International Harley Sales
Looking to grow international sales, Harley-Davidson says it will expand its dealerships in Brazil, the Motor Company recently announced.
An agreement was reached with HDSP/Grupo Izzo, the exclusive Harley-Davidson dealer in Brazil, which will allow Harley to appoint new dealers in the future. Harley has a factory in Manaus, Brazil, where the motorcycles have been assembled for Brazilian customers since 1999.
In its 2010 third-quarter report released in October, sales of Harley motorcycles were down 7.7 percent worldwide compared to the same quarter last year. The report does not feature a breakdown of revenue from Brazil.
Although motorcycle retail sales were down, Harley-Davidson also reported 2010 income from continuing operations of $93.7 million, or $0.40 per share, compared to income of $56.4 million and earnings per share of $0.24 from continuing operations in the year-ago quarter.
These continuing operation numbers were a result of continued improvement at Harley’s financial services unit, Harley-Davidson Financial Services (HDFS), where the company reported operating income from financial services was $50.9 million, compared an operating loss of $31.5 million a year ago; this is mostly due to improvement in credit losses and lower costs due to restructuring.
Expanding overseas is also part of Harley’s restructuring plan. Additional details about the Brazil deal are expected to be released soon.