Harley reviews business strategy at investor meeting

Harley-Davidson provided a review of its business strategy at its investor meeting in New York City on Monday, according to a research note provided to Powersports Business by RBC Capital Markets analyst Ed Aaron.

Harley-Davidson management "indicated that the company will likely under-ship retail again in 2013 (for the seventh year in a row!), as the Kansas City plant will begin to produce more in line with seasonal demand in model-year 2014," according to the report. "While Harley's move toward a more seasonal production model is well understood, we had been modeling for some inventory replenishment in fiscal 2013 given tight supply conditions in fiscal 2012."

Aaron also reports that the "inventory commentary unfortunately overshadowed some important positives. With sales to both 'core' and 'outreach' customers growing nicely, the demand recovery in the U.S. appears to be on solid footing. Meanwhile, investments to grow internationally are paying off. This momentum should be reinforced by an 'unprecedented' level of product quality and a much more productive R&D program, the benefits of which should become more visible in the 2014/2015 model years."

Harley-Davidson commemorated its 25th anniversary of being on the New York Stock Exchange by ringing the closing bell on Monday, reported BizTimes Milwaukee.

CEO Keith Wandell and members of his management were on-hand for the celebration. Harley, stock ticker HOG, closed at $47.92.

To see more photos from the event, see the NYSE's Facebook page. Video can be seen here.

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