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Dec 14
Love0

Harley’s electric motorcycle division to go public via $1.7 billion SPAC deal

By General Posts

from https://www.cnbc.com/

Key Points :

  • Harley-Davidson’s electric-motorcycle division will go public through a merger with a blank-check firm in a deal valued at $1.77 billion, the company said on Monday.
  • The company launched LiveWire earlier this year, hoping to claw back lost market share as its core baby boomer customer base grows older and interest in motorcycling as a recreational activity fades.
  • Harley-Davidson will retain a 74% stake in the company, which is expected to list on the New York Stock Exchange under the symbol “LVW.”

Harley-Davidson’s electric-motorcycle division will go public through a merger with a blank-check firm in a deal valued at $1.77 billion, the company said on Monday, as the 118-year old brand bets on younger customers to boost volumes.

The company launched LiveWire earlier this year, hoping to claw back lost market share as its core baby boomer customer base grows older and interest in motorcycling as a recreational activity fades.

A broader awareness about climate change is also paving the way for automakers to lean towards greener vehicles. Valuations have gained as money managers are also increasingly factoring in ESG policies in their investments.

Harley is the latest to cash in on an uptick in valuations of electric-vehicle makers. Last month, Amazon-backed EV maker Rivian shot past $100 billion in valuation in its market debut, surpassing Ford and General Motors.

“If anything this underlines what we’ve been saying for a long time. Detroit, wake up! The train has left the station! EVs are inevitable,” Roth Capital analyst Craig Irwin said.

“Many traditional OEMs (Original equipment manufacturers) with emerging EV businesses can obviously do similar spinoff transactions,” Irwin added.

Harley’s shares rose 11.3% in premarket trading, while those of AEA-Bridges were up 3.4%.

Jochen Zeitz, Harley’s chief executive, will be the chairman of LiveWire for up to two years following the completion of the deal. In an investor presentation, LiveWire projected units sales volume of 100,961 electric bikes by 2026.

Harley-Davidson will retain a 74% stake in the company, which is expected to list on the New York Stock Exchange under the symbol “LVW.” ABIC’s shareholders will own about 17%.

Nov 05
Love0

Showtime Bikernet Weekly News for November 4th, 2021

By General Posts

It’s all Wild and Free

It’s another magnificent day here in Deadwood, South Dakota. The deer are cleaning the fields, the sky is amazing blue and clear and if you step into the sun, you would think it was summer again.

We started to take hikes. It’s all good.

In the meantime, Ride Fast and Free Forever.

— Bandit

CLICK HERE To Read the Weekly News only on Bikernet.com

Join the Cantina for more – Subscribe Today.

https://www.bikernet.com/pages/custom/subscription.aspx

Jul 22
Love0

Harley-Davidson Reports Global Bike Sales Up 24 Percent In 2021 Q2

By General Posts

You can read the Company Announcement at their Official Website by Clicking Here.

Second Quarter 2021 Highlights and Results, and Recent Announcements

  • Delivered Q2 GAAP diluted EPS of $1.33, up $1.93 over Q2 2020
  • Q2 H-D, Inc. total revenue up 77 percent over Q2 2020
  • North America Q2 retail sales up 43% over Q2 2020 and up 5% over Q2 2019
  • Delivered strong Motorcycles and Related Products (Motorcycles) segment gross margin and operating margin driven by the Rewire product portfolio adjustments
  • Delivered Financial Services segment Q2 2021 operating income growth of $90 million over Q2 2020 driven by a lower provision for credit losses
  • Launched LiveWire as a standalone brand and introduced LiveWire ONE™ – the electric motorcycle built for the urban experience, with the power and range to take you beyond
  • Revealed Sportster® S, the all-new Sportster motorcycle built on the Revolution Max platform
  • Launched H-D1™ Marketplace today, the ultimate online destination for pre-owned Harley-Davidson motorcycles in North America

Rolling in the right direction.
by Janaki Jitchotvisut from https://www.rideapart.com

On July 21, 2021, Harley-Davidson reported its 2021 Q2 results. The numbers are definitely moving in the right direction, especially when compared to the same time period in 2020. Worldwide Harley motorcycle sales are up 24 percent, due entirely to an impressive sales rebound in North America.

North American sales are up 43 percent year-on-year in Q2, which is the only positive number when broken down by sales region. Europe, the Middle East, and Africa (commonly referred to among some OEMs as “EMEA”) are down by 7 percent for the same time period. Asia Pacific sales are down 13 percent, and Latin America sales are down 31 percent.

Taking the entirety of the first six months of 2021 into consideration, worldwide Harley-Davidson bike sales are up 18 percent—which is still good news for the embattled OEM. North American sales are up 38 percent, EMEA sales are down 19 percent, Asia Pacific sales are down 7 percent, and Latin America sales are down 47 percent.

Harley had some explanations for some of the negative numbers, stressing that they’re all part of its overall strategy. EMEA Q2 retail sales, the Motor Company said, went down because Harley stopped sales of the Street and legacy Sportster models in the region. Meanwhile, Latin America sales were negatively impacted by a dealer reduction across the region, as well as “pricing actions across the portfolio, which were executed as part of the Rewire strategy.”

Revenues for Q2 of 2021 are up 99 percent over the same period in 2020. That likely comes as particularly good news, since that contributes to a revenue increase of 45 percent over 2020 for the first six months of the year. While most of these numbers are still below those achieved in 2019, this is clearly the strongest showing since the pandemic became a factor. North American Q2 retail sales stand out as an exception, as those are actually up 5 percent over Q2 2019.

Parts and Accessories sales are likewise up 32 percent for Q2 of 2021, and General Merchandise sales are up 47 percent. Overall, Harley says, it forecasts full-year 2021 motorcycle segment revenue growth to end up between 30 and 35 percent, year-on-year. Since that is just a forecast, we’ll have to see how that prediction pans out over the coming months.

Aug 20
Love0

Harley’s activist investor backs business reboot strategy

By General Posts

by Rajesh Kumar Singh from https://www.reuters.com

CHICAGO (Reuters) – An activist investor who shook up Harley-Davidson Inc (HOG.N) earlier this year said he is impressed with the changes initiated by new Chief Executive Jochen Zeitz to turn around the 117-year-old motorcycle company.

Impala Asset Management, the $2.4 billion hedge fund, pushed for the ouster of Zeitz’s predecessor Matt Levatich in January. Months later, it tried to install two directors on Harley’s board, asking for operational fixes to recover its market share in the United States, Europe and Japan.

“For the first time in five to six years, the company is on the right track again,” Bob Bishop, founder and chief investment officer at Impala, told Reuters.

Zeitz, who took the reins in February, is rebooting Harley’s business by shifting the focus back to big bikes, traditional markets like the United States and Europe, and older and wealthier customers.

The new strategy echoes some of the changes Impala has been pushing for. Bishop said Harley should not pursue sales growth at any cost. Instead, it needs to market itself like Ferrari and become an “aspirational” brand, he added.

Bishop does not buy the argument that Harley’s sales in the United States – its biggest market – are suffering because of an aging customer base. He dubbed that an “excuse” to cover the company’s shrinking market share, citing evidence from Europe and Japan where industry sales of motorcycles have been growing despite older demographics.

“When you build up the brand, you will sell more bikes,” Bishop said. “Get rid of this idea that the demographics is killing them.”

Impala bought 1.2 million Harley shares in the quarter through June, increasing its stake to 2.52% from 1.73% in the first quarter of the year.

It also expects an agreement with Harley next month on a new independent board member, Bishop said, as part of an agreement reached in March to settle a board fight.

Under Zeitz, Harley has tightened supplies and cut production, driving up prices for pre-owned bikes, which used to be a drag on new motorcycle sales. It plans to reduce product portfolio and exit lower volume markets, though the company has not specified which ones.

Bishop says models selling below 300 units a year and markets like India and Latin America that have been a “cash drain” could face the axe.

Harley declined to comment.

Robin Farley, an analyst at UBS, reckons the new strategy could shore up Harley’s earnings by saving costs, but would not fix its demand problem. Hopes of higher profit, however, have driven up the company’s shares about 50% since late April when Zeitz first shared his strategy.

Impala expects the restructuring to lift Harley’s earnings to $4 a share next year from $3.36 last year and $5 a share in 2022 even if retail sales remain at 2019 levels.

Analysts surveyed by Refinitiv, on average, expect adjusted earnings of $2.48 per share in 2021 and $2.98 in 2022.

“This is a fundamentally strong company that just lost its way,” Bishop said.

May 16
Love0

Harley-Davidson Inc (HOG) SVP & CFO John A Olin Bought $256,770 of Shares

By General Posts

from https://www.gurufocus.com

SVP & CFO of Harley-davidson Inc (30-Year Financial, Insider Trades) John A Olin (insider trades) bought 13,500 shares of HOG on 05/13/2020 at an average price of $19.02 a share. The total cost of this purchase was $256,770.

Harley-Davidson Inc produces and sells heavyweight motorcycles, as well as offers motorcycle parts, accessories, and related services. It operates in two segments, Motorcycles and Related Products, and Financial Services. Harley-Davidson Inc has a market cap of $3.01 billion; its shares were traded at around $19.66 with a P/E ratio of 8.48 and P/S ratio of 0.58. The dividend yield of Harley-Davidson Inc stocks is 7.66%. Harley-Davidson Inc had annual average EBITDA growth of 8.70% over the past ten years. GuruFocus has detected 2 severe warning signs with Harley-Davidson Inc.

Directors and Officers Recent Trades:

  • Chairman and Acting President Jochen Zeitz bought 51,020 shares of HOG stock on 05/13/2020 at the average price of $19.52. The price of the stock has increased by 0.72% since.
  • Chairman and Acting President Jochen Zeitz bought 97,850 shares of HOG stock on 05/08/2020 at the average price of $21.26. The price of the stock has decreased by 7.53% since.
Apr 29
Love0

Harley-Davidson shifts strategy, to focus on core markets

By General Posts

from https://www.livemint.com

  • The company’s shares climbed after the motorcycle maker’s new acting chief executive officer laid out plans to cut costs
  • The stock had plunged 49% this year through Monday’s close

Harley-Davidson Inc. shares climbed after the struggling motorcycle maker’s new acting chief executive officer laid out plans to cut costs and complexity and focus on the company’s strengths.

The stock rose as much as 17% after the unveiling of a strategy dubbed “The Rewire,” which Morgan Stanley analyst Adam Jonas said could make Harley one of few manufacturers to grow profits in the coming years.

“It is clear to us that HOG will be less adventurous in terms of trying its hand at segments and markets where the brand faces extremely low chances of success with high up-front costs and high risks of brand atrophy that could threaten the company’s long-term survival,” Jonas, who rates the stock the equivalent of a buy, wrote in a report Tuesday.

Jochen Zeitz, a board member and former CEO of sporting-goods maker Puma SE, took over as acting CEO at the end of February. He’s dialing back his predecessor’s turnaround plan to focus on expanding U.S. ridership, iconic profitable bikes such as the Adventure Touring and Streetfighter models, and electric motorcycles. Those goals echo the demands of an activist investor, Impala Asset Management, that reached an agreement calling for Harley to add an independent director to its board later this year.

‘Achievable Plans’

Harley “has become accustomed to over-committing and under-delivering; we need to set achievable plans and realistic goals,” Zeitz said during the earnings call. “It is clear that our strategy needs to be refocused to better align with our capacity and capabilities and also updated given our new reality.”

Harley shares were up about 12% as of 11:53 a.m. in New York; the stock had plunged 49% this year through Monday’s close.

Zeitz was mum on the subject of a permanent CEO search, batting away analyst questions by saying he’s focused on steering the iconic motorcycle maker through the crisis.

The fallout from the coronavirus was swift: U.S. sales had been up 6.6% before the pandemic took hold in mid-March, but the drop during the first three months ended up being Harley’s biggest first-quarter fall since 2010. After that 16% plunge in retail sales, Harley is in all likelihood headed for its sixth straight annual decline.

Slashing Costs

Zeitz resisted giving a new financial forecast, saying it’s too early to see the full scope of the virus’s impact. But he’s slashing costs and borrowing money to ensure Harley can weather the storm.

The manufacturer said it will save $250 million this year by freezing hiring, reducing salaries, trimming capital expenditures and retiming product launches. It’s also halting share repurchases.

Harley announced it’s in talks with major U.S. banks to secure $1.3 billion in funding and expects to tap capital markets for more in the coming weeks after sales of its motorcycles declined in every market worldwide, including a 13th consecutive quarterly drop in the U.S.

John Olin, Harley’s chief financial officer, said he’s tightening underwriting standards and increasing loan-loss provisions at the company’s lending arm. He stepped up provisions by $36 million and wrote off $8.9 million in credit losses in the quarter. Harley has been granting payment deferrals for some customers.

Apr 28
Love0

Harley-Davidson cuts dividend, halts buybacks to preserve cash

By General Posts

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 helped U.S. retail sales in the first 10 week of the quarter to rise 6.6%.

But as the quarter drew to a close, overall sales fell 15.5% in the United States, taking a hit from the lockdowns. Retail sales fell 20.7% internationally.

Zeitz said Harley will expand its lineup of profitable motorcycles, while also focusing on selling new products such as adventure touring, sport bike Streetfighter and electric motorcycles.

Harley cut its quarterly dividend to 2 cents from 38 cents. Earlier this month, it pulled its 2020 profit forecast and decided to temporarily lay off most of its global production employees to reduce costs.

Motorcycles and related products revenue fell 8% to $1.10 billion in the quarter ended March 29. On an adjusted basis, it earned 51 cents, beating expectations of 41 cents, according to Refinitiv data.

Jan 28
Love0

Indian motorcycle sales surge 37% following rollout of Challenger

By General Posts

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 the RZR and Ranger rose 13%, snowmobile sales were down 10 percent.

Boats, the company’s newest business unit that includes the recreational and sport boat brands of Marquis-Larson Boat Group of Pulaski, also saw a sales decline during the quarter, while clothing and aftermarket parts rose.

For the full year, Polaris posted earnings of $323 million, or $5.20 per diluted share, on sales of $6.8 billion.

“In 2019, we delivered strong operational performance across Polaris (NYSE: PII), especially productivity and delivery, and we expect further gains to create value for customers and shareholders in the year ahead,” Polaris CEO Scott Wine said in a statement.

Polaris said it projected growth between 2% and 4% in 2020, with earnings in the range of $6.80 to $7.05 per diluted share. “While the negative impact of tariffs remains a significant headwind on an annualized basis, the year-over-year impact is expected to be minimal,” the company said.

Jan 28
Love0

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

By General Posts

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 more committed riders as we enter new and growing segments in motorcycling and eBicycles,” Levatich said. “More and easier access to two-wheeled freedom on a Harley is well underway.”

Apr 24
Love1

Trump warms to Harley Davidson, says EU tariffs ‘unfair’

By General Posts

WASHINGTON: US President Donald Trump on Tuesday appeared to reverse course on Harley Davidson Inc, saying European tariffs facing the motorcycle manufacturer were “unfair” and vowing to reciprocate, after urging a boycott of the company last year amid a steel spat.

The Wisconsin-based company last year announced plans to move production of its motorcycles destined for the European Union to its overseas facilities from the United States to avoid EU tariffs imposed in response to Trump’s duties on steel and aluminum imports.

Trump retaliated by calling for higher taxes, threatening to lure foreign motorcycles to the United States, and backing a boycott of the iconic American motorcycle maker.

On Tuesday, Trump appeared more sympathetic, calling the EU tariffs “unfair” but giving no other details about any planned U.S. action in a tweet citing comments by a Fox Business Network host.

“So unfair to U.S. We will Reciprocate!” Trump wrote.

On Saturday, Trump is scheduled to travel to Wisconsin to hold a campaign rally as he seeks reelection in the 2020 presidential election.

Representatives for the White House did not immediately respond to a request for comment on any planned actions, as both the EU and the United States prepared to launch larger trade talks.

Representatives for Harley Davidson could not be immediately reached for comment on Trump’s tweet.

The company on Tuesday reported quarterly profit that surged past expectations and stuck to its full-year shipment forecasts amid concerns over falling U.S. sales and European import tariffs, sending its shares up 3 percent.