For the Buell and MV loyal, Harley-Davidson’s latest earnings report should provide all the information as to why the Milwaukee manufacturer had to close and sell those brands respectively. Reporting a nearly 90% loss in annual income, Harley-Davidson earned only $70.6 million in 2009, compared to the $684.2 million Harley earned in 2008, which results in a staggering loss of income for the iconic motorcycle company.
For Q4 of 2009, Harley-Davidson actually operated in the red, and lost $218.7 million in net income by staying in business (Asphalt & Rubber actually made more money during the same time period than Harley-Davidson did, if that puts things into perspective). Additionally, Harley-Davidson is reporting a $147.2 million loss in revenue during its fourth quarter operations. The loss is associated with the reduction in production, and the $167.1 million in restructuring costs incurred because of the closure of the Buell Motorcycle brand.
“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,” says 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.”
Despite the focused intensity, Harley-Davidson still believes it has a shakey 2010 ahead for itself, which is a fancy way for the company to say that it expects to report further losses in the future. On top of that, Harley-Davidson is planning to ship between 5%-10% less motorcycles in 2010, when compared to 2009 shipments.
“Focusing our investment behind the uniquely strong Harley-Davidson brand provides the most attractive path to sustained, long-term growth,” says Wandell. “We also expect to achieve substantial gains in the efficiency of our operations through continuous improvement.”
For 2009 Harley-Davidson reported $4.78 billion in revenue, which was a 14% drop from the $5.56 billion in revenue reported in 2008. Harley-Davidson reported its 2009 annual income at $70.6 million, down 89.7% from the 2008’s $684.2 million.
As expected, Wandell’s strategy involves circling the wagons around the Harley-Davidson brand. “Focusing our investment behind the uniquely strong Harley-Davidson brand provides the most attractive path to sustained, long-term growth,” says Wandell. “We also expect to achieve substantial gains in the efficiency of our operations through continuous improvement.”
Source: Harley-Davidson
RT @Asphalt_Rubber H-D Reports Devastating 89.7% Annual Income Loss for 2009 – Made $70 Million Last Year http://trunc.it/53moh
Harley-Davidson Reports Devastating 89.7% Annual Income Loss for … http://bit.ly/9LeQrz
Looks like H-D could use the U.S. government to start a cash for rat bikes program. http://bit.ly/brtwes
http://www.asphaltandrubber.com/news/harley-davidson-2009-earnings/ willcomよりハーレーのほうがやばくて不安すぎる
Harley-Davidson Reports Devastating 89.7% Annual Income Loss for …: Reporting a nearly 90% loss in annual inc.. http://bit.ly/dD1Hpw
If Harley made an innovative bike that appeals to more than the 50+, maybe they wouldn't report an income loss of 89.7% http://bit.ly/9QyZcx
Warren Buffett to the rescue?
As an American, I feel bad because its an American company. However, as an ABH cycle rider (Anything But Harley!), I find this to be downright hilarious. H-D has never had much sense in trying to secure new riders, so I think a lot of this is their own doing. I’m certainly old enough to fit into H-D’s preferrred deomographics, but they have never given me a good enough reason to buy one (you know – power, handling, innovation, looks, etc.).
Harley’s are just overpriced status symbols and it doesn’t surprise me they are hurting in this economy, seems Honda stock is doing well though.
Maybe they should have thought about diversifying their stock. Oh snap, they did and crushed it. Too bad they could a been a contender.
It was almost inevitable good economy or not. Everyone who wanted a Harley got one and with them making the same basic bike over and over whats the draw to get a new one? Now that the economy has taken a dump all those pirates are letting them go back to the bank and used ones are cheaper than ever further eroding the new sales. My neighbor just bought an 09 streetglide with 1100 miles on it with all the standard upgrades, exhaust, intake, xm radio, extended warranty and tons of chrome for $16k. The previous owner was already the second owner and had over $25k into it and HAD to sell it just like the first owner. They have created a following and lifestyle that will not allow change and that in itself will doom them, when they tried to do something new as in the vrod the core HD people flat out rejected it. All I really care about is the Jobs being lost by HDs employees, if they never built another Harley again the bikes would endure because there are so many of them and the aftermarket is HUGE.