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

  1. #16
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    Which 10 H-D model out of 32 are to be dropped?

  2. #17
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    Quote Originally Posted by wbrownell9 View Post
    It's a finance company that sells clothing that advertises their motorcycles. Some time back I read an article that said their main source of income was the interest loans people took out to buy the bikes. Buy a $25K bike, finance it, they give you $20K when you trade it 2 years later for a $26K bike. They sell the used one for $24K, so you've paid principal and (mostly) interest on a ~$22K? loan while losing $4K, they sell 2 bikes and keep the income stream.
    Not quite true. The main source of profit perhaps, but not income.

    Right from HD's 2019 financial report.

    In the twelve months ending in December 31, 2019 Harley had income of roughly $4.5 billion dollars from motorcycle and related products sales. For the same period they had roughly $780 million dollars in financial services revenue, or about 5.7 times the income from motorcycle sales. Now for the profit part of the equation. For 2019 the company had $289 mil in profit from motorcycle sales and $265 mil in profit from financial services. The financial end can be much more profitable percentage wise.
    From the only real Fargo, ND!

  3. #18
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    Quote Originally Posted by jgoertz View Post
    Investors seem to like Jochen. H-D stock has doubled in price since April 3 (From $15/share to $30 (close last Friday)).
    For the same period, comapre HOG to Ford, GM or Fiat-Chrysler. All, about the same.

    Now, do I believe the stock market means anything about the financial health or viability of company? Not really.

  4. #19
    Knight-Errant 1957mpd's Avatar
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    Quote Originally Posted by ExGMan View Post
    And here's a statement about the closing of dealerships:

    "Mr. Zeitz aims to reduce the number of Harley dealership locations by at least 100 in the U.S., out of about 700 currently, said dealers and a Harley investor familiar with those plans. They said the company is paying dealers hundreds of thousands of dollars to close underperforming stores.

    “They are weaning out dealerships that are just getting by,” said Happy Craig, an independent sales representative for Harley dealerships."
    Part of "getting by" would seem to include having inventory to sell. HD announced a few months ago, in part due to production interruptions blamed upon the pandemic, most dealerships would not be receiving any new inventory the remainder of the calendar year. Here in Las Cruces, Barnett HD El Paso, once the largest dealer in the nation, closed its daughter store on Sept 30. After 30 years in business, Kimberly Barnett said, "The pandemic won."
    "Soló el que ensaya lo absurdo es capaz de conquistar lo imposible." Miguel de Unamuno 1905

    Mark - Las Cruces, NM

  5. #20
    Quote Originally Posted by 36654 View Post
    For the same period, comapre HOG to Ford, GM or Fiat-Chrysler. All, about the same.

    Now, do I believe the stock market means anything about the financial health or viability of company? Not really.
    Lose 75% of the stock value and get half of it back. It is a lot like our most recent surge in "job growth". Lose 22 million jobs. Then get half of the laid off workers back to work and call it job growth. Sheesh!
    Last edited by PGlaves; 10-28-2020 at 03:31 AM.
    Paul Glaves - "Big Bend", Texas U.S.A
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  6. #21
    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."
    Paul Glaves - "Big Bend", Texas U.S.A
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  7. #22
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    Quote Originally Posted by PGlaves View Post
    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!
    J Goertz
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  8. #23
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    I am waiting for HD to do what General Motors did years ago, sell off the profitable financial division.
    From the only real Fargo, ND!

  9. #24
    I heard Mischler’s in Beaver Dam WI will be closing.
    They are both a Harley and BMW dealer.
    -Live as fully as you can as long as you can-

  10. #25
    Quote Originally Posted by OldCamper View Post
    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.
    Paul Glaves - "Big Bend", Texas U.S.A
    "The greatest challenge to any thinker is stating the problem in a way that will allow a solution." - Bertrand Russell
    http://web.bigbend.net/~glaves/

  11. #26
    Kawa Afterthought weschmann's Avatar
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    Quote Originally Posted by azgman View Post
    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.

  12. #27
    Addicted to curves azgman's Avatar
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    Quote Originally Posted by weschmann View Post
    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!
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  13. #28
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    Quote Originally Posted by PGlaves View Post
    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.

  14. #29
    Quote Originally Posted by vtbob View Post
    ....soon some Chinese company will buy the Brand...if we are lucky like they did with Volvo.
    Or maybe a Japanese brand.

    Honda-Davidson?

  15. #30
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    Quote Originally Posted by vtbob View Post
    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.

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