Harley Profit Down 84 Percent
October 15, 2009 by Stephen Kersey
Filed under Business
Iconic motorcycle manufacturer Harley-Davidson Inc. has posted a massive 84 percent decline in third-quarter profits from last year to this year, marking difficult for Harley. While Harley brought in $166.54 million, or 71 cents per share, in the year-ago period, this quarter saw Harley bring in a profit of $26.48 million, or 11 cents per share.
Harley has also announced that it will cut its Buell and MV Agusta brands, incurring a $14.2 million one-time charge this quarter related to Buell and a goodwill impairment charge of $18.9 million related to MV Agusta. Without these one-time charges, Harley’s profit would have actually been around 21 cents per share, which still shows a large decline.
Total revenue fell to $1.1 billion from $1.4 billion a year earlier, with retail sales down 21.3 percent worldwide and 24.3 percent in the domestic market. Analysts correctly predicted the revenue of $1.1 billion but expected a profit of 23 cents per share.
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