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Posts Tagged ‘NAMM’

Northwest Riding Season's

As I sit down and write this post, it is 45 degrees with rain and wind.  I spent the last week at NAMM in Anaheim, CA where it was sunny.  Today is one of those gray winter days that make me wonder what I’m doing here.

Then I remember driving in L.A. traffic during rush hour and thinking this is nuts. Or rolling through Furnace Creek on Hwy 190 last April watching it approach 90 degrees and thinking that’s nuts.  Or even a couple summers ago rolling across Alberta where it was super flat and you’d ride 20+ miles between curves in the road.  That’s when I remember why I’m here…

The northwest has some of the best riding roads in the country and we actually have seasons.

And speaking of seasons, it’s earning’s ‘season’ and Harley-Davidson announced a profit versus a year ago loss.  Harley’s sales of motorcycle and related products grew 13% in 2011 and the recent quarter marked its third-straight increase in U.S. sales.  The result is remarkable given that most financial analysts see a continuing “trough” in the U.S. economy, which is beset by a weak recovery and a jobless rate that is likely to remain in the 8% range for 2012.

Harley’s motorcycle and related product revenue rose 12% to $1.03B.  Retail sales of new motorcycles grew 11% worldwide and included a 12% increase in the U.S.  International sales rose 9.7% and included a 5.8% increase in Europe, even though consumer confidence has been shaken by the current economic crisis.  The motor company shipped 50,730 motorcycles to dealers and distributors during the quarter, compared with 44,481 in the same quarter last year. For the full year, shipments rose 11% to 233,117 bikes.  Even Harley’s financial services division got a boost from improved credit conditions. New motorcycle loans jumped 14% to $349.5 million and represented about half of the company’s retail sales.

Keith Wandell (H-D CEO and President) credited the Q4 sales jump to improved consumer confidence in the U.S., along with key growth investments overseas.  However, in Europe, the Euro-zone is facing its own, even larger, economic crisis and Mr. Wandell reminded the  analysts with, “We will continue to keep a close watch on the marketplace and remain cautious in our expectations of retail given the degree of continued economic uncertainty including regions like the Euro zone.”

For all of 2011, Harley reported net income of $599.1 million, or $2.33 per share, up from $146.5 million, or $1.11 per share, in 2010.  Motorcycle and related product revenue increased to $4.66B from $4.18B.

Photo taken by author.

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