Q2’13 financial highlights:
- Consolidated revenue of $1.79 Billion
- Net income was $271.7 Million
- Diluted earnings per share were $1.21
- Added 104 dealerships outside the U.S. since late 2009; the latest was Salvador, Brazil.
- With nearly 1500 dealers worldwide H-D sold 90,193 motorcycles
- U.S., dealers sold 58,241 motorcycles
- In international markets, dealers sold 31,952 motorcycles
- Through 6-months, net income was $495.9 Million on consolidated revenue of $3.37 Billion
- U.S. (Heavyweight) market share increased to 53.0%
- Completed its first year of seasonal surge production at its plant in Springettsbury Township
- For the 1H, H-D mostly attributes cool, damp weather — not the economy — to a 2.7 percent drop in U.S. bike sales.
- Supply and demand are back in balance… read that as an opportunity to raise model prices again!
- First corporate confirmation there will be no Road Glide models in the new 2014 model year as they retool and refresh the model
- 60 bands over 3-days at the 110th Anniversary celebration in Milwaukee
The most interesting question?
It came from Craig Kennison (Baird & Co.) – “Did you ask the Pope to pray for better weather?” I liked the snarky question which was in reference to the fact that H-D attributes cool, damp weather — not the economy — to a 2.7 percent drop in U.S. bike sales and being somewhat of a drag on H-D parts and accessories. If you don’t ride you don’t need to do much motorcycle service or buy parts.
In conclusion and more important to all the riders, the company remains on track to announce its 2014 model year bikes in the 3rd week of August.
Photo courtesy of H-D/Google.