How did Harley Davidson expand its business in 31 days?

By John Parker

Business expansion

Harley-Davidson is one of the oldest automakers (FXD) in the world. Previously, we looked at the early history of the company. Now, let’s move ahead by looking at some other milestones from the company’s history and look at how Harley-Davidson expanded its presence in the motorcycle market.

Harley-Davidson V-twin engine

The V-twin engine is a type of internal combustion engine. In 1909, Harley-Davidson used a 49.5-cubic-inch V-twin engine in its Model 5-D. In the same year, Harley-Davidson also began producing spare parts for its motorcycles.

F-head engine

In 1912, the company introduced a variation of the V-twin engine in the form of the F-head engine, where a mechanically operated intake or inlet valve is placed over the exhaust valve. At the same time, Harley-Davidson (HOG) also produced motorcycles with F-head single engines.
The performance of F-head engines was better than the atmospheric inlet valve engines the company used previously. The success of the F-head engine helped Harley-Davidson to grow faster in the coming years. These F-head engine types were used by Harley-Davidson in its motorcycles until 1929.
To date, Harley-Davidson is known to invent innovative motorcycle engines, which allows the company to incorporate new technology in its motorcycles.

Entry in the international market

In 1912, the company built a larger factory with a separate parts and accessories department. This was the first time that Harley-Davidson sold its bikes outside the US market. In the same year, the company began to import its products to Japan. Now, the Harley-Davidson brand enjoys international popularity.
Note that in 1913, Ford (F) began producing its mass targeted vehicle “Model T” at a larger scale with the help of a moving assembly line. The largest US automaker, General Motors (GM), was incorporated in 1908. Japanese automaker Honda (HMC) began producing motorcycles in 1955.
Continue to the next article to read about the association of Harley-Davidson with motorcycle sports.

Harley-Davidson brand

Previously, we looked at key milestones from Harley-Davidson’s early history. If we look at the history of Harley-Davidson (HOG), we can see its inseparable relationship with motorcycle racing. In this article, we’ll talk about how this relationship helped the company to earn popularity among motorsport enthusiasts and improve Harley-Davidson’s brand image.

Association with motorsports

Harley-Davidson motorcycles have established a significant name in the field of motorcycle racing. In 1905, a Harley-Davidson motorcycle won a 15-mile race in Chicago, its first notable victory. Since then, bike riders with Harley-Davidson motorcycles have set many records and registered victories in races, endurance contests, and hill-climbs. Note that the company’s association with motorsports also boosts the brand image among motorsport enthusiasts, which is one reason the company can sell its motorcycles with such expensive price tags.

The HOG story

Whenever we talk about Harley-Davidson, we should also be aware of its immensely popular sponsored motorcycle club, Harley Owners Group (or HOG). According to the company, “the HOG association started in 1920, when the racing team’s mascot, a pig, was carried on a victory lap after each race won by the team.” However, HOG officially began in 1983. It became the largest company-sponsored motorcycle club in the world. Currently, this group has approximately 1 million members worldwide and is the industry’s largest company-sponsored motorcycle enthusiast organization. In addition, HOG also sponsors many motorcycle events including rallies and rides for Harley-Davidson motorcycle enthusiasts throughout the world. Some of the other automakers (XLY) that also use motorsports to gain publicity include Honda (HMC), Ferrari (RACE), and Daimler (DDAIF). Continue to the next article to find out where Harley-Davidson’s key manufacturing plants are located.

BP’s fourth-quarter results

BP (BP) is expected to post its earnings results for the first quarter of 2019 on April 30, 2019. Before we proceed with BP’s first-quarter earnings estimates, let’s look at how the company performed compared to estimates in the fourth quarter of 2018.

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BP’s fourth-quarter revenue stood at $75.7 billion, surpassing Wall Street analysts' consensus estimate by ~2%. Its adjusted earnings per American depositary share stood at $1.02, which exceeded analysts' estimate of $0.84. BP's adjusted EPS rose 55% YoY (year-over-year) in the fourth quarter.

BP’s first-quarter estimates

As per Wall Street analysts, BP is expected to post EPS of $0.69 in the first quarter of 2019, 12% lower than its adjusted EPS in the first quarter of 2018 and 32% lower than its adjusted EPS in the fourth quarter of 2018. BP’s revenue is expected to be ~$60.6 billion in the first quarter, ~12% lower than its revenue in the first quarter of 2018.
In the first quarter, average crude oil prices were lower YoY, which could result in lower upstream realizations and earnings for BP. BP's downstream earnings could also fall, as indicated by the weaker global refining marker margins in the first quarter of 2019 over the first quarter of 2018.

Peers' estimates

BP’s peers are also expected to put up dull performances in the first quarter of 2019 over the first quarter of 2018. Chevron (CVX), ExxonMobil (XOM), and Royal Dutch Shell (RDS.A) are expected to post YoY falls of 26%, 30%, and 17%, respectively, in their EPS in the quarter. Total (TOT) is expected to see a 12% YoY fall in its earnings in the quarter. Suncor Energy’s (SU) EPS are expected to fall 21% YoY in the same period.

Article by MarketRealists