(Reuters) – Harley-Davidson Inc’s (HOG.N) profit topped Wall Street estimates on Tuesday for the sixth straight quarter, as sales of its bikes overseas edged up, though the corporate warned that new EU tariffs would squeeze its working margins.
FILE PHOTO: Participants of a bike parade experience their bikes by way of the middle of Prague to have a good time 115th anniversary of the Harley Davidson trademark, Czech Republic, July 7, 2018. REUTERS/David W CernyREUTERS/ File Photo
International shipments rose 2.four % to 29,546 bikes within the quarter.
The outcomes come practically a month after the motorbike maker, which has been on the heart of the brewing commerce battle between the United States and the European Union, mentioned it deliberate to shift manufacturing for European clients overseas to keep away from EU tariffs, a transfer that was slammed by U.S. President Donald Trump.
Harley, which instructions about half of the U.S. big-bike market, mentioned it shipped 72,593 bikes within the quarter globally, down 11.three % from a yr earlier, and maintained its full-year shipments forecast vary of between 231,000 and 236,000 bikes.
The firm expects its bikes section working margin as a % of income to be about 9 to 10 % given the anticipated affect of tariffs in 2018. Operating margin within the second quarter for the bikes and associated merchandise section was already right down to 16 % from 20 % a yr in the past.
Harley, which is scrambling to steer by way of the droop in U.S. demand and trying to enhance sales of its bikes overseas, mentioned its worldwide retail sales – by sellers to clients – inched up zero.7 % overseas.
The firm mentioned its internet earnings fell to $248.three million, or $1.45 per share within the second quarter ended July 1, from $258.9 million, or $1.48 per share, a yr earlier.
Revenue from bikes and associated merchandise fell three.three % to $1.53 billion.
Analysts on a mean anticipated profit of $1.34 per share and income of $1.41 billion, in response to Thomson Reuters I/B/E/S.
Reporting by Arunima Banerjee in Bengaluru; Editing by Bernard Orr