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NEWS
Harley-Davidson's net income takes a hit
"Unprecedented challenges" prompt big drop in income for Milwaukee manufacturerHarley-Davidson this week talked down its outlook for 2016, saying the global economy and competitive pressures have created some "unprecedented challenges".
The American motorcycle manufacturer reported a 43 per cent drop in net income for the recent fiscal quarter to December 31, down to $42.2 million, from $74.5 million in the same period last year.
Revenue fell 2.3 per cent to $1.01 billion. Harley's worldwide motorcycle sales in the quarter slipped less than one per cent, to 46,857 units, but fell 3.4 per cent in the United States — the company's largest market.
However, here in Australia Harley-Davidson is the biggest seller of road bikes.
Harley has seen its U.S. sales slip as the economy has faltered in some states, such as Texas, where oil and gas production is down, and foreign competitors cut prices of their bikes to attract customers.
"Without a doubt, it's been one of the most competitive environments we have seen in years, particularly in the United States," Harley President and CEO Matt Levatich said.
"Much of it is driven by currency (differences), and some of it by new products from competitors all around the world," he added.
Still, Harley regained some ground in the recently and now has a 51.4 per cent share of the U.S. heavyweight motorcycle market.
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Written byBikesales Staff
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