| Author | Message | ||
     Hughlysses |
Just out. I already posted in a couple of other threads, but I'll wanted to make sure people see it. I'll be very interested to read what Court picks out of this: http://www.gurufocus.com/news.php?id=73037 Includes a link to the full report. | ||
| Iamarchangel |
Several items stand out to me: 1. Almost 2000 employees just got their notice in this report. 2. HD says Buell can't be separated from their budget but somehow it is done on pages 39, 40, 45, and 46. While the sales number were low, Buell was not the worst performer (Custom and Sportster were). Page 46 shows Buell as the only one that made a revenue increase in 2009. (I'm not pretending I understand these tables and I could easily be reading them wrong, you tell me.) 3. Don't know where racing budget would show up, I would guess under engineering expenses. Engineering Expenses went DOWN 22% in the year they won their first championship in decades so Buell racing was not a factor. | ||
| Andymnelson |
 I don't see Buell separated on any of those statements? They are lumped together with MV Agusta still, just like in previously read reports. | ||
| Iamarchangel |
Like I said, I'm not familiar with these types of reports but they are separated on those pages. MV is distinct (page 33). (MV + Buell) - MV = Buell 3,000 employees to be let go, a lot have already gone: page 10-11 | ||
| 46champ |
When HDI has to file Chapter 11 is that not the time for EB to buy the buell rights and properties from the court. Probably late next year. | ||
| Gregtonn |
From this link: http://www.gurufocus.com/news.php?id=73037 "The Company expects to incur approximately $125 million in one-time costs related to winding down the Buell product line, of which approximately $115 million will be incurred in 2009." Hmm??? Let's think about that. 1. HD gets their $115 million tax write off for 2009 because they can't untangle Buell from the MoCo. 2. Fast forward to 2010-> The MoCo, in dire financial straits, suddenly discovers that for $10 million they can untie that knot. Just a thought. G | ||
| Iamarchangel |
I'm in unfamiliar territory here but I don't think that winding down costs are equal to tax write offs. I think one is a percentage of the other. | ||
| Hellgate |
Angel you're correct. That massive cost isn't a write off of blue money. The vast majority is green money going right out the door. $64mil is to move inventory and a huge chunk is severance packages and unemployment insurance costs. The actual write off/down will be a percentage of taxes paid. They are taking a HUGE bite of a $h*t sandwich. When a company does an action like this they'd rather take a "one time cost" and eat it all in one quarter than drag it out over multiple Qs. Their numbers are going to totally suck next quarter. I can't imagine that the bleeding will stop any time soon. (Message edited by hellgate on November 01, 2009) | ||
| Iamarchangel |
Between this and the answers they gave on seekingalpha.com, I don't think they have a clue how to stop the bleeding. They've got a tourniquet after the cut, they're making sure the cut stays open and they're exposing the body to more cuts. I read train wreck. |
