USA TODAY International Edition
Harley-Davidson’s motorcycle sales plunge again in US
Given a lift from improved international sales, and its 115th anniversary rallies, Harley-Davidson on Tuesday reported higher quarterly earnings. But Harley’s U.S. motorcycle sales continued to plunge, illustrating the company’s long-running challenges. As the company has set its sights on growing internationally, it has also faced other hurdles, including a 25-percent tariff imposed by the European Union on U.S. motorcycles in retaliation for President Donald Trump slapping tariffs on foreign steel and aluminum. In the U.S., the company has struggled to attract younger customers who haven’t shown interest in motorcycling like past generations. U.S. motorcycle sales were down 13.3 percent for the quarter, compared with a year earlier. Baby boomers, earlier a boost to Harley’s sales as they hit some of their best income-earning years, are now aging out of riding. “For years, the North American heavyweight motorcycle industry grew at double-digit rates due to low interest rates, a strong economy, a rising stock market, and the aging of the baby boomers. However, in recent years and going forward, we expect a much slower growth pattern for the U.S. motorcycle industry,” said industry analyst Robin Diedrich of Edward Jones Co. Still, Harley’s profit was a positive sign. The world’s largest manufacturer of heavyweight motorcycles said it earned $113.9 million in the three-month period ended Sept. 30, up 67 percent from $68.2 million in the same period a year earlier. On a per-share basis, the Milwaukee company earned 68 cents, compared with 40 cents a year earlier. Harley reported $1.32 billion in revenue in the recent quarter, up nearly 15 percent from the year-ago period. Some of the gain was attributed to a 2.6 percent increase in the company’s international sales. Harley said its 115th anniversary celebrations, in the U.S. and the Czech Republic, also helped boost sales this summer and fall, with a combined 260,000 visitors. And the company added international dealerships, apparel stores in Asia and an Amazon.com storefront in the quarter. Harley maintained its full-year shipments forecast range of between 231,000 and 236,000 motorcycles. “Third quarter progress tracked to our plans with numerous highlights including another quarter of international retail sales growth and increased year-over-year earnings per share,” Harley president and CEO Matt Levatich said in a statement. Harley said its worldwide motorcycle sales fell 7.8 percent in the recent quarter. The company has a goal of growing its international business to 50 percent of its sales. A key step was announced in July when Harley said it would partner with an Asian manufacturer, yet unnamed, to build smaller, less expensive bikes for India.