Harley-Davidson Fourth Quarter 2010 Financial Results. Broad Improvement.

This morning at 8 am, Harley-Davidson, Inc. (NYSE: HOG) reported full-year 2010 income from continuing operations of $259.7 million, or $1.11 per share, compared to income of $70.6 million, or $0.30 per share, from continuing operations in 2009. For the fourth quarter of 2010, Harley-Davidson recorded a loss from continuing operations of $42.1 million, or $0.18 per share, which includes the impact of a one-time, $85.2 million charge from the Company’s early repurchase of senior unsecured notes during the quarter. Retail sales of new Harley-Davidson motorcycles in the fourth quarter were nearly level with the year-ago period, decreasing 1.0 percent worldwide and 0.2 percent in the U.S.

The Company’s financial services unit, Harley-Davidson Financial Services, was a key contributor to 2010 earnings, with operating income from financial services of $181.9 million for the full year, including $43.5 million in the fourth quarter. Operating income from motorcycles and related products was $378.8 million for the full year, including an operating loss of $6.8 million in the fourth quarter.”In 2010, we expanded our international footprint, saw improvement in our motorcycle segment results driven by the restructuring of our operations and returned HDFS to solid profitability. I am confident that we are positioning Harley-Davidson to succeed and deliver value for all our stakeholders into the future,” said Keith Wandell President and Chief Executive Officer of Harley-Davidson, Inc. “In the U.S., we are the market share leader in new on-road motorcycle sales, not only to Boomers but to young adults, women, African-American and Hispanic riders. In Europe, we moved into the number two market share spot for heavyweight motorcycles in 2010. For 2011, we plan to build on our position as one of the strongest brands in the world through our continued focus on customer-led products and experiences,” Wandell said.

2010 Retail Harley-Davidson Motorcycle Sales. During the fourth quarter of 2010, retail sales of new Harley-Davidson motorcycles decreased 1.0 percent worldwide, down 0.2 percent in the U.S. and down 2.1 percent in international markets, compared to the prior-year quarter.

Industry-wide U.S. heavyweight motorcycle (651cc-plus) retail unit sales decreased 14.8 percent in the fourth quarter compared to the year-ago period.

For the full year 2010, worldwide retail sales of Harley-Davidson motorcycles decreased 8.5 percent compared to 2009. U.S. retail sales of Harley-Davidson motorcycles decreased 11.7 percent for the full year, while the U.S. heavyweight market segment was down 14.6 percent, compared to 2009.

In international markets, retail sales of new Harley-Davidson motorcycles decreased 1.9 percent for the full year compared to 2009. For the full year, dealers sold 222,110 new Harley-Davidson motorcycles worldwide at retail, including 143,391 in the U.S.

U.S. dealer inventory continued to decline.  Year-end 2010 dealer inventory down 11,800 units compared to year- end 2009. 36 dealer points closed in 2010, in line with expectation

Added January 25, 2010. 5 pm EST. After its announcement, Harley stock (symbol HOG) closed at a 52-week high of $39.43, up 8.06% during the day.

10 Responses to “Harley-Davidson Fourth Quarter 2010 Financial Results. Broad Improvement.”

  1. 1 J. Brecht Jan 25th, 2011 at 10:48 am

    Go, Harley. Go.

  2. 2 golfish Jan 25th, 2011 at 8:54 pm


  3. 3 Scott R Jan 25th, 2011 at 9:36 pm

    So let me get this straight. The bank of Harley made a profit from the high interest rates they gave people to buy harleys but sales of bikes lost money? 36 dealers closed and the ones that stayed open shrunk their inventorys but everything is A O K? I’m confused.

  4. 4 Doc Robinson Jan 26th, 2011 at 7:34 am


  5. 5 Wiz Jan 26th, 2011 at 8:47 am

    There’s hope fer the old dog yet! Wiz

  6. 6 Bigalyts@aol.com Jan 26th, 2011 at 11:19 am

    I believe the Growth in Market Share is truely because the Dealers are not Killing their Customers with List + Prices. They finally are starting to do with what the Competition has been doing for years…………………………… DISCOUNTING BIKES ! Congradulations,Harley.

  7. 7 martin Twofeather Jan 26th, 2011 at 10:12 pm

    Don’t come to Florida looking for a discounted Harley unless you go to V-twin city….

  8. 8 BigWave916 Jan 28th, 2011 at 11:03 am

    ScottR … So you weren’t impressed that the Motor Company sales were off by almost 6% but yet they gained 1.6% market share? Me neither.

    When I read the report I thought it was still bad news perfumed up so it smelled better. Couple that with the lack of real product development coming from Milwaukee and it looks like H-D will be left behind if the market actually takes off.

    Also posted on this site is the Polaris annual report that includes Victory Motorcycles whose sales are up 8%, obviously they gained market share.

    My point is that with companies like Victory increasing sales in an economy where H-D is losing sales, the more the market grows the smaller the Motor Company’s market share will be. At that point what will they tell the shareholders to convince them that everything is all right and they are positioned to be very profitable in the coming years?

  9. 9 Taco Jan 29th, 2011 at 6:08 am

    cool, Harley still sucks…

  10. 10 Hark Jan 31st, 2011 at 8:43 am

    I think this proves that bigger is not always better. As for Taco’s statement Harley Still Sucks…Normally statements like this come from people who can’t afford to ride them. I know you must be doing your best to make that bike you ride sound like a Harley…Keep Dreaming Taco…no matter what you do, it will still not be a Harley.

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Cyril Huze