WISCONSIN: Harley-Davidson is expanding sales operations in Brazil

OFF THE WIRE
http://www.businessweek.com/ap/financialnews/D9JRAPU80.htmHarley-Davidson gains on Brazil expansion deal
Story Tools order a reprint digg this save to del.icio.us NEW YORK
Harley-Davidson is expanding sales operations in Brazil, the company said Wednesday, sending shares up more than three percent.
The iconic motorcycle company has seen domestic sales slide faster at home than abroad and investors cheered its aggressive move in one of Latin America's hottest economies.
Harley-Davidson is expanding its network through an agreement with HDSP/Grupo Izzo, its exclusive dealer in Brazil, the company said in a filing with the Securities and Exchange Commission.
The agreement allows for new dealers in the future, but did not offer specifics. Harley currently lists nine Brazilian dealers on its website.
In the third quarter, Harley sales fell 7.7 percent worldwide from the prior year, and 9.4 percent in the U.S.
Morningstar analyst Philip Gorman said aiming at Brazil is good strategy.
"I think there's some low-lying fruit in international markets where the brand is recognized and there's a desire by consumers to ride this kind of bike," Gorman said.
The company's signature heavyweight touring motorcycles are popular in Brazil and in India, another country Harley has targeted for expansion, Gorman said. Consumers in some other countries find faster performance motorcycles more appealing. "They can't take for granted that the Harley brand will be as strong everywhere as it is here," Gorman said.
The deal follows an announcement from the Milwaukee company that it will use a subsidiary operating structure in Brazil. It recently opened a commercial office in Sao Paulo.
In 1998, Harley-Davidson opened an assembly facility in Manaus, Brazil, its first operations outside the U.S.
Shares rose $1.03 to $32.31 in afternoon trading, down a bit from the intraday high of $32.83