Harley-Davidson Profit Rises 37% on Increased U.S. Bike Sales
2011-07-19 11:40:10.39 GMT
By Mark Clothier
July 19 (Bloomberg) -- Harley-Davidson Inc., the biggest
U.S. motorcycle maker, said profit rose after it boosted sales
in its home market for the first time in almost five years. The
company said it will ship more bikes than previously planned.
Profit from continuing operations jumped 37 percent to
$190.6 million, or 81 cents a share, from $139.3 million, or
59 cents, a year earlier, Harley said today in a statement. The
average estimate of analysts surveyed by Bloomberg was 72 cents.
Sales increased 18 percent to $1.34 billion.
Harley, the maker of the Fat Boy and V-Rod motorcycles, has
cut expenses by renegotiating labor contracts at factories in
Pennsylvania and Wisconsin. The Milwaukee-based company also
introduced bikes, such as the $8,000 SuperLow, to appeal to new
riders. Retail sales rose 7.5 percent in the U.S. and
5.6 percent worldwide, the company 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 strategy,” Chief
Executive Officer Keith Wandell said in the statement.
Harley said it now expects to ship 228,000 to 235,000
motorcycles, an increase of 8 percent to 12 percent from last
year. It had said in April that it planned to ship 215,000 to
228,000.
The company last reported an increase in U.S. sales in the
fourth quarter of 2006.
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--Editors: Jamie Butters, Cecile Daurat
To contact the reporter on this story:
Mark Clothier in Southfield, Michigan, at +1-248-827-7132 or
mclothier@bloomberg.net.
To contact the editor responsible for this story:
Jamie Butters at +1-248-827-2944 or jbutters@bloomberg.net.