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Harley-Davidson Reports 2010 Results

Sales are down but net income is up

Harley-Davidson reported $259.7 million in income in 2010, up from $70.6 million in 2009 thanks to improved results from the company’s financial services division.

“We feel good about our 2010 results,” says Keith Wandell, president and chief executive officer of Harley-Davidson, Inc. “Through the hard work of a lot of very dedicated and talented employees and dealers, we have made strong progress at transforming our business to be leaner, more agile and even more effective at delivering great products and customer experiences.”

Operating income from Harley-Davidson Financial Services totaled $181.9 million compared to a loss of $118 million in 2009, accountng for a lot of the improvement.

Harley-Davidson sold 222,110 units in 2010, down 8.5% from 242,634 units sold the previous year. U.S. sales totaled 143,391 units, a decrease of 11.7% from 2009 but ahead of the industry-wide 15.8% decrease in U.S. sales reported by the Motorcycle Industry Council. Based on the MIC’s data, Harley-Davidson sales accounted for 32.7% of all U.S. motorcycle sales and 46.7% of on-highway model sales.

2010 Harley-Davidson 48

“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,” says Wandell. “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.”

Motorcycle sales generated $3.14 billion in revenue in 2010, down slightly from $3.18 billion in 2009. Operating income however was up 20.1% in 2010 to $378.8 million compared to $314.0 million in 2009, thanks mostly to a decrease of $57.5 million in restructuring expenses.

Continuing restructuring efforts are expected to save $210-230 million in 2011 and from $275-295 million in 2012 with ongoing savings of $290-310 million in 2013 and beyond. Harley-Davidson has scheduled negotiations with unions representing workers in Kansas City, Mo., for a new labor agreement. The current labor deal expires in July 2012.

2011 Harley-Davidson FXS Blackline Softail

For 2011, Harley-Davidson expects to ship 221,000 to 228,000 motorcycles worldwide, an increase of 5-8% from 2010 shipments.

“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,” says Wandell. “A strong, financially sound Harley-Davidson is key to our ability to invest in the business and grow. While there is still hard work ahead and we remain cautious in our outlook, I am confident that we are positioning Harley-Davidson to succeed and deliver value for all our stakeholders into the future.”

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US Sales Continued to Decline in 2010
Harley-Davidson Reports Q3 2010 Results
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Harley-Davidson Reports Q1 2010 Results
Harley-Davidson Reports 2009 Results

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