American Motorcycle Dealer AMD 251 June 2020 | Page 64

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NEWS
BRIEFS
While not being paid for May and
June 2020, H-D has announced that
in addition to
an annual
base salary of
$2.5m, newly
minted
permanent
CEO Jochen Zeitz will be eligible to
receive a $1.5m bonus upon Board
approval of his new strategic and
financial plans later this year (to be
paid in February 2021), stock options
that could be worth up to $5m, and
a one-time "Cash Award" payable in
July 2020 in the gross amount of
$1m to cover the overall financial
impact of his relocation to the U.S.
Starting in 2021, he will additionally
be eligible to participate in the
Harley-Davidson, Inc. short and longterm
incentive plans that could be
worth some $7.5m in total. He will
also be covered by the company's
Executive Severance Plan and under
a transition agreement similar to the
company's transition agreements
with other executives.
New motorcycle registrations
Italy for April were -95.85% at
just 526 units, having been -
69.18% in March (3,855 units).
For the YTD (Jan - April) new
motorcycle registrations in Italy
were -49.41% at 20,055 units -
some 15,000 plus of those in a
good start to the year in
January and February. In total
PTW terms March was -66.08%
at 8,520 units and -96.98% in
April with 813 new units
registered. The top selling
motorcycle in Italy YTD is the
BMW R 1250 GS Enduro. For the
record, the Italian market was
again Europe's largest at
+6.26% in motorcycle
registration terms for 2019
(98,883 units) and +5.65% in
total PTW terms at 231,937
units.
Harley Q1 Global Retail -17.7% as Motor
Company Announces COVID-19 Response
Actions and Steps Toward Recovery
Including Strategic Plan Reboot
Harley-Davidson sales revenue and production data…
1st quarter 2020
` Income statements in
THREE MONTHS ENDED
$1,000s (except share) MARCH 2020 MARCH 2019
Net sales revenue $1,099,788 $1,195,637
Gross profit $318,920 $347,439
Operating income $107,513 $167,112
Net income $69,695 $127,945
Diluted earnings per
common share $0.45 $0.80
NET SALES REVENUE
Motorcycles $899,365 $964,575
Parts & Accessories $134,685 $159,703
General Merchandise $49,160 $55,401
MOTORCYCLE SHIPMENT DATA
United States 33,024 34,505
Exports 19,949 24,386
Total H-D 52,973 58,891
PRODUCT MIX MARCH 2020 MARCH 2019
Touring 21,597 25,043
Custom 20,131 20,451
Sportster/Street 11,245 13,397
Total 52,973 58,891
RETAIL SALES OF H-D MOTORCYCLES: MARCH 2020 MARCH 2019
United States 23,732 28,091
Canada 1,466 1,948
EMEA 7,730 10,797
Asia Pacific Region 5,752 6,074
Latin America Region 1,759 2,241
Total 40,439 49,151
Harley-Davidson, Inc.
has reported first
quarter 2020 results
that were not, in fact,
as awful as may have
been expected. Indeed, for the
first ten weeks of the year to mid-
March, the company was headed
towards seeing one of its
strongest quarterly
performances in six years.
At the same time as releasing its
results, Harley has provided an update
on the actions it has taken to address
the impact of COVID-19 as it "restarts
production and begins moving toward
recovery."
The company also outlined near-term
actions that will lead to a new strategic
plan and confirmed that it is to
facilitate home delivery where it is
permitted.
Being termed a "Rewire" of the 'More
Roads' strategic plan of 2018, an 18-
point framework for a "Rewire"
playbook was released with the Q1
results - with fuller details to be
published when the company releases
its Q2 fiscals in July.
However, in the interim, the influence
of acting President/CEO Jochen Zeitz is
evident in the framework for reevaluation
of the company's direction
that has been released so far, and the
direction of travel appears to be
headed towards a complete
jettisoning of the much hyped but
flawed 'More Roads' thinking - indeed
for "Rewire" one might just as well
read complete "Reboot".
Speaking to the immediate issues of
virus response and Q1 performance,
Zeitz stated that "throughout this
global crisis, we prioritize the wellbeing
of our employees and the
Harley-Davidson community in every
decision we make. Our brand is rooted
in community, and we care deeply for
all of those who have been personally
NOTE: H-D MOTORCYLE SHIPMENT DATA IS NOT
THE SAME AS RETAIL REGISTRATIONS
affected.
"We also honor the heroes working
tirelessly to bring care, relief and an
end to this terrible pandemic.
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