Harley reports increased income
Added on Wednesday, October 20th, 2010 by Carole Nash Editor | No Comments
Harley reports increased income
Harley-Davidson saw an increase in income during Q3 of 2010 despite a fall in sales according to the company’s latest financial report, as the American manufacturer looks to recover from the global economic recession.
The iconic American motorcycle company reported that net income rose to $88.8million in the third quarter of the year, compared to income of $56.4m last year, despite a 7.7% fall in sales on the same period.
Harley experienced a 9.4% drop in US sales whilst international sales held up more favourably, experiencing a 3.6% drop on the same period.
Sales of Harleys outside North American made up 27% of the total in the latest quarter, up from 24% a year earlier. Sales climbed 10% in Europe, but were down 19% in Japan. In total, the company sold 58,849 motorcycles worldwide, down from 63,729 a year ago.
Harley’s losses were less than the industry-wide average for U.S. heavyweight motorcycle (651cc-plus), which decreased 14.4 percent compared to the same period one year ago.
“The Harley-Davidson brand has remarkable strength globally,” H-D CEO Keith Wandell said. “Few products or brands rank as highly in terms of awareness and affinity on the part of customers and non-customers alike. We have continued to gain market share in the U.S. and Europe. Since 2008, we also have been the U.S. leader in new motorcycle sales to young adults for the entire on-road motorcycle category.”
The figures come after a period of cost cutting and restructuring at Harley-Davidson, which led to the closure of the Buell motorcycle brand and the sale of MV Agusta. The company also recently negotiated a number of labour contracts at plants in Wisconsin that will reduce their operating costs, with a comprehensive restructuring plan expected to generate annual savings of $275million to $295million in 2012.
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