Harley revs up its profit once more
Harley-Davidson’s profit has topped Wall Street estimates for the sixth straight quarter, as sales of its bikes overseas edged up, although the company warned that EU tariffs would squeeze operating margins. International shipments rose 2.4% to 29,546 bikes.
Harley-Davidson’s profit has topped Wall Street estimates for the sixth straight quarter, as sales of its bikes overseas edged up, although the company warned that EU tariffs would squeeze operating margins.
International shipments rose 2.4% to 29,546 motorcycles in the quarter.
The results come nearly a month after the motorcycle maker, which has been at the centre of the brewing trade war between the US and the EU, said it planned to shift production for European customers overseas to avoid EU tariffs, a move that was slammed by US President Donald Trump.
Harley, which commands about half of the US big-bike market, said it shipped 72,593 motorcycles in the quarter globally, down 11.3% from a year earlier, and maintained its full-year shipments forecast range of 231,000 to 236,000 motorcycles. It expects its motorcycles segment operating margin as a percentage of revenue to be 9% to 10%, given the expected effect of tariffs in 2018. Operating margin in the second quarter for the motorcycles and related products segment was already down to 16% from 20% a year ago.
Harley, which is scrambling to steer through the slump in US demand and looking to boost sales of its motorcycles overseas, said its international retail sales — by dealers to customers — inched up 0.7%.
Net income fell to $248.3m, or $1.45 a share, in the second quarter ended July 1, from $258.9m, or $1.48 a share a year earlier. Revenue from motorcycles and related products fell 3.3% to $1.53bn.