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International shipments rose 2.4 percent to 29,546 motorcycles
in the quarter.
The results come nearly a month after the motorcycle maker,
which has been at the center of the brewing trade war between
the United States and the European Union, said it planned to
shift production for European customers overseas to avoid EU
tariffs, a move that was slammed by U.S. President Donald Trump.
Harley, which commands about half of the U.S. big-bike market,
said it shipped 72,593 motorcycles in the quarter globally, down
11.3 percent from a year earlier, and maintained its full-year
shipments forecast range of between 231,000 and 236,000
motorcycles.
The company expects its motorcycles segment operating margin as
a percent of revenue to be about 9 to 10 percent given the
expected impact of tariffs in 2018. Operating margin in the
second quarter for the motorcycles and related products segment
was already down to 16 percent from 20 percent a year ago.
Harley, which is scrambling to steer through the slump in U.S.
demand and looking to boost sales of its motorcycles overseas,
said its international retail sales - by dealers to customers -
inched up 0.7 percent overseas.
The company said its net income fell to $248.3 million, or $1.45
per share in the second quarter ended July 1, from $258.9
million, or $1.48 per share, a year earlier.
Revenue from motorcycles and related products fell 3.3 percent
to $1.53 billion.
Analysts on an average expected profit of $1.34 per share and
revenue of $1.41 billion, according to Thomson Reuters I/B/E/S.
(Reporting by Arunima Banerjee in Bengaluru; Editing by Bernard
Orr)
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