Harley-Davidson quarterly profits better than expected
Despite Donald Trump’s tariffs, sales for its heavy touring bikes climbed overseas, led by Europe
Bengaluru/Chicago — Harley-Davidson’s profit topped Wall Street estimates on Tuesday for the seventh consecutive quarter and it maintained its 2018 shipments forecast, as sales for its classic heavy touring bikes climbed overseas, led by Europe.
Harley-Davidson shares were up 4% before the bell.
The 115-year old Milwaukee-based company is trying to boost its sales in international markets as demand in the US fizzles due to an aging customer base and younger consumers preferring cheaper bikes.
US President Donald Trump’s call to boycott the motorcycle manufacturer for its decision to move production for European markets overseas has compounded the company’s troubles. Overall retail sales in the US fell 13.3%. However, retail sales in Europe rose 3%.
The company said its net income rose to $113.86m, or 68c per share in the third-quarter ended September 30, from $68.21m, or 40c per share, a year earlier.
Revenue from motorcycles and related products rose 16.8% to $1.12bn. Analysts, on average, expected profit of 53c a share and revenue of $1.07bn, according to data from Refinitiv.
The company maintained its full-year shipments forecast range of between 231,000 and 236,000 motorcycles.