Harley-Davidson Profit Drops 91%; 1,000 More Layoffs Announced Friday July 17, 2009 The financial news from Harley-Davidson is bleak: a second quarter drop in profits of 91%, with $19.8 million in earnings compared with $222.8 million a year ago, and U.S. market share dropping from 53.1%, to 48.7%. Harley stock has also fallen to nearly half of its value compared to last year, and the manufacturer has announced an additional 1,000 layoffs. Share prices leapt 9%, with investors perhaps assuming that a leaner approach might help H-D return to profitability, but today Fitch downgraded their debt rating today from A- to BBB+.
We enthusiasts vehemently debate Harley's competencies in this very competitive landscape of global manufacturers, but news sources like MSNBC take a non-rider's vantage point, noting that "Strapped consumers continue to put off sales of the company's expensive rides, which can cost more than a new car..." And Marke****ch takes a harsher stance, saying that "Harley's fiercest fans... are literally a dying breed. And many of those still spry enough to buy a full-dress Harley can no longer afford one."
While the entire industry is down, the questions for Harley are especially strong: When will the slide stop, and will Harley ever be able to regain its market share? I certainly don't have the financial answers, but I'll be testing the 2010 model lineup later this month, and you can bet I'll share my opinion about their bikes with you-- from one passionate motorcyclist to another.
State of the Nation: Year-to-Year Motorcycle Sales Dropped 54.5% in June Friday July 24, 2009 Motorcycle sales dropped 54.5% in June (compared to last year) according to the Motorcycle Industry Council, and scooter sales fell a staggering 77.5% during the same period. Though Harley's profit losses reflect trouble at the top of the market, the news is anything but reassuring for the general state of the motorcycle industry, as overall year-to-date motorcycle sales are down 46.3%, with off-highway bikes suffering the least (compared to scooters, on-highway, and dual purpose motorcycles.)
Disposable income is non-existent. Tienen razon, en esta economia como puedo justificar gastar sobre $20,000 dolares en una motora. Maximo cuando hay tantas personas vendiendo sus maquinas que ni apenas tienen un año.
Me imagino que el mercado de motoras usadas debe estar mejor y quizá ni ese mercado este tan bueno.
Aquí en PR debería mejorar para el que tenga $, porque las nuevas cuestan mas gracia a Fortuño y la demanda ha bajado, osea, que los precios de la usadas también han bajado. En estos tiempos, el que tiene $, lo guarda para los dias lluviosos.
Lamentablemente el gobierno ha incrementado los esfuerzos para que el sector privado sea quien pague los platos rotos. Todos estos cambios en las leyes y reglamentos de impuestos, tienes reintegro de los impuestos que pagastes de mas y todavia no te los devuelven (y sientate a esperar que te paguen por la tardanza), la debacle de la Ley 7, ahora AEE saca una subasta de combustible donde el suplidor absorbe cualquier cambio (? No hay que saber mucho de negocios para entender como se sufragan los riezgos), en momentos de crisis economica y ambiental se penalizan medios de transportacio que son soluciones, ... y espera mas que la merda seguira.
