Harley reports earnings dip

Harley-Davidson is feeling the effects of a volatile global and domestic market, with the Milwaukee-based giant recently reporting its earnings per share were down by 7.2 per cent to 64 US cents over the previous corresponding period.

Sales too have suffered, with worldwide retail motorcycle sales down 4.5 per cent and US sales down 7.1 per cent, while international sales (excluding the massive US domestic market) increased by one per cent over the same quarter last year.

Net income was $US114.1 million, down from $US140.3 million last year, while Harley’s US market share (above 601cc) remained relatively flat at 52.3 per cent.

Harley-Davidson’s President and CEO, Matt Levatich, said the company was operating in the face of some difficult market forces.

“We continue to effectively navigate a fiercely competitive environment and an ongoing weak US industry,” he said.

“We are pleased with the positive results and the enthusiasm we’ve seen for our Model Year 2017 motorcycles, featuring the new Milwaukee-Eight engine. We are confident that the entire line-up will drive retail sales growth for the remainder of 2016 and position us well heading into the spring riding season next year.”

Harley’s 2017 Touring range was unveiled in the US in August in Washington state. The bikes feature the new Milwaukee-Eight engine, which boasts a higher output but significantly more refinement.

Harley-Davidson says the new models helped to drive increased retail sales in September, over the previous year.

In year-to-date figures, Harley-Davidson posted worldwide retail sales down 1.9 per cent. International retail sales were up 3.3 per cent over the same period, while US retail sales dropped by 4.7 per cent.

Reflecting the weak US market, Harley-Davidson said it will streamline its operations in the fourth quarter of 2016, incurring costs of $US20 million to $US25 million, “primarily for employee separation and reorganisation costs”.

“Our value as a company and as a brand is the sum of 113 years of commitment to our riders and the freedom seekers we will inspire to ride in the future,” said Levatich.

“We remain intensely focused on growing the sport and delivering strong business results.”