Bob
15th April 2005, 00:13
Analysts are starting to question Harley-Davidson’s belief that earnings will continue to grow.
Admittedly, H-D had an increased first quarter earnings compared to last year (US$227.2 million, compared with $204.6 million), but sales figures were down, prompting a reduction in short-term production, shipping and earnings forecasts.
Jake Balzer, a senior equity analyst at Guzman & Co., claimed "The slowdown may already be here. Everybody just needs to pare down their expectations for this company." Balzer said Harley's chief obstacle is its older demographic of buyers "This baby boomer generation, theres going to be a lag time between when they stop buying bikes and the time when they pass that money on to the next generation and they start buying bikes."
Jim Ziemer, the firm's chief financial officer who moves up to chief executive officer at the end of the month remained optimistic."Looking ahead, we expect Harley-Davidson's business to continue to grow and 2005 to be our 20th consecutive record year" he said.
Admittedly, H-D had an increased first quarter earnings compared to last year (US$227.2 million, compared with $204.6 million), but sales figures were down, prompting a reduction in short-term production, shipping and earnings forecasts.
Jake Balzer, a senior equity analyst at Guzman & Co., claimed "The slowdown may already be here. Everybody just needs to pare down their expectations for this company." Balzer said Harley's chief obstacle is its older demographic of buyers "This baby boomer generation, theres going to be a lag time between when they stop buying bikes and the time when they pass that money on to the next generation and they start buying bikes."
Jim Ziemer, the firm's chief financial officer who moves up to chief executive officer at the end of the month remained optimistic."Looking ahead, we expect Harley-Davidson's business to continue to grow and 2005 to be our 20th consecutive record year" he said.