CEO Jim Ziemer: Harley-Davidson Lowers Forecast

It’s not a surprise. Today, Harley-Davidson Chief Executive Officer Jim Ziemer said in a statement to Wall Street that retail sales dropped sharply in August, leading the company to reduce shipments because it no longer expects higher worldwide dealer retail sales in the second half of the year. Harley-Davidson expects now a net income decline of 4 to 6 percent compared to 2006 levels. Harley-Davidson is lowering its planned third-quarter shipments to 86,000 to 88,000 units from its prior estimate for shipments of 91,000 to 95,000 units. Full-year shipments are expected to be 328,000 to 332,000 units

Zipper's

8 Responses to “CEO Jim Ziemer: Harley-Davidson Lowers Forecast”


  1. 1 Aaron Sep 7th, 2007 at 6:15 pm

    The company’s earnings warning doesn’t appear to be a short-term problem. The operating margins at HOG are causing severe problems for the company. I wrote about the stock earlier today on my blog:

    http://www.growyourfunds.com/2007/09/story_stock_harleydavidson_inc.html

  2. 2 Nicker Sep 8th, 2007 at 1:18 am

    So, do you think they would have this problem had they not scaled up their operation… If they had kept the “supply” tight and their overhead down…?

    -nicker-

  3. 3 rodent Sep 8th, 2007 at 8:50 am

    this is what happens when supply exceeds the demand and the marketis flooded.

  4. 4 HWGTHNG Sep 8th, 2007 at 9:05 am

    Harley Davidson is feeling the same thing most of the manufactures in the country are feeling. Here in the Carpet Capitol of the world the mills are closing division and people are losing their life long careers. This cutting back should come as no surprise to HD as they know how to market a product. Think about it. Where else can you go and pay an high price for a product that is made in China (don’t get me wrong here). I ride a 95th Anniversary Ultra Classic and like the complements I receive on the bike. None of us like to read China and Harley on the same line but the facts are what they are. Sure we want to read MADE IN AMERICA but look at the apparel next time your at your local dealers (or Wal-Mart). Look at some of the parts and “Chrome” goodies and see where they are made. It is the working man & lady that buys the “stuff” and Harley makes a fortune on the products sold in addition to the bike. More “Wanna Bees” cast shadows in the door than owners. Also let’s not forget the workers strike only a few months back. If I were employed at HD I would be asking my self “Harley today – Gone tamale” If HD wants to reduce their cost start cutting at the management level.The problem is they are so deep in management they can’t see the forest through the employees. Wound up?????? You bet I am. I don’t like it when a farmer tells me his product is “home grown” and find out it was bagged overseas. That not truthfull and makes no more sense then “A pig with lipstick” it just ain’t a HOG

  5. 5 Brian Sep 8th, 2007 at 2:26 pm

    I was going to post but HWFTHNG said it all for me. I agree with him.I don’t think companies realize that sending jobs overseas and putting us out of work means we don’t have money to buy their chit…end of story.

  6. 6 chesshirecat Sep 8th, 2007 at 2:52 pm

    Why would any of this surprise anybody.
    Read the following web page…This press release was in 2005.
    The handwriting was on the wall even then.

    http://www.csgrr.com/csgrr-cgi-bin/mil?case=harleydavidson

  7. 7 Scott Sep 9th, 2007 at 10:55 am

    As others have said it is no surprise to read that Harley Davidson is lowering their expectations. I agree that exporting jobs does not make for a healthy business enviroment. We can all rest assured at night that the current banking scandal will affect us all. Not only have the value of our assets been eroded and will continue to erode further over the next few years, but we will take it in the end when the government bails out the lenders with poor judgement that have put us in this mess. In my slanted view I see the whole problem as being greed. Greed from the banking industry and greed from the comsumer. How many consumers want more than they are entitiled? How many banks willingly gave more money than the borrows assets value? I can honestly say I owe no bank on a mortgage. I only buy property on contract from individuals. Yet in spite of this I will have to pay dearly for the mistakes and greed of others. It makes me feel good every morning knowing that I am upside down in my current residence despite that it was appraised at $40,000 more than the price I gave for it last year. When will it all end? It will end when the consumer finally wakes up and take control of their own lives again. I find it hard to feel sorry for people who have knowingly overborrowed 140% on adjustable mortgages. not only are they feeling the pinch now. They will feel it even harder when the government bails out the dishonest lenders. How many harley’s were bought with this assetless money? how many loans did Harley give out to people with no assets to back them up? So many questions and so little answers. The bottom line is Harley will survive. their investers will loose out. The American public will pay again for another banking scandal. BOHICA Bend Over Here It Comes Again!! I am not responsible for my views or the views of others.

  8. 8 Nicker Sep 14th, 2007 at 3:58 am

    Apparently there are several issues converging that instigate the problem ( net income decline of 4 to 6 percent ):

    “… operating margins at HOG are causing severe problems for the company…”

    “…this is what happens when supply exceeds the demand …”

    “…Harley Davidson is feeling the same thing most of the manufactures in the country are feeling…”

    “… they are so deep in management they can’t see the forest through the employees…”

    “…[press release] The handwriting was on the wall even then [in 2005]…”

    “… Greed from the banking industry and greed from the consumer…”

    Sounds familiar, nothing new here.
    I’m with HWGTHNG on this issues:

    “…Harley Davidson is feeling the same thing most of the manufactures in the country are feeling…”

    As my late father would say.. “it is what it is, deal with it”

    -nicker-

Comments are currently closed.
S&S
S&S
Affliction Holdings, LLC

Subscribe

Socialize

Facebook Google+ Twitter