QT Newsletter – Harley, Victory Sales and Profits Up

Harley, Victory Sales and Profits Up

After blowing past all expectations for the second quarter of fiscal 2011, Harley-Davidson saw yet another sales and earnings increase for the third quarter as well. Income rose 95.9% to $183.6 million up from just under $93.7 million a year ago- an absolutely phenomenal achievement. Sales rose 5.4% domestically and overall sales of all Harley products worldwide rose 5.1%. Harley also declared yet another dividend for its shareholders and paid that dividend on October 18th. The amount per share was .0125 cents. Very handsome indeed, and another sign that Harley’s restructuring and revitalizing of its dealer base is on track and moving forward.

Thus it was a shock when shortly after announcing this good news Harley stock dropped almost 8% If you still need another reason to hate Wall Street, and you own Harley stock, here it is: Some stock analysts felt that Harley was building and selling too many lower priced bikes, like Sportsters, and saw that Harley had modified its long term profit expectations down from 34.3% to 33.9%. It was an almost insignificant drop of less than 1/2 of 1%. None of the analysts involved bothered to look behind the numbers to see that H-D was in the process of making major modifications to its already state of the art plant in York, PA. Those changes meant that fewer touring models would be built for a short period of time. Once done, the plant will actually be able to produce more bikes using the same number of workers and do it in less time. All very positive.