Last Resort Posted October 15, 2009 Share Posted October 15, 2009 SAN FRANCISCO (MarketWatch) -- Harley-Davidson Inc. shares shrugged off early declines Thursday after the motorcycle giant reported a steep drop in third-quarter profit and said it will discontinue production of its Buell sport-bike brand. Harley stock followed the broader market back into the green by midmorning, up 1.4% at $26.64. The shares are up 57% since the beginning of the year. The Milwaukee-based company posted a profit of $26.48 million, or 11 cents a share, an 84% retreat from $166.54 million, or 71 cents a share in the year-ago period. The latest quarter included a one-time charge of $14.2 million related to Buell and a goodwill impairment charge of $18.9 million related to the sale of MV Agusta. Total revenue fell to $1.1 billion from $1.4 billion a year earlier as retail sales fell 21.3% worldwide and 24.3% in its home market. Analysts polled by FactSet Research were looking for a profit, on average of 23 cents a share with revenue of $1.1 billion. "While the environment remains challenging for us, we are mildly encouraged by the moderation in the decline of dealer retail Harley-Davidson motorcycle sales," CEO Keith Wandell said. "And moving forward, our strategy is designed to strengthen Harley-Davidson for long-term growth and deliver results through increased focus. The company said that 180 jobs will be lost over time as it shuts down Buell. It said it will book one-time charges of $215 million to $245 million in 2009 and 2010, about $55 million ahead of its July projections. Harley said it expects to ship 35,000 to 40,000 motorcycles in the fourth quarter and a total of 222,000 to 227,000 for the full year. Wells Fargo Securities analyst Tim Conder, who upgraded the stock to outperform a day earlier, lauded the report and the direction Harley is headed. "We would continue to aggressively build positions as we believe margins will be further enhanced (from what reported) given discontinuance of Buell & MV Agusta," he said in a note to clients following Harley's conference call. Quote Link to comment Share on other sites More sharing options...
Last Resort Posted October 15, 2009 Author Share Posted October 15, 2009 <H1 class=headline>Harley will drop Buell, sell Italian brand</H1> Kansas City Business Journal Harley-Davidson Motorcycle Co. said Thursday that it will park two of its motorcycle brands as it adjusts to a bumpy economic ride. The Milwaukee-based company (NYSE: HOG) said it will discontinue its Buell Motorcycle Co. unit and sell its MV Augusta unit. Buell produces sport performance motorcycles for the U.S. market, and Italian-based MV Augusta manufactures high-performance sport motorcycles and lightweight sport motorcycles. Harley said the pullback of the Buell and MV Augusta brands is part of a strategy to concentrate on its Harley-Davidson line. The shutdown of Buell will result in the loss of 80 hourly and 100 salaried positions and $125 million in one-time costs to Harley-Davidson. News of the moves was contained in Harley-Davidson’s third-quarter earnings announcement. For the quarter that ended Sept. 30, the company reported net income of $26.5 million, or diluted per-share earnings of 11 cents, compared with earnings of $166.5 million, or 71 cents a share, for the same period last year. In addition to reduced sales, earnings took a hit from the company’s financial services unit, which reported an operating loss of $31.5 million for the quarter, compared with an operating profit of $35.6 million in 2008. Revenue totaled $1.12 billion for the quarter, down from $1.42 billion for the comparable period. The company said worldwide retail sales of new Harley-Davidson motorcycles during the quarter were down more than 21 percent from the comparable period. That’s an improvement from the 30 percent decline in sales the company saw in the second quarter. Harley-Davidson’s Kansas City plant produces the company’s Sportster and V-Rod models; it has about 400 employees. The company said in August that Kansas City was one of four sites it was evaluating for a potential relocation of the company’s York, Pa., manufacturing plant. Kansas City was dropped from the running, and the company said Thursday that it continues to look at alternate sites while exploring its options for remaining in York. Quote Link to comment Share on other sites More sharing options...
Maldev Posted October 15, 2009 Share Posted October 15, 2009 Damn shame. Quote Link to comment Share on other sites More sharing options...
Fugdbdt Posted October 15, 2009 Share Posted October 15, 2009 August 12th, 2021 - THIS JUST IN: Indian Motorcycles has agreed to purchase the infamous Harley Davidson for $834.12 and assume their $192 Trillion in debt. Indian spokesman "Charger" had this to say: "What's all the godamn commotion about? Y'all gettin yer panties in a wad over this crap?" Harley Davidson had made ill-fated investments in Emperor Obama's "Harley In Every Garage" campaign promises of 2012 and 2016. Investment analysis warned of the possible losses due to the 1,298 previous broken campaign promises - However that information was silenced with the "Responsibility Act of 2020" which allows the Emperor to decide what comments are responsible - And which ones are not. $191 trillion of HD's debt was divided up among the Emperor's early supporters - With almost $31 trillion going to a Kentucky resident merely described as "Corvette MOE". Strangely enough as the new owners of Harley Davidson - Indian Motorcycles has decided to close all HD themed mens bath houses and discontinue the wide array of feminine hygene products launched just this past spring. (Harley's "IMA-Douche" sold in record numbers by the recently DNA regenerated Billy Mays.) ------------------------- Thanx, D Quote Link to comment Share on other sites More sharing options...
Brock Posted October 15, 2009 Share Posted October 15, 2009 we just hired a guy that was the lead salesman for a very large HD dealer near here that also owns another up the road a bit..... things are not good for the motor company. Quote Link to comment Share on other sites More sharing options...
Joehoward Posted October 15, 2009 Share Posted October 15, 2009 Danny, That was one of the funniest things I have read....damn. Joe Quote Link to comment Share on other sites More sharing options...
Last Resort Posted October 15, 2009 Author Share Posted October 15, 2009 Erik Buell Quote Link to comment Share on other sites More sharing options...
Dr. Mark Posted October 15, 2009 Share Posted October 15, 2009 Danny, That was one of the funniest things I have read....damn. Joe Never be drinking anything when reading one of Danny's posts. It WILL come out your nose. -Doc Quote Link to comment Share on other sites More sharing options...
indian T Posted October 15, 2009 Share Posted October 15, 2009 August 12th, 2021 - THIS JUST IN: Indian Motorcycles has agreed to purchase the infamous Harley Davidson for $834.12 and assume their $192 Trillion in debt. Indian spokesman "Charger" had this to say: "What's all the godamn commotion about? Y'all gettin yer panties in a wad over this crap?" Harley Davidson had made ill-fated investments in Emperor Obama's "Harley In Every Garage" campaign promises of 2012 and 2016. Investment analysis warned of the possible losses due to the 1,298 previous broken campaign promises - However that information was silenced with the "Responsibility Act of 2020" which allows the Emperor to decide what comments are responsible - And which ones are not. $191 trillion of HD's debt was divided up among the Emperor's early supporters - With almost $31 trillion going to a Kentucky resident merely described as "Corvette MOE". Strangely enough as the new owners of Harley Davidson - Indian Motorcycles has decided to close all HD themed mens bath houses and discontinue the wide array of feminine hygene products launched just this past spring. (Harley's "IMA-Douche" sold in record numbers by the recently DNA regenerated Billy Mays.) ------------------------- Thanx, D Now THAT was fucking funny! Quote Link to comment Share on other sites More sharing options...
Lahaina_Joe Posted October 15, 2009 Share Posted October 15, 2009 Ugh for HD... Thanks LR... Darn lousy news for our American market/products. >>Indian Motorcycles has decided to close all HD themed mens bath houses and discontinue the wide array of feminine hygiene products launched Wish I had the "beer toasting happy face thingy" to stick in here... A toast to Fudgbdt, usually a man of few words, but a darn fine orator when he lets go!!! Best, Joe Quote Link to comment Share on other sites More sharing options...
Vagabondjpm Posted October 15, 2009 Share Posted October 15, 2009 That's sad. Another manufacturer down, more lost jobs, and less selection in the market. Ride safe, Vagabond Quote Link to comment Share on other sites More sharing options...
mdschultz Posted October 15, 2009 Share Posted October 15, 2009 Indian should hire Mr. Buell. I am sure he is none too happy with the Motor company right now and he is a world class engineer who could bring some fresh ideas to Indian. Quote Link to comment Share on other sites More sharing options...
Dr. Mark Posted October 15, 2009 Share Posted October 15, 2009 Indian should hire Mr. Buell. I am sure he is none too happy with the Motor company right now and he is a world class engineer who could bring some fresh ideas to Indian. The same thought had occurred to me, since Indian's general manager, Chris Bernauer knows Erik Buell. Chris ran the Buell division and the Sportster division for HD before he came to Indian. -Doc Quote Link to comment Share on other sites More sharing options...
joel3078 Posted October 15, 2009 Share Posted October 15, 2009 Indian should hire Mr. Buell. I am sure he is none too happy with the Motor company right now and he is a world class engineer who could bring some fresh ideas to Indian. From my visit to KM factory yesterday, the couple of guys that showed me around mentioned that a few more key people from HD have moved to Indian. Now the boys at Indian don't know me from Adam other than I am a customer that bought a 2009 Indian. They were very carefull not to tell me too much and/or show me too much. However, they told me there will be more good news released in near future. What amazed me is the group in the conferance room all had smiles on their faces. I went by that room twice - on the way into the shop floor and on the way out of shop. Getting back to Buell - The HD dealers are trying to sell the Buell Blasts from their Rider's Edge beginner motorcycle class/test for around $2K. The Blast is actually a very nice beginner's bike and its a 600cc instead of those wimpy ass 250cc beginner bikes. It's a lot of bike for $2k. Quote Link to comment Share on other sites More sharing options...
aikenscout Posted October 16, 2009 Share Posted October 16, 2009 local hd dealer here has had the doors locked for about a month now. full of shiney new HD's.......makes ya wonder what will happen to em. Quote Link to comment Share on other sites More sharing options...
Harleynot Posted October 16, 2009 Share Posted October 16, 2009 local hd dealer here has had the doors locked for about a month now. full of shiney new HD's.......makes ya wonder what will happen to em. they left the bikes inside HD of Santa Cruz for over 6 months after closing, bizzare.... Quote Link to comment Share on other sites More sharing options...
thesunking Posted October 16, 2009 Share Posted October 16, 2009 Interesting tidbits, now where in the heck are my HD lovin' pigeon toed imbeciles . . . . . . Quote Link to comment Share on other sites More sharing options...
firebird77clone Posted October 16, 2009 Share Posted October 16, 2009 Maybe Harley will think twice before entering any other markets. Quote Link to comment Share on other sites More sharing options...
POWER STROKE Posted October 17, 2009 Share Posted October 17, 2009 August 12th, 2021 - THIS JUST IN: Indian Motorcycles has agreed to purchase the infamous Harley Davidson for $834.12 and assume their $192 Trillion in debt. Indian spokesman "Charger" had this to say: "What's all the godamn commotion about? Y'all gettin yer panties in a wad over this crap?" Harley Davidson had made ill-fated investments in Emperor Obama's "Harley In Every Garage" campaign promises of 2012 and 2016. Investment analysis warned of the possible losses due to the 1,298 previous broken campaign promises - However that information was silenced with the "Responsibility Act of 2020" which allows the Emperor to decide what comments are responsible - And which ones are not. $191 trillion of HD's debt was divided up among the Emperor's early supporters - With almost $31 trillion going to a Kentucky resident merely described as "Corvette MOE". Strangely enough as the new owners of Harley Davidson - Indian Motorcycles has decided to close all HD themed mens bath houses and discontinue the wide array of feminine hygene products launched just this past spring. (Harley's "IMA-Douche" sold in record numbers by the recently DNA regenerated Billy Mays.) ------------------------- Thanx, D Next up on the Onion radio news..... Seriously Danny, some of the funniest stuff I've ever read! Quote Link to comment Share on other sites More sharing options...
Harleynot Posted December 29, 2009 Share Posted December 29, 2009 (edited) Maybe Harley will think twice before entering any other markets. * Harley-Davidson dealer consolidates operations Published: Monday, Dec. 28, 2009 - 11:51 am The family that operates Harley-Davidson motorcycle dealerships in Rocklin, California and Jackson, California is closing those two stores and consolidating their operations into the family's Harley-Davidson operation in Folsom. The Guidera family posted the announcement on the Web sites of the two stores being shuttered -- Harley Davidson of Rocklin at 4361 Granite Drive (where rival Indian Motorcycle Of Kings Mountain is rumored to be looking @ placing a dealership, per local Indian Honk, Harleynot) and Harley-Davidson of Amador County at 11310 Prospect Drive in Jackson. The Web site positing said the move was tied "to the economic slowdown." The Amador County store closed last Thursday, and the Rocklin dealership is scheduled to close Wednesday. Merchandise and services from those stores, which also carried the Buell brand, are being incorporated into Harley-Davidson of Folsom at 115 Woodmere Road. Edited December 29, 2009 by HARLEYNOT Quote Link to comment Share on other sites More sharing options...
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