You Gotta Pay Full Price!!!
#1
01-29-2010 | 08:10 PM
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You Gotta Pay Full Price!!!
HARLEY-DAVIDSON REPORTS 2009 RESULTS
Full-Year Company Revenue, Profits Decrease from Continuing Operations
Fourth Quarter Loss Reflects Previously Announced Reduction in Motorcycle Shipments and Restructuring Activities
Company's Efforts in 2010 Remain Focused on Extending Harley-Davidson Brand, Continuous Improvement and Strengthening Core Business
MILWAUKEE, - Harley-Davidson, Inc. (NYSE:HOG) reported full-year 2009 revenue of $4.29 billion and income of $70.6 million, or $0.30 per share, from continuing operations. In the fourth quarter, the Company reported revenue of $764.5 million and a loss of $147.2 million, or $0.63 per share, from continuing operations. Affecting fourth-quarter results were a previously announced 53.1 percent reduction in Harley-Davidson® motorcycle shipments from the year-ago period and $167.1 million in restructuring and Buell® product line exit costs.
Including MV Agusta discontinued operations, the Company reported a full-year net loss of $55.1 million, or $0.24 per share, and a fourth-quarter net loss of $218.7 million, or $0.94 per share.
"Our full-year 2009 results were affected by the difficult economy, as well as the planned actions we took that resulted in restructuring charges of $224 million. We believe these actions are critical to restoring greater profitability and long-term growth to Harley-Davidson," said Keith Wandell, Harley-Davidson, Inc. President and Chief Executive Officer. "We are confident we have made the right decisions for our future, and we are executing our strategy with focused intensity."
With the Milwaukee-based company trying to change direction, the company's earnings report coincided with the unveiling of a new bike called the "Forty-Eight," which features a sleek, all-black design with a reasonable price tag and is aimed at younger riders. Harley’s current customer base is made up substantially of baby-boomers, but with the upsurge in younger riders and women riders, the “Forty-Eight” is aimed to appeal to this group with it’s retro-design including elements first introduced in 1948.
*****Despite battling lower priced offerings and aggressive discounts from domestic competitors and Japanese brand motorcycles, Harley is not interested in discounting its bikes because it weakens the brand, Chief Financial Officer John Olin said in an interview.
*****"You gotta pay full price for a Harley," Olin said. The Harley-Davidson brand has strong appeal in international markets.
The company said it expects to take restructuring charges into 2012. All told, its restructuring efforts could reach $460 million. For 2010 alone, the cost could be up to $195 million.
Harley said it expects the restructuring to lead to annual savings of between of up to $260 million once finished. In 2010, it will save up to $155 million.
The company said 28 dealerships closed in 2009, and another 15 dealers could close in the next three months. As the restructuring takes hold, Harley-Davidson hopes to ride out the lowered economy and remain the strong icon it has been.
Full-Year Company Revenue, Profits Decrease from Continuing Operations
Fourth Quarter Loss Reflects Previously Announced Reduction in Motorcycle Shipments and Restructuring Activities
Company's Efforts in 2010 Remain Focused on Extending Harley-Davidson Brand, Continuous Improvement and Strengthening Core Business
MILWAUKEE, - Harley-Davidson, Inc. (NYSE:HOG) reported full-year 2009 revenue of $4.29 billion and income of $70.6 million, or $0.30 per share, from continuing operations. In the fourth quarter, the Company reported revenue of $764.5 million and a loss of $147.2 million, or $0.63 per share, from continuing operations. Affecting fourth-quarter results were a previously announced 53.1 percent reduction in Harley-Davidson® motorcycle shipments from the year-ago period and $167.1 million in restructuring and Buell® product line exit costs.
Including MV Agusta discontinued operations, the Company reported a full-year net loss of $55.1 million, or $0.24 per share, and a fourth-quarter net loss of $218.7 million, or $0.94 per share.
"Our full-year 2009 results were affected by the difficult economy, as well as the planned actions we took that resulted in restructuring charges of $224 million. We believe these actions are critical to restoring greater profitability and long-term growth to Harley-Davidson," said Keith Wandell, Harley-Davidson, Inc. President and Chief Executive Officer. "We are confident we have made the right decisions for our future, and we are executing our strategy with focused intensity."
With the Milwaukee-based company trying to change direction, the company's earnings report coincided with the unveiling of a new bike called the "Forty-Eight," which features a sleek, all-black design with a reasonable price tag and is aimed at younger riders. Harley’s current customer base is made up substantially of baby-boomers, but with the upsurge in younger riders and women riders, the “Forty-Eight” is aimed to appeal to this group with it’s retro-design including elements first introduced in 1948.
*****Despite battling lower priced offerings and aggressive discounts from domestic competitors and Japanese brand motorcycles, Harley is not interested in discounting its bikes because it weakens the brand, Chief Financial Officer John Olin said in an interview.
*****"You gotta pay full price for a Harley," Olin said. The Harley-Davidson brand has strong appeal in international markets.
The company said it expects to take restructuring charges into 2012. All told, its restructuring efforts could reach $460 million. For 2010 alone, the cost could be up to $195 million.
Harley said it expects the restructuring to lead to annual savings of between of up to $260 million once finished. In 2010, it will save up to $155 million.
The company said 28 dealerships closed in 2009, and another 15 dealers could close in the next three months. As the restructuring takes hold, Harley-Davidson hopes to ride out the lowered economy and remain the strong icon it has been.
#3
01-29-2010 | 08:25 PM
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Despite battling lower priced offerings and aggressive discounts from domestic competitors and Japanese brand motorcycles, Harley is not interested in discounting its bikes because it weakens the brand, Chief Financial Officer John Olin said in an interview.
#7
01-29-2010 | 08:52 PM
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#9
01-30-2010 | 06:39 AM
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Joined: Mar 2009
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From: God's country ---- Wisconsin
Despite battling lower priced offerings and aggressive discounts from domestic competitors
What discounts are they talking about ???? Have you seen the pricing on both the Indians and the Victory models. The Indians are way out of my range and the Victory Cross Country is $18599. I bought my RoadGlide for that.
What discounts are they talking about ???? Have you seen the pricing on both the Indians and the Victory models. The Indians are way out of my range and the Victory Cross Country is $18599. I bought my RoadGlide for that.
#10
01-30-2010 | 06:48 AM
I'm ok with having to spend full price for a Harley; I've owned 8 over the years, 5 of which I purchased new and barelly received a discount. They are made in the USA and those of you that are fortunate enough (like myself) to vist the York factory cand see the pride that the workers take in assembling these great bikes. I believe that I read somewhere that 20% of all Harleys manufactured are exported to East Asian countries (i.e. Japan); that stat alone says alot about the alure & brand recognization of Harley.