Harley-Davidson returns to profitability; Oshkosh Corp. profits dip during production transition; Briggs & Stratton sales up, but posts second quarter loss; Rockwell Automation nearly doubles first quarter profit
Harley-Davidson returns to profitability
After losing $55.1 million, or 24 cents per share, in fiscal 2009, Harley-Davidson Inc. returned to profitability in 2010, posting net income of $146.5 million, or 62 cents per share.
In its full year financial disclosure, the company said it lost $46.8 million in the fourth quarter, an improvement over the same period a year earlier, in which the firm lost $218.7 million, or 94 cents per share.
Retail sales of new Harley-Davidson motorcycles in the fourth quarter were nearly level with the year-ago period, decreasing 1.0 percent worldwide and 0.2 percent in the United States.
The company’s financial services unit, Harley-Davidson Financial Services, was a key contributor to 2010 earnings, with operating income from financial services of $181.9 million for the full year, including $43.5 million in the fourth quarter. Operating income from motorcycles and related products was $378.8 million for the full year, including an operating loss of $6.8 million in the fourth quarter.
"We feel good about our 2010 results," said Keith Wandell, president and chief executive officer of Harley-Davidson Inc. "Through the hard work of a lot of very dedicated and talented employees and dealers, 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. While there is still hard work ahead and we remain cautious in our outlook, I am confident that we are positioning Harley-Davidson to succeed and deliver value for all our stakeholders into the future.”
For the full year, dealers sold 222,110 new Harley-Davidson motorcycles worldwide at retail, including 143,391 in the U.S. The company is lowering its cost estimates because of previously announced restructuring activities which began in 2009, and now expects the restructuring to result in total one-time charges of $495 million to $510 million into 2012, including charges of $85 million to $95 million in 2011. The company expects to realize savings of $210 million to $230 million in 2011, and $275 million to $295 million in 2012, from restructuring activities initiated since early 2009.
Harley and the unions representing its production employees in Kansas City, Mo., are scheduled to begin negotiations this week on a new labor agreement to replace the current contract, which is set to expire in July 2012. The company has advised the unions that the Kansas City operations must become more competitive and flexible if those operations are to remain viable. The company expects to make a decision on the future of the Kansas City operations in early March 2011.
Oshkosh Corp. profits dip during production transition
A transition period to a new vehicle for the U.S. Army resulted in a dip in profits for Oshkosh Corp.
The company reported fiscal 2011 first quarter net income of $99.6 million, or $1.09 per share, down 41.3 percent compared to net income of $169.6 million for the first quarter of fiscal 2010.
The company’s net sales for the first quarter of fiscal 2011 were $1.7 billion, down 30 percent from $2.43 billion for the first quarter of fiscal 2010.
"In the first quarter, we began our transition from high volume production of MRAP-All Terrain Vehicles (M-ATVs) to the gradual launch of production of the U.S. Army’s Family of Medium Tactical Vehicles (FMTVs)," said Charles L. Szews, Oshkosh Corp. president and chief executive officer. "This transition will challenge our quarterly earnings comparisons in fiscal 2011, but we expect to be solidly profitable in every quarter this fiscal year. Beyond fiscal 2011, we have good visibility in our defense business with several programs of record and a recovering access equipment business. Our focus in fiscal 2011 is to position Oshkosh Corporation to return to a period of growth beginning in fiscal 2012.”
Briggs & Stratton sales up, but posts second quarter loss
Wauwatosa-based Briggs & Stratton Corp. announced a net loss of $1.25 million during the second quarter of its fiscal year, compared to a $3.025 million profit for the second quarter of fiscal 2009.
The company said its net loss included a $3.5 million pre-tax charge related to organizational changes and $3.9 million of additional pre-tax costs associated with the redemption of senior notes and the write off of related deferred financing costs.
However, the company reported that its second quarter sales were up 14.6 percent to $450.3 million.
For the first six months of the fiscal year the company’s, consolidated sales were $784.4 million, an increase of $66.8 million or 9.3 percent from the same period of fiscal 2010.
"Our second quarter results yielded sales growth for both our Engine and Power Products Segments," said Todd J. Teske, chairman, president and chief executive officer. "While we continue to work towards our strategic plans, we are pleased with the progress we are seeing throughout the company despite continuingly challenging economic times."
Rockwell Automation nearly doubles first quarter profit
Milwaukee-based Rockwell Automation Inc., a manufacturer of industrial automation equipment and controls, reported that it nearly doubled its first quarter profit, compared to the previous first quarter.
Rockwell reported fiscal 2011 first quarter net income of $150.1 million, or $1.04 per share, up 96 percent compared to net income of $76.6 million, or 53 cents per share, for the first quarter of fiscal 2010.
The company’s revenue for the first quarter of fiscal 2011 was $1.37 billion, up 28 percent from $1.07 billion in the first quarter of fiscal 2010.
“Our strong revenue performance in the first quarter, along with positive macroeconomic trends and forecasts, indicates that the global industrial recovery is continuing,” said Keith D. Nosbusch, chairman and chief executive officer. “We saw strong sales growth in the quarter across all regions, led by emerging markets. Our results in the first quarter reflect solid underlying market conditions and great execution of our growth and performance strategy. I am extremely pleased with the excellent start to the fiscal year.”
Rockwell is projecting 2011 revenue of $5.5 billion to $5.7 billion, and earnings per share of $4.30 to $4.60.
“A result in this range would represent record earnings per share for the company,” Nosbusch said.
