Harley Davidson 2009 Annual Report Download - page 11

FINANCIAL HIGHLIGHTS
In thousands, except per-share amountsIn thousands, except per-share amounts 2009 2008 2007
STATEMENT OF OPERATIONS DATA:
Motorcycles and related products revenueMotorcycles and related products revenue $ 4,287,130 $ 5,578,414 $ 5,726,848
Gross profitGross profit 1,386,196 1,931,144 2,114,100
Selling, administrative and engineering expenseSelling, administrative and engineering expense 851,165 942,267 900,708
Restructuring expense and other impairmentsRestructuring expense and other impairments 220,976 12,475 –
Operating income from motorcycles and related productsOperating income from motorcycles and related products 314,055 976,402 1,213,392
Financial services revenue Financial services revenue 494,779 376,970 416,196
Financial services expenseFinancial services expense 581,059 294,205 204,027
Restructuring expenseRestructuring expense 3,302 – –
Goodwill impairmentGoodwill impairment 28,387 – –
Operating (loss) income from fi nancial servicesOperating (loss) income from fi nancial services (117,969) 82,765 212,169
Operating income Operating income 196,086 1,059,167 1,425,561
Investment incomeInvestment income 4,254 11,296 22,258
Interest expenseInterest expense 21,680 4,542 –
Income before income taxesIncome before income taxes 178,660 1,065,921 1,447,819
Provision for income taxesProvision for income taxes 108,019 381,686 513,976
Income from continuing operationsIncome from continuing operations 70,641 684,235 933,843
Loss from discontinued operations, net of taxLoss from discontinued operations, net of tax (125,757) (29,517) –
Net (loss) income Net (loss) income $ (55,116) $ 654,718 $ 933,843
Earnings per common share from continuing operations:Earnings per common share from continuing operations:
Basic Basic $ 0.30 $ 2.92 $ 3.75
Diluted Diluted $ 0.30 $ 2.92 $ 3.74
Loss per common share from discontinued operations:Loss per common share from discontinued operations:
Basic Basic $ (0.54) $ (0.13) $ –
Diluted Diluted $ (0.54) $ (0.13) $ –
(Loss) earnings per common share:(Loss) earnings per common share:
Basic Basic $ (0.24) $ 2.80 $ 3.75
Diluted Diluted $ (0.24) $ 2.79 $ 3.74
Weighted-average common shares:Weighted-average common shares:
Basic Basic 232,577 234,225 249,205
Diluted Diluted 233,573 234,477 249,882
Cash dividends per common shareCash dividends per common share $ 0.40 $ 1.29 $ 1.06
CONSOLIDATED BALANCE SHEET DATA (AT DECEMBER 31):
Total assets Total assets $ 9,155,518 $ 7,828,625 $ 5,656,606
Total debt Total debt $ 5,636,129 $ 3,914,887 $ 2,099,955
Total equity Total equity $ 2,108,118 $ 2,115,603 $ 2,375,491
74.1 % H-D Motorcycles $3,174.8
17.9 % Parts & Accessories 767.3
6.6 % General Merchandise 282.2
1.1 % Buell Motorcycles 46.5
0.3 % Other 16.3
Total Net Revenue $4,287.1
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WORLDWIDE
2009 MOTORCYCLES AND RELATED PRODUCTS REVENUE BY PRODUCT LINE
Dollars in millions
67.9 % United States $2,910.1
16.3 % Europe 700.9
6.0 % Japan 255.9
4.1 % Canada 175.9
3.2 % Australia 137.6
2.5 % Rest of World 106.7
Total Net Revenue $4,287.1
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WORLDWIDE
2009 MOTORCYCLES AND RELATED PRODUCTS REVENUE BY REGION
Dollars in millions
1818 HARLEYHARLEY-DAVIDSON, INC.DAVIDSON, INC. 2009 ANNUAL REPORT
S&P 500 COMPARISON OF YEAR-END VALUE OF $100 INVESTED DEC. 31, 1986 (20 YEARS SHOWN). ASSUMES FOR BOTH HARLEY-DAVIDSON AND S&P THAT ALL DIVIDENDS ARE REINVESTED.H-D
25,000
20,000
15,000
10,000
5,000
0
99989796959493929190
HARLEY-DAVIDSON, INC. VS. STANDARD & POOR’S 500 COMPOSITE INDEX In dollars
0605040200 01 03 07 08
156
367
204
852
220
1,433
242
1,686
245
2,152
337
2,224
414
3,650
553
4,257
710
7,434
860
10,084
782
12,544
689
17,169
537
14,645
690
15,133
766
19,476
803
16, 70 9
930
23,191
981
15,687
618
5,956
09
782
9,061
FINANCIAL PERFORMANCE SUMMARY
In 2009, Harley-Davidson’s revenue from
motorcycles and related products on a
continuing basis decreased 23.1 percent
to $4.29 billion compared to 2008 and
income from continuing operations de-
creased 89.7 percent from the prior year
to $70.6 million. These results refl ect the
performance of the Company’s motorcycle
business, operating losses at Harley-
Davidson Financial Services and the impact
of restructuring charges.
Revenue from sales of Harley-Davidson
motorcycles decreased to $3.17 billion in
2009, a decline of 25.2 percent from 2008,
on a 26.5 percent reduction in shipments
of Harley-Davidson motorcycles. Revenue
from Genuine Parts and Accessories in
2009 totaled $767.3 million, a 10.7 per-
cent decrease from the previous year, and
General Merchandise revenue was $282.2
million, a decrease of 10.1 percent com-
pared to 2008.
During 2009, Harley-Davidson took
actions to lower its cost structure through
eliminating excess capacity, reducing
administrative costs and exiting non-core
business operations. Consequently, 2009
results were significantly affected by
non-recurring charges. Harley-Davidson
expects restructuring activities announced
in 2009 to deliver between $240 million
and $260 million in annual ongoing sav-
ings upon completion of those restruc-
turing activities.
Harley-Davidson’s share price increased
48.5 percent during 2009 and the Company
paid out dividends of $0.40 per share in
2009. Harley-Davidson has paid a dividend
every year since 1993.
HARLEY-DAVIDSON MOTORCYCLES
Worldwide retail sales of Harley-Davidson
motorcycles declined 22.7 percent in 2009
compared to 2008.
In the United States, 2009 retail sales
of 162,385 Harley-Davidson motorcycles
decreased 25.8 percent from 2008 and
overall U.S. heavyweight market regis-
trations declined 36.6 percent. For the full
year 2009, retail sales of Harley-Davidson
motorcycles in our international markets
decreased 15.4 percent compared to 2008.
For the same period, retail sales of Harley-
Davidson motorcycles decreased 11.2 per-
cent in the Europe Region, 27.2 percent
in the Latin America Region, 30.9 percent
in Canada and 9.0 percent in the Asia
Pacifi c Region.
In
2009, the Company shipped 223,023
Harley-Davidson motorcycles worldwide,
compared to 303,479 in 2008. In 2009,
35 percent of the Harley-Davidson mo-
torcycles shipped went to international
markets compared to 32 percent in 2008.
HARLEY-DAVIDSON FINANCIAL SERVICES
Financial Services incurred an operating
loss of $118.0 million in 2009 compared to
operating income of $82.8 million in 2008,
largely due to a $72.7 million credit loss
provision for a one time reclassifi cation
of Held for Sale receivables to Held for
Investment and a $28.4 million good-
will impairment charge.
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