Harley-Davidson’s sales numbers are still down, but things are looking up. â€¨â€¨
The company showed a loss from continuing operations of $42.1 million in the fourth financial quarter of 2010, which works out to $0.18 per share. However, this loss includes a one-time charge of $85.2 million for the early repurchase of senior unsecured notes during the quarter.
And while sales were down a scant one per cent worldwide and 0.2 per cent in the U.S. for the quarter, Harley-Davidson hopes for a five to eight per cent increase in shipments this year, as the recession’s effects begin to fade.
Harley delivered 210,494 motorcycles worldwide in 2010, which was right
in the middle of the 207,000 to 212,000 it had forecast. That number is
down 5.6 per cent compared to 2009, when it delivered 223,023 new units.
The Motor Company’s optimistic outlook plans to ship between 221,000 and 228,000 motorcycles worldwide in 2011.
Due to restructuring initiatives that began in 2009 (including the folding of Buell Motorcycles and the selling off of MV Agusta) the company expects to save $210-$230 million in 2011 and $275-$295 million in 2012.
Harley will begin negotiations this week with unions representing employees of the Kansas City plant to replace their current contract, which expires in July 2012. Harley advised the unions that the Kansas City plant must become more competitive and flexible if it is to remain viable. A decision on the fate of the plant is expected in early March.