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Harley-Davidson ratifies union contracts at Wisconsin plants

EditorNatashya Angelica
Published 08/04/2024, 21:16
Updated 08/04/2024, 21:16

MILWAUKEE - Harley-Davidson Inc. (NYSE:HOG) has successfully ratified new collective bargaining agreements with the unions representing its employees at the company's Wisconsin manufacturing facilities.

These unions include the United Steelworkers Local 2-209 and the International Association of Machinists and Aerospace Workers Lodge 78 at the Menomonee Falls facility, as well as the United Steelworkers Local 460 at the Tomahawk facility.

Jochen Zeitz, Chairman, President, and CEO of Harley-Davidson, commented on the development, highlighting the strength and positivity of the relationship between the company and its unions. Zeitz expressed gratitude towards both the union and company representatives for their diligent and constructive efforts in reaching the agreement.

The ratification of these agreements is seen as a pivotal move for Harley-Davidson, a company that has been an iconic name in the motorcycle industry since 1903. Known for its wide range of leading-edge, distinctive, and customizable motorcycles, Harley-Davidson has also made its mark through its subsidiaries, offering riding gear, apparel, and financial services, including financing and insurance to assist riders.

This latest development is expected to have a significant impact on the company's operations in Wisconsin, ensuring continued production and potentially influencing the company's market position. However, the specific terms of the agreements have not been disclosed.

The news comes directly from a press release statement issued by Harley-Davidson. The company, which has a rich heritage of motorcycle culture, emphasizes its commitment to innovation, evolution, and emotion in building its brand and leading the industry. Harley-Davidson's vision and mission reflect its dedication to the pursuit of adventure and freedom for its customer base.

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The ratification of the collective bargaining agreements underscores the company's ongoing efforts to maintain a cooperative and productive relationship with its workforce, which is crucial for sustaining its manufacturing operations and preserving its legacy in the competitive motorcycle market.

InvestingPro Insights

Harley-Davidson Inc. (NYSE:HOG) has recently demonstrated a solid commitment to shareholder value and financial stability. With management's aggressive share buyback strategy, they are signaling confidence in the company's future prospects.

An InvestingPro Tip notes that this could be a positive sign for investors looking for companies with proactive capital allocation policies. Moreover, the company has shown a consistent commitment to returning value to shareholders by raising its dividend for the past three consecutive years, a trend that aligns with its historical record of maintaining dividend payments for an impressive 32 years.

On the financial metrics front, Harley-Davidson's current market capitalization stands at approximately $5.81 billion USD, reflecting its substantial presence within the industry. The company is trading at a relatively low earnings multiple, with a Price to Earnings (P/E) ratio of 8.68 and an adjusted P/E ratio for the last twelve months as of Q4 2023 of 8.21.

These figures suggest that the stock may be undervalued compared to industry peers, especially considering the company's enduring brand and market position. Additionally, the firm's revenue for the last twelve months as of Q4 2023 totaled $5,836.48 million USD, with a gross profit margin of 30.61%, indicating a strong ability to retain earnings from sales.

In light of these insights, investors may find Harley-Davidson an interesting opportunity, especially when considering the company's recent positive price performance, with a significant uptick over the last six months.

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Those interested in a more comprehensive analysis can find additional InvestingPro Tips on https://www.investing.com/pro/HOG, including predictions about the company's profitability and sales trends. For those looking to delve deeper into the financials and forecasts for Harley-Davidson, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a total of 11 more InvestingPro Tips to guide your investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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