Harley-Davidson Announces Unsurprising Fourth Quarter Dip, Staggering Overall 2009 Income Plunge

Published Jan. 22, 2010 at 11:15 a.m.
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

Harley-Davidson Announces Unsurprising Fourth Quarter Dip, Staggering Overall 2009 Income Plunge originally appeared on About.com Motorcycles on Friday, January 22nd, 2010 at 11:15:25.

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