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High Gas Prices Drive Harley-Davidson Sales Way Up

3K views 22 replies 17 participants last post by  OzarkHarleyGuy 
#1 ·
http://www.dailyfinance.com/2012/08/02/harley-davidson-sales-rise-high-gas-prices/

It's a good time to be a Hog: On Wednesday, Harley-Davidson (HOG) announced a stunning second-quarter jump in income, making the legendary Milwaukee-based motorcycle manufacturer a rare bright spot in a gray economy.

Between April and June 2011, Harley brought in $190.6 million in net income; a year later, its net had jumped 30%, to $247.3 million. But while the company's growing income was a boon for investors -- the year-over-year growth translated to an extra 26 cent dividend on every share -- its changing fortunes also highlight some major, and lasting, political and economic shifts that may have long-lasting effects for the motorcycle market.

Motorcycle Sales Are Revving

Harley isn't the only motorcycle company that is cruising to record profits. According to data recently released by Sageworks, a financial information company, sales at motorcycle and all-terrain vehicle dealers have surged by almost 16% over the past year, surpassing the 15.9% growth rate high they hit in 2004. During the same period, their profits have also gone up steeply -- from about 0.64% in 2009 to 2.55%, almost a four-fold increase.

remainder at link.................
 
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#2 ·
Good to see since I'm in the bike business! :D

Unfortunately my dealership has flatlined over the last month. We're not moving anything and we're one of the largest dealers in Pittsburgh.
 
#8 ·
That's actually the main reason I finally got back into riding. My other main vehicle is an F250 deisel.

My trip to north AL for work is a 4 hr ride one way. So just the leg up there cost me $90+ in my truck (more than that when deisel was around $5 a gal) and about $20 on the bike. Plus oil changes, tires, etc are one heck of a lot cheaper for the bike too.

At least that's how I explained to the wife so I wouldn't have to listen to her when I bought my RG. :D



Ricky
 
#7 · (Edited)
If my H-D burned gas like a Hummer - I would not have bought it. I do enjoy those 3000 mile tours with fuel mileage close to 50 mpg. Lower fuel economy was one reason I didn't go with the Goldwing. That said, my car is a Honda Fit that also is easy on gas. Gas will not be cheaper in the future and using a lot less doesn't hurt my budget at all.

Higher gas prices don't ever hurt motorcycle sales - it gives us one more good excuse!

This article is a bit full of crap:

Harleys, notorious for their high gas consumption, get between 44 and 59 miles per gallon on the highway. More efficient brands like Kawasaki and Yamaha often do much better, and commuters looking for cost-effective transportation may find that a new motorcycle can quickly pay off.

My RoadGlide is much better on gas than was my Kawsaki Nomad, and if you really want to suck down gas you need a sportbike.

Actually, we are all great patriots since we bought an expensive American product and we are spending less on gas from countries who want to kill us.
 
#9 ·
I'm another one that didn't even consider gas prices when I started riding, didn't really make that much of a difference 40+ years ago, lol. I guess fuel economy is a bonus though.
 
#10 ·
I knew I bought it for a reason - glad you reminded me!!!:D
 
#11 ·
IMO it's kinda like complaining about fuel mileage in a Ferrari. I didn't buy it for fuel mileage. I bought it to up the resale of my garage!! ha ha!
 
#12 ·
I have been doing 125 to 160 miles every day so that I can save a lot of money with my 50 mpg HOG.:D

I just had to go to the ATM to get more money to save even more buy planning to ride 2,000 to Sturgis and back. I will be rich by all the savings that will accumulate before I store the bikes early winter.

This is my new kind of math!!!!!!
 
#16 ·
Really? Does anyone seriously consider buying a motorcycle because of fuel efficiency? Does anyone consider making mods that only have fuel efficiency as a goal?

I say this is just more marketing hyperbole.

I ride a Harley because that's what I like. I'm on 2 wheels by choice.
 
#17 ·
As both a RGU owner and a stock investor let me say this. The HOG quarterly report was far from inspirational for stock investors. No I don't own any of the stock. Until HD can show a quarterly report as good as most other manufacturers of things, you decide which things, I will continue to invest elsewhere. As much as I like the bikes, I even own a nice 2011 shark, the MoCo does not present an investment opportunity for a stock owner, which I am at present in other companies. It is not that I shy away from owning manufacturing stocks but that HOG seldom can compete in the market. I own some T, ADM, F, CMI, INTC, EXC, GE. None of these look as bad as HOG when I look forward. Show me an investment quality stock and I buy it, over and over again. Show me HOG and I look for another investment. Yes, they had better sales than a year ago but when will they learn what it takes to impress share holders? Short term profitable changes are nice but we look for sustained performance before buying any stock. Sorry, but that is reality. Until that happens, Harley will be an also ran in most portfolios.
 
#20 ·
High gas prices help, but IMO it's definitely not the reason for the good news at Harley. Harley's marketing continues to bring more potential customers in.
 
#22 ·
Congratulations to Harley-Davidson. One of the factors driving those earnings may be the lingering high cost of gasoline. But even though its sales were also up, they fell short of expectations. A year ago, Harley reported revenue of $1.34 billion for April, May and June. A year later, it reported sales of $1.57 billion. However, analysts predicted it would earn $1.64 billion.
 
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