Harley-Davidson's just-unveiled Forty-Eight Sportster will get its fair share of attention among H-D enthusiasts today, but the Motor Company's bottom line is sure to take precedence in the mainstream news.
Not surprisingly, the last quarter of 2009 wasn't kind to Harley-Davidson, with a fourth-quarter net loss of $218.7 million (which translates to a $0.94 slip, per share.) Overall revenue for 2009 was $4.29 billion, compared to $5.58 billion in 2008, a 23.1 percent drop. Income in 2009 plummeted a staggering 89.7 percent from 2008's figure of $684.2 million to $70.6 million, which Harley attributes to lower motorcycle shipments, the exit costs associated with the discontinuation of the Buell lineup, and non-cash charges related to Harley-Davidson Financial Services.
As for the future, Harley-Davidson anticipates shipping between 201,000 to 212,000 bikes worldwide, a 5-10 percent drop from 2009 figures. President and CEO Keith Wandell admits that, "We believe 2010 will continue to be a challenging year," a frank depiction of Harley's struggles in a marketplace which experienced a precipitous 41 percent drop in overall U.S. bike sales last year.
Related:
- 2010 Harley-Davidson Buyer's Guide
- Harley's New Stimulus Package: $500 Bonus Credit For Trade-Ins
- Harley Launches Bike Locator for Remaining Buells... Last Call for Buells!
- Seven Year Legal Battle with Harley-Davidson Ends in Ridley's Discontinuation of "Auto-Glide" Name
- Industry Shock: Harley-Davidson to Discontinue Buell, Divest MV Agusta
- Looming Job Cuts and Outsourcing Thicken Dark Clouds Over Harley-Davidson
Photo © Harley-Davidson; click for 2010 Harley-Davidson Buyer's Guide
Continuing operations were still profitable, but they’ve got some really big challenges
So true Scottie, hope this economy turns around soon, not just for HD but everyone.