After Harley-Davidson posted better-than-expected earnings, boosted by a rebound in its finance unit, the company posted a profit from continuing operations of $139.3 million, or 59 cents a share, beating the 41 cents expected by analysts surveyed by Thomson Reuters.
Retail sales fell during the quarter, but declines slowed from the prior four quarters. Operating income at Harley’s financial services unit surged to $60.8 million, compared to a loss of $90.5 million in the same period a year ago. Today (Wall Street still not closed) shares of Harley (HOG) jumped $2.70 to $26.31. It was up as much as 15%, at $27.15, before pulling back. Harley shares are higher for 2010, up about 4.5%, and up about 35% for the last 12-month period.
Harley Davidson core business is selling motorcycles not financing. It is good to see that they have their financing segment in line and not being abused as it were in the past.= to promote sales.
Bike shipments are expected to be down 5% to 10% from even last year’s sales. When you remove that financial services segment from earnings its core business dropped to $78.5 million; a decline of 36%.
In 2009 you take away the bad loans or the 90.5 million loss from HDFS the Company would have earned around 123.9 million versa’s 78.5 in 2010.
Cost cutting and financial services have kept HOG’s head above water for now, but at some point they need to start showing growth in the core market.
I have a 2009 that is the noisiest bike I have ever owned, I understand why stocks aren’t higher with the poor quality of the bike. I was wondering harley says 54 miles to the gallon. Can I sue not even close to that
Try going back to the Shovels. FXR/FXE best bikes ever made.
Well, after owning quite a slew of Harleys over the years I reckon my 2009 Street Glide is the best of the bunch. It’s certainly not noisy. Mind you, wife Jane still loves her ’91 FXR, has done 100,000 miles on it (she works full time) and won’t think of parting with it.
Great for my stock porfolio
Go back to the Pan Heads best darn Harley Made
Harley touring bikes are rated at 35 MPG Urban, 54 MPG Highway. Harley doesn’t set the MPG on their bikes, the EPA rates MPG on all vehicles and the ratings are intended for comparison purposes only. Your actual mileage will vary depending on how you ride, how you maintain your vehicle, weather, road conditions, tire pressure, installation of accessories, cargo, rider and passenger weight, and other factors.
Doc
91 FXR, best all round hd ever IMO or a 91 cop fxr
HD is doing a good job with management and will be possitioned correctly for ” MELT UP ” !!
We all need HD to become strong again..