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Buell Forum » Big, Bad & Dirty (Buell XB12X Ulysses Adventure Board) » BB&D Archives » Archive through October 23, 2005 » Harley record earnings and profits again « Previous Next »

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Electraglider_1997
Posted on Thursday, October 13, 2005 - 11:32 am:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only) Ban Poster IP (Custodian/Admin only)

I'm an HDI shareowner since 87' and have done real well over the 5 splits. Anyway, how many of you hold shares of HDI? Anyone know how many Buell longs and Uly's have been sold?
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Ftd
Posted on Friday, October 14, 2005 - 09:12 am:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only) Ban Poster IP (Custodian/Admin only)

Formatting Error

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Ftd
Posted on Friday, October 14, 2005 - 09:16 am:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only) Ban Poster IP (Custodian/Admin only)

Acck!

What I meant to say is that I once owned HDI. Sold it little by little over the last three years.
Products are great but stock has done nothing for the last five years. I hope this link works but if not plot a 5 year chart and check it out.

Frank

http://finance.yahoo.com/q/bc?s=HDI&t=5y&l=on&z=m&q=l&c=
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Buellgrrrl
Posted on Friday, October 14, 2005 - 09:18 pm:   Edit Post Delete Post View Post/Check IP Print Post    Move Post (Custodian/Admin Only) Ban Poster IP (Custodian/Admin only)

Good to see that it took a couple days for the 3rd quarter results become part of the discussion here... clearly we have more important things to do... like riding!

The only Harley product I'd buy is a Buell, but I'm tempted to buy the stock. Despite a faltering economy and lots of Japanese competition, sales continued to increase. The margins were even more impressive, with the average bike wholesaling for around $12K with $3K in profit. That means that if the Japanese manufaturers want a price war Harley could sell a big twin for under $10K and still break even. The production numbers- about 350,000/year- are impressive too. With only 2 plants Harley can run the assembly lines at auto plant rates with similar efficencies. Contrast that to the 4 Japanese brands whose cruiser production is splintered between a dozen or so models that obliterate economies of scale. Note also that Harley has about half the over 650 cc. market...

Oh, forgot about Buell sales, which are up a bit this year. More impressive was the model mix, with more expensive (and profitable) models being delivered to dealers than last year. With Buell sales likely to exceed 10,000 this year the brand may not be adding much profit, but when costs are fully allocated the Buell line is adding enough volume to the Sportster platform to at least break even.

The only weak spots I see are the lackluster parts and accessories sales- the slow growth there suggests that Harley owners may be defecting to the aftermarket. Clothing and trinket sales were so weak that one wonders why Harley bothers- the dealers may love the huge markup on this swag but the floor space that hosts a display rack with a few hundred dollars worth of t-shirts could more profitably provide parking for a Buell. The Buell would probably move faster too!

BuellGrrrl
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