Harley-Davidson, the biggest United States motorcycle maker, said yesterday that second-quarter profit rose 19 percent on increased demand overseas for the company’s cruiser models. The shares fell as domestic sales slid.
Net income climbed to $290.5 million, or $1.14 a share, topping analysts’ estimates by 1 cent. Revenue gained 18 percent to $1.62 billion, the Milwaukee-based company said, while United States retail sales of Harley-Davidson motorcycles dropped 5.5 percent.
A sluggish economy, rising interest rates and declining property values in much of the United States cooled demand for the Harley cruisers, which can sell for as much as $35,000 when customized.
James L. Ziemer, Harley’s chief executive, said in a conference call that he was disappointed with the results. “We’re looking for improved retail sales in the second half,” he said.
Shares of Harley-Davidson fell $1.78, or 2.9 percent, to $59.37, Bloomberg reports.
The company anticipates shipping between 91,000 and 95,000 Harley-Davidson motorcycles during the third quarter.
The company said Harley-Davidson motorcycle sales increased 22 percent to $1.25 billion. Sales from parts and accessories climbed 4.6 percent.
International retail sales saw double-digit growth, with 13.7 percent growth in total European sales. Sales in Japan, Canada and other international markets grew at a combined rate of 13.4 percent.
On the retail side of the business, Harley-Davidson said dealers' sales were down 1.2 percent worldwide during the quarter, with U.S. dealers' sales down 5.5 percent, the AP reports.
Prepared by Alexander Timoshik
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