Harley-Davidson reports lowering profits

Harley-Davidson reports lowering profits

Legendary motorcycle maker Harley-Davidson reported profits figures, which are lower than what they achieved last year. However, they still managed to beat the market expectations. The profit figures were higher than expected by the stock market. This helped them improve their position in the share market by around 5%. The results beat the expectations of the market by 5 cents per share. Reasons for falling profits is said to be due to reduced shipments from the market to the retail stores.

However, the company still came under scrutiny from the U.S. Regulators who has opened an inquiry into the company for limiting productions. The company announced their plans to limit the manufacturing of motorcycles in April. The investors however are not worried about the company and have expressed confidence in the Harley brand. The latest reports from the company also showed that the Net income in the second quarter fell to $237.4 million from $247.2 million. The markets were expecting an earning of about 79 cents a share while the company delivered 84 cents a share.

Since the company had bought back some of the shares from the market, the per share profit rose compared to an earning of 83 cents last year. The company reported sales of $1.333 billion from $1.328 billion, which is an improvement from the expected figures of $1.306 billion by the market. The company shipped around 77,000 units of their motorcycles to their dealers while the sales were up at 114,000 units, which is a record for the company.

The company has also said that they are still on track for their planned sales figure of 329,000 units this year. They had earlier cut this figure by around 10,000 units due to a weaker outlook in the retail market.