Harley Cuts Workforce by 500 - Concentrates on Big, Expensive Models

pglaves · Oct 27, 2020

This in the news today:
"Harley-Davidson — The motorcycle maker rallied more than 25% on the back of much better-than-expected results for the previous quarter. The company reported earnings per share of 78 cents on revenue of $964 million. Analysts had forecast a profit of 21 cents per share on revenue of $844 million, according to Refinitiv. Revenue from Harley-Davidson's motorcycles was higher than expected along with sales from parts and accessories."

jgoertz · Oct 27, 2020

PGlaves said:
This in the news today:
"Harley-Davidson — The motorcycle maker rallied more than 25% on the back of much better-than-expected results for the previous quarter. The company reported earnings per share of 78 cents on revenue of $964 million. Analysts had forecast a profit of 21 cents per share on revenue of $844 million, according to Refinitiv. Revenue from Harley-Davidson's motorcycles was higher than expected along with sales from parts and accessories."

And the stock market responded -- HOG closed up 22% today!

PoorUB · Oct 28, 2020

I am waiting for HD to do what General Motors did years ago, sell off the profitable financial division.

oldcamper · Oct 28, 2020

I heard Mischler’s in Beaver Dam WI will be closing.
They are both a Harley and BMW dealer.

pglaves · Oct 28, 2020

OldCamper said:
I heard Mischler’s in Beaver Dam WI will be closing.
They are both a Harley and BMW dealer.

If true that will be a loss. They were one of the good ones.

weschmann · Oct 29, 2020

azgman said:
Well, the guys at the top have information we don't have to make this decision, but on the surface, it would appear they are dooming themselves.

I DON'T believe the guys at the top have more insight that the average informed observer. Remember Sears and KMart? How about the bankruptcy and current reorganization of JCenneys. Usually when it gets to this point, the legal wrangling of going through reorganization is just a hail mary pass, looking to salvage enough money for the biggest investors at the expense of small investors. It will be very surprising to me if they can right the ship, but wish them all the luck in their efforts to do so. They have provided a product over the years that has brought millions of smiles to many riders so good luck.

azgman · Oct 29, 2020

weschmann said:
I DON'T believe the guys at the top have more insight that the average informed observer. Remember Sears and KMart? How about the bankruptcy and current reorganization of JCenneys. Usually when it gets to this point, the legal wrangling of going through reorganization is just a hail mary pass, looking to salvage enough money for the biggest investors at the expense of small investors. It will be very surprising to me if they can right the ship, but wish them all the luck in their efforts to do so. They have provided a product over the years that has brought millions of smiles to many riders so good luck.

I didn't say they had more insight, I said they had more information! :dunno

vtbob · Oct 29, 2020

PGlaves said:
This in the news today:
"Harley-Davidson — The motorcycle maker rallied more than 25% on the back of much better-than-expected results for the previous quarter. The company reported earnings per share of 78 cents on revenue of $964 million. Analysts had forecast a profit of 21 cents per share on revenue of $844 million, according to Refinitiv. Revenue from Harley-Davidson's motorcycles was higher than expected along with sales from parts and accessories."

Yep this says it all. The market value is what the company delivers to market investors right now. It is not the long view of the company. The new CEO understands this....he will make money for a few years...get big bonuses....make money for stock holders short term. Will he ever invest in the future....(is the live wire dead....or a cheaper version in the queue?) Ps I'm enjoying the "Long way Up"

The way I see Harley going is just like Sears...managers big investers cashing our short term, selling off assets.....soon some Chinese company will buy the Brand...if we are lucky like they did with Volvo.

vark · Oct 29, 2020

vtbob said:
....soon some Chinese company will buy the Brand...if we are lucky like they did with Volvo.

Or maybe a Japanese brand.

Honda-Davidson?

36654 · Oct 29, 2020

vtbob said:
The way I see Harley going is just like Sears...managers big investers cashing our short term, selling off assets.....soon some Chinese company will buy the Brand...if we are lucky like they did with Volvo.

With a headquarters and three fabrication/assembly plants, I don't see many assets. Sears, at least, had some real estate to put on the market.

wbrownell9 · Oct 30, 2020

36654 said:
With a headquarters and three fabrication/assembly plants, I don't see many assets. Sears, at least, had some real estate to put on the market.

I heard that the CEO was, um, less than helpful to Sears' prospects. Instead of treating it as one entity with various departments, he organized it so each department was a standalone profit center. Departments were siloed and were incentivized to not help one another with tie-in marketing and sales, for example. Dog eat dog, and eventually it ate itself. Also, he engineered some deal where the valuable real estate it owned was sold to a holding company then leased back to the stores. Guess who owned the holding company? The value of the real property isn't (wasn't) included in the company's assets.

pglaves · Oct 30, 2020

wbrownell9 said:
I heard that the CEO was, um, less than helpful to Sears' prospects. Instead of treating it as one entity with various departments, he organized it so each department was a standalone profit center. Departments were siloed and were incentivized to not help one another with tie-in marketing and sales, for example. Dog eat dog, and eventually it ate itself. Also, he engineered some deal where the valuable real estate it owned was sold to a holding company then leased back to the stores. Guess who owned the holding company? The value of the real property isn't (wasn't) included in the company's assets.

Normal typical vulture capitalism at work.

vtbob · Oct 31, 2020

PGlaves said:
Normal typical vulture capitalism at work.

We all love capitalism.....and all real Americans know anything else is creeping socialism which is a communist plot.

Keeping the wealth gap growing!!

PoorUB · Oct 31, 2020

vtbob said:
We all love capitalism.....and all real Americans know anything else is creeping socialism which is a communist plot.

Keeping the wealth gap growing!!

I never got employed by a guy on welfare.

IMO, a lot of the wealth gap is because so many are sitting there with their hands out, waiting for someone to "help" them instead of just getting off their butt and get to work. Don't get me wrong, many people need help, but there is just as many with their hands out that just want to bleed the system.

I have done crap work, worked 80-90 hours a week sometimes, bankrupt 20 -30 years ago, but I have a nice nest egg for retirement, house is paid for and three motorcycles in the garage. I have been working since I was too young to have a job, never collected unemployment, even though there was times I could. I just went out and found somehow to make a buck and feed myself.

vtbob · Oct 31, 2020

PoorUB said:
I never got employed by a guy on welfare.

IMO, a lot of the wealth gap is because so many are sitting there with their hands out, waiting for someone to "help" them instead of just getting off their butt and get to work. Don't get me wrong, many people need help, but there is just as many with their hands out that just want to bleed the system.

I have done crap work, worked 80-90 hours a week sometimes, bankrupt 20 -30 years ago, but I have a nice nest egg for retirement, house is paid for and three motorcycles in the garage. I have been working since I was too young to have a job, never collected unemployment, even though there was times I could. I just went out and found somehow to make a buck and feed myself.

I don't think any American got employed by a job that moved to China!

I glad that you are doing well! I would like a lot more American to have the same experience. After WW2 we had a large and growing middle class. The average CEO made 7 times the lowest wage in his factory. Business paid taxes up to around 40% depending on profits, very wealth individuals paid taxes up to about 65% depending on income. Lots of jobs with living wages or better!

The tax breaks for the wealthy and big business( to day vs 1964) are LARGER that unemployment and food benefits in $$. It is the rich that have their hand out bleeding the system. MAGA??

Now the top 1% hold over 80% of the wealth. Out President is proud he pay no taxes for many years. Calls him self smart. While about 25% of American have to work for poverty wages if they can find jobs. We continue to export jobs, yes even this last year...because that is more profitable for big business leaders and stock holders.

pglaves · Oct 31, 2020

Sooner rather than later income inequality will become the cultural and economic issue of our lifetimes. The economy requires the purchasing power of the middle class more than it needs many more millions stashed in the Maldives or the Cayman Islands. The economy needs more new cars and fewer yachts.

weschmann · Oct 31, 2020

azgman said:
I didn't say they had more insight, I said they had more information!

I most certainly apologize for misquoting you. I stand corrected. &#55357;&#56900;&#55358;&#56621;

However insight is the use of information based on knowledge gained from the collection data points, allowing for informed decisions.
A quick Google search on the meaning of both terms suggests they are interrelated in a most compelling dynamic.....

'Information is a collection of data points that we can use to understand something about the thing being measured. ... Insight is gained by analyzing data and information to understand what is going on with the particular situation or phenomena. The insight can then be used to make better business decisions'. The crux of the matter is the interpretation of the data as it relates to future decision making.

pglaves · Oct 31, 2020

weschmann said:
I most certainly apologize for misquoting you. I stand corrected. ��However insight is the use of information based on knowledge gained from the collection data points, allowing for informed decisions.
A quick Google search on the meaning of both terms suggests they are interrelated in a most compelling dynamic.....

'Information is a collection of data points that we can use to understand something about the thing being measured. ... Insight is gained by analyzing data and information to understand what is going on with the particular situation or phenomena. The insight can then be used to make better business decisions'. The crux of the matter is the interpretation of the data as it relates to future decision making.

And then they roll the dice and engage in a crapshoot.

weschmann · Nov 1, 2020

PGlaves said:
And then they roll the dice and engage in a crapshoot.

Exactly!

Omega Man · Nov 1, 2020

PGlaves said:
And then they roll the dice and engage in a crapshoot.

What happened to “performance based” compensation?

OM

Harley Cuts Workforce by 500 - Concentrates on Big, Expensive Models

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