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Harley-Davidson cuts dividend, halts buybacks to preserve cash

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by Ankit Ajmera from https://www.reuters.com (Reuters) – Harley-Davidson Inc (HOG.N) slashed its dividend and halted share buybacks on Tuesday to boost its cash reserves as global lockdowns due to the coronavirus pandemic hit motorcycle demand in the first quarter. The company has $1.47 billion in cash and is in talks with big U.S. banks to get $1.30 billion in loan to ride out the crisis, it said, adding it would focus on its core U.S. market to prop up sales. Harley shares, which have lost nearly half of its value so far this year, jumped as much as 17% in morning trading after the company rolled out its cash preservation plan. “Harley continues to struggle with declining sales, but it continues to generate respectable free cash flow and we consider shares fairly valued at current levels,” said CFRA Research analyst Garrett Nelson. To boost sales, the company also said it will “de-emphasize” on some unprofitable international regions. The shift in strategy for the company that symbolized the counterculture movement of the 1960s comes as it struggles to woo the next generation of younger riders with its electric and more nimbler bikes in the United States. Sales have been declining for the past five years in its largest market as its baby-boomer fan base ages. To make matters worse, the pandemic has further dented demand as Americans stay at home to curb the spread of COVID-19. “We are at critical time in our history that requires significant changes to the company,” said acting Chief Executive Officer Jochen Zeitz, who took helm in February and is best known for turning around the Puma brand. Zeitz’s plan to move the launch of new models to early part of the first quarter from August to better align with the start of the riding season […]

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Wary of public transport, coronavirus-hit Americans turn to bikes

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from https://auto.economictimes.indiatimes.com The coronavirus pandemic has sparked a surge in bike sales across the United States, according to a major manufacturer and a half dozen retailers interviewed by Reuters. “I’m 51 and healthy, but I don’t want to get on the subway,” said John Donohue, a Brooklyn-based artist who bought a bike two weeks ago. Donohue, who doesn’t own a car, says he’s not sure when he’ll be comfortable on mass transit again. The coronavirus pandemic has sparked a surge in bike sales across the United States, according to a major manufacturer and a half dozen retailers interviewed by Reuters. Many of the purchases are by people looking for a way to get outside at a time of sweeping shutdowns and stay-at-home orders aimed at containing the virus: Even the worst affected states are allowing people out to exercise. Still, a portion of the sales, especially in urban areas, are to people like Donohue who also want to avoid the risk of contagion on buses or subways. He plans to use his new 24-gear hybrid for journeys such as regular visits to a printing shop across town that he normally travels to by subway. A key feature, he said, was the bright red panniers he added to carry his artwork. To be sure, bikes remain well down the list of U.S. commuting preferences. About 870,000 Americans, on average, commuted to work by bicycle in the five years through 2017, or about 0.6% of all workers, according to the U.S. Census Bureau. The rate was higher in urban areas, at about 1.1%, and about 20 cities with at least 60,000 residents had rates of about 5% or more. A more recent survey, though, showed a higher percentage of U.S. workers using a bike to get to work. Private research firm Statista

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Global Motorcycle Sales In Free Fall Due To COVID-19

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by Dustin Wheelen from https://www.rideapart.com Even before the World Health Organization declared COVID-19 a pandemic on March 11, 2020, many financial experts were speculating on the impact of the global crisis. Once motorcycle manufacturers and dealerships closed their doors to observe social distancing orders and promote public safety, we knew that the market could undergo a massive reduction in productivity and sales. Now that economic reports for the month of March are available, we’re able to assess the impact on the industry—and it isn’t good. We all knew that global motorcycle sales stumbled in 2019, but with the advent of the novel coronavirus, we could see a further decline for markets like India and a contraction of previously growing sectors in Europe. In India, the world’s largest motorcycle market, domestic manufacturers saw steep downturns in March. Year-over-year sales figures declined for Hero MotoCorp (-43 percent), Royal Enfield (-44 percent), Bajaj (-55 percent), and TVS Motor Company (-62 percent) during the third month of 2020. Foreign makes weren’t immune to the economic slowdown with Suzuki India selling 42% less units during the period as well. Not all the news was bad though, as Honda Motorcycle & Scooter India managed to increase sales by 10 percent. Despite the bleak numbers, Suzuki India Managing Director Koichiro Hirao emphasized the company’s responsibilities during the global pandemic. “At present, our first and foremost priority is to ensure the health and safety of the employees and all stakeholders,” said Hirao. “As the industry fights the COVID-19 pandemic by implementing shutdowns and taking precautionary measures, we believe that industry will overcome this difficult time and bounce back with positive growth in the coming months.” Though Suzuki India is enduring its own woes during this time, the company still reported a 5.7-percent increase in sales during the 2019-2020

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Harley-Davidson to hold virtual annual meeting, acting CEO says More Roads plan is working

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by Margaret Naczek from https://www.bizjournals.com Amid the instability of the COVID-19 pandemic, Harley-Davidson Inc.’s acting president and CEO Jochen Zeitz reflected back on the advancements made in the More Roads to Harley-Davidson strategy in 2019. 2020 already was a pivotal year in the company’s strategic plan to grow more riders and expand dealership reach, but the year became a lot more crucial as the Harley-Davidson (NYSE: HOG) looks to also overcome the difficulties during a pandemic. With concerns over public health and travel restrictions, Harley-Davidson organized its 2020 annual shareholders meeting to be conducted virtually via a live audio webcast on May 21, 2020. The annual meeting will elect nine directors to the board, approve the compensation of the company’s executive officers, approve amendments to the company’s restated articles of incorporation, approve the company’s 2020 incentive stock plan and ratify the selection of Ernst & Young LLP as Harley-Davidson’s independent registered public accounting firm. “As we embark on our next chapter and seek new leadership, we are steadfast in our belief that we have both much to be proud of and much to look forward to,” Zeitz said in his letter to shareholders. On Feb. 28, Harley-Davidson announced former CEO Matt Levatich had stepped down and Zeitz would assume the role of acting president and CEO. The company is currently engaged in a search for new CEO. In his letter to shareholders, Zeitz shared some of the company’s accomplishments in 2019. While U.S. motorcycle sales continue to decline over consecutive quarters, Zeitz noted that in 2019 the rate of decline significantly tempered. “After four years of accelerating declines, such improvement was supported by our More Roads actions, notably in how we’re Amplifying our Brand and delivering on our New Products catalysts for growth,” Zeitz said in the letter. Recommended Some

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With Harley-Davidson Production, Sales Frozen, Argus Downshifts On Stock

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by Priya Nigam , Benzinga Staff Writer from https://www.benzinga.com Although shares of Harley-Davidson Inc HOG 11.31% have significantly underperformed the S&P 500, the company has suspended production at most of its U.S. manufacturing facilities and shut its retail stores due to the coronavirus pandemic, according to Argus. The Harley-Davidson Analyst David Coleman downgraded Harley-Davidson from Buy to Hold. The Harley-Davidson Thesis While Harley-Davidson’s stock has lost around 59% over the past three months versus a 24% decline for the S&P 500, recent developments have been particularly disappointing, Coleman said in the Monday downgrade note. (See his track record here.) The motorcycle manufacturer has withdrawn its 2020 guidance. Argus lowered its adjusted earnings estimates for 2020 and 2021 from $3.52 per share to $3.07 per share and from $3.68 per share to $3.41 per share, respectively. Harley-Davidson had witnessed a marginal improvement in sales in the fourth quarter, raising expectations of its strategic growth plan leading to a turnaround by the end of 2020, Coleman said. The company instead stopped production and closed its retail stores. Although Harley-Davidson’s shares are trading near the bottom of their 52-week range, they are not attractively priced given the company’s substantial challenges, including the loss of production and sales due to the coronavirus, the analyst said. HOG Price Action Harley-Davidson shares were trading 5.47% higher at $15.82 at the time of publication Monday.

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Ducati sells over 53,000 bikes in 2019

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by Express Drives Desk from https://www.financialexpress.com Panigale, Multistrada biggest contributors to growth The Panigale and the Multistrada are said to have played an instrumental role in helping Ducati sell more than 53,000 motorcycles worldwide in 2019. Ducati Motor Holding has announced that in 2019, the brand sold 53,186 motorcycles. Recoding a margin growth of 0.3% when assessing against 53,004 units sold in 2018. For the fifth consecutive year, Ducati has sold more than 50,000 units within a calendar year. Globally, the 500cc above segment for motorcycles has seen a growth of 1.4%. However, while sales volume saw marginal growth, Ducati’s revenue saw further positive growth. The company’s turnover at the end of 2019 stood at €716 million (~Rs 57.7 billion) with an operating profit of € 52 million which is higher than € 49 million it secured in 2018. Ducati says that it recorded a turnover per bike figure which with about € 13,500 / motorcycle shows the highest value in the history of the company. The Italian superbike manufacturer claims that the Panigale superbike and the Multistrada adventure tourer motorcycles were instrumental in helping Ducati achieve these numbers. The Panigale has been the best selling super sports bike in the world for the second consecutive year and currently holds a massive market share of 25%. The Multistrada 950S and the 1260 Enduro being added to the range, the ADV family saw its best sales performance till date since it was first introduced back in 2003. Currently, there are 1,655 employees that work directly under Ducati Motor Holding. The Italian superbike maker has its presence in over 90 countries one of which is in India. Ducati India sells multiple variations of the Panigale, Supersports, Multistrada, Monster, Diavel, Scrambler and the Hypermotard motorcycles.

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Will 2020 mark a turnaround for motorcycle powerhouse Harley-Davidson?

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by Margaret Naczek from https://www.bizjournals.com For 117 years Harley-Davidson Inc. has led the market in motorcycles and continues to hold a dominant market share in the U.S. heavyweight motorcycle market. Despite its dominance in motorcycles, fewer people are buying bikes, and the number of U.S. riders are growing at a slow pace. For several consecutive quarters, the company faced declining sales, lower revenue and flat stock prices. With falling sales numbers, 2020 is becoming a pivotal year for the company founded in 1903. Harley has plans to grow riders to 4 million by 2027, from 3.1 million now, and invest in new markets with its More Roads to Harley-Davidson initiative, which launched in 2018. Some analysts, however, are uncertain of Harley’s ability to achieve such goals. “We are becoming a company that excels and exists to not only build great bikes, but to build riders,” Harley-Davidson CEO Matt Levatich said in the company’s fourth-quarter conference call. During the call, Levatich listed four target areas that the Harley plans to hit in 2020 to retain early riders, a category segment that the manufacturer has struggled with. The company plans using riders to recruit and coach new riders, allow early riders to experience riding opportunities on their own turn and on their own terms and solidifying rider commitment through experimental opportunities like overnight rides. New motorcycles such as Harley’s first electric motorcycle LiveWire, released in September 2019, or the new Pan America adventure touring bike and Bronx Streetfighter bike, which are expected to release late in 2020, are also part of the company’s efforts to turn U.S. motorcycle sales around and build a strong ridership base. At least one dealer is hopeful about the strategy. “It’s brave if you think about it,” said Goran Zadrima, regional manager at Milwaukee and West Bend

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Harley Davidson sells over 25,000 motorcycles in India

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Harley Davidson Street 750 was the first large-capacity motorcycle in India to become BS-VI compliant in the 750cc and above category. Premium motorcycle manufacturer Harley Davidson reported on Tuesday that it has sold more than 25,000 motorcycles since its inception in 2009. The company also informed that with this development, it completed a decade of operations in India. Commenting on this, Sajeev Rajasekharan, Managing Director, Harley-Davidson India, said, “When we first made inroads into India, our goal was to create a market for premium motorcycles, and we are proud to be the preferred choice for enthusiasts.” He also said, “Harley-Davidson has been successful in securing its market share over the last decade, despite an unpredictable market. With 33 dealers across the country, we have the largest dealer network amongst premium motorcycle brands in India and will continue to go onward and upward.” Rajasekharan further said, “We are thrilled about our journey over the last 10 years and are sure that the next decade will see more community building, innovations and launches from the H-D stable.”. Harley-Davidson Street 750 became the first large-capacity motorcycle in India to be BS-VI compliant in the 750cc and above category, claimed the company.

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Indian motorcycle sales surge 37% following rollout of Challenger

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by Carrigan Miller and Mark Reilly from https://www.bizjournals.com Polaris Inc. stock is up sharply Tuesday morning after the maker of ATVs, snowmobiles and motorcycles reported better-than-expected profits for the fourth quarter, driven in part by the rollout of a new Indian motorcycle. The Medina, Minnesota-based manufacturer posted income of $98.9 million for the quarter, or $1.58 per share, up from $91.4 million, or $1.47 per share the year before. Adjusted earnings were $1.83 per share, ahead of Wall Street average estimates of $1.79. Sales were $1.73 billion, up 7% from the year-ago period but at the low end of Wall Street estimates. Sales growth was led by the company’s Indian Motorcycle division, which saw revenue increase by 37% to $116 million as Indian debuted the Challenger, a heavyweight touring bike. Indian is the vintage motorcycle brand that Polaris is marketing as an alternative to those sold by Milwaukee-based Harley-Davidson Inc. The Challenger is indicative of how Polaris is positioning Indian. Upon the rollout of the Challenger in October, motorsports industry writers were comparing it to Harley-Davidson’s Road Glide, a big touring bike that represented a sizable portion of Harley’s sales mix back in 2013, when the iconic motorcycle manufacturer put Road Glide on a hiatus that lasted all of one year. Indian unveils new Challenger lineup for 2020 As for Polaris, investors liked what they saw. Shares of Polaris closed up almost 6% Tuesday. The company may look particularly good in comparison to rival Harley-Davidson, which reported its lowest quarterly sales in years and missed Wall Street estimates by 6%, Barron’s reports. Shares of Harley (NYSE: HOG) closed down about 3% at $33.79. Sales in off-road vehicles and snowmobiles, still the company’s biggest business, grew by 7% as the fortunes for ATVs and snowmobiles diverged. Sales of off-roading vehicles like

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Harley-Davidson’s stock tanks as motorcycle sales continue to slide

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by Paul R. La Monica from https://edition.cnn.com/ New York (CNN Business)Harley-Davidson has a big problem. Americans aren’t riding its trademark hogs nearly as much as they used to do. Shares of Harley-Davidson (HOG) fell 3% in early trading Tuesday after the company reported sales and earnings that missed Wall Street’s forecasts. The stock is now down more than 10% this year. Most alarming: Demand for Harley’s bikes continued to fall in the United States — even as they rebounded overseas. Harley’s retail sales in America were down 3% in the fourth quarter. That’s the 12th consecutive decline. US sales fell more than 5% for the full year. Sales were up slightly internationally, led by a more-than 6% jump in Asia. But that wasn’t enough to lift Harley’s worldwide motorcycle sales, which fell 1.4%. The weakness in Harley’s home market is particularly disappointing given that the United States and China have now reached a “phase one” trade truce. Harley has been complaining about tariffs put into place by the Trump administration for the past few years. President Donald Trump has also been critical of the fact that Harley — based in Milwaukee — had shifted some of its production outside of America to avoid tariffs in Europe that were put into place on the company in response to US tariffs on steel and aluminum. Trump even supported a boycott of Harley by US consumers in 2018. But Harley clearly has bigger problems than global trade policy. The company is trying to revitalize its sales with the launch of its LiveWire electric motorcycle. Harley CEO and president Matt Levatich struck a hopeful tone in the company’s earnings release. “We see 2020 as the pivotal year in the transformation of Harley-Davidson. This year we will broaden the reach of our brand and build

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