Harley-Davidson, Inc. (HOG) Falls on Lower Shipment Forecast

Shares of Milwaukee, Wisconsin, based Harley-Davidson, Inc. (HOG) fell on Tuesday against the backdrop of a mixed day in stocks overall. The stock lost $6.05 per share, down 9.79% to close at 55.72 on volume of 15,471,892 shares. The company has forecast lower shipments for 2015 as a result of aggressive discounting from foreign competitors, largely as a result of the strength of the US dollar in overseas markets.

Founded in 1903, Harley-Davidson manufactures and sells heavyweight motorcycles as well as motorcycle parts, accessories, general merchandise and related services through its Motorcycles & Related Products segment.
The Financial Services segment consists of Harley-Davidson Financial Services, which provides wholesale and retail financing and provides insurance and insurance-related programs primarily to Harley-Davidson dealers and their retail customers. The company's stock trades on the NYSE.

Harley-Davidson reported its first quarter, 2015 results on Tuesday, noting that revenue was down in the quarter due to an unfavorable foreign currency exchange that resulted in lower motorcycle shipments. Though the company had previously projected motorcycle sales increasing 4% to 6% for 2015, they've now lowered that projection to between 2% and 4%.

Net income for the quarter was reported at $269.9 million, up slightly from the $265.9 million net income reported for the same quarter in 2014. Revenue however was down slightly from the first quarter of 2014, coming in at $1.67 billion, compared to $1.73 billion for the first quarter of 2014.

Sales of the company's iconic motorcycles were lower than for the same period a year ago. Worldwide, Harley-Davidson dealers sold 56,661 new motorcycles in the first quarter of 2015, down 1.3% from the 57,415 sold during the first quarter of 2014. The situation was the same with domestic sales. US sales for the first quarter came in at 35,488, down 0.7% from the 35,730 units sold in the first quarter of 2014.

For the seventh year in a row, Harley-Davidson was the #1 seller of new on-road motorcycles in 2014 to young adults (ages 18 to 34), women, African-Americans, Hispanics, and Caucasian men age 35 and over. Revenue from the company's Motorcycle and Related Products segment for the first quarter were reported at $1.26 billion, down slightly from $1.31 billion for the first quarter of 2014.

"Despite the current headwinds, we believe Harley-Davidson's brand fundamentals remain strong," said Harley-Davidson Chairman, President and CEO, Keith Wandell. "Our brand is among the most iconic in the world and our motorcycles continue to generate great interest. Dealer sales of the newest Project Rushmore motorcycles ? including the Road Glide and Low models -- were robust in the first quarter, as were sales of the Harley-Davidson Street 750 and 500 motorcycles in international markets. Sales in many of our emerging markets were up significantly in the quarter, including India, China and Mexico. And we continue to grow our network of nearly 1,500 independent dealerships in more than 90 countries globally."

Other News on HOG

Top Analyst Upgrades and Downgrades: Harley-Davidson, Micron, Sonus, Starwood, Tesla and More
Harley-Davidson Inc. was started as Buy at Stifel.

Harley-Davidson Marked As A Barbarian At The Gate
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Published on Apr 22, 2015
By Kevin Mercadante

Copyrighted 2020. Content published with author's permission.

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