FI showroom red and grey logo
MenuMENU
SearchSEARCH

Harley-Davidson Reports 1Q Loss, Continues to Support Finance Division

Harley-Davidson Inc. reported decreased revenue and net income for the first quarter of 2009 compared to the year-ago period.

by Staff
April 16, 2009
2 min to read


MILWAUKEE — Harley-Davidson Inc. reported decreased revenue and net income for the first quarter of 2009 compared to the year-ago period.

The company posted net income of $117.3 million for the first quarter, down from $187.6 million recorded in the year-ago period. The company reported revenue of $1.29 billion, down from $1.31 billion in the first quarter 2008.

Ad Loading...

Harley-Davidson attributed the decreased income to one-time costs it incurred during the first quarter. The company recorded pre-tax restructuring costs of $34.9 million during the period. The company also incurred a one-time $22.5 million tax charge related to a change in Wisconsin tax law, which was enacted mid-quarter without public hearings and applied retroactively to Jan. 1, 2009.

Harley-Davidson Financial Services (HDFS) recorded first quarter operating income of $11.2 million, a decrease of $23.7 million or 67.9 percent from the year-ago quarter. This decrease was primarily due to a $17.1 million write-down of retained securitization interests and an $8.6 million write-down to fair market value of finance receivables held for sale due to higher projected credit losses.

Harley-Davidson took several steps to obtain funds, including raising $600 million through the issuance of senior unsecured notes, to support the lending activities of HDFS.

In addition, the company intends to access the term asset-backed securitization market in the second quarter of 2009, as it expects to be eligible for the Federal Reserve Bank's Term Asset-Backed Securities Loan Facility (TALF) program.

"We continue to make good progress on funding the needs of HDFS through the paths we have identified previously and anticipate that we will be able to obtain the needed liquidity," said Tom Bergmann, chief financial officer of Harley-Davidson Inc. and interim president of HDFS.

Ad Loading...

In the U.S., retail sales of Harley-Davidson motorcycles decreased 9.7 percent from the year-ago period. In the first quarter 2008, U.S. retail sales of Harley-Davidson motorcycles decreased 12.8 percent compared to the previous year.

"While we are mildly encouraged by the fact that the U.S. retail sales rate declined less in the first quarter than in the prior two quarters, we remain cautious and continue to expect 2009 to be an extremely challenging business environment," said Jim Ziemer, president and chief executive officer of Harley-Davidson Inc. "We continue to make good progress in executing our strategy for the economic downturn, and we will continue to manage our business with strong discipline."

More Auto Finance

Red toy car sitting on top of coins.
Auto Financeby Lauren LawrenceJune 24, 2026

Smaller Loans, Longer Terms

The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.

Read More →
Photo of man holding a car key
Auto Financeby Hannah MitchellJune 17, 2026

New Cars a Tad More Affordable

May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.

Read More →
Photo of a white toy car next to piles of coins
Auto Financeby Hannah MitchellJune 8, 2026

First-Quarter Sees Long Auto Loan Growth

Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.

Read More →
Ad Loading...
Assurant, Mastering Credit Friction, Sales Series, Expert Trainer Josh Krach
Auto FinanceMay 29, 2026

Mastering Credit Friction

In this video, Josh Krach explains how to turn credit friction into an advantage.

Read More →
Couple talking with auto salesman next to new car inside dealership
Auto Financeby Hannah MitchellMay 20, 2026

April Less Affordable

Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.

Read More →
Photo of a loan contract on a desk
Auto Financeby Hannah MitchellMay 13, 2026

Auto Lenders, Consumers on a Tightrope

April borrowing data shows that more consumers are bending over backward to buy vehicles, though subprime lending cooled off for the month.

Read More →
Ad Loading...
black background with orange text saying Alec Hagey Toyota Financial Services President and CEO effective April 6 with picture of Alec Hagey
Auto Financeby Lauren LawrenceApril 6, 2026

Toyota Financial Services President Replaced

Scott Cooke has served in various roles with Toyota Financial Services for over 20 years, including president and CEO, which he retires from on June 30.

Read More →
Photo of person grabbing stacks of cash from a surface
Auto Financeby Gil Van OverMarch 30, 2026

Permission or Approval: When to Notify Finance Sources

Credit card down payments, multiple vehicle purchases and even straw purchases can be completed without committing bank fraud, as long as you tell the bank first.

Read More →
Three people's hands on desk as one signs a document
Auto Financeby Hannah MitchellMarch 11, 2026

At-Risk Auto Borrowers Drive Looser Credit Access

Cox Automotive’s index shows the subprime segment, long loan terms, negative-equity borrowers and down payment amounts all grew in February despite ever-higher vehicle prices.

Read More →
Ad Loading...
Auto Financeby Lauren LawrenceFebruary 23, 2026

Auto Loan Forecast Bucks Market Trend

Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.

Read More →