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.
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.
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."