H-D releases third quarter results
October 15, 2009
Filed under Features
Harley-Davidson today revealed a decrease in revenue and net income for the third quarter of 2009 compared to the year-ago period. The company also reported a moderation in the decline of new Harley-Davidson motorcycle sales compared to the second quarter.
Net income for the third quarter dropped 84 percent to $26.5 million, which is down from $166.5 million in the third quarter of 2008. Revenue was $1.12 billion compared to $1.42 billion in the year-ago period. Through nine months, Harley-Davidson reported net income of $163.6 million, which was down 71.6 percent from the year-ago period. Revenue through nine months was $3.57 billion, which was down 17.1 percent from the same period last year.
Worldwide retail sales of new Harley-Davidson motorcycles declined 21.3 percent in the third quarter compared to last year’s third quarter, an improvement from the 30.1 percent decline in this year’s second quarter.
Harley-Davidson Financial Services (HDFS) recorded an operating loss of $31.5 million for the third quarter of 2009 compared to an operating profit of $35.6 million in the third quarter of 2008. This decrease of $67.2 million was due to a higher provision for credit losses in both its retail and wholesale portfolios as well as increased interest expense.
Year to date through the third quarter, HDFS reported an operating loss of $110.8 million, compared to operating income of $107.7 million for the prior year period.