HD Closes Buell sells MV Agusta

From the Wall Street Journal:

By NATHAN BECKER

Harley-Davidson Inc.'s third-quarter earnings dropped 84%, as the motorcycle maker continued to suffer from weak sales during the economic downturn.

The company also said it will discontinue its Buell product line and divest itself of its MV Agusta unit as part of its turnaround strategy.

As motorcycle demand has dropped during the recession, Harley-Davidson has been forced to cut costs and slash jobs. Sales have slowed, and the company in July cut back its forecast for shipments through the end of the year.

But Harley-Davidson said Thursday that demand may be picking up slightly as sales declined less in the third quarter than in the second.

"While the environment remains challenging for us, we are mildly encouraged by the moderation in the decline of dealer retail Harley-Davidson motorcycle sales," said Chief Executive Keith Wandell, who assumed the office in May.

The company reported a third-quarter profit of $26.5 million, or 11 cents a share, down from $166.5 million, or 71 cents a share, a year earlier. Revenue decreased 21% to $1.12 billion.

Analysts polled by Thomson Reuters had forecast earnings of 21 cents on $1.1 billion in revenue.

Worldwide motorcycle retail sales fell 21% to 63,729 units, with U.S. sales dropping 24%.

The company said Thursday it expects to ship 222,000 to 227,000 motorcycles to dealers for the year, including 35,000 to 40,000 during the fourth quarter. The 2009 view is the high end of July's sharply reduced target.

Harley-Davidson's financial services segment, which was wrecked by the credit crunch, swung into the red.

I personally think discontinuing the Buell line will be a mistake in the long run. They still sell well here in the Portland area.

Shed some weight and a few inches off the seat height would be nice.

Don't know much about the buell but know there's a lot around here & they sound better then a regular sport bike & like red said I think they could make it bit lighter