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Harley-Davidson Resets Business to Execute The Hardwire Strategic Plan

Harley-Davidson, Inc. reported fourth quarter and full-year 2020 results.

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“The year 2020 was an extraordinary year in many ways and our team navigated many challenges. We managed COVID-19 impacts, kept our community well-being at the forefront, protected liquidity and delivered $250 million in cash savings. We also successfully overhauled the entire company through The Rewire, building a strong foundation to successfully implement our new 5-year strategic plan, The Hardwire,” said Jochen Zeitz, chairman, president and CEO, Harley-Davidson. “The entire Harley-Davidson team put forth tremendous effort in 2020 and we now have the right organization, structure and strategy in place to make step changes in our performance and enhance our position as the most desirable motorcycle brand in the world.”


2020 Highlights and Results

  • Delivered full year diluted EPS of $0.01 and adjusted diluted EPS of $0.77
  • Executed COVID-19 response:
    • prioritized employee well-being
    • provided support to our customers and dealers
    • maintained sufficient cash and liquidity
    • achieved $250 million of cash savings versus planned spending in 2020
  • Increased cash flow from operations $310 million from 2019 to $1.2 billion
  • Paid dividends of $0.44 per share for the full year
  • Overhauled and reset the cost structure of the business through The Rewire actions; effectively lowering our cost base by approximately $115 million
  • Delivered additional The Rewire results:
    • Streamlined product portfolio reducing planned number of models by 30%
    • Re-set motorcycle model year launch timing to align with seasonality
    • Exited 39 markets to sharpen focus on the approximately 50 highest-potential markets
    • Optimized dealer network, reducing total network by approximately 160 net global dealers in 2020
    • Dealer year-end inventory reduced 59%, driving improvements in motorcycle transaction prices and enhancing motorcycle value

The company continues its H-D#1 culture evolution to drive a high-performing and winning organization guided by its vision and mission.


The Rewire and H-D#1 efforts set the company on a new course and provide a solid foundation to execute its long-term strategic plan, The Hardwire, through 2025.

Harley-Davidson, Inc. Consolidated Financial Results

Consolidated Revenue was down 32% in the fourth quarter and down 24% for the full year over 2019. Bottom-line results reflect a loss for the quarter and nominal net income for the full year with Financial Services segment operating income offsetting Motorcycles and Related Products segment operating losses for the year.

Motorcycles and Related Products Segment Results

Revenue from the Motorcycles and Related Products segment was down during the fourth quarter primarily due to lower wholesale shipments versus prior year as the company continued its aggressive approach to supply and inventory management and reset the timing of delivery of new model year motorcycles. Fourth quarter global retail motorcycle sales also reflected the impact of tight inventory and the model year shift.


Fourth quarter gross margin was down 3.7 percentage points to prior year while fourth quarter operating margin finished below prior year due to the impact of volume deleverage and restructuring charges.

Financial Services Segment Results

Financial Services segment operating income was up 31% over prior year in the fourth quarter, primarily driven by a decrease in the provision for loan losses. Full year operating income was down due to increases in the provision for loan losses taken earlier in 2020.

Other Results

Cash – Cash and cash equivalents were $3.3 billion at the end of the year, compared to $834 million at the end of 2019. Harley-Davidson generated $1.2 billion of cash from operating activities in 2020 compared to $868 million in 2019.


Tax Rate – The company recorded an income tax benefit during 2020 driven by a pre-tax loss and favorable discrete income tax benefits recorded during the year.

Dividends– The company paid cash dividends of $0.44 per share on a full-year basis in 2020.

Link: Harley-Davidson

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