After a poor 2009, and despite making another loss, Harley-Davidson has reported encouraging results for year ending 31 December 2010.
After losing $218 million in 2009, the iconic motorcycle maker reported a loss from continuing operations of $42.1 million last year, including a one-off early loan repayment of $85.2 million during the fourth quarter, without which it would have turned in a healthy profit.
Retail sales of new Harley-Davidson motorcycles in the fourth quarter were nearly level with the year-ago period, decreasing 1.0 percent worldwide and 0.2 percent in the US,but revenue from dealerships in the fourth quarter rose 26.4 percent to $697.8 million. The company shipped 44,481 motorcycles to dealers and distributors worldwide during the quarter, compared to shipments of 35,938 motorcycles in the fourth quarter of 2009.
Harley-Davidson Financial Services was a key contributor to 2010 earnings, with operating income from financial services of $181.9 million for the full year, compared to an operating loss of $118.0 million in 2009.
Operating income from motorcycles and related products was $378.8 million for the full year, including an operating loss of $6.8 million in the fourth quarter.
"We feel good about our 2010 results," said 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.
"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."
In 2011, the company expects to ship 221,000 to 228,000 Harley-Davidson motorcycles to dealers and distributors worldwide, an approximate five percent to eight percent increase compared to 2010.
It also expects to ship more motorcycles to US dealers than it anticipates dealers will sell at retail in 2011, to return aggregate US dealer inventory to what the company believes is an appropriate level. In the first quarter of 2011, Harley-Davidson expects to ship 51,000 to 56,000 motorcycles.
