Everytime I've been to Europe I've seen more Harleys and new dealers,
but it's been about 9 months since my last trip. Found this 2/97
news item that may answer your question...
Wednesday February 12 7:14 PM EST
Harley-Davidson Inc adds European dealerships
By Chris Scott
CHICAGO, Feb 12 (Reuter) - Harley-Davidson Inc confirmed Wednesday it is setting up new dealerships in Europe in an effort to rev up recent sluggish overseas motorcycle sales.
"We are setting up new dealerships," Harley-Davidson spokesman Rod Copes said. The company said last month it would boost production in 1997 to 130,000 units.
Copes declined to comment on a intraday drop by Harley-Davidson shares after Hambrecht & Quist downgraded the stock. Harley-Davidson finished the day off 1-1/8 at 42, after dipping as low as 39-5/8.
Industry analysts said the factors that sparked the downgrade to hold from buy were already known.
"It's old news," said Beth Burnson, an analyst at ABN AMRO Chicago Corp, when asked about the downgrade by Hambrecht & Quist analyst Shelly Hale Young.
Young had cited weaker than expected exports and poor sales of Harley-brand apparel. She had also cut her earnings estimate for fiscal 1997 to $2.19 a share from $2.25.
"The company identified these problems (outlined by Young) in the third quarter and took steps to address them in the fourth quarter," Burnson said.
Burnson said given the current production goal, the Milwaukee-based motorcycle manufacturing company should be able to achieve the current consensus earnings estimate of $2.20 a share for 1997, if not surpass that amount.
Ronald Glantz, an analyst at Dean Witter Reynolds, agreed that the information cited in the downgrade was not fresh news.
"The problems in Europe were first told to analysts when the company reported its third quarter earnings, and again in a conference call with analysts on January 24," he said.
"The motor clothes have no impact on earnings and were down 10 percent in 1996," Glantz said.
"Management has already said there would be no growth in 1997 (for apparel sales) and I'm projecting that (motor clothes) sales will be off four percent (this year)," Glantz said.
Burnson also said the situation with the motor clothes was not a surprise.
"The apparel slump has been going on for the last five quarters," she said. "Clothing sales should be flat for this year and that's already reflected in the estimate."
Copes said Harley did not expect a deterioration in apparel sales in 1997 from the $90.7 million in 1996.
Steven Eisenberg, an analyst at Oppenheimer & Co, said Harley-Davidson has other projects designed to revive European operations.
"They're raising production levels, setting up new dealerships, raising their profile in Europe and they're ready to ship Buell (a new sports motorcycle) in 1997," Eisenberg said. "All of this was
noted in the conference call."
((Chicago newsdesk (312) 408-8787))
Happy Motoring!! - C
P.S. I heard a rumor there will be Buell demo rides this weekend
in Oceanside, CA. |
