News

Harley-Davidson Inc said on Tuesday it would invest as much as $1.6 billion over the next four years to turn around its business raising concerns
Information Liaison
/ Categories: Instant Biker News

Harley-Davidson Inc said on Tuesday it would invest as much as $1.6 billion over the next four years to turn around its business raising concerns

New Age of BIking and Brotherhood
Get your copy of one of the Hottest Selling Biker Books in modern times

By Rajesh Kumar Singh

Sept 24 (Reuters) – Harley-Davidson Inc said on Tuesday it would invest as much as $1.6 billion over the next four years to turn around its business, raising concerns about its earnings and sending its shares lower.

Related Motorcycle Madhouse We will be talking about The Response from Independent Embroidery and the Alliance of Law abiding clubs to the accusations Chuck Jines made on his YouTube Channel

In a presentation to investors, the company said its capital spending would range between $200 million and $250 million a year through 2022, including $225 million to $275 million to develop electric, middle and lightweight bikes.

Additionally, it would make an “operating investment” of $450 million to $550 million.

Garrett Nelson, senior equity analyst at CFRA, said the investments would reduce Harley’s cash flow and pressure earnings.

Harley-Davidson released a statement of goals called to “Amplify Brand Power.”

“A lot of analysts had not included these kinds of numbers in their (earnings) estimates,” he said.

Harley’s shares were last trading down 3.7% at $34.11 in afternoon trade.

The Milwaukee-based company has been struggling to increase sales in the United States, its biggest market, where its core baby boomer customers are ageing and efforts to attract new and young riders have yet to show results.

A police raid on a Bandidos clubhouse uncovered leftover cupcakes embellished with the club’s logo.

To offset weak demand at home, it is trying to make deeper inroads into some of the fastest growing two-wheeler markets in Asia through lightweight motorcycles. The push is part of a strategy to get half of the company’s revenue from overseas by 2027.

The company, known for its heavy touring motorcycles, expects the investment strategy to generate more than $1 billion of incremental annual revenue in 2022 as compared with 2017.

Harley expects the plan will expand its operating margins and add up to $250 million in operating profit in 2022.

Prosecutors have dropped charges against four Outlaws motorcycle club members who were scheduled to stand trial Monday in the murder of a rival club member

The motorcycle maker said it would cut costs and reallocate resources to fund the investments. (Additional reporting by Dominic Roshan K.L. in Bengaluru; Editing by Steve Orlofsky)

Insane Throttle Biker News Support Store

Link to original article

Previous Article The Distinguished Gentleman’s Motorcycle Ride How-To 2019
Next Article The Hells Angels stormed the Rebels clubhouse laying waste they gathered the Rebels in the front yard and pulled their patches officially disbanding the club
Print
7 Rate this article:
No rating

Please login or register to post comments.

Disclaimer

Some articles listed on this website are sometimes taken from several online news sources via published RSS News Feeds. The aggregated content does not necessarily reflect the opinions of the Officers, Participating Clubs, or Indepenant Riders of  the Texas COC&I Region 3. This website supplies this aggregated news feed content as a service for informational, educational, and entertainment resource. All news feeds are provided on an “as is” and “as available” basis. Copyright of the news feeds reserved by respective sites and this website doesn’t alter any link & content of the news feeds.

Texas COC&I Region 3 Officers, Participating Clubs, or Indepenant Riders makes no representation, warranty or guarantee as to the accuracy or completeness of the information contained in any News, Research, Analysis or Opinion provided by this service. Under no circumstances will Texas COC&I Region 3, its officers, participating clubs, independant riders, agents or affiliates be held liable by any person or entity for decisions made or actions taken by any person or entity that relies upon the information provided here.