Harley-Davidson cuts shipments forecast; shares skid

With the manufacturer’s suggested retail price for a Harley two-wheel motor cycle running between $14 and 24,000.00 dollars (Source) it’s easy to see why many of the oldsters have to decided to give up on their “Easy Rider,” fantasies of the past. 

 

Besides, there are only two types of motor cycle riders, those who have crashed and those who will.

I happily am of the former group and walked away unscathed to talk about it.

 

Clearly, many of us who tried to grow up in the 60’s were born to be wild, but how many of us still are wild today?

Of course, I am, wouldn’t have it any other way.

 

July 18, 2017

A Harley-Davidson bike is displayed in their office in Singapore October 13, 2016.Edgar Su/File Photo

(Reuters) – Harley-Davidson Inc’s (HOG.N) shares slipped 10 percent on Tuesday after the motorcycle maker cut its full-year shipments forecast, underscoring slowing demand as the company’s loyal baby boomer customer base ages.

The Milwaukee-based motorcycle maker, which had previously forecast flat to modestly down full-year shipments, said it expects to ship 241,000 to 246,000 motorcycles in 2017, compared with 262,221 a year earlier.

That’s a far cry from the nearly 350,000 it shipped a year about a decade ago.

Baby boomers, Harley’s main customer base, are aging and the storied motorcycle maker is also up against discounts offered by rivals Indian brand bike maker Polaris Industries Inc (PII.N) and Japan’s Honda Motor Co Ltd (7267.T).

The Indian Scout is now shipping for $11,239.00 about half the price of the Harley. (Source)

“Given U.S. industry challenges in the second quarter and the importance of the supply and demand balance for our premium brand, we are lowering our full-year shipment and margin guidance,” Chief Executive Matt Levatich said in a statement.

The company said it expected to ship 39,000 to 44,000 motorcycles in the current quarter, suggesting a decline of up to 20 percent.

Harley’s dealers in the United States had too many 2016 models at the end of the fourth quarter, which led the company to limit shipments of its 2017 models, including higher-margin touring motorcycles with the new “Milwaukee-Eight” engine.

RBC Capital Markets analyst Joseph Spak said unless retail demand improves the company may face a similar situation.

To flush out the excess inventory that was restricting sales of its latest models, Harley took the rare step of offering rebates on its 2016 motorcycles to U.S. dealers in the first quarter.

Retail motorcycle sales fell 9.3 percent in the United States, its biggest market, and 6.7 percent globally in the second quarter ended June 25.

Harley said its share in the U.S. big-bike market fell to 48.5 percent from 49.5 percent a year earlier.

Harley said it now expects 2017 operating margin to be down about 1 percentage point.

It had previously forecast operating margin to be in line with 2016.

The company said net income fell to $258.9 million, or $1.48 per share, in the quarter, from $280.4 million, or $1.55 per share, a year earlier.

Revenue per motorcycle rose about $437 to $15,530 in the quarter, but revenue from motorcycles and related products fell about 5.6 percent to $1.58 billion.

THE END

 

 

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About JCscuba

I am firmly devoted to bringing you the truth and the stories that the mainstream media ignores. Together we can restore our constitutional republic to what the founding fathers envisioned and fight back against the progressive movement, Obama and the liberal media.
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8 Responses to Harley-Davidson cuts shipments forecast; shares skid

  1. Brittius says:

    I still, ride. Rode a few months ago when some whitbread yuppy biker bought a garage ornament, and was afraid to ride it home, so I rode five counties on it. Every bone in my body ached for days. When I delivered the Softail, I was so thirsty, and went through two quarts of orange juice and then slept 13 hours. The guy wanted a biker to ride the bike but his friends found an old bastard to do the job. Riding since 1969.
    Motorcycle sales, fluctuate with the economy. What I have been looking at but doubt if I will have the scratch for, is a 2017 Indian Scout 100 hp. Forget to fools who only push one track, of HD, because two wheels, are fun. Only a few items need to be different on the Scout, because they have no fuel gauge. The dealership handling Indian, is remote from me, and then, the sales people only want to load it up with garbage. It is, a liquid cooled powerplant. It will ride different. But it remains a burst of two wheel pleasure.
    The local HD dealership, treats me like family, every time I go there, and that means alot to me. I have been doing business with them for years, and their staff is Great, with a capital ‘G’.
    Maybe if I hit the Powerball… (What, you want what I’m drinking??)

    Like

    • Brittius says:

      PS: My first bike was a 1936 Indian Scout, and my second bike was a 1938 Indian Chief. I am ambidextrous, and use both hands, shaving with straight razor, throwing a ball, catching a ball, shooting, writing, handling lefty throttle controls of old Indian motorcycles. After those machines, then I got into the Sportsters, and dolled it up as a cafe racer, as John Law #21, was my hero, when I was in high school. Later, a few HD flops in quality bikes and I put the notion aside for a couple decades unless helping someone out. Then my Road King Classic, that I pumped $32K into as a runner and show bike. It’s in my system.

      Like

    • JCscuba says:

      Fantastic once again, Thanks J.C.

      Liked by 1 person

  2. Dave the Differentiator says:

    The word has changed. The roads are so much better and smoother. The freeway system in America has taken some of the thrill out of taking a ride to the mountains these days. The twisting turning cruise excitement is not readily available as t was 20 to 40 years ago.

    Also, us older guys do not like to for a cruise, stop for lunch and a few beers and cruise home any longer. Way too risky!

    Could be that UBER is killing the ride – still enjoy the lunch and beer but do not miss the ride!

    Like

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