Harley-Davidson's fortunes improve

Harley-Davidson's recent renegotiations with its work force and a more positive domestic economy have resulted in a 37 percent profit increase, a significant boost for the company.

With more affordable models now in the range, including some of the Sportster bikes such as the 883 XL variants, Harley-Davidson is attracting new customers to the fold and saw retail sales rise 7.5 percent in the US and 5.6 percent globally.

When Harley-Davidson sold MV Agusta and closed Buell operations in late 2009, the business was not looking too healthy but its latest financial results show a significant improvement.

The motorcycle maker's share prices rose on the news of its $190.6 million profit, up from $139.3 million in 2010.

Harley-Davidson CEO Keith Wandell issued a 'steady-as-she-goes' statement along with the financial results. In it he said: "While we are pleased by Harley-Davidson’s second-quarter results, including the strong jump at retail in the U.S., our focus remains squarely on sustaining this progress through the ongoing implementation of our business strateg."

The American motorcycle company had originally forecast global sales of 215,000 to 228,000, but has now upgraded that prediction to between 228,000 and 235,000. This would be an increase of around eight to 12 percent compared to 2010.

With a rosy outlook and the engine upgrade for some Australian models from 96 to 103 cubic inches, the company is making gradual changes to its range of motorcycles. Increased profits could also lead to new models in the mid-term future, as the company continues to court younger riders.

Read the latest Bikesales Network news and reviews on your mobile, iPhone or PDA at