Harley-Davidson Financial Services Returns to Profitability
Harley-Davidson, Inc. (NYSE: HOG) recently reported first-quarter 2010 income from continuing operations of $68.7 million, or $0.29 per share. First quarter earnings included operating income from Financial Services of $26.7 million, marking a return to profitability for the company's Harley-Davidson Financial Services (HDFS) subsidiary. Revenue from motorcycles and related products was $1.04 billion in the first quarter.
Worldwide retail sales of new Harley-Davidson motorcycles declined 18.2 percent in the quarter compared to the first quarter of 2009, an improvement in the rate of decline from the prior three quarters. In the U.S., retail Harley-Davidson motorcycle sales were down 24.3 percent and in international markets, retail sales declined 2.8 percent, compared to last year's first quarter.
"We are encouraged by our progress in the first quarter," said Keith Wandell, president and chief executive officer of Harley-Davidson, Inc. "We are seeing directional improvement in our dealers' retail motorcycle sales as we enter the key selling season. At the same time, given the global economic uncertainty that still exists, we believe conditions will remain challenging throughout this year, and we will continue to factor that into how we manage the business.
"Our entire team is moving with great purpose and speed as we implement our go-forward business strategy with its focus on global growth through market and demographic outreach, commitment to core customers, and developing motorcycles that inspire and fulfill dreams. We also continue to be intensely focused on continuous improvement, looking at all opportunities to drive cost-competitiveness and efficiency throughout our operations," Wandell said.
Posts
