Harley profit falls by 37% in 3rd quarter
Harley-Davidson Inc. says its third-quarter profit fell 37% as consumer spending slowed to a crawl for big-ticket items like motorcycles.
The company said its profit for the quarter that ended Sept. 28 fell to $166.5 million, or 71 cents per share, from $265 million, or $1.07 per share, in the year-ago quarter.
Revenue slipped 8% to $1.42 billion from $1.54 billion.
The results missed Wall Street’s expectations. Analysts expected Harley to earn 79 cents per share on revenue of $1.42 billion.
The company said worldwide motorcycle retail sales fell 10% to 80,952 bikes in the period. Harley, whose performance is closely tied to consumer confidence, also narrowed its expectations for motorcycle shipments and earnings for the rest of the year.
“Going forward, we expect the global economy and consumer concerns to continue to create challenges for Harley-Davidson through the end of the year and in 2009,” Harley CEO Jim Ziemer said in a news release.
In the U.S., sales of new Harley-Davidson motorcycles in the quarter were in line with the company’s expectations, according to Ziemer.
European sales showed signs of weakness.
“Although Harley-Davidson retail motorcycle sales in international markets overall continued to grow double digits in the quarter, unit sales in several European countries slowed more than we anticipated during September as a result of deteriorating economic conditions. We continue to carefully monitor all markets in light of the potential impact of the current economic realities,” Ziemer noted.

Oct 22, 2008 at 12:52 p.m.
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anusman- you're real sneaky coming back after getting booted off with a new user name.
Oct 17, 2008 at 1:46 p.m.
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My point to all of this is, Harley isn't going to close down and the motorcycle industry isn't going anywhere. The automobile industry falling flat on their faces is going to help them even more. Yes the economy is bad and sure it's effecting everything, including this industry, but you're not going to take away the toys from everyone. My next investment will be another bike whether the economy is poor or not. The vehicle will be parked in the garage where it belongs.
Oct 17, 2008 at 1:39 p.m.
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Spark I read a lot, and compare articles about a topic to many others before I form a idea of what is going on. I have done that with history/politics as a hobby as well. I would like to tell you I am pretty sure about what I say when it comes to peoples employment, and investments. I am present out for debate what Harley has planned for Buell know MV was purchased. I am also open for debate if Honda will not become Harley owner/major stock holder. For a Harley stock holder that would be a dream. It would be Christmas, and party time with the wife/kid. Can you say $$$$ money$$$
Oct 17, 2008 at 1:23 p.m.
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Polert- they're not removing all their street bike production permanently. They are removing it from the U.S. As far as the popularity go's, Harley had the top two selling motorcycles this year. Polaris and Triumph still have a long ways to go. Ducati is gaining super popularity and now that Harley-Davidson bought MV Augusta, the presence in the European market will be much larger. I know a little bit about my biz my friend.
By the way, don't believe everything you read.
Oct 17, 2008 at 1:14 p.m.
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I'm thinking that the factory may have to cut production because of the sheer # of used bikes for sale. You know, with all the posers that just has to have a Harley to ride to the bar w/his friends.
Three years and 3,000 miles later he's getting rid of his "Pristine" Fancy-Glide.
I'm sure H-D will be around for a long time to come. (Do they HAFTA be SOOOOO loud?)
Oct 17, 2008 at 1:12 p.m.
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Spark not when you hit the ceiling, and everyone else is taking market share. Also there is that same reason they filed three patent two years ago on a design. On the Honda subject here is a little reading for you http://www.nctimes.com/articles/2008/02/... you must not know a lot about economics, and business practices. Honda has stated before under thing plan it would no longer be cost effective to sell street motorcycles in America under this plan. The plant is Japan that where thing are being sent for a holding pattern also produces all the off road vehicles, generators, and PHP. Honda last updated that plant in 2006, and told invest er it was a maximum capacity. You most not know a lot about you biz spark.
Oct 17, 2008 at 12:46 p.m.
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Polert-I work in the motorcycle industry with relations to every type of motorcycle manufacturer and would love to know where you get your information from. The trike is a microscopic portion of sales in the motorcycle industry as is bombardier. I guarantee you Honda will not remove their street line of motorcycles.
Oct 17, 2008 at 11:53 a.m.
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You forgot to put the link to Barack Obama's plan to raise taxes on small businesses by a minimum of $7,500 regardless of income or taxable income. Your original assertion was that Harley was no longer going to close shop because of that plan but you have yet to provide proof that the plan even exists.
Oct 17, 2008 at 11:40 a.m.
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Lets talk about Harley my friends. Honda motor company is the second largest holder of stock in Harley Davidson. Honda motor company released that in 2011 they plan to remove their street motorcycles line of products. Honda motor company stated previously they were interested in acquiring Harley Davidson.You do realize after exploding sales starting in 1993 Harley Davidson hit its growth in sales ceiling in 2003 which for a single product assembler in a volatile world is like turning off the spicket as you drain your yard sprinkler. As a long time motorcycle enthusiasts that follows the market Harley best days are NOT ahead. They are failing at developing their concept of a leaning trike (similar to Bombardier) which they wanted to release by 2011 has been set back. Harley is out sourcing engineering to Porsche for this product, as well as they outsourced for the design of the new EPA liquid cooled motor required for the 2012 model year. Harley is trimming cost so fast to show a profit that they have given up on designing their own products.I also love a so called Harley ride state Harley builds motorcycles. Harley only paints parts, machines transmissions, and machines engine castings. Anyone the believes Harley our the most trendy motorcycle to ride has not been to Sturgis, Laughlin, or Daytona in recent years. The three you see a growing amount of people on in what you would call the biker crowed are Roadstar, Polaris, and Triumph. I have a few motorcycles including a evo Harley.
Oct 17, 2008 at 9:32 a.m.
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Harley will be fine. Still a great machine that brings alot of riding pleasure. Oh and Kraut60 - I can't wrench on mine (just turned 50k miles on my fourth Harley)never have. Who cares? Doesn't make me any less of a rider. And "progressive6" - got my bike parked next to my new Cadillac CTS - hmmmm does that make among Cadillac and Harleys dying customer base?? Maybe in about 40 years...lol!
Oct 17, 2008 at 9:19 a.m.
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Motorcycles in general are just plain cool. All types, shapes and sizes. Sure beats the pathetic automobile industry.
Oct 17, 2008 at 9:09 a.m.
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polert get a life, the republicans pulled out of wisconsin maybe thats a sign you should to. your same ol same ol retoric is as washed up as your candidate is. try having a discussion about the topic at hand H.D. in case you forgot
Oct 17, 2008 at 7:46 a.m.
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So much "made in China" stuff is sold as "Harley Davidson licensed product" that they're going to change the name to ............................... Ch-arley Davidson to make it more authentic.
Oct 17, 2008 at 5:04 a.m.
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When they were "wrench and ride" they were barely staying in business, if you want to increase sales you have to increase quality, which they did.jmo
Oct 16, 2008 at 8:36 p.m.
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What will you do if DAY 1 Obama states I under estimate my tax cut to now include a increasing it to that (40%) of people will now pay higher taxes.
Remember only (40%) of working people pay income taxes.
Will you be shocked? Think about it. The sun coming up yet?
Oct 16, 2008 at 8:18 p.m.
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Hey, Polert: Here's one for you. Obama looks a whole lot better on a Harley than your McCain does. Let's ride, Barack!
Oct 16, 2008 at 8:06 p.m.
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I'm buying another Harley as soon as I pay off my car, so there. And my bike is in my living room so she keeps warm, lol. She's never going anywhere. I just couldn't give up something that is so pleasurable and doesn't rag every day. :)
With that being said, Harley is good at what they do, like spark said. And their sales aren't just from selling motorcycles. Have you seen the prices just for a stupid t-shirt over at Kutter's lately? It wouldn't surprise me in the least if a large chunk of their profits were just from clothing and accessories. I wouldn't worry too much about them.
Oct 16, 2008 at 7:35 p.m.
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Every company has lost profits in the 3rd quarter.
Oct 16, 2008 at 5:08 p.m.
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Sorry to tell you your friend may want to call his gig a small business but it is not. Refer to section 711130 of the US SBA it will clear up what the confines of what a small business is for you, and any others. Like I told you bubs the number of additional tax increase is 3%. May not sound like that much to you, until it is you under the gun.
Oct 16, 2008 at 4:23 p.m.
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I'm not sure if I like the current Federal system WELL, but I certainly don't like it BADLY. Perhaps you should have utilized the same public education I did to understand the proper use of adverbs.
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I thought we were discussing Obama's minimum $7,500 increase for small businesses. It appears to me to be a bogus claim since some small businesses, such as musicians I know, bring in less money than that. I was hoping you could show me some sort of proof of your statement.
Oct 16, 2008 at 4 p.m.
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Bubs you like the Federal government system very well?
Here is a little information for you to google since you missed it.
America was suppose to have a States Rights System when our founding fathers established our great nation. Not a Federal System as they have force on us.
No matter what side of the table you are on,and no matter what income level you are at everyone that took the time to read of how it could be would love it. A system where you, and your neighbors decide on abortion, energy, economy, gay marriage, education, transportation, and how your money is spent.The people in control of your life would be at arms reach with no where to hide.
Oct 16, 2008 at 3:40 p.m.
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Harley probably makes more off licensing stuff like t-shirts and toilet seats than they do from thier bikes. People who don't even ride, will buy anything with a H-D logo on it. Harley will be fine.
Oct 16, 2008 at 1:11 p.m.
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You said no such thing below, Polert. Your post essentially implied that Harley was a small business. Did you manage to come up with a link that shows that EVERY small business will see a tax increase of $7,500? I know several musicians who make less than $7,500 a year that would like to know that they are going to owe the government more than they currently earn.
You claim that Obama is going to take this $7,500 from small business owners and "redistribute" it to the poor people. Wouldn't some of those people be employees of said small businesses. Also, if we give them more money, perhaps they will choose to go buy Harleys, therefore increasing sales.
Oct 16, 2008 at 1:09 p.m.
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http://www.harley-davidson.com/wcm/Conte...
Oct 16, 2008 at 1:06 p.m.
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should have been making mopeds
Oct 16, 2008 at 12:57 p.m.
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progressive6, Just FYI, Us "Bommers" are still alive and kicking. WE plan to be around quite awhile. So, Don't count us out yet my friend.
Oct 16, 2008 at 12:55 p.m.
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Hey polert, Time give the anti Obama spew up. You've about wore it out. Try spewing some anti McCain Stuff out now ok? Sheesh! It's getting old.
Oct 16, 2008 at 12:53 p.m.
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Harley will be fine. They don't run their business like GM. Ouch! They are marketing geniuses.
Oct 16, 2008 at 12:38 p.m.
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Harley Davidson could appeal to many more buyers if they could create a modern high tech motorcycle. Everything they come out with that is "new" is still based off a 1950's era engine, albeit improved. Just how many incarnations can you get with paint, chrome and noisey exhaust systems and still use an air cooled pushrod V twin engine? Even the fairings on their touring bikes look ancient. Eventually the baby boomers will die along with their customer base. Look what happened to Cadillac and Buick.
Oct 16, 2008 at 12:36 p.m.
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Bub what I did write if you would read is the small business owner is the start of the food chain in the purchase of a item like a Harley. You must agree that when you take at least a additional $7,500 out of a persons pocket along with their employees Harley would have less customers to purchase their motorcycles because their customer base would shrink.
Simply economics my friend. No money, no sales.Also under the spread the wealth program would that unwilling to work hard person purchase a Harley?
Oct 16, 2008 at 11:40 a.m.
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If I understand the story correctly, Harley's revenue for the third quarter was $1.42 billion (with a "B"), had $166.5 million in profits, and is a multinational corporation.
Do you really consider that a small business or are you really only capable of two lines of thought (Joe the Plumber and $7,500 minimum federal tax)? A large corporation is not a good example to try to prove something about small companies and your presumed effect of Obama's proposed tax plan on those small companies.
Also, where do you get this $7,500 minimum federal tax that Obama is proposing? I seriously doubt that small companies bringing less than, say $50K/year, will be charged an additional $7,500 in taxes under Obama's. I would, however, be extremely interested to see any proof you have of your claim.
Oct 16, 2008 at 11:36 a.m.
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I would be shocked if Harley closes up shop. However I would not be surprised if they downsized. They are, after all, purely luxury items, and those are the first things to go when people have tighter budgets.
Oct 16, 2008 at 11:33 a.m.
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Harley isn't going anywhere pal. Don't they teach econ in schools anymore.
Oct 16, 2008 at 11:22 a.m.
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I will not be surprised if Harley closes up shop in the next 4 years. With the projected increase in federal income taxes for the small business person, and his reduction in the employee payroll to cover that minimum of a $7,500 federal tax Obama is going to implement the ability to purchase a Harley will become unlikely for the owner of the small business, and the employee alike. But at least the unwilling to work will have the wealth spread to them.
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