During a Conference Call this morning just before Wall Street opening, Harley-Davidson announced its first quarter 2010 financial results. Although Keith Wandell, the company’s President and Chief Executive stated again that market conditions remain challenging, operating profit per share was $0.29 vs $0.22 Wall-Street estimate.
This result is helped in big part by re-structuration and a rebound at its in-house finance unit and. First-quarter net profit is $35.4 million, or 14 cents a share, down from $117 million, or 50 cents a share, a year before.
Worldwide retail sales of new Harley-Davidson motorcycles declined 18.2 percent in the first quarter, a smaller rate of decline than in the prior three quarters. The brightest spot was international retail sales, which fell just 2.8 percent during the quarter after posting double-digit declines for a year. Sales in Europe and Canada were both up slightly during the quarter. Parts and accessories sales fell 12 percent to $149.1 million and general merchandise sales, which includes Harley-branded apparel, fell 12 percent to $66.3 million. Revenue from sales of Harley-Davidson motorcycles was down 20 percent during the quarter to $808.8 million. At opening this day April 20, 2010 the stock (HOG), was up 7.60%.
Fire people, close plants, don’t adapt and continue to lose money. But all of a sudden you turn profitable. Capitalism at work.
Would be good if Harley would top its customers expectations.
So….. Net profit of $35M vs $117M, bike sales down 20%, merchandise down 12%, and all that Wandell can say is that “market conditions remain challenging”?
By all means, let’s award this man MORE options!
I’ve done more than my fair share of HD bashing on here, but c’mon- this is what happens when you let an accountant run a company; This is AMF, Part 2.
What I want to see from a CEO is LEADERSHIP. Tell us- for example- that Harley is reverting back to a marketing formula more akin to what brought it historic success.
Give us some reason to own this stock, other than “we’re sucking less badly”. Yes, no shit Sherlock, market condiions remain challenging- what’s your plan going forward?
You own stock to participate in the GROWTH of a company- if it’s not growing, you sell the stock. Harley stock price is rising for non-fundamental reasons, and their bubble will be among the first to pop when some external event (i.e.- a Fed hike) occurs; Today’s action is just a short squeeze.
Growth by cutting expenses only works long enough to intereview for your next CEO job. This has been the game in corporate America for the past 15 years- any fool can come in and chop;
Let’s hear a PLAN worthy of that pay package, Keith!
J. You made a great comment. maybe it was step # 1 (cutting heads and expenses). Is it possible that Keith wandell got a new products step # 2 under hisr sleeves ?
I am all for it. The retail market is turning and yes it does take a bean counter to make proper assessments. You can be the greatest company or the world, but you must know your fixed costs and market projections…then lets wish HD well and hope that they hit 80% of their projected goals now that the economy is slowly turning. We will all be to the better off then, you will see!
Boss Hawg
I am still scratching my head as to why the stock market is going up at all other than hopeful investing. The other reason is tied to the American exchange being the best place to put your money when so many foriegn countries are bankrupt right now. Before the iceland eruption they had a fincial melt down like Greece and other countries. So H-D is gaining from the rise in the market as is everyone else.
Who wouldn’t want to make millions on wearables? No factories or employees just contracted out to other companies who do it for you or even pay for the rights to sell it. What a sweet deal
As for the CEO don’t know much about him. But I know you can’t keep jobs if you have no work for them to do.
The Producer
Rumor has it that another sharp increase in the stock value is expected when the middle man is cut out of the sales action [Dealers ] and the motorcycles will be sold on HSN. [ Home Shopping Network]. Along with jewelry and designer clothing. HD [High Definition ]
As we have seen all that it takes is for someone [ wall street analyst ] to start a rumor to increase stock values.
Do you think that this is not players game !
HARLEY ” SPEEDS ” AHEAD “CHASED” BY SLIPPING SALES.
So funny but so true as stated by a well known Wall Street firm.
Don’t ya love statistics. Sales are down 72% over this time last year, profit was $33.3Million (14¢/share) compared to last year’s $117.3 (50¢/share), and their celebrating. Plus they are laying off 90+ peeps from the Franklin, WI distribution site which is being closed & outsourced. Harley will survive, outlasting their current employees.
If you listen to the conference call, the execs. don’t even blush when they tell investors they ‘expect to lose more dealerships during the second quarter’ after losing 6 in the first quarter …
http://mpnmag.com/site/content/article.aspx?articleid=150&zoneid=10
Fire people, close plants, don’t adapt and continue to lose money. But all of a sudden you turn profitable. Capitalism at work.
“J” demonstrates a lack of fundamental business knowledge. He may not have noticed but the economy has been in the dumper for the last couple of years. Buying stuff like a new HD, that is a luxery item and mostly recreational, are the first to suffer and the last to recover in this economic environment. Cutting expenses and fixed cost was not done to create GROWTH…it’s a prudent and necessary action to SURVIVE….If they had not taken the actions they have, the doors would be locked by now. Growth will result from building motorcycles that filfull the wants and needs of the market segment they target, and employing the best “business” and manufacturing strategies and techniques to satisfy those wants and needs. I believe they have done that (look at market share) and will continue to do so as the economy improves.
Would be good if Harley would top its customers expectations.