Posted on 04/20/2010 8:48:28 AM PDT by SeekAndFind
Harley-Davidson Inc. shares rumbled 9% higher Tuesday, gaining after the motorcycle maker reported a first-quarter profit that didn't fall as much as Wall Street had projected.
The company's financial unit provided a boost, registering a profit after three losing quarters thanks to improved credit performance and lower costs.
In early trading, shares of Harley-Davidson /quotes/comstock/13*!hog/quotes/nls/hog (HOG 35.19, +2.42, +7.39%) tacked on $2.95 to stand at $35.72. They have now doubled in the past year on the back of signs of a broader economic recovery.
The Milwaukee-based manufacturer posted earnings of $33.3 million, or 14 cents a share, down from $117.3 million, or 50 cents a share, in the year-ago period.
Net revenue slipped to $1.04 billion from $1.28 billion on fewer motorcycle sales.
Earnings from continuing operations came in at 29 cents a share, compared to analysts' mean estimate of 25 cents a share, as compiled by FactSet Research.
CEO Keith Wandell said he was encouraged by the progress the company made in the first three months of the year, but he urged caution about prospects for the coming months.
"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," he said.
(Excerpt) Read more at marketwatch.com ...
Hollywood - upcoming biker movie in the works.
Whose buying these bikes in a recession? ... the people who are not paying their mortgages.
Maybe people are riding bikes instead of driving gas guzzling trucks right now, and having fun doing it?
PAID MINE OFF FINALLY....WOULD UPGRADE BUT WITH A 25% PAY REDUCTION I AM NOT BUYING MUCH OF ANYTHING....
would love to save some money and ride mine back and forth to work but i travel interstate 4 near orlando and that is a death wish on a bike...
HA! Jus funnin ya...
Who’s buying them? All the 60’s radical wannabes who are now on the government payroll.
Hmm. Makes a nice matching bookend to my "Unemployment increased less than expected" story.
Harley’s finances were nearly ruined by the banking crisis. They used all short term notes to get the capital to fund both customer loans and dealer loans. Eventually they got TARP funds, so that at least they could fund their dealers buying bikes.
The sell a lot of their bikes outside of the USA. That may be helping. Also, they worked to bring prices down. The average price of an entry level “big twin” came down by a few thousand dollars. (Less chrome, more black paint, etc.) With Jap bikes tending up in cost, suddenly Harley’s are not the premium product in the market every time.
Forget you, HD.
No more unions.
Harleys are really for older people. Baby boomers and seniors. These people really need those trike motorcyles.
Obama is taking away their healthcare. They better save their money. If they dump their bike and break a hip - ObamaCare may not save them.
Also the taxes on dividends and other investments is going to 44.6% in 2013 versus 15% under Bush.
Just because there’s a recession doesn’t mean everybody is broke. I usually run into my financial difficulties during the booms, coasting this recession pretty smooth.
Well, they’re clearly selling far fewer bikes than they were just a year ago. They’ve improved their bottom line because they’ve tightened their belts and as a result, they’ve improved their operating ratio.
Let’s not lose sight of the fact that while roughly 15% of the people are unemployed, 85% aren’t. And, from what I’ve seen, real income has actually risen the last year for the people who are still working, probably because many are working more hours to compensate for the RIF.
Union thugs and welfare recipients!
WOW, profits didn’t fall as much as expected. Now THERE”S a reason to buy!!
Well when you consider that when gas goes to $3 a gallon getting back and forth to work is a lot cheaper on a bike than in a car.
GOOD COMMENT!!!!
Billet barges!
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