2009 Year-End Financial Results Of Harley Davidson 2009

The Harley Davidson 2009 year-end financial results indicate a net loss of about 55.1 million. The main reason for this is the restructuring costs expected in the 2009 securitization. The restructuring costs savings affect the company currently, but will yield profit by 2012, since the company will have stabilized its new mode of quality operations. Additionally, the company recorded a net loss in the sale of Buell motorcycles and MV Agusta. The two brands are losing market in the current economy. The company made a decision to halt the sale of the two products in future. This is therefore a positive long-term move since it will reduce the losses made upon disposal of all the present products. The 2009 securitization also shows an increase in the total cost of operations. However this is due to the actions the company took in preparation for future prospects. This includes retaining skilled personnel, employing training programmes and bringing in qualified employees. The 2009 securitization also shows a reduction in shipments and revenue. This is a positive long term advantage, as it will eventually reduce the finances lost indirectly on import of goods.
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The debt to equity ratio is lower in 2009 compared to 2008. This is because the company borrowed less from financial firms in 2009, compared to 2008. Although the funds acquired from debts help in operations and expansion, such as increasing the total purchases made, they increase the amount the company loses in form of interests to financial institutions. Due to the company’s decision to reduce the rate of borrowings made, the current result is that the company will experience a reduction in its total purchases and sales. However, there is an anticipated benefit in the future, since the company will lose less in form of