Harley-Davidson Inc. said Thursday its profit fell 6.4% in the latest quarter and the motorcycle maker cut its shipments projection for the year, hurt by lower sales in the US amid increased competition. Earnings rose 7.6% from a year ago to $1.55 a share, beating Wall Street estimates by a penny.
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Harley-Davidson shares have increased 11% since the beginning of the year, while the Standard & Poor’s 500 index has increased 6%.
“We are pleased with our ability to gain market share in the U.S”.
Harley’s US market share for the quarter was 49.5%, an increase of 2 points over the same period in 2015. Chief Executive Officer Matt Levatich said, noting intense domestic competition. The company now predicts full-year shipments of 264,000 to 269,000, down from a prior estimate of 269,000 to 274,000.
For the second quarter, Harley-Davidson worldwide retail motorcycle sales were down 1.9 percent on weak USA industry results.
“While our investments to grow product awareness and ridership globally are beginning to take hold in a number of markets, current conditions in the United States and economic headwinds in other parts of the world combine to raise caution”, said Mr Levatich. The company said total motorcycle sales worldwide decreased 1.9%, which included a 5.2% drop in USA motorcycle sales. For the current quarter, the company said it expects to ship 48,500 to 53,500 motorcycles, compared with 53,472 in the year-earlier period.
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Outstanding shares in the quarter ended June 26 fell to about 181.3 million from 208.6 million in the year-ago period.
