Harley-Davidson earnings fall as U.S. motorcycle sales remain mired in slump
Harley-Davidson on Tuesday said its recent-quarter earnings fell 24% as the cost of tariffs from China and the European Union and weak sales in the U.S. hurt the bottom line.
Harley said it earned $86.6 million in the three-month period ended Sept. 29, down 24% from $113.9 million in the same period a year earlier.
On a per-share basis, the Milwaukee company earned 55 cents, compared with 68 cents a year ago.
Harley reported $1.27 billion in revenue, compared with $1.32 billion in the year-ago quarter.
The company said it was encouraged by a 2.7% increase in international sales, the first increase in a year, though it was hurt by $21.6 million in tariffs on its motorcycles manufactured in the U.S. and shipped overseas.
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Earlier this year, the company said retaliatory tariffs would cost it between $100 million and $120 million in 2019.
The company's U.S. sales were down 3.6%, reflecting a continued negative trend but the smallest decrease in nearly three years.
Excluding one-time items, Harley earned 70 cents a share, beating analysts' estimates of 52 cents.
In the recent quarter, Harley launched its model-year 2020 motorcycles including its first electric bike, LiveWire, and an electric two-wheeler for kids.
Harley says its goals through 2027 are to grow international sales to 50% of the company's annual motorcycle revenue, launch 100 new bikes, and expand to 4 million total riders in the United States.
This story will be updated as more information becomes available this morning.
This article originally appeared on Milwaukee Journal Sentinel: Harley-Davidson: Earnings fall 24% on tarriffs, weak U.S. sales