Analyst: Down year ahead for Harley, recovery near
March 22, 2010 by · Leave a Comment
Harley-Davidson inc. is expected to have another down year in 2010, but there may be signs of recovery as the iconic motorcycle maker continues its restructuring efforts, an analyst said Monday in a research note.
In a survey of 70 dealers, Robert W. Baird & co. analyst Craig R. Kennison found that the offseason retail market remains soft, with factors such as high unemployment and bad weather to blame.
Dealers were expected to sell between 28,000 and 30,000 bikes in the first quarter, in line with Baird's estimate but down 30 percent from 2009, which was a strong quarter for the bike maker.
For all of 2009, dealers expect sales to drop between five percent and 10 percent, according to the survey.
But Kennison, who rates the shares "Outperform," also wrote that residual values -- the value at the end of lease periods -- should bottom out soon, indicating "the first sign of a recovery." he also said that Harley-Davidson's management team has taken aggressive steps to refocus the company in the face of falling demand for its high end bikes.
The company spent 2009 reorganizing its business, laying off employees, closing factories and discounting or selling unwanted brands.
Company shares were up 26 cents to $24.87 at midday.
Analyst: Down year ahead for Harley, recovery near
Harley-Davidson CEO gets $6.4M pay package in 2009
March 13, 2010 by · Leave a Comment
NEW YORK — the CEO of Harley-Davidson Inc., who took over the motorcycle maker part way through 2009, received a pay package valued at $6.4 million during his first eight months on the job, according to a regulatory filing.
Keith E. Wandell received a base salary of $650,025 from his start date of May 1 through the end of 2009, according to proxy a filing with the Securities and Exchange Commission. he received a bonus of $780,030 and stock and option awards valued at $4.9 million at the time they were issued.
He also received other compensation worth $22,515, which includes a cash payment of $19,733 instead of perquisites.
Wandell, 60, replaced James L. Ziemer, who retired last year after 40 years with Harley-Davidson and four years as its CEO. before taking over Harley, Wandell was chief operating officer of the car battery and building ventilation systems maker Johnson Controls Inc.
During his final four months as CEO, Ziemer received a pay package valued at $2.9 million. that includes a base salary of $455,144, a bonus of the same amount and stock and options valued at $1.9 million when they were granted.
He received other compensation worth $44,221, including $14,800 in cash instead of perks and $22,521 in contributions to a deferred compensation plan.
The Milwaukee-based motorcycle maker has hit hard times recently as consumers put off buying its high-end bikes. the company ended the fourth quarter with a loss $218.7 million, its first quarterly loss in 16 years.
The company has been laying off workers, closed factories and shuttered or sold unwanted brands.
The AP's total pay calculations include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.
The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the SEC.
Harley-Davidson CEO gets $6.4M pay package in 2009
Harley-Davidson Has Its First Loss in 16 Years
January 27, 2010 by · Leave a Comment
Harley-Davidson, the motorcycle maker, reported a fourth-quarter loss Friday, its first quarterly shortfall in 16 years, hurt by restructuring costs and the sluggish economy. Harley-Davidson has come under pressure over the last year as the tight credit markets and the weak economy led consumers to shun purchases of its high-end, heavyweight motorcycles. The company has been reorganizing its business through layoffs, factory closures and closing or selling unwanted brands. Harley said shipments of its bikes to dealers in 2009 fell 27 percent, to 223,023. For 2010, Harley said it expects shipments to fall another 5 to 10 percent to 201,000 to 212,000 motorcycles. Harley-Davidson said it lost $218.7 million, or 94 cents a share, during the fourth quarter. That marks its first three-month loss since the fourth quarter of 1993 and contrasts with a profit of $77.8 million, or 34 cents a share, a year ago. Revenue tumbled 40 percent, to $764.5 million from $1.28 billion a year ago.
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