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From MSN


Harley stock takes a joy ride
Shares of the motorcycle maker zoom higher as earnings roar past estimates.
Posted by TheStreet Staff on Tuesday, July 20, 2010 11:21 AM
Updated at 4:30 p.m. ET

By TheStreet

Shares of Harley-Davidson (HOG) zoomed higher after the motorcycle maker roared past earnings estimates Tuesday.

The Milwaukee icon posted second-quarter earnings of 59 cents a share, 18 cents more than what analysts were expecting.

Shares were up 13.6% to $26.83.

Harley had revenue of $1.135 billion versus the $1.1128 billion forecast. Harley saw a big turnaround in its financial services division, where it posted operating income of $61 million compared with a $91 million loss there a year ago. Gross margin came in at 35% compared to 34.1% in the year-ago period.

Harley had been steadily gathering earnings upgrades in the past month. Its shares had been on a precipitous decline since April, when they topped out at $36 this year. Harley also had been rumored as a takeover target.

"We are pleased with the continued moderation in the rate of decline of retail new Harley-Davidson motorcycle sales again in the second quarter," said Keith Wandell, president and chief executive officer of Harley-Davidson. "At the same time, we continue to believe conditions will remain challenging this year for new motorcycle purchases and we will manage the business based on that expectation, with a continued strong focus on managing supply in line with demand.

"Despite the decline in second-quarter retail motorcycle sales, we believe interest in the Harley-Davidson brand remains strong among riders of all generations. We are seeing the benefits of our restructuring and continuous improvement activities reflected in our earnings performance.

Harley shipped 112,720 motorcycles in the first half of 2010, a 15.2% decrease compared with last year's 132,849. Revenue from motorcycles through six months was $1.64 billion, a 9.8% decrease.

The company expects to ship 201,000 to 212,000 motorcycles to dealers and distributors this year, a drop of 5% to 10% from 2009.
 

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Gone
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I'm quite surprised. Interesting actually.
 

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Big Ugly fun guy
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Hey Hand, It just shows they CAN sell 1908 technology for higher prices every year. Suprising they get so much mileage out of "New Chrome Widget" instead of performance. Higher reveunes on less number of bikes? Just more chrome cupholders thats all.
 

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Insane inda membrane
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They should be making money... I bought a steering stem nut today.. $52 friggin' bucks...
 

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Discussion Starter #5
Don't forget that HD counts a bike as sold when it goes in a dealer's inventory. Not when that bike actually sells to a consumer. Their math can be misleading. I would like to know what dealer inventories look like. I would bet dealers have a lot more bikes on hand than they want.
 

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whats the guts with these peps who continually rubbish the brand yet ride one.why rubbish peoples choice in what they choose to ride and go on about old tecnology.those bikes are great to work on compared to most modern bikes and give their owners a great buzz.the hd brand still continues to survive in this modern world where others are failing so please go join a jap lovers forum and kiss their asses if you will and give us a break.ive been reading this diss of the brand so often here im amazed noone actually defends the hd brand.no ,im not a jappa lover,thats obvious,im not even a yank,yet im proud to say good on ya hd.
 

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.ive been reading this diss of the brand so often here im amazed noone actually defends the hd brand..
Agree, I cant believe how many people on this forum bash HD. A brand that people around the world revere. In fact, leaders from other major brands often refer to brands like Harley, Apple, Ferrari, and Starbucks in the same sentence.


Seriously, whats better than a Harley? A Honda? I guess it depends on your perspective. I would guess more people in Japan aspire to own a Harley over a Honda.
 

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whats the guts with these peps who continually rubbish the brand yet ride one.why rubbish peoples choice in what they choose to ride and go on about old tecnology.those bikes are great to work on compared to most modern bikes and give their owners a great buzz.the hd brand still continues to survive in this modern world where others are failing so please go join a jap lovers forum and kiss their asses if you will and give us a break.ive been reading this diss of the brand so often here im amazed noone actually defends the hd brand.no ,im not a jappa lover,thats obvious,im not even a yank,yet im proud to say good on ya hd.
Is it wrong to want America to build something more up to date and technologically advanced than something from the 50's? I just think they are looking at the quarter and not at the year. If you want an example of a company that sat on their laurels until it was too late and they were in trouble take a look at Nokia.
 

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boredom kills
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When I look at this press release it says, we did a little better than we thought we would, but things still suck.

From MSN
Harley had revenue of $1.135 billion versus the $1.1128 billion forecast.

Harley saw a big turnaround in its financial services division, where it posted operating income of $61 million compared with a $91 million loss there a year ago. Gross margin came in at 35% compared to 34.1% in the year-ago period.

"We are pleased with the continued moderation in the rate of decline of retail new Harley-Davidson motorcycle sales again in the second quarter," said Keith Wandell, president and chief executive officer of Harley-Davidson. "At the same time, we continue to believe conditions will remain challenging this year for new motorcycle purchases ...

"Despite the decline in second-quarter retail motorcycle sales, we believe interest in the Harley-Davidson brand remains strong among riders of all generations. We are seeing the benefits of our restructuring and continuous improvement activities reflected in our earnings performance.

Harley shipped 112,720 motorcycles in the first half of 2010, a 15.2% decrease compared with last year's 132,849. Revenue from motorcycles through six months was $1.64 billion, a 9.8% decrease.

The company expects to ship 201,000 to 212,000 motorcycles to dealers and distributors this year, a drop of 5% to 10% from 2009.
The finance company bit - they no longer need to write down loans and maybe put some previously written off loans that continued to perform back on the books.

The line about generations is a lot of BS

Continuous improvement - corporate speak for we will put the screws to more employees

They sold less bikes -this quarter vs same quarter last year, and the last six months vs. same period last year.

None of this spells success......it just means:

No extra charges for loan write-offs
Less restructuring and other charges.

They should be making money... I bought a steering stem nut today.. $52 friggin' bucks...
Sole source parts and tee shirts (all aparel) is highly profitable for HD.

Agree, I cant believe how many people on this forum bash HD. A brand that people around the world revere. In fact, leaders from other major brands often refer to brands like Harley, Apple, Ferrari, and Starbucks in the same sentence.


Seriously, whats better than a Harley? A Honda? I guess it depends on your perspective. I would guess more people in Japan aspire to own a Harley over a Honda.
Your correct there is brand loyallty and mystique that draws people to the brand but for some it fades.

I submit that from a mechanical / design standpoint the V-Rod is the only competitve product made by HD today in terms of performace and quality. All 4 major Japanese brands, Ducati, MV Agusta, BMW make better bikes than HD, an engineering fact. Triumph is questionable.

The motorcycle press has nicknamed HD "The Sultan of Slow" all for good reason.

Just because you bought a V-Rod, does not mean you must worship all things Harley Davidson, or behave like sheep and perpuate the brands myth or is it fraud.
 

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Agree, I cant believe how many people on this forum bash HD. A brand that people around the world revere. In fact, leaders from other major brands often refer to brands like Harley, Apple, Ferrari, and Starbucks in the same sentence.


Seriously, whats better than a Harley? A Honda? I guess it depends on your perspective. I would guess more people in Japan aspire to own a Harley over a Honda.
Seriously? HD's motorcycles have been outperformed by almost every other mfg when they compare bike to bike. They're designs are old, their dealer network sucks, they're customer service is worse, their techs can't even take an airbox cover off a VR without ****ing up a gasket.

They're all about sales and not about the buyer. Harley sucks ass.

My next bike will not be an HD brand, I'll go to either BMW or Ducati.
 

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Sorry, still don't get it. I had a great service experience at my Harley dealer. They installed a VH competition, dynoed and serviced the bike. They even said they don't see many vrods up here but they did a great job. All companies are about sales.

Of course I had a bad sales experience at Harley. Perhaps they need to do better training and incentives.

What you think BMW and Ducati aren't about sales? Ducati rapes their customers on service calls, and BMW service, at least where I live, sucks.

As far as speed goes, uhhh, my bike is fast enough I think, if I were to buy any other Harley it would be a Heritage Classic ....who makes a bike that looks or feels anywhere close to one?

I still stand by what I say. Harley, like Apple Starbucks and Ferrari, is an iconic brand.
 
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