Nov. 10, 2008 – Finance Digest
November 10, 2008
Filed under Features
‘Red Flags Rule’ won’t start until May, FTC says
The “Red Flags Rule” that will affect powersports dealerships will begin on May 1, later than originally reported, the Federal Trade Commission (FTC) announced.
The extension is expected to allow companies additional time to develop and implement written identify theft prevention programs.
The upcoming rule requires financial institutions and creditors to have programs to identify, detect and respond to patterns, practices or specific activities that could indicate identity theft.
According to the FTC, a creditor is defined as any entity that regularly extends, renews or continues credit; any entity that regularly arranges for the extension, renewal, or continuation of credit; or any assignee of an original creditor who is involved in the decision to extend, renew or continue credit.
The FTC has published an alert on the rules. It’s available at www.ftc.gov/bcp/edu/pubs/business/alerts/alt050.shtm.
Lehman Trikes reports loss in its third quarter
Lehman Trikes’ increased sales did not overcome an increase in costs as the company reported a loss in its third quarter.
The South Dakota-based manufacturer reported a loss of more than $14,000 in its third quarter, which ended Aug. 31.
Lehman Trikes’ third-quarter sales followed a year-long pattern, as they were up nearly 8 percent to more than $6 million. Costs of goods sold, however, jumped 22 percent compared to the year-ago period.
For its first nine months, Lehman Trikes’ revenue has risen 18 percent, to $17.2 million, compared to a year ago.
Lehman Trikes develops three-wheelers in partnership with Harley-Davidson and Victory among other OEMs.
Viper Motorcycle moves into new facility
Viper Motorcycle Co., a wholly owned subsidiary of Viper Powersports Inc., announced that it has bought out its Big Lake, Minn., facility lease and has moved into a new facility located in Hopkins, Minn.
“After many years of developing our own proprietary motorcycles and motorcycle engines and outsourcing production, Viper is now solely focused on building bikes and its bottom line,” John Silseth II, CEO, said in a press release.“Our EPA and CARB testing has been successfully completed and a limited number of 2008 production bikes were released with positive feedback allowing us to ramp up to commercial volume shipments scheduled to occur out of our new facility in the first quarter of 2009.”
Hero Honda 2nd quarter net up 50 percent
Hero Honda Motors, which has about 55 percent of India’s motorcycle market share, increased its net profit by 50 percent for the second quarter that ended in September, according to the Hindu Business Line.
The positive gain was credited to increased sales volume and various cost-cutting measures. The company’s net sales were up 35 percent. Pawan Munjal, managing director of Hero Honda, stated, “Overall the two-wheeler industry has grown. This has mainly been driven by Hero Honda. We have grown due to a single-minded focus on customers and ensuring a fiscal discipline.”