Tuesday, Jan. 25, 2011
Restructuring helps cut Harley-Davidson 4Q loss
The Associated Press

MILWAUKEE — Harley-Davidson Inc. cut its fourth-quarter loss, getting a ride from a restructuring and a strong performance from its financial services unit even as motorcycle sales slumped.

The Milwaukee company on Tuesday reported a net loss of $46.8 million, or 20 cents per share, a vast improvement over the $218.7 million, or 94 cents per share, that it lost in the same period a year ago.

The company would have made money for the quarter without an $85 million charge from buying back senior notes.
Earns Harley-Davidson

In this Jan. 21, 2011 photo, customers admire and look at the new Harley-Davidson motorcycles at the Hall's Harley Davidson dealership in Springfield, Ill. Retail sales of new Harley-Davidson motorcycles in the fourth quarter Tuesday, Jan. 25, were nearly level with the year-ago period, decreasing 1.0 percent worldwide and 0.2 percent in the U.S.

- Seth Perlman /AP Photo
Earns Harley-Davidson

In this Jan. 21, 2011 photo, the Harley-Davidson Logo is seen at the Hall's Harley Davidson dealership in Springfield, Ill. Retail sales of new Harley-Davidson motorcycles in the fourth quarter Tuesday, Jan. 25, were nearly level with the year-ago period, decreasing 1.0 percent worldwide and 0.2 percent in the U.S.

- Seth Perlman /AP Photo


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Harley said it lost $42.1 million, or 18 cents per share, from continuing operations.

Revenue for the quarter rose nearly 20 percent to $917 million, thanks to the financial services unit. Harley-Davidson Financial Services contributed $43.5 million in operating income.

The performance beat Wall Street estimates. Analysts polled by FactSet expected a loss of 24 cents per share on revenue of $853.8 million.

But motorcycle sales for the quarter were down 1 percent worldwide and 0.2 percent in the U.S.

Shares of Harley-Davidson were up one cent to $36.50 in pre-market trading.

For the full year, Harley reported net income of $146.5 million, to 62 cents per share, versus a loss of $55.1 million, or 24 cents per share, in 2009.

CEO Keith Wandell said in a statement that the company feels good about its full-year results.

"We have made strong progress at transforming our business to be leaner, more agile and even more effective at delivering great products and customer experiences," Wandell said.

During the quarter, the company shipped 44,481 Harley-Davidson motorcycles to dealers worldwide, up 24 percent from the year-ago quarter as Harley started to replenish dealer inventories.

For the full year, global motorcycle sales dropped 8.5 percent compared with 2009, with the company selling 222,110 Harley-Davidsons. The company shipped 210,494 cycles, 5.6 percent fewer than the previous year.

Harley said it expects to ship 221,000 to 228,000 motorcycles this year, an increase of 5 to 8 percent as it continues to refill its dealerships. Harley also expects its gross profit margin to run between 34 and 35 percent, and full-year capital expenditures of $210 million to $230 million.

The company also cut $10 million to $25 million from its estimate for restructuring that began in 2009. It now expects total one-time charges of $495 million to $510 million into 2012, including $85 million to $95 million worth of charges in 2011.

Restructuring should bring annual savings of $290 million to $310 million starting in 2013, the company said.

Last year, the company had restructuring charges of $164 million and savings of $172 million, Harley said in its statement.

Harley-Davidson also said it will begin talks this week on a new labor agreement at its Kansas City, Mo., factory operations, even though the contract doesn't expire until July of 2012. Harley said it has told unions that Kansas City has to become more competitive and flexible "if those operations are to remain viable."

Read more: http://www.thestate.com/2011/01/25/1662564/restructuring-helps-cut-harley.html#RSS=untracked#ixzz1C4CEmiLQ

by Sharon Z.

This is a story of my 1st group ride... (January '04).

Now I've been riding since August, small roads by my house mostly. I've gotten pretty comfortable, still nervous at times, but hey, it keeps me on my toes! Well anyway, my husband doesn't really ride anymore, (he did 20 yrs ago, but not since..) he doesn't have a bike, so I truly am a perfect ride-my-own model of independence... out by myself for rides, or toting a teen co-pilot for company. But I realized part of my wanting a motorcycle all my life was from seeing the groups of bikers riding together, looking like they're always out on an adventure, and enjoying the freedom and independence together. So I've been searching thru the women's sites, looking for clubs in my area, hoping to make a connection with other riders... well, last week someone replied to one of my emails and informed me of a local chapter of riders right here in my city (not all women, but a few) and so the story begins...

So I signed up to become a member on Friday, and got a group-email that evening about a ride scheduled for the next day. Not knowing anyone yet, I replied to ask about it, & the sender assured me yes, 1st-timers are welcome! So I told my family I was heading out in the a.m. to ride with a motorcycle club (no, not a gang, kids, a "club"). I even talked to myself about how id only been on the interstate twice, & that was this week (I just started to train myself on the interstate the day after Christmas) & am I sure I'm ready for this?... but then I decided it'd probably be a lot easier on the interstate in the middle of a large group than by myself anyway... so I told myself, yes I'm ready, why not?

I was soooo nervous, & also excited when I got up Saturday. I packed up & hopped on my bike and left home for my adventure, only partly familiar w/ the area I was heading to. on my way I took my 1st big steel-grid bridge (OMG I was sooo scared!) but I survived, & was feeling pretty proud of myself then, not realizing that was just one of many 1st's id encounter today... so now here I am, taking my 1st trip beyond my hometown area, to my 1st group ride ever, thinking "what am I, nuts? I must be.."

So I finally got to my destination, and I see a parking lot full of bikes, but it looks like only men...uh-oh...all the leather, the bigger bikes... this was intimidating to say the least... ah, there's the lady who emailed me... oh great, she tells me she's not actually coming...but she introduced me to some other riders, & then some more men pulled up with female passengers... and everyone seemed nice so off we went.... (I know I shouldn't have cared there were no other women riders, but as a beginner, I was already nervous, now I'm asking myself why didn't I force my husband to ride me on my 1st group ride? Talk about a moment of weakness!) Oh well, its too late now... so I'm gonna quit worrying & enjoy myself! So, we stop at the gas station up the road, & I survived my 1st mile...phew! OK, I'm gonna try harder to relax....it'll be fine...

On the road again, well, now we're on these really curvy country roads... they actually got more & more scary the longer we rode, partly because of increasing speed of the group, and partly because at every straight-away following a curve I thanked god I made it again...(I think I was starting to worry my beginners luck would run out.) so I hung back a little, but still had a small pack of riders even further back, so I felt safer...

Then we arrive at the ferry...yeah! (thank god b/c boy did my butt need a break!) this was my 1st ferry ride, and when I looked around at all of our bikes on the ferry, riders talking and chilling, meeting new people, the beautiful views, I finally relaxed and said ok, this is cool.

Then we got off the ferry and rode the most beautiful scenic road, and again I think how great this is. Then, oh no! what's that ahead?! Oh please no, not a tunnel!!! I cant go thru a tunnel!!! (I get nervous in a car in a tunnel, now on my bike? cars coming at me will blow me off the road!!!) major panic hit me but, oh well, cant stop now, so I go thru my 1st tunnel... (now I know everyone likes loud pipes, but i almost jumped off my seat when those big bikes 1st roared in the tunnel, almost even forgot about the oncoming traffic!) So I'm kinda praying and bargaining w/ God to get me thru this alive (as I did a lot that day, actually) and thankfully, I did survive. and then the group kinda separated at our next stop, half went to an "exotic-dancer" place for lunch, & the rest of us went to a nearby restaurant. This actually was good, because it was much easier to relax & enjoy myself in a smaller group, & now 50% of us were women. We all had a nice time, ate, talked, got to know each other...

But then I was getting nervous because it was getting dark, and we were still pretty far from home. The group was very nice & decided to take the interstate home, for my sake, avoiding a huge bridge that even the more experienced riders called scary.. so they reassured me, & Ii knew the interstate we were going on, so I knew worst case i could pull off & have my husband come and get me. (sorry, I was weakened at that point, it'd been almost 5 hrs since we left!) so everything's going ok, when i almost had a heart-attack... puhleeaassee, not another tunnel!! I moved to the far right (forget formation!) and began to hold my breath & pray, when...ahhh, what a relief!... I realized it was a one-way tunnel, no head-on traffic comin at me! (thanks again, God!)

Well, I survived the day, I'm really close to home now, but there are still lessons to be learned...when waving goodbye to everyone at their exits on the interstate, I learned why it is we wave low (a coupla high waves @ 60mph made me swerve like a drunk driver till I got my arm back!) I laughed out loud right there on the road at that lesson!!!

Well, everyone's gone now, and here I am... approaching the steel grid bridge that I took at the start of my day, although now its dark, cold, & windy, & there's a lot of traffic now...I look around to see if there's another way to get home, but I don't think so... so here goes.. (my last hold-my-breath event of the day, I told myself).. and it was...

The rest of the trip home was cake (except i needed to go to the bathroom soooo bad I could die!) But no stopping now, I'm almost home! I got home, my 1st thought was to kiss the ground... but instead I ran inside the house straight to the bathroom... everyone asking at the door "so, how was it?!"

When I came out I said, "it was great, I really had a blast". I seemed to have forgotten all the fear, the stress, the nerves & panic... I was so pumped as I described the highlights of the day .... "it was everything I hoped and more!! I cant wait to do it again!!"

Court rules Myrtle Beach helmet law invalid
Posted: Jun 08, 2010 10:01 AM Updated: Jun 08, 2010 4:44 PM
Click image to enlarge

COLUMBIA, SC (WMBF) - The South Carolina Supreme Court has ruled that Myrtle Beach's law requiring motorcyclists to wear a helmet is invalid.

The lawsuit was filed in April 2009 by 49 people after the city enacted the helmet law in 2008, requiring DOT-approved helmets for all riders in city limits. Under South Carolina law, anyone over the age of 21 is not required to wear a helmet.

The lawsuit argued the law, which required motorcycle riders to wear helmets in the city limits of Myrtle Beach, was invalid because it preempted state law. The court's decision also applies to a similar lawsuit filed by Businesses Owners Organized to Support Tourism (BOOST) and Bart Viers.

Click here to read the entire decision.

"Were local authorities allowed to enforce individual helmet ordinances, riders would need to familiarize themselves with the various ordinances in advance of a trip, so as to ensure compliance," the decision stated. "Riders opting not to wear helmets or eyewear in other areas of the state would be obliged to carry the equipment with them if they intended to pass through a city with a helmet ordinance."

The court added that local authorities might enact ordinances imposing additional and even conflicting equipment requirements, and such laws would unduly limit a citizen's freedom of movement throughout the state.

"We find that the City Helmet Ordinance fails under implied field preemption due to the need for statewide uniformity and therefore issue a declaratory judgment invalidating the ordinance," the judgement concluded.

The city initially sought to enforce its motorcycle ordinances by administrative hearing, but later repealed the ordinance that established the system. The petitioners contended the city's repeal caused the entire motorcycle ordinance scheme to fail.

The SC Supreme Court agreed, noting the city enacted a number of ordinances and amendments in response to the motorcycle rallies. The court says the ordinances were enacted to be enforce with the administrative hearing, but they cannot be reconciled with an ordinance that abolishes that system.

"In general, repeal by implication is disfavored, and is found only when two statutes are incapable of any reasonable reconcilement," the decision states, noting that the city's designating infractions accommodations restrictions and parking trailers on public streets or unlicensed private lots remains in effect as a misdemeanor.

Residents worried about a proposed motorcycle rally in North Myrtle Beach extending the spring rally season to three weeks won't have to worry if the plan moves forward with newly proposed changes.

The five-day convention, which had previously been billed as a free-standing event, would coincide with the Harley-Davidson Cruisin' the Coast Spring Rally after organizers agreed to move the dates of the new event earlier in the month of May.

Organizers of the Harley-Davidson spring rally said the Main Street event would likely be the official space for Harley-Davidson corporate and the Harley Owners Group events and be part of the larger rally - which has also been trimmed down to five days.

"The majority of what they would do is having Harley-Davidson there for demo rides and maybe some additional vendors. Basically it would be another location where there was something at Barefoot, Murrells Inlet and then stuff on Main Street. ... That would be kind of like the home base of Bike week," said Mike Shank, marketing director for Myrtle Beach Harley-Davidson. "Generally when corporate brings the demo rides, the Harley Owners Group attends and does an event pin."

Mark Lazarus, who is spearheading the North Myrtle Beach event with Horry County Councilman Harold Worley, said it will bring as many as 10,000 additional bikers to North Myrtle Beach through the HOG group. The two businessmen filed a special events permit application with North Myrtle Beach to be able to house about 40 vendors from May 11 through May 15 at their shared business venture, the O.D. Pavilion Amusement Park at Ocean Boulevard and Main Street. The original application called for later dates in May.

"What we're doing is strictly vending at the Pavilion site. The HOG Group generally holds pinning events at the corporate [sponsored booths]. We're looking at potentially 10,000 HOG members coming through to stop at that pinning event and bringing their business to Main Street," he said. "Would it be out of the question that other motorcyclists will come up to the corporate vending area? No. But, we won't have anything but vending from 10 a.m. to 9 p.m. if we can get the city's approval." Read this story on TheSunNews.com

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Read more: http://www.mcclatchydc.com/2010/01/17/82492/myrtle-beach-may-expand-its-famed.html#ixzz1AlIn1fBi

Harley-Davidson rethinking Laconia presence?
Publish date: Jan 3, 2011
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Harley-Davidson may be bugging out of its presence at Laconia Bike Week.

City Manager Eileen Cabanel recently told the City Council that a Harley-Davidson representative had called about the event the company has held annually for the past few years during Motorcycle Week at the City Hall parking lot.

"They let us know they might not be back," Cabanel told the council, adding that they indicated they were looking at other venues in the city and in surrounding communities, according to the Laconia Citizen.

Cabanel told the council Harley-Davidson didn't give a reason, but in the past, company representatives have expressed a desire for more participation from downtown businesses.

"[They] have always wanted the whole downtown integrated into the festival atmosphere," Cabanel said.

She proposed two possibilities to keep H-D in town: a survey soliciting downtown business support, and the link of a local train — which typically shuttles people from Lakeport to the Weirs Beach epicenter of Motorcycle Week — to the downtown area.

"If we want to keep them [Harley-Davidson], we have to work on it, and we have to want it," she said.

Last year Harley-Davidson moved its Sturgis presence from the Rapid City civic center area to the heart of downtown Sturgis, reportedly to get closer to the company’s customers.

Posted by Holly Wagner