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T H E # 1 B U S I N E S S M A G A Z I N E F O R T H E A M E R I C A N V- T W I N A N D C U S T O M M O T O R C Y C L E PA R T S I N D U S T RY
“Creating the next chapter of our
legendary legacy” – Matt Levatich’s
open letter to shareholders
n an unprecedented step,
Harley-Davidson CEO Matt
Levatich wrote an open
letter to shareholders in
April this year that was clearly
designed to overcome investor
anxiety following Harley’s 2015
financial statements, and to
head off any negative reaction
to the then upcoming 2016 Q1
announcement.
The letter got very little coverage in
the motorcycle media, yet it included
s o me
very
i n t e r es t i n g
pronouncements, information and
insights.
Levatich cited Harley’s 113 years of
giving “true individuals around the
world a way to powerfully express
their own personal freedom” and
pointed to his own 22 years with
company as a foundation for
understanding “what our brand
means to our customers” and paid
tribute to a dealer network whose
“sole purpose is to deliver
exceptional experiences” and
“passionate and committed”.
However, from a strategic perspective
I
Levatich didn’t duck the challenges
that the company was faced with.
“Our long history has taught us to be
agile and adaptable to changing
circumstances, and 2015 was one of
those times. Last year served up one
of the most competitive
‘a good portion of
our investment is in
product
development’
environments we’ve seen in years”
acknowledging that “our 2015
results didn’t fully meet our
expectations” – citing the 1.3 percent
decrease overall in global sales of
new motorcycles, the 3.7 percent
decrease in revenue to $6 billion, the
10.9 percent decrease in net income
(to $752.2 million) and the 4.9
percent decrease in earnings per
share.
However, the context being
attempted shareholder reassurance,
The winner of this year’s Biker Fest custom show, AMD’s
Italian World Championship affiliate event, was MC
Cycles’ “Avalon” FXR – see report on pages 14-15
he also pointed to what he described
as the “strong value” the he
considered that the company had
nonetheless delivered to its
shareholders through a 12.7 percent
increase in dividend rate and the
repurchase of “nearly 28 million
discretionary shares of our stock.
“Thanks to an all-out effort by our
employees, suppliers and dealers, we
were able to mitigate the impact of a
highly competitive market fuelled
primarily by currency headwinds. We
also made progress against our
objectives, including demonstrating
our appeal and relevance to all
customer segments globally,”
Levatich said.
“We are proud of our efforts in 2015
to preserve key performance
measures and build foundational
strengths for long-term success. We
recognize there are challenges
ahead, and we are taking solid steps
to assert our brand promise, enhance
our company capabilities and grow
our leadership position and share in
the markets we serve.
Continued on page 10 >>>
JUNE 2016
ISSUE #203
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