Harley-Davidson ends 2009 with net loss of $55 million
Guido Ebert - Jan 22, 2010

Harley-Davidson, Inc. ended 2009 with a net loss of $55.1million, or $0.24 per share; revenue was $4.219 billion, down compared to $5.59 billion in 2008.  Revenue from Harley-Davidson motorcycles in 2009 totaled $3.17 billion, down compared to $4.24 billion in 2008; revenue from Parts and Accessories totaled $767.3 million, down compared to $858.7 million; and revenue from General Merchandise was $282.2 million, down compared to $313.8 million. 

Retail sales of Harley-Davidson motorcycles decreased 22.7 percent worldwide – 25.8 percent in the U.S. and 15.4 percent in international markets. Shipments totaled 223,023 Harley-Davidson motorcycles, down compared to 303,479 bikes in 2008.  As for Harley-Davidson Financial Services, the unit recorded an operating loss of $118.0 million, in the red compared to operating income of $82.8 million in 2008. 

Outlook for 2010

H-D expects to ship 201,000 to 212,000 Harley-Davidson motorcycles to dealers and distributors worldwide – a reduction of five to 10 percent from 2009.

“We believe 2010 will continue to be a challenging year,” says Keith Wandell, Harley-Davidson, Inc. president and CEO.

Restructuring H-D has been moving forward with the execution of its business strategy, unveiled in October 2009, to deliver greater results by focusing on Harley-Davidson products and experiences, global expansion, demographic outreach and commitment to core customers. Additionally, the company plans to continue to expand its initiative to enhance profitability through continuous improvement in manufacturing, product development and business operations.  For 2010, H-D expects full-year capital expenditures of between $235 million and $255 million, including $95 million to $110 million to support restructuring activities, and anticipates previously announced restructuring activities to result in total one-time charges of $430 million to $460 million into 2012.

The OEM continues to anticipate annual ongoing total savings from restructuring of approximately $240 million to $260 million upon completion of all announced restructuring activities. This year,  savings of approximately $135 million to $155 million are anticipated.

“We believe these actions are critical to restoring greater profitability and long-term growth to Harley-Davidson,” Wandell says. “We are confident we have made the right decisions for our future, and we are executing our strategy with focused intensity.”

Harley-Davidson dealers are holding a meeting in Texas this weekend.

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