Harley-Davidson reports record Third Quarter

**Bob** · 14th October 2004, 00:06

Harley-Davidson has announced record third quarter earnings of was $1.30 billion, which compares to $1.13 billion in the year-ago quarter.

The company says it is on track to achieve record year end profits.

**wari** · 14th October 2004, 00:22

GOod to see a bike manu-facturer doing well I reckon ...

**White trash** · 14th October 2004, 06:34

Ain't it strange how HD is the only manufacturer to never discount their bikes, never hold "run outs", get more expensive every year and yet their sales get stronger and stronger every single year.

In the past 21 years, they've gone from selling 7,000 bikes a year to over 290,000.

Now that, is a good turn around.

Good on 'em. Can't wait to get one myself.

**scumdog** · 14th October 2004, 07:03

Amazing how the majority of people who ride have such bad taste in bikes, you would think they would realise they were buying old style, old technology, poor handling/stopping, overpriced, excessively chromed and overweight bikes that will give them a bad attitude and image,

**White trash** · 14th October 2004, 07:19

Originally Posted by scumdog

Amazing how the majority of people who ride have such bad taste in bikes, you would think they would realise they were buying old style, old technology, poor handling/stopping, overpriced, excessively chromed and overweight bikes that will give them a bad attitude and image,

Fucks sake!

You just can't help yourself, can ya?

**riffer** · 14th October 2004, 08:20

Think about it guys.

That much revenue is hardly going to come from their motorcycles, is it?

**vifferman** · 14th October 2004, 08:40

Originally Posted by celticno6

Think about it guys.

That much revenue is hardly going to come from their motorcycles, is it?

That was my first think.
They must make a lot from merchandise, 'custom' bits 'n bobs, and selling the whole "living the exclusive Harley Davidson dream" thang. Quite a turnaround from the days when the company was more or less bankrupt, trying to sell out-dated, old-fashioned motorcycles that no-one wanted....

MARKETING at work.

**thehollowmen** · 14th October 2004, 08:44

Originally Posted by celticno6

That much revenue is hardly going to come from their motorcycles, is it?

A heap comes from their motorcycles, look at the overpricing of the new ones and the depreciation to "true" value as soon as it is driven out of the showroom. a lot more comes from brand name clothing and jewlery, and the licensing of their logo the popular aftermarket parts... after all, everybody wants a custom harley...

THey've pulled off an amazing marketing campagn very well, fully sponsoring some HOG events ...

Guy at work got on a few days back too... not my cup of tea though...

**Bob** · 14th October 2004, 09:06

H-D have an amazing marketing setup.

They have also worked hard to create the 'biker image' thing.

And the one that amazes me (and before any H-D owners/riders/fans kick off, I'm not knocking them, I think it is damn clever), is how they put out a basic bike, then promote the idea that as it is a basic bike, it really needs things adding to it... and who do people go to? Screamin' Eagle... H-Ds OWN 100% OWNED ACCESSORY COMPANY!

Add to this all the sales of Harley clothes, pens, lighters, glasses, little plastic things that nobody knows what they are for, but what the f*ck, it says Harley on the side... and that fortune just keeps on rollin' in.

Just think though - if the government at the time H-D were really on the rails hadn't been so supportive, thrown a bundle of money their way and more importantly, put up such exhorbative levys on imported bikes - then there wouldn't be an H-D about today to rake in all this money.

The US Government recognised H-D was all that was left of a once proud area and went in hard to save it. Well they're reaping the benefits now in all the taxes they're making from the company.

Damn fine long term investment if you ask me.

The trick next is going to be keeping the momentum going. The 'Baby Boomer' set are getting older, so they're having to look for other markets. there has been a big push to attract more women riders and also Buell is maintained, despite losing a couple of hundred thousand a year, to attract younger riders who want something more sporty, with the aim that as they get older, they'll switch to Harleys rather than something else.

Be interesting to see if they can keep up the momentum in the next few years.

**Pwalo** · 14th October 2004, 09:46

Originally Posted by Bob

H-D have an amazing marketing setup.

They have also worked hard to create the 'biker image' thing.

And the one that amazes me (and before any H-D owners/riders/fans kick off, I'm not knocking them, I think it is damn clever), is how they put out a basic bike, then promote the idea that as it is a basic bike, it really needs things adding to it... and who do people go to? Screamin' Eagle... H-Ds OWN 100% OWNED ACCESSORY COMPANY!

Add to this all the sales of Harley clothes, pens, lighters, glasses, little plastic things that nobody knows what they are for, but what the f*ck, it says Harley on the side... and that fortune just keeps on rollin' in.

Just think though - if the government at the time H-D were really on the rails hadn't been so supportive, thrown a bundle of money their way and more importantly, put up such exhorbative levys on imported bikes - then there wouldn't be an H-D about today to rake in all this money.

The US Government recognised H-D was all that was left of a once proud area and went in hard to save it. Well they're reaping the benefits now in all the taxes they're making from the company.

Damn fine long term investment if you ask me.

The trick next is going to be keeping the momentum going. The 'Baby Boomer' set are getting older, so they're having to look for other markets. there has been a big push to attract more women riders and also Buell is maintained, despite losing a couple of hundred thousand a year, to attract younger riders who want something more sporty, with the aim that as they get older, they'll switch to Harleys rather than something else.

Be interesting to see if they can keep up the momentum in the next few years.

Nice summary Bob. I think that you could probably say the same about Ducati who probably would have turned their toes up in the 60s if the Italian governments of the time hadn't bailed them out.

Interestingly they have a similar marketing and production philosophy - except I can understand the appeal of the Duc. (Just in case Lynda reads this).

It looks as if Triumph may be going the same route with their newer models. Daytona 650 (not eligible to compete in Supersports), moving away from direct comparison/competition with the Japanese.

But you have to hand it to Harley, they sure understand the psyche of their market, although I've never seen the appeal of dressing up like the gay biker boy from the Village People, and riding around on a mobile gynealogical chair.

**White trash** · 14th October 2004, 10:03

Originally Posted by thehollowmen

A heap comes from their motorcycles, look at the overpricing of the new ones ..

It's not "overpricing", it's called supply vs demand and it's simple 3rd form economics.

Originally Posted by thehollowmen

and the depreciation to "true" value as soon as it is driven out of the showroom. ...

What depreciation?

A one year old, big block with up to 5000km on it, sells for around $2000 less than when new.

That's at worst less than 10% depreciation, at best 5% in the first year.

What's a 1 year old, 5 click R1 worth?

**Lou Girardin** · 14th October 2004, 20:38

While I don't rate Harleys that much ( but more than before), show me another brand where many buyers will drop another $10,000 on extras before they even ride the bike. As for depreciation, take a look at used prices. Italian bike owners would weep.
Face it people, the Harley turn around is a wonder of modern marketing. Perfectly timed to meet the baby boomers in the middle of their mid-life crisis.
(Plus, Harleys have the best indicators of any bike)

**scumdog** · 14th October 2004, 22:14

Originally Posted by Pwalo

Nice summary Bob. I think that you could probably say the same about Ducati who probably would have turned their toes up in the 60s if the Italian governments of the time hadn't bailed them out.

Interestingly they have a similar marketing and production philosophy - except I can understand the appeal of the Duc. (Just in case Lynda reads this).

It looks as if Triumph may be going the same route with their newer models. Daytona 650 (not eligible to compete in Supersports), moving away from direct comparison/competition with the Japanese.

But you have to hand it to Harley, they sure understand the psyche of their market, although I've never seen the appeal of dressing up like the gay biker boy from the Village People, and riding around on a mobile gynealogical chair.

Yeah Pwalo! well some of us LIKE looking like the Village People and cruising around on 'mobile'gynealogical chairs' 'cos we KNOW we are cool, otherwise there wouldn't be so many that want a Harley and so many imitations of Harleys!!

BTW What do you call the riding style when on a sports bike if that's what you call the Harley cruising position?

**Bob** · 15th October 2004, 00:10

Despite the 20% increase in income, shares in Harley-Davidson dropped after announcing falling domestic sales.

Harley officials blamed a 9.8 percent drop in domestic motorcycle sales on difficult comparisons with a year ago, when the company's 100th anniversary celebration had boosted sales by 27 percent. Harley also blamed hurricanes in the Southeast for having a dampening effect on recent sales.

"For us to be down only 9 percent says that we have a lot of strength this year," said Jim Ziemer, company vice president and chief financial officer.

Harley has seen strong sales in Canada, France, Spain, Italy and the United Kingdom. But the gains have been offset by weakness in Germany and Japan.

"The current softness in German sales has been attributed to a weak economy," Ziemer said. "We can't control the economy, so we are tempering our enthusiasm" for European sales.

After the announcement, Harley's shares closed down $1.02, or 1.7 percent, at $58.72.

**thehollowmen** · 15th October 2004, 08:50

Originally Posted by White trash

It's not "overpricing", it's called supply vs demand and it's simple 3rd form economics.

What depreciation?

A one year old, big block with up to 5000km on it, sells for around $2000 less than when new.

That's at worst less than 10% depreciation, at best 5% in the first year.

What's a 1 year old, 5 click R1 worth?

heh... one of those posts which I really should have had a few more coffees and reviewed what I wrote...

In the harley shop down here I saw a 2 year old bike, completely serviced (so I'd also say well maintained) standing beside a new bike of the same model with eight grand knocked off its price... so I'm basing my thoughts on my observations... granted I haven't been in the market looking for too long.

Eight grand is still a lot of money IMHO to loose over 2 years.. guess I shouldn't go hunting any new jap sports tourers then ;-)

speaking of depreciation seen than ethanol powered single drag bike for sale in chch? that has to be revese depreciation, something that old selling for 39 grand...