| Author |
Message |
    
Needs_o2
| | Posted on Friday, July 16, 2010 - 10:28 pm: | 
|
Court, what ever happened with the interest payment that Harley owed Warren Buffet for the $600,000,000 loan? |
Court
| | Posted on Saturday, July 17, 2010 - 08:54 am: |
|
>>>>Court, what ever happened with the interest payment that Harley owed Warren Buffet for the $600,000,000 loan?
Good question and HD is not releasing 2Q results until 7-20-10.
Interestingly enough one of the things they mentioned in their conference call was "lower cost of funds" as HDFS returned to profitability for the first time since 4Q08.
quote:Harley’s Financial Services segment returned to profit after continuous losses since the fourth quarter of 2008. The segment earned $26.7 million during the quarter, an increase of $15.5 million from the year-ago level. The profitability was attributable to an improved credit performance in the retail motorcycle loan portfolio and to a lower cost of funds.
I'm eager to carefully review the 10-Q when it is released. I smell smoke and mirrors but am taking a wait and see attitude.
http://finance.yahoo.com/news/Earnings-Preview-zac ks-4068969626.html?x=0&.v=1 |
Crusty
| | Posted on Tuesday, July 20, 2010 - 10:58 am: |
|
What word from the financial wizards in Milwaukee? |
Court
| | Posted on Tuesday, July 20, 2010 - 11:16 am: |
|
Well they are reporting "GREAT NEWS". Call me a skeptic.
quote:NEW YORK (MarketWatch) -- Harley-Davidson Inc. shares rallied Tuesday after the company beat Wall Street's target as its financial-services unit swung to a profit, although revenue at the motorcycle maker remained flat.
Harley-Davidson's /quotes/comstock/13*!hog/quotes/nls/hog (HOG 26.62, +3.01, +12.75%) second-quarter net income rose to $71.2 million, or 30 cents a share, from $19.8 million, or 8 cents a share, in the year-ago period.
Earnings from continuing operations rose to 59 cents a share from 14 cents.
Operating income from financial services came in at nearly $61 million, compared to a loss of $90.5 million in the year-ago period
Revenue for the three months ended June 27 remained flat at $1.14 billion.
Wall Street analysts expected the motorcycle maker to earn 42 cents a share on revenue of $1.12 billion, according to a survey by FactSet Research.
Shares of the industrial firm jumped 14% to $26.93 on Tuesday.
Harley-Davidson said it still expects to ship 201,000 to 212,000 Harley-Davidson motorcycles to dealers and distributors worldwide in 2010, down 5% to 10% from 2009.
"We are pleased with the continued moderation in the rate of decline of retail new Harley-Davidson motorcycle sales again in the second quarter," said Chief Executive Keith Wandell. "At the same time, we continue to believe conditions will remain challenging this year for new motorcycle purchases and we will manage the business based on that expectation, with a continued strong focus on managing supply in line with demand."
The Milwaukee-based company also said it is beginning negotiations on new labor agreements to take effect after current contracts run out in April 2012.
|
A10tankkill
| | Posted on Tuesday, July 20, 2010 - 11:51 am: |
|
They are looking for some big give backs from labor locally in Milwaukee, and threatening, yet denying the threat to move production elsewhere if they can't find a compromise.
I've heard that the financial arm is doing what quite a few banks are back to also, and handing out loans again where they probably shouldn't. I guess lesson not learned.
I find it hard to root against the company as it would only hurt the hometown, but I wish shareholders actually had a say in turning over management and management compensation as the theory states it should. The reality is sadly quite different. Harley is a case and point. A lot of good case studies out there for the B-Schools, but I suppose they would lose their grants and donations if they pursued some of the topics. |
Reepicheep
| | Posted on Tuesday, July 20, 2010 - 12:21 pm: |
|
quote:I've heard that the financial arm is doing what quite a few banks are back to also, and handing out loans again where they probably shouldn't. I guess lesson not learned.
Oh they learned a lesson all right... the lesson is that they take the profits, while taxpayers take the risk. Apparently while either party controls government.
I hope the rest of us are learning as well... |
Doerman
| | Posted on Thursday, July 22, 2010 - 11:47 am: |
|
I think the financial division "success" lies buried in Long-Short term debts:
From most recent 8k:
| June27-2010 | Dec31-2009 | June29-2009 | | | Accounts payable & accrued liabilities | 833.904 | 676.599 | 796.222 | | | Liabilities of discontinued operations | 61.501 | 69.535 | 72.349 | | | Short-term debt | 322.941 | 189.999 | 1.690.910 | | | Current portion of long-term debt | 41.452 | 1.332.091 | | | | Current portion of long-term debt held by variable interest entities (1) | 817.602 | | | | | Total current liabilities | 2.377.400 | 2.268.224 | 2.559.481 | | | Long-term debt | 2.825.334 | 4.114.039 | 3.038.387 | | | Long-term debt held by variable interest entities (1) | 2.227.025 | | | |
This could indicate that they shifted about half of the long term debt from fixed interest to variable interest entities. Since details are not clear on the shift of long term debt and what was actually consolidated, it is pure speculation on my part that they have paid off the 15% fixed loan to Buffett and gone to the standard credit market to do so.
That's a good thing, by the way. |
|