USA TODAY US Edition

Harley sales improving overseas

But U.S. sales are still in a slump.

- Rick Barrett Milwaukee Journal Sentinel USA TODAY NETWORK – Wisconsin

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 reve- nue 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.

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 ?? SCOTT ASH/USA TODAY NETWORK ?? Baby boomers, once a boost to Harley’s sales, are now aging out of riding.
SCOTT ASH/USA TODAY NETWORK Baby boomers, once a boost to Harley’s sales, are now aging out of riding.

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