Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

HARLEY-DAVIDSON, INC.

(HOG)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Harley-Davidson Hit With EU Tariff Ruling, Plans Appeal -- 4th Update

04/19/2021 | 03:06pm EDT

By Alistair MacDonald and Colin Kellaher

Harley-Davidson Inc. has been hit with a European Union import ruling that the motorcycle maker says would impose an import tariff of 56% on its products and keep it from functioning competitively in Europe.

The Milwaukee-based company announced the ruling along with better-than-expected sales and profit for the first quarter, news of which lifted the stock to a new multiyear high.

Harley-Davidson has been one of the highest-profile U.S. casualties of recent trade disputes, after the EU put a 25% duty on its bikes and other U.S. goods in 2018. Those levies were a response to tariffs the Trump administration imposed on steel and aluminum from producers in Europe and elsewhere.

On Monday, Harley-Davidson said Belgium's Economic Ministry, on behalf of the EU, had notified the company that it was revoking an agreement that allowed the business to supply Europe with certain motorcycles produced at its international manufacturing facilities at tariff rates of 6%.

Harley-Davidson said the EU ruling would apply to its entire lineup and subject all products -- regardless of origin -- to a 56% import tariff within the trade bloc beginning June 1.

The European Commission, the EU's executive arm, declined to comment.

The company also released its quarterly result Monday. Harley-Davidson's earnings jumped to $259.1 million in the first quarter, from $69.7 million in the year-ago quarter. Revenue improved to $1.42 billion from $1.3 billion.

Harley-Davidson said motorcycle sales rose 30% in North America for the first quarter. As a result, the company raised its 2021 forecast for motorcycle revenue growth to between 30% and 35%, up from its previous projection of 20% to 25%.

Shares of Harley-Davidson rose 9.7% Monday, closing at $44.29, its highest closing price since 2018.

Harley-Davidson had lowered its EU tariff bill by sending motorcycles to Europe that were made in Thailand. With the end of that arrangement, the company now finds itself battling EU trade authorities over a tariff imposed on motorcycles that are no longer produced in the U.S.

The motorcycle maker said it plans to lodge an immediate legal challenge to what it called an unprecedented decision that "underscores the very real harm of an escalating trade war to our stakeholders on both sides of the Atlantic."

The Office of the U.S. Trade Representative declined to comment.

Harley-Davidson received word of the EU's tariff increase late Friday, a person familiar with the matter said.

While the EU's original round of tariffs hit other high-profile U.S. goods, such as jeans made by Levi Strauss & Co. and Kentucky bourbon, vocal support from then-President Donald Trump pushed Harley-Davidson into the spotlight as a U.S. victim of the trade barbs exchanged in recent years between the U.S. and Europe and China.

Harley-Davidson said in 2018 that EU tariffs would raise the cost of each bike shipped to the trade bloc from the U.S. by about $2,200. Rather than raise prices, the company said it would shift production of motorcycles for the EU market to outside the U.S., prompting Mr. Trump to accuse the company of raising the white flag.

More recently, the U.S. and EU have suspended some import tariffs. In March, the two sides agreed to suspend tariffs on wine, luggage, produce and other goods related to a longstanding dispute over government subsidies to Boeing Co. and Airbus SE. Washington also suspended tariffs on U.K. luxury goods, including Scotch.

Europe, the Middle East and Africa had been among Harley-Davidson's largest markets outside of the U.S., but its first-quarter results showed almost 3,000 fewer motorcycles sold in the sales region, marking a 36% decline from a year earlier.

The company attributed the decline to shipping delays related to the pandemic and its decision to stop selling some popular motorcycle models in the region.

Harley-Davidson will soon offer a new motorcycle known as the Pan America and designed for on-road and off-road use. Company executives anticipate the model will be popular in Europe.

The EU tariff decision comes at a time when the company has curtailed sales activities in lesser foreign markets to focus on North America, Europe and Japan. Harley-Davidson is in the midst of overhauling its sales and production strategies under Chief Executive Jochen Zeitz, a longtime director picked for the top post early last year. The company in 2020 slashed production of motorcycles as part of a plan to reduce inventories of bikes at dealers and boost prices for used models.

Bob Tita and Colin Kellaher contributed to this article.

Write to Alistair MacDonald at alistair.macdonald@wsj.com

(END) Dow Jones Newswires

04-19-21 1706ET

Stocks mentioned in the article
ChangeLast1st jan.
AIRBUS SE 0.04% 112.4 Real-time Quote.25.15%
DJ INDUSTRIAL -0.74% 34227 Delayed Quote.12.65%
DOW JONES AFRICA TITANS 50 INDEX 0.01% 549 Delayed Quote.3.71%
HARLEY-DAVIDSON, INC. -1.05% 46.9 Delayed Quote.29.16%
LEVI STRAUSS & CO. -1.82% 26.76 Delayed Quote.35.71%
S&P AFRICA 40 INDEX -0.20% 179.04 Delayed Quote.3.69%
SYNEOS HEALTH, INC. -0.30% 83.46 Delayed Quote.22.88%
THE BOEING COMPANY -0.97% 244.87 Delayed Quote.15.52%
All news about HARLEY-DAVIDSON, INC.
06/09HARLEY-DAVIDSON, INC. : Ex-dividend day for
FA
06/04HARLEY DAVIDSONá : Wedbush Adjusts Price Target on Harley-Davidson to $60 From $..
MT
06/02HARLEY DAVIDSONá : Maintains Momentum on Strong Demand Environment, Used Motorcy..
MT
05/25INSIDER TRENDS : Insider at Harley-Davidson Gets Stock Award and Converts/Exerci..
MT
05/25INSIDER TRENDS : Harley-Davidson Insider Converts Options Extending 90-Day Buyin..
MT
05/25INSIDER TRENDS : Insider at Harley-Davidson Converts Options in Mist of 90-Day B..
MT
05/25INSIDER TRENDS : Harley-Davidson Insider Reports Option Conversion Extending 90-..
MT
05/25HARLEY-DAVIDSON, INC.á : Submission of Matters to a Vote of Security Holders (fo..
AQ
05/20HARLEY DAVIDSONá : Declares Unchanged Dividend of $0.15 Per Common Share, Payabl..
MT
05/20Harley-Davidson, Inc. Declares Dividend
GL
More news
Financials (USD)
Sales 2021 4 372 M - -
Net income 2021 495 M - -
Net Debt 2021 5 714 M - -
P/E ratio 2021 15,1x
Yield 2021 1,27%
Capitalization 7 284 M 7 284 M -
EV / Sales 2021 2,97x
EV / Sales 2022 2,71x
Nbr of Employees 5 150
Free-Float 90,2%
Chart HARLEY-DAVIDSON, INC.
Duration : Period :
Harley-Davidson, Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends HARLEY-DAVIDSON, INC.
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 17
Average target price 50,36 $
Last Close Price 47,40 $
Spread / Highest target 47,7%
Spread / Average Target 6,25%
Spread / Lowest Target -30,4%
EPS Revisions
Managers and Directors
NameTitle
Jochen Zeitz Chairman, President & Chief Executive Officer
Gina Goetter Chief Financial Officer
Bryan Niketh Senior VP-Product Development & Operations
Paul J. Krause Secretary, Chief Compliance & Legal Officer
Julie M. Anding Chief Administrative Officer & Executive VP
Sector and Competitors
1st jan.Capitalization (M$)
HARLEY-DAVIDSON, INC.29.16%7 284
BAJAJ AUTO LIMITED10.30%16 487
YAMAHA MOTOR CO., LTD.54.94%10 284
EICHER MOTORS LIMITED8.45%10 252
HERO MOTOCORP LIMITED-4.01%8 197
YADEA GROUP HOLDINGS LTD.2.87%6 045