Archive for the ‘Finance’ Category

Harley Posts Big 4Q 2009 Loss

January 22, 2010

Harley-Davidson lost $147.2 million from continuing operations in 4Q 2009 on revenue of $764.5 million. For the year, it earned $70.6 million from contining operations on revenues of $4.29 billion. Full year income from operations was down 89.4% from the $684.2 million it earned in 2008. 4Q shipments were down 53.1% from 4Q 2008. For the full year 2009, revenue from Harley-Davidson motorcycles was $3.17 billion compared to $4.24 billion in 2008 on shipments of 223,023 Harley-Davidson motorcycles, compared to 303,479 motorcycles in 2008.

Tim Conder, a senior analyst with Wells Fargo Securities, notes that Q4 is the seasonally weakest at retail and is subject to the largest year over year percentage swings. He also noted today that Harley’s planned shipments this year of 201,000 to 212,000 units, down 5%-10%, were below expectations of analysts who follow the company. Analysts thought shipments this year would be about flat.

Conder said that Harley’s U.S./global sell-through was worse than his expectations. U.S. retail sales for Harley motorcycles were 162,385 units. JD

Contact me with news stories and tips at 952/893-6876 or joe@powersportsupdate.com

SBA Launches Dealer Floor Plan Program

July 1, 2009

Government Guarantees Up To 75% of Loans
Move Is Expected To Free Up Money for Dealers

July 1, 2009— The Small Business Administration (SBA) today launched its pilot program designed to increase dealer access to floor plan financing. Details were provided this morning in a conference call with news media representatives and SBA staffers.

As many as 4,000 loans could be guaranteed under the program that runs through Sept. 30, 2010, said Eric Zarnikow in response to one of my questions. Zarnikow, the SBA’s associate administrator for capital access, said the agency is limited to backing only 10% of the total number of loans it makes under its 7(a) program, which would be about 4,000 at the current rate of processing.

The SBA will evaluate the program next year and determine whether or not it should be retained or dropped. “We’ll determine what to do at that time,” said Zarnikow.

Floor plan loans will be available for a minimum of $500,000 up to $2 million under the pilot program—dubbed by the SBA as its DFP (for Dealer Floor Plan). The loans will have a maximum repayment term of five years.

The loans will be made by local banks to dealerships, not by the federal government, but the government will guarantee a portion of (more…)