HOG » Topics » Cost of Goods Sold

These excerpts taken from the HOG 10-K filed Feb 17, 2009.

Cost of Goods Sold

Cost of goods sold was $3.66 billion for the Motorcycles segment in 2008, an increase of $50.7 million or 1.4% versus last year. The increased cost was led by higher manufacturing and raw material costs of approximately $117 million. Manufacturing costs increased partially as the result of a higher fixed cost per unit due to allocating fixed costs to fewer units. Additionally, higher manufacturing costs were the result of increased product cost as the Company invests in new models and increased product content, such as new features and options on the Company’s motorcycles. Raw material surcharges were approximately $23 million higher when compared to the prior year. Cost of goods sold also increased by approximately $29 million resulting from changes in foreign currency exchange rates and approximately $42 million related to changes in product mix. Partially offsetting these cost increases were lower costs of approximately $137 million resulting from lower shipment volumes.

Cost of Goods Sold

Cost of goods sold was $3.61 billion for the Motorcycles segment during 2007, an increase of $44.9 million or 1.3% versus 2006. During 2007, cost of goods sold was higher due to increased manufacturing and raw material costs of approximately $154 million. The increase in manufacturing costs was driven by higher fixed costs per unit resulting from the allocation of these costs to fewer units in 2007 and other manufacturing inefficiencies experienced during 2007 including those associated with the 2008 new model year launch and the York, Pennsylvania assembly plant strike during February 2007. Raw material surcharges were approximately $31 million higher when compared to 2006. During 2007, cost of goods sold was also higher by approximately $44 million resulting from changes in foreign currency exchange rates and approximately $4 million related to changes in product mix. The decrease in cost of goods sold during 2007 resulting from lower shipments, partially offsetting the increased costs described above, was approximately $126 million.

This excerpt taken from the HOG 10-Q filed Oct 30, 2008.

Cost of Goods Sold

Cost of goods sold was $2.78 billion for the Motorcycles segment in the first nine months of 2008, an increase of $58.7 million or 2.2% versus the corresponding period last year. The increased cost was led by higher manufacturing costs of approximately $97 million. Manufacturing costs increased partially as the result of a higher fixed cost per unit due to allocating fixed costs to fewer units. Additionally, higher manufacturing costs were also the result of increased product cost as the Company invests in new models and increased product content, such as new features and options on the Company’s motorcycles. Cost of goods sold also increased by approximately $55 million resulting from changes in foreign currency exchange rates and approximately $23 million related to changes in product mix. Partially offsetting these cost increases were lower costs of approximately $123 million resulting from lower shipment volumes. Raw material surcharges were approximately $6 million higher when compared to the prior year nine months.

This excerpt taken from the HOG 10-Q filed Jul 31, 2008.

Cost of Goods Sold

Cost of goods sold was $1.84 billion for the Motorcycles segment in the first half of 2008, an increase of $69.9 million or 3.9% versus the corresponding period last year. The increased cost was led by approximately $58 million of higher manufacturing costs, which were largely the result of a higher fixed cost per unit and increased product content, such as new models and new features and options on the Company’s motorcycles. Cost of goods sold also increased by approximately $48 million resulting from changes in foreign currency exchange rates and approximately $28 million related to changes in product mix. Partially offsetting these cost increases were lower costs of approximately $64 million resulting from lower shipment volumes. Raw material surcharges were approximately $1 million higher when compared to the prior year first half.

This excerpt taken from the HOG 10-Q filed May 1, 2008.

Cost of Goods Sold

        Cost of goods sold was $830.2 million for the Motorcycles segment in the first quarter of 2008, an increase of $74.3 million or 9.8% versus the corresponding period last year. The increased cost was led by higher shipment volumes which had an impact of approximately $31 million. Cost of goods sold also increased by approximately $20 million resulting from changes in foreign currency exchange rates and approximately $10 million related to changes in product mix. Cost of goods sold was also impacted by higher manufacturing costs of approximately $13 million. Higher manufacturing costs were largely the result of increased product content, such as new features and options in the Company’s motorcycles. Raw material surcharges were flat when compared to the prior year first quarter.

These excerpts taken from the HOG 10-K filed Feb 22, 2008.

Cost of Goods Sold

 

Cost of goods sold for the Motorcycles segment increased $266.1 million over 2005, due primarily to the increase in shipment volumes for motorcycles and related products.  Higher volumes resulted in an increase in cost of goods sold of approximately $225 million.  Cost of goods sold was also higher due to changes in product mix and

 

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increases in material costs, partially offset by lower foreign currency losses.  Changes in Harley-Davidson motorcycle product mix resulted in approximately $35 million of higher costs and increases in raw material costs, primarily for metals, were approximately $15 million.  Finally, net foreign currency transaction and hedging gains resulted in approximately $35 million of lower cost during 2006.

 

Cost of Goods Sold



 



Cost
of goods sold for the Motorcycles segment increased $266.1 million over 2005,
due primarily to the increase in shipment volumes for motorcycles and related
products.  Higher volumes resulted in an
increase in cost of goods sold of approximately $225 million.  Cost of goods sold was also higher due to
changes in product mix and



 



40















 



increases in material costs, partially offset
by lower foreign currency losses. 
Changes in Harley-Davidson motorcycle product mix resulted in
approximately $35 million of higher costs and increases in raw material costs,
primarily for metals, were approximately $15 million.
  Finally, net
foreign currency transaction and hedging gains resulted in approximately $35
million of lower cost during 2006.



 



This excerpt taken from the HOG 10-Q filed Nov 2, 2007.

Cost of Goods Sold

Cost of goods sold was $2.72 billion for the Motorcycles segment in the first nine months of 2007, an increase of $84.7 million, or 3.2% versus the corresponding period last year. The increased cost is largely the result of a higher average conversion cost per unit, which offset favorability from lower Harley-Davidson motorcycle shipment volumes. These two factors combined resulted in a net increase in cost of goods sold of approximately $25 million. The higher average conversion cost per unit was driven by a higher fixed cost per unit and manufacturing inefficiencies experienced during 2007, including inefficiencies and costs associated with the 2008 new model year launch and the strike at the Company’s York, Pennsylvania assembly plant during February 2007. Finally, cost of goods sold increased by approximately $25 million related to higher raw material surcharges, approximately $19 million resulting from changes in foreign currency exchange rates and $4 million related to changes in product mix.

This excerpt taken from the HOG 10-Q filed Aug 3, 2007.

Cost of Goods Sold

Cost of goods sold was $1.77 billion for the Motorcycles segment in the first half of 2007, an increase of $118.3 million or 7.2% versus the same period last year. The increase relative to prior year is primarily attributable to higher shipment volumes and product mix impacting cost of goods sold for motorcycles and related products by approximately $77 million. Additionally, the Company experienced a higher cost per unit when compared to the first half of 2006 as a result of inefficiencies and costs associated with the strike. Finally, cost of goods sold increased by approximately $18 million related to higher raw material surcharges and approximately $12 million due to changes in foreign currency exchange rates quarter over quarter.

This excerpt taken from the HOG 10-Q filed May 3, 2007.

Cost of Goods Sold

Cost of goods sold was $755.8 million for the Motorcycles segment in the first quarter of 2007, a decrease of $36.0 million or 4.6% versus the same quarter last year. The decrease relative to prior year quarter is primarily attributable to lower shipment volumes reducing cost of goods sold for motorcycles and related products by approximately $47 million. However, the Company did experience a higher cost per unit when compared to the same quarter last year as a result of inefficiencies and costs associated with the strike. In addition, cost of goods sold increased by approximately $10 million related to higher raw material surcharges and approximately $4 million due to changes in foreign currency exchange rates quarter over quarter.

This excerpt taken from the HOG 10-K filed Feb 27, 2007.

Cost of Goods Sold

During 2005, cost of goods sold for the Motorcycles segment increased $186.1 million over 2004, due primarily to the increase in sales volumes for motorcycles and related products.  During 2005, higher sales volumes resulted in an increase in cost of goods sold of approximately $119 million.  Cost of goods sold for motorcycles and related products were also higher in 2005 due to changes in product mix, increases in material costs and foreign currency losses.  Changes in Harley-Davidson motorcycle product mix occurring in 2005 resulted in approximately $40 million of higher costs in 2005 compared to 2004 and increases in raw material costs primarily for metals were approximately $34 million in 2005 over 2004.  Finally, net foreign currency transaction and hedging losses in 2005 compared to 2004 resulted in approximately $9 million of higher cost during 2005.  These cost increases were partially offset by lower costs related to manufacturing efficiencies and lower short-term incentive compensation.

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