Wednesday, April 13, 2005
Things Are Tough All Over
"Management attributed the cuts to slow first quarter sales, but we think the issue may run deeper than that," said RBC Capital analyst Ed Aaron. "For years, neither Harley nor anyone else knew the true underlying growth rate because of supply and demand imbalances. Now that it's come into parity, we think Harley's underlying (production) growth rate is lower than either management or investors perceive."
Harley-Davidson, based in Milwaukee, said it would cut 2005 production by 10,000 shipments from its original forecast, and now targets shipment growth of 3.7 percent from a year ago.
Guess it's only possible to maintain a bad-boy image for so long while selling most of your (crappy) product to doctors and lawyers. Still, they're insanely profitable, and even after today's 10% tumble their market cap is still about that of GM or Ford. Amazing.