October 25, 2011 - Investorideas.com, a leader in sector research for independent investors issues a snapshot on the motorcycle industry and how the industry is showing signs of recovery, with better than expected sales from the industry leaders.
Overall sales are up about 10% this year from a year ago.
Harley Davidson (NYSE:HOG) and Polaris (NYSE:PII) (which owns Indian and Victory Motorcycles), are the industry's top guns, collectively owning well over 50% of the U.S. market.
Both companies (having recently reported Q3 earnings) have had strong rebounds and are showing phenomenal growth in an industry that is supposedly underwater. Polaris recently raised its sales growth outlook to 30% to 32% based on a solid - and better than expected - third quarter. Sales of off-road vehicles rose 25% and fueled significant market share gains by ATVs in the North American market. Sales of Victory Motorcycles were up 77% compared to figures from the same period last year. Even "Parts, Garments and Accessories" sales increased 21%.
Similar things are happening at Harley Davidson, though the company has run into some production issues. Sales of new motorcycles rose 5.1% to 61,838 bikes, which included a 5.4% increase in U.S. sales. This pushed revenue from bike sales and related products up 13.4% to $1.23 billion. Harley held its motorcycle shipment forecast steady for 2011, saying it still expects to ship between 8% to 12% more new bikes than last year (right in line with Jones' 10% growth estimate).
Of course, sales of finished goods should also drive sales growth for OEMs that supply manufacturers. One such company, US Highland, Inc. (OTC.BB: UHLN.PK) is a relatively new player on the OEM scene, providing complete single cylinder and v-twin engine powertrain foundations - engine platforms coupled with patent-pending innovative fuel systems.
After its own challenges in an industry that has had its share, US Highland is in the midst of a restructuring, bringing in new management (now headed by Harley Davidson and Indian veteran, John Fitzpatrick) solidifying its strategy and operations, and working to raise capital to fund its business plan. Thus, we do not have a lot of specific information at this time, but we do know the Company appears to be an engineering and technology firm first. US Highland generated over $1.5 million in revenues last year from engineering and business development activities, but plans are to target OEM manufacturers, followed by its own line of motorcycles in 2012.
According to management, the Company is currently working with several OEMs for the implementation of its powertrain technology, the results of which could extend US Highland sales beyond 20,000 units per year globally.
US Highland, Inc. (OTC.BB: UHLN.PK) is a US-based designer and manufacturer of high performance, premium quality powertrains. The Company is also a leading development and engineering partner for leading OEMs around the world. http://ushighland.com.
UHLN Company Contact:
John FitzpatrickCEO (918) 827-5254
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Randy Lewis has been compensated $400 by InvestorIdeas.com for writing this article. Mr. Lewis does not own shares of any of the companies mentioned in this article
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